GIC 5.50% - 7.25% - Millennium Bank

[chris103610]

Ok, so I was looking around at rates, i usually go to gicdirect.com, they usually have the best rates, but above that in the "sponsored link" i see "High Yied CD's - 7.50% " (i googled gic rates)

Obviously, i clicked it,
point of information - Millennium Banks term " CD " (cash deposit) is the same as GIC. just fyi.

http://www.mlnbank.com/EN/services/premcds.htm?gclid=CIaU_M_ImZcCFQv7agodMX9u_A

anyways, it didn't take long for me to realize this wasn't a Canadian or American bank.
This is from there "FAQ"

"Millennium Bank is located in Kingstown, the capital city of St. Vincent and the Grenadines. Saint Vincent and the Grenadines is located in the West Indies within a one hundred mile radius of Barbados, St. Lucia and Grenada."

i also read this...
Will my account be subject to taxation?
Income derived from interest in your account is tax-exempt in St. Vincent and the Grenadines, a tax free jurisdiction. The Government of St. Vincent and the Grenadines does not impose a tax on income derived from interest. "

i lol'd to say the least, i always saw this in the movies. you know off shore accounts and what not. Would investing into something like this be legal? ie. if i don't report my interest :confused:

also, what scares me is this...

Are deposits in Millennium Bank protected by FDIC insurance or any similar deposit insurance plan?
Deposits in all private or offshore banks in the Caribbean and around the world are not protected by FDIC insurance or any other insurance plan.

^ this is probably why they give such a high % rate.

what are your thoughts. and most importantly. DO ANY of you have off shore accounts? advice? this is probably high risk right?

[CCCC3333]

http://www.fatwallet.com/forums/finance/667338

[flito ray]

sounds like a scam i think

[angel_wing0]

you might as well throw your money away
LOL

[chris103610]

http://www.fatwallet.com/forums/finance/667338

Thanks. i never heard of fatwallet before!

[Rishi]

I have a *PRISTINE* quality 1660m suspension bridge for sale...

[angel_wing0]

I have a *PRISTINE* quality 1660m suspension bridge for sale...

for how much? :D

[bandana]

I can't comment on this particular bank, but the mere fact that a financial institution is located in another country doesn't automatically make it a scam. Of course, one needs to do due dilligence before making ANY investment - here or overseas. Some of my best investments over the years have been overseas.

[angel_wing0]

I can't comment on this particular bank, but the mere fact that a financial institution is located in another country doesn't automatically make it a scam. Of course, one needs to do due dilligence before making ANY investment - here or overseas. Some of my best investments over the years have been overseas.

From geo123 of fatwallet:

Contrary to the suggestions on its website, Millenium Bank is NOT a Swiss Bank! In reality, it is Millenium Bank of St. Vincent and the Grenadines which appears to be located in Raleigh, N.C.!

Here's more information to consider:

Domain Name.......... mlnbank.com
Creation Date........ 2003-08-28
Registration Date.... 2003-08-28
Expiry Date.......... 2013-08-28
Organisation Name.... Millennium Financial Group
Organisation Address. 4020 West Chase Blvd
Organisation Address.
Organisation Address. Raleigh
Organisation Address. 27607
Organisation Address. NC
Organisation Address. UNITED STATES

Admin Name........... Ralph Sherman
Admin Address........ 4020 West Chase Blvd
Admin Address........
Admin Address........ Raleigh
Admin Address........ 27607
Admin Address........ NC
Admin Address........ UNITED STATES
Admin Email.......... mfg@2000-mfg.com
Admin Phone.......... (919)7541100
Admin Fax............

Tech Name............ Verio Hostmaster
Tech Address......... 5050 Blue Lake Dr.
Tech Address.........
Tech Address......... Boca Raton
Tech Address......... 33431
Tech Address......... FL
Tech Address......... UNITED STATES
Tech Email........... hostmaster@VERIO-HOSTING.COM
Tech Phone........... 888-663-6648
Tech Fax.............
Name Server.......... col1.caribsurf.com
Name Server.......... col2.caribsurf.com

Millennium Financial Group Inc
4020 West Chase Blvd
Suite 100
Raleigh, NC 27607
Telephone: (919) 754-1100
.
Original Business Start Date: July 1995 Employees: 2
Principal: Mr. Ralph Sherman, Owner
TOB Classification: Financial Planning Consultants

Here's another interesting link: http://www.stvincentoffshore.com/fin_institutions.htm
Another interesting analysis: http://www.investmentinternational.com/productA/Millennium_Bank.htm
It appears that Millenium Bank is already under GIFSA's controllership. The Nigerian scam appears to be a safer investment than this so-called "bank."

