preview.tinyurl.com/2rwjpd -> www.mymoneyblog.com/archives/2007/06/millennium-bank-perhaps-not-a-scam-but-not-safe-either.html
But given the internet age, when you see "bank", it could be from any corner of the world. The terms "certificate of deposit" or "savings account" may imply security here, but don't necessarily mean anything internationally.
Safe Internet Banking: Read key information about the bank posted on its Web site. Although it tries to distract you by saying it is owned by some Swiss trust company, if you read further it you find that Millennium Bank is located in the Caribbean nation of St.
a small offshore financial sector whose particularly restrictive secrecy laws have caused some international concern. Does this sound like a place that you would want to keep your money? If something goes wrong, do you want to navigate a foreign system to get your money back?
It doesn't even appear to insure its deposits by any private or public agency. If a bank claims to be a subsidiary of a bank that is FDIC-insured, call the parent bank. Finally, risk and return are closely linked in legitimate bank products. If the best any other bank can do is barely 6%, there's virtually no way a bank offering 8% return with the same level of risk. They have to be doing something riskier, whether it is making some currency bets or investing in lower-quality debt. Given the lack of disclosure of what these risks are, you might as well buy some junk bonds, which are at least rated by reputable independent companies. Bottom line, I hope you'll agree there's absolutely no reason to put your money anywhere near this institution.
June 5th, 2007 at 6:30 am Millennium Bank is a sponsor of The Wealth Collection (magazine for super wealthy people like Donald Trump). I dunno if that means it's safe, but it's definitely ligit.
if the bank is overseas, why should they be insured under FDIC. I am sure great British banks are not FDIC insured nor have presence in the US. There are some Australian, Indian banks that offer around 8% or more. The reason these banks are not under FDIC umbrella is because FDIC requires/advices/forces these banks on how to invest their money etc. These banks are risky but not necessarily a bad investment. I am sure there are many american based stocks that are worst.
June 5th, 2007 at 9:36 am If one fully understands the deposit insurance available in another country, and feels that they can get the money back easily in the even of trouble, sure, go for it. I don't want to have to make a flight or write letters just to get a resolution. Most foreign bank accounts are also held in their home currency, which can be a good or bad thing depending on one's situation.
June 5th, 2007 at 10:45 am Jonathan - thank you for your comments, I believe you are just trying to be transperant and make people as ignorant as me think before investing in such banks.
June 5th, 2007 at 10:54 am I hope it's also perfectly clear that sponsorship and endorsement are completely different animals. Just because you see an ad in between your favorite TV show, in a magazine, in a newspaper, or in a website, does not mean that the advertiser has the endorsement of that media outlet. It doesn't matter if it's for beer, make-up, cars, or banks. I don't have the time or inclination to filter every single ad that gets submitted through Google. My goal remains to write useful information about topics that interests me, and trust each of my readers to make the proper decision for themselves regarding the advertisements.
June 5th, 2007 at 1:32 pm Tim, When i click on the website, the bank is wth two n's. I was reading the following from their executive statement. The English doesnt really seem very professional, especially in the last sentence. Deposits in most countries are protected by a form of deposit insurance. It is therefore important to choose an international private financial institution that is strong.
June 5th, 2007 at 1:43 pm I sent them an email with the following questions: 1) I have USD$100,000 to invest, what is the best rate I can get? Can someone send them an email and ask who the president of the bank is and what is their email address.
June 5th, 2007 at 2:57 pm Other countries often have higher interest rates because they have higher inflation. Since you have to keep money in their local currency it means that by PPP their currency should decline at approximately the difference in the rates, all else being equal. Thus you cannot get higher real returns in this way without taking on higher risk. However it doesn't mean that just because they offer higher nominal returns that it is more risky. In fact if you have some reason to own that currency then this may make sense.
June 5th, 2007 at 2:59 pm Overseas banks can offer higher interest also due to different prevailing rates for their country. NZ banks offer 8% CDs -- probably guaranteed by the NZ FDIC equivalent. But due to currency flux, you may end up getting less than 8%.
June 5th, 2007 at 3:50 pm I looked into that bank a few months ago, lured by their high rate. I found the same stuff you did, plus some unsatisfied' customers who'd posted their experience on the web. I can't *conclusively* say so, but that wanna-be-Swiss connection plus what I read was enough to keep me away from them. I'm glad you're posting about it though, because if it's really not legit, it needs to be discussed more openly.
But as mentioned before, if the account is denominated is US Dollars, it's got to have some currency exchange risk built in. The issue with Mill Bank is that you have no idea what they are investing in. There seems to be at least two US-based banks also name Millennium Bank, all with two n's.
June 6th, 2007 at 8:00 am If it is a bank we do not already know or have a relationship with at Sovereign, I cannont comment on safety. Regards, Jack Crooks, Currency Director Crooks Currency Group P S Bob Bauman, our legal counsel did comment on this type of inquiry previously, as follows: Dear Sir/Madame: We checked with two leading and trusted financial advisors with whom we work in Zurich.
html) nor does it appear in the trade registry of Swiss corporations. It appears that the "bank" is little more than a web site full of words. Lavita Turner Customer Service/Conference Associate The Sovereign Society 98 SE 6th Avenue, Suite 2 Delray Beach, FL 33483 Telephone: 888-358-8125 ******************** Any and all communications from Sovereign Society employees should not be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice.
June 7th, 2007 at 1:26 am As everyone knows, you can get a 5% rate FDIC insured a lot of different places. Is the extra 3% return really worth risking never seeing your money again? If you had $10,000 invested, 5% would get you $10,512 & 8% would get $10,830.
June 28th, 2007 at 1:23 pm I researched this "bank" extensively and can say that either it is a ponzi scheme type of fraud or is a money laundering operation for tax evasion or drug dealers. If it is money laundering then your money is probably safe until the "bank" gets into trouble with US or European governments. There is no such institution as United Trust of Switzerland. Some investors of Millenium bank purchased the United Trust in a bankruptcy auction and is not even registered in Switzerland. Its interest rates are higher and is insured by Czech government which is quite stable.
More people going there means more competition to my bidding. But, with more bids coming in, hopefully they'll be able to get better sponsor deals to pass on to us. Leave a Reply Name * Mail (will not be published) * Website Please type the anti-spam word shown.
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