A Wrong Quote from the Dateline Annuity Piece..........

[FinanceDude]

Chase Bank, one of the largest banks in the world, has an early CD redemption penalty of 3%, so you would lose $3000 on a $100,000 CD if you pulled it out in the first year.

Funny how all those nice folks on TV didn't know that..........

[Notmuchlonger]

Well, sensationalism sells.

[73ss454]

Quote:

Originally Posted by FinanceDude Chase Bank, one of the largest banks in the world, has an early CD redemption penalty of 3%, so you would lose $3000 on a $100,000 CD if you pulled it out in the first year. Funny how all those nice folks on TV didn't know that..........

What they said was the fee wasn't being disclosed not that it didn't exist. Also 3% is a lot less that 16% and a CD is guaranteed FDIC.

I know now your going to tell me that the government is going out of business and I'll lose my CD money.

FD, did you go to that school also?

[FinanceDude]

Quote:

Originally Posted by 73ss454 What they said was the fee wasn't being disclosed not that it didn't exist. Also 3% is a lot less that 16% and a CD is guaranteed FDIC. [

Rip on me all you want but sometimes the facts are different. I am NOT defending EIA (I HATE THEM), but it is FALSE to say that you CAN'T LOSE principal with an early withdrawal penalty on a CD.........it DEPENDS on the bank issuing it.........

While 90 days interest is common, Chase Bank is at 3% of the original amount put in. I will grant you if you are getting 4% in a 2 year CD, and you pull money in the second year, you will NOT lose principal, but will lose interest..........

[brewer12345]

Quote:

Originally Posted by FinanceDude While 90 days interest is common, Chase Bank is at 3% of the original amount put in. I will grant you if you are getting 4% in a 2 year CD, and you pull money in the second year, you will NOT lose principal, but will lose interest..........

I've seen some even nastier early withdrawal penalties on CDs, and now I look very closely at the fine print. INGDirect nails you for half of all interest credited to the account, which can really add up on a 5 year CD (I have one of these). Not sure if this is still out there, but I used to see "market value adjustment" penalties where they hit you for a minimum amount subject to increase based on changes in interest rates (so you get badly spanked by pulling out when rates spike).

All of these pale against the EIA surrender penalties.

[ERD50]

Didn't see this thread - I posted some comments about the show over on that 'other' thread ...

http://www.early-retirement.org/foru...1&postcount=79


-ERD50

[73ss454]

FD, I'm sure you know a lot more about annuities and financial products than I ever will. But I think you know as well as I do that these products from ins. companies are in the shady area, sort of like F&I at a car dealership. (heh)

[FinanceDude]

Quote:

Originally Posted by 73ss454 FD, I'm sure you know a lot more about annuities and financial products than I ever will. But I think you know as well as I do that these products from ins. companies are in the shady area, sort of like F&I at a car dealership. (heh)

Maybe Chris Hansen is working on a VA expose as we speak.........

Those folks on hidden camera were insurance agents, not FAs. As a matter of fact, they showed "designations" I have NEVER HEARD OF!!

[ERD50]

Quote:

Originally Posted by FinanceDude Those folks on hidden camera were insurance agents, not FAs. As a matter of fact, they showed "designations" I have NEVER HEARD OF!!

True, but many people are impressed by all those phony titles. And magazine covers.

It all plays into the subtle (and not so subtle) deceit.

-ERD50

[FinanceDude]

Quote:

Originally Posted by ERD50 True, but many people are impressed by all those phony titles. And magazine covers. It all plays into the subtle (and not so subtle) deceit. -ERD50

How about a CLS? Certified Lifetime Surrender??

[73ss454]

Oh yeah, did you ever make it onto the cover of one of those magazines?

[FinanceDude]

Quote:

Originally Posted by 73ss454 Oh yeah, did you ever make it onto the cover of one of those magazines?

Uh no..........I guess I'm not "special"enough............... Although I keep getting junk mail from Midland National promising me commissions as high as 15% on "some products"..........

[73ss454]

Quote:

Originally Posted by FinanceDude Uh no..........I guess I'm not "special"enough............... Although I keep getting junk mail from Midland National promising me commissions as high as 15% on "some products"..........

Hey, with that large a commission you can afford to have yourself put on the cover.

[FinanceDude]

Quote:

Originally Posted by 73ss454 Hey, with that large a commission you can afford to have yourself put on the cover.

Sure, but it's an EIA,and probably issued by Charle Daniels Whiskey Southern Reserve Life.............

[73ss454]

No worries, I have a friend that works a Fortune and I think I can get him to hook you up with a cover shot.