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 Replies: 22 / Views: 2,985 |
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Rest in Peace
United States
9104 Posts |
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Pillar of the Community
United States
1454 Posts |
"I'm very weary of gimmicks like this," says Stephanie Wei, VP of Nerdwallet's deposit products. "As you probably know, deposit insurance with the FDIC is only up to $250,000, so you're taking on a risk (if that bank fails)...There are red flags everywhere."
What I was thinking.
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Valued Member
United States
264 Posts |
$1,000,000 deposit gimmicks like this, only point out the inadequacies of our current US economy. Many people have no direct way to reinvest their money into business due to the minefield of financial regulations and EPA holding back the small businessman.
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Pillar of the Community
United States
3670 Posts |
 Another clear sign of yet one more brick yanked from what once appeared as a solid foundation, an unfortunately probably a sign of worse things to come.... |
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Pillar of the Community
United States
808 Posts |
Seriously? That's just sad. I can't imagine anyone with a lick of sense who would be attracted to that offer.
Of course, if they swapped the car for, say, $61,000 in physical numismatic gold coin bullion...that might be a deal worth further consideration.
Edited by coinwatch
05/03/2012 3:17 pm
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Valued Member
United States
162 Posts |
It's not a gift like a toaster though, it's an advance on future interest, made possible by their low interest rate. Trading future profits for immediate gain is nothing new, but I imagine most people with a million dollars to invest would realize they'd be better off just buying the car and putting the remainder in a higher interest-rate instrument.
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Pillar of the Community
United States
808 Posts |
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Pillar of the Community
United States
3670 Posts |
Clearly with the interest rates being next to nothing, the banks have no choice to try this last ditch attempt to get some large sums of dying dollars back in house, hence the free ride....
They are competing with Pm's an stock, as well as all the other little tricks of the trade to make some money from one's money....
Like these two brother (Amos an Andy) who pick on Auction Kings now, via Gallery 63 out of Atlanta. They go around an buy high dollar over priced items, an try an flip them at the auction for a profit. Like last night, they had one of those mountain men slot machines (full bodied slot, hard to find rare slot machine art) and they forked out 2700 for it. They got lucky as it sold for 3500 at the auction, so after Gallery 63 got their huge cut, they made a little. So now they can go out an try an buy something else for dirty cheap an flip for hopes of big money....
They once bough this old coffin for like 800, an it was worth like 200 lol, but the Iron madden they bought saved them an they about broke even.....
Edited by Silverhawk74
05/03/2012 7:10 pm
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Valued Member
United States
309 Posts |
Look at all the free advertising they just got.
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Pillar of the Community
United States
808 Posts |
I'm not sure mocking counts as advertising.  |
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Pillar of the Community
United States
4008 Posts |
I'm with Ziggy on this one. There are any number of investments that can be had these days that pay 8-10% in annual earnings. Better to invest that million there, collect the earnings for 7 months or so, and buy whichever vehicle you want. I didn't see any mention of taxes in that article. Did I miss it? If it was left out, I would wonder whether or not that $61k worth of pre-paid interest would be taxable as income in year 1 of the 5.  |
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Rest in Peace
 United States
9104 Posts |
Quote:
$1,000,000 deposit gimmicks like this, only point out the inadequacies of our current US economy. If someone is willing to tie up $1 million for a $12,000 a year return (1.2%), and still be 75% at risk, they know nothing about investments. |
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Pillar of the Community
United States
808 Posts |
Good point, Ed. There absolutely would be some tax implications to all this. Especially if taking the car means paying all five years worth of interest upfront in year 1. This is the sort of thing guaranteed to make your CPA unhappy with you.
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Pillar of the Community
United States
1454 Posts |
Terrible deal. I see few takers.
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Rest in Peace
United States
9104 Posts |
Since there's no way to get 100% benefits from the car until they end, I'm sure even the IRS would accept a pro-rated income argument, just like when someone sells a house on land contract.
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Moderator
 United States
14463 Posts |
what if I don't want the Mercedes? will give a different car?  |
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Replies: 22 / Views: 2,985 |
Posted 05/03/2012 12:41 pm
