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C1 Bank Million Dollar CD Mercedes Benz Promotion
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Do you have a million dollars? Do you want a Mercedes Benz? In conjunction with a name change from Community Bank to C1 Bank, anyone who deposits a million dollars into a five-year CD product will be able to choose from a 2012 SLK350 Roadster, 2012 E350 Sedan, 2012 ML350 SUV, as prepaid interest 2012 E350 Convertible. In a press release, one of the few I ever read, CEO Trevor Burgess announced a partnership with Crown Eurocars to offer a Mercedes Benz as prepaid interest on the million dollar five year certificate of deposit.
In the release, Burgess cites 1.20% APY as the current rate for five year CDs, we found that several banks had higher rates on our CD rates table, but none of them pay you the interest up front… in the form of a Mercedes Benz.
If you are considering it (who are you!?!?!?), the offer is valued through July 31st, 2012 and valid only for Florida residents with a limit of two per household. The calculated interest will be $61,294 and it will be applied towards the purchase of one of the four models listed, including sales tax, registration, tires, and other fees. There is a “significant” early withdrawal penalty and I’d expect to get a nice fat 1099-INT.
The really clever part of all this is that they offer the interest up front, I’ve never seen that before.
(Photo: tetsumo)
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I wonder if this would catch on.
It really gives the term living off of interest a new meaning.
It’s obviously more a marketing ploy than anything but still… interest up front is interesting.
Seems like an amazing marketing campaign. Hopefully anyone who takes advantage of this will input more of their money into the bank giving the bank a nice ROI on this plan.
Well if I had that kind of money I might consider it. Do you get to choose the color?
But after the five years you will have way less value doing this, with the depreciation of the car and somewhat low interest rate.
Now to find a million…must be lying somewhere around the house!
It seems that the Mercedes is the total amount of the interest; it’s not 1.20% + the Mercedes.
There’s 5 year CDs giving 2% at credit unions, so this doesn’t seem very good.
And only $250,000 of the million is FDIC insured?
And it sounds like the early withdrawal penalty is all the interest, plus another $3,000.
And the $61,294.04 is based on the MSRP of certain models, but don’t people usually pay less than MSRP? If you could otherwise buy the same car for $55,000, it’s like only getting 1.08% APY.
Wow, I’m not sure I could think of many other options that could possibly be a worse investment choice…
Only getting 1.2% on a million, putting it all in a depreciating asset, and locking it all in for 5 years.
It was an interesting marketing ploy though, especially with the up-front interest.