S.P.A.M. - Get a free mercedes benz w/ $1 million 5 year CD

http://www.c1bank.com/mercedes-benz/

For a limited time, any client that opens a $1 million 5-year CD at C1 Bank will receive a brand new Mercedes-Benzs.

2012 SLK350
2012 E350
2012 ML350 SUV
2012 E350 Convertible


Unwise....

Unwise....Right, it looks like you can't combine the 1.2% rate and the free MB. Instead, you get a free MB in lieu of the interest, which makes no sense.

So paying $60k for the car and getting a 1099 for it, and having the money tied up for 5 years.. I will pass......
I would rather have bankdirect and 1.2 million AA miles and still have $800K in my pocket!

JudyJFLA

So paying $60k for the car and getting a 1099 for it, and having the money tied up for 5 years.. I will pass......Well, if the interest rate was higher, it'd be a much more attractive offer.

I actually don't even think that the bank is expecting any takers. They are doing it for the free publicity.

For the amount of taxes you'd owe you could get a very nice used MB and keep your $1M. Personally, I'm partial to used NSXs, but to each his own. SLK230's and SLK320's are among several very good values in used MB's.

For the amount of taxes you'd owe you could get a very nice used MB and keep your $1M. I don't quite understand what you mean. Insofar as income taxes go, you'll pay the same exact taxes on the interest regardless of whether it is paid out to you directly or is used to purchase a car on your behalf.

I got a much better offer bank from another bank. They just require a low
USD$500,000 deposit and the free gift is a new 2012 Rolls-Royce Phantom.
After 1 year, I'm supposed to get back USD$750,000.

The bank's contact information: 121 Taylor Street, Wado Island, 80157 Lagos.
Seems like a good deal. The bank president even sent me a personal email
urging me to open an account ASAP, because they only have 3 Rolls left. ^

I don't quite understand what you mean. Insofar as income taxes go, you'll pay the same exact taxes on the interest regardless of whether it is paid out to you directly or is used to purchase a car on your behalf.

Good point. I was weighing this CD against other investments, possibly with different tax consequences. If it's CD vs. CD, then the tax liability does not alter the comparison.

Good point. I was weighing this CD against other investmentsThis CD offers an effective interest rate of 1.2%/year over 5 years, with the interest prepaid up front, which increases the APY a bit. You do not get the interest plus a Mercedes. Instead, your interest is prepaid in the form of a Mercedes.

There are plenty of 5 years CD's out there that offer effective yields much higher than that, so this is a terrible CD deal regardless of what you compare it with.

If it's CD vs. CD, then the tax liability does not alter the comparison.Correct.

I got a much better offer bank from another bank. They just require a low
USD$500,000 deposit and the free gift is a new 2012 Rolls-Royce Phantom.
After 1 year, I'm supposed to get back USD$750,000.

The bank's contact information: 121 Taylor Street, Wado Island, 80157 Lagos.
Seems like a good deal. The bank president even sent me a personal email
urging me to open an account ASAP, because they only have 3 Rolls left. ^

Oh, I just got two of them so you'd better hurry. ;)

Mike

Oh, I just got two of them so you'd better hurry. ;)

Mike

Oh, don't worry, I already wired them the $500,000.... unfortunately, it's
already past bank hours in lagos, so the bank president sent me an email
that he will let me know tomorrow morning. Gotta go clean out my garage
if I'm going to fit a Rolls in there. (the email said they would arrange to have
the Rolls shipped via British Airways cargo, directly from the factory in England
to the nearest airport)

How do you do your math for this? Not challenging you, just curious...

So paying $60k for the car and getting a 1099 for it, and having the money tied up for 5 years.. I will pass......
I would rather have bankdirect and 1.2 million AA miles and still have $800K in my pocket!

JudyJFLA

Even assuming the CD is FDIC-insured, insurance would only cover $250k (or $500k for a joint CD), and frankly with banks these days you'd have to pay me a decent amount of money to have a sizeable uninsured deposit.

Even assuming the CD is FDIC-insured, insurance would only cover $250k (or $500k for a joint CD), and frankly with banks these days you'd have to pay me a decent amount of money to have a sizeable uninsured deposit.FDIC insurance is the easiest part of this thing. Just have a joint CD with 4 people, such as two adults and two kids.

FDIC insurance is the easiest part of this thing. Just have a joint CD with 4 people, such as two adults and two kids.

And then you've gifted your kids with a half million dollars? No thanks.

And then you've gifted your kids with a half million dollars? No thanks.With general bank accounts, you'd set up a POD account, so this wouldn't be a concern. I don't know whether a POD CD setup is an option here (the offer is so pathetic that it's not investigating this).

Even if it is not, if your kids are minors, you don't have to worry about them going on a rebellious streak and cashing out the CD.