[Frankie3s]

From geo123 of fatwallet:

Contrary to the suggestions on its website, Millenium Bank is NOT a Swiss Bank! In reality, it is Millenium Bank of St. Vincent and the Grenadines which appears to be located in Raleigh, N.C.!

Here's more information to consider:

Domain Name.......... mlnbank.com
Creation Date........ 2003-08-28
Registration Date.... 2003-08-28
Expiry Date.......... 2013-08-28
Organisation Name.... Millennium Financial Group
Organisation Address. 4020 West Chase Blvd
Organisation Address.
Organisation Address. Raleigh
Organisation Address. 27607
Organisation Address. NC
Organisation Address. UNITED STATES

Admin Name........... Ralph Sherman
Admin Address........ 4020 West Chase Blvd
Admin Address........
Admin Address........ Raleigh
Admin Address........ 27607
Admin Address........ NC
Admin Address........ UNITED STATES
Admin Email.......... mfg@2000-mfg.com
Admin Phone.......... (919)7541100
Admin Fax............

Tech Name............ Verio Hostmaster
Tech Address......... 5050 Blue Lake Dr.
Tech Address.........
Tech Address......... Boca Raton
Tech Address......... 33431
Tech Address......... FL
Tech Address......... UNITED STATES
Tech Email........... hostmaster@VERIO-HOSTING.COM
Tech Phone........... 888-663-6648
Tech Fax.............
Name Server.......... col1.caribsurf.com
Name Server.......... col2.caribsurf.com

Millennium Financial Group Inc
4020 West Chase Blvd
Suite 100
Raleigh, NC 27607
Telephone: (919) 754-1100
.
Original Business Start Date: July 1995 Employees: 2
Principal: Mr. Ralph Sherman, Owner
TOB Classification: Financial Planning Consultants

Here's another interesting link: http://www.stvincentoffshore.com/fin_institutions.htm
Another interesting analysis: http://www.investmentinternational.com/productA/Millennium_Bank.htm
It appears that Millenium Bank is already under GIFSA's controllership. The Nigerian scam appears to be a safer investment than this so-called "bank."

Confirmation that you'll lose your dough.

[tsatsa]

sounds like a scam i think

+1

[bandana]

Sure, this is a bank in St. Vincent and the Grenadines that hosts its website via a US-based webhost.

Is this bank a scam? Maybe, or maybe not. Just because it's offshore doesn't necessarily make it a scam. If that were so, then the reputable offshore banks like HSBC in other jurisdictions offering 14% - 18% interest on deposits - with moderate foreign exchange risk - would also be of little value to investors.

[pigeonhole]

The SEC say's

http://www.sec.gov/news/press/2009/2009-68.htm

[EugW]

http://www.sec.gov/news/press/2009/2009-68.htm
Surprise, surprise...

[ilusa]

Whenever you hear Tax Free, and its sopposed to be a Legit company

Its a scam 100%

[Jaytee]

"According to the SEC's complaint, at least $68 million was raised from more than 375 investors since July 2004."

I dont understand how people with so much money could be so stupid.

[demrea]

"according to the sec's complaint, at least $68 million was raised from more than 375 investors since july 2004."

i dont understand how people with so much money could be so stupid.

g r e e d

[Milfman]

I dont understand how people with so much money could be so stupid.

It seems like common sense isn't common after all

[tamper]

I'd say there's also a lack of financial knowledge coupled with the greed.

There is no such thing as constant, hi-yield returns, that are risk free. Any body advertising such a product is lying.

And if anyone invented such a system why the heck would they share it with you? They would surely just borrow a hundred billion dollars at the prime rate and run it through their system and make the spread between the two rates.

[WHO]

Meh... you know, ScotiaBank pays 10% interest in savings account down in Jamaica. But, on the other hand, a mortgage will cost you 18% interest.

Is it really worth your trouble? I mean, sure 10% is 5X + what you'll yield here, but to be worth it, you have to deposit a large sum of money in a country far away. As much as Scotia is reputable, I don't see myself leaving 10s of thousands that far away from me. Bottom line, the rules are simply not the same over there.

[bubble.tea]

you might as well throw your money away
LOL

yeah....throw it...RIGHT...over....TO MEEEEEEEEEEEEEE

[tamper]

Yields in those countries are high for several reasons all related to risk.

1) The countries are not financially stable
2) The countries are not politically stable
3) There is high inflation, which suggests that there will be a currency devaluation against other world currencies if this is sustained over a long period.



On the notion of putting money in Scotiabank's foreign subs consider:
Scotiabank may be reputable but they have also had meltdowns overseas. What was a GIC at Scotia's Argentina subsidiary yielding before that country's most recent banking crisis? What happened to those deposits between bank insolvency and currency shock?

Bottom line you cannot escape a Risk/Return tradeoff.