As the interest rates in Britain shoots up, many banks also raised up their interest rates. The interest rates, especially, on Premier Certificate of Deposit have reached sky high. It can range from 6.50% to 8.75% for as minimum deposit of $5000! This is the Millennium Bank’s Offer! Moreover, Premium Certificate, for 5 year CD, at 8.75% interest on a minimum deposit of $100,000 does not even compare to other bank’s CD offers. City Bank is offering 4.6% only.
The best offers in US such as Kaiser Federal Bank, California, has a nice 6.00% APY on their IRA-CDs for all deposits of $225,000 or more. Even then, it does not compete with Millinnium’s 8.75% interest rates. Isn’t it too good to be true? Since these certificates are non-redeemable before their maturity hence they are not profitable for short term investors. This offer should appeal more to large businesses who can afford their money being tied up in the certificates. But is the bank credible? Should you start filling the forms and get those certificates?
Millennium Bank is a subsidiary of United Trust of Switzerland, SA, a Swiss-registered private trust. Millennium Bank is located in Kingstown which is the capital of St. Vincent and the Grenadines (SVG). Yes, it is an offshore bank. Apart from being an offshore bank it not FDIC insured. But it is listed as a licensed offshore bank at the website of the International Financial Service Authority - St. Vincent and the Grenadines. I am not sure about the bank’s credibility despite that. Regarding their Credit Card services, customers have faced disappointments.
Ginger of Kansas City, KS (8/4/05): I received notice in the mail that I was approved for a credit card from New Millenium Bank and for a $29.00 processing fee I could choose between a Master Card or Visa credit card. I sent the notification and a check for $29.00.New Millenium promptly cashed my check but as of this date I have not received my credit card. It has been 2 months. The fact that the bank has only been operating for three years does have another blow on its security for investors. Moreover, no audit has been conducted of the bank by the [St Vincent] Offshore Finance Association. The response from Louise Mitchell of the St Vincent Offshore Finance Association was:
“The OECD has not done an audit of Millennium Bank. The FATF paid a visit to the Bank, it did not conduct an audit”
So, in my opinion, one should stick with FDIC insured banks. EmigrantDirect is paying 5.1 % on their Certificate of Deposit. So you should not risk your money for an extra 1-2 % more interest. Just as a reminder, there are several banks named Millennium Bank, even some in US which are registered. But the one I am talking about is This one
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