Millennium Bank: Perhaps Not A Scam, But Not Safe Either
You have seen via Google Ads on my or other financial sites advertising 8% CD rates from Millennium Bank. Wow, sounds great! But given the internet age, when you see “bank”, it could be from any corner of the world. The terms “certificate of deposit” or “savings account” may imply security here, but don’t necessarily mean anything internationally. The FDIC website gives some good guidance on Safe Internet Banking:
Read key information about the bank posted on its Web site.
Although it tries to distract you by saying it is owned by some Swiss trust company, if you read further it you find that Millennium Bank is located in the Caribbean nation of St. Vincent and the Grenadines (SVG). So, it’s not even located in the United States. From Wikipedia, St. Vincent has a population of just 119,000, it’s main industry is banana production, and has an unemployment rate of about 22%. Also of interest:
There is […] a small offshore financial sector whose particularly restrictive secrecy laws have caused some international concern.
Does this sound like a place that you would want to keep your money? Maybe if you were trying to hide it! If something goes wrong, do you want to navigate a foreign system to get your money back?
Verify the bank?s insurance status.
This bank isn’t even located in the United States, so there’s no point in even running a bank search to see if it is FDIC insured. It doesn’t even appear to insure its deposits by any private or public agency. If a bank claims to be a subsidiary of a bank that is FDIC-insured, call the parent bank. If they’ve never heard of it, run away.
Gut check: Is it too good to be true?
Finally, risk and return are closely linked in legitimate bank products. If the best any other bank can do is barely 6%, there’s virtually no way a bank offering 8% return with the same level of risk. They have to be doing something riskier, whether it is making some currency bets or investing in lower-quality debt. Given the lack of disclosure of what these risks are, you might as well buy some junk bonds, which are at least rated by reputable independent companies.
Bottom line, I hope you’ll agree there’s absolutely no reason to put your money anywhere near this institution.
June 5th, 2007 at 6:30 am
Millennium Bank is a sponsor of The Wealth Collection (magazine for super wealthy people like Donald Trump). I dunno if that means it’s safe, but it’s definitely ligit.
June 5th, 2007 at 6:46 am
If you don’t like them, you can opt not to have them shown by Goggle Ads.
June 5th, 2007 at 8:53 am
Jonathan,
FDIC is an american thing…..if the bank is overseas, why should they be insured under FDIC. I am sure great British banks are not FDIC insured nor have presence in the US.
There are some Australian, Indian banks that offer around 8% or more. (I think the money has to be kept in local currency, thus currency fluctuations are also a concern)
If allowed, I think i wll try to keep $50 in millenium bank to see how legit they are.
The reason these banks are not under FDIC umbrella is because FDIC requires/advices/forces these banks on how to invest their money etc. These banks are risky but not necessarily a bad investment. I am sure there are many american based stocks that are worst.
June 5th, 2007 at 8:58 am
Mike,
When they say they are a sponsor, i think what they mean is they put advertisements in that magazine. (which anyone can)
I have seen fantastic, high quality magazines with ads from diploma mill universities.
June 5th, 2007 at 9:36 am
If one fully understands the deposit insurance available in another country, and feels that they can get the money back easily in the even of trouble, sure, go for it. Neither is available from this bank. I don’t want to have to make a flight or write letters just to get a resolution.
Your money at Millenium bank could be perfectly safe… until it isn’t.
Most foreign bank accounts are also held in their home currency, which can be a good or bad thing depending on one’s situation.
June 5th, 2007 at 10:45 am
Jonathan - thank you for your comments, I believe you are just trying to be transperant and make people as ignorant as me think before investing in such banks.
June 5th, 2007 at 10:54 am
I hope it’s also perfectly clear that sponsorship and endorsement are completely different animals.
Just because you see an ad in between your favorite TV show, in a magazine, in a newspaper, or in a website, does not mean that the advertiser has the endorsement of that media outlet. Chances are they haven’t investigated it at all. It doesn’t matter if it’s for beer, make-up, cars, or banks. It’s paid placement, nothing more.
I don’t have the time or inclination to filter every single ad that gets submitted through Google. I’ve tried, it’s a losing battle. My goal remains to write useful information about topics that interests me, and trust each of my readers to make the proper decision for themselves regarding the advertisements.
June 5th, 2007 at 11:04 am
We should clarify some things. Millennium Bank (with two n’s) based out of Reston, VA, is FDIC insured. Millenium Bank (with one n) is not. The latter is the bank in question.
June 5th, 2007 at 1:32 pm
Tim,
When i click on the website, the bank is wth two n’s.
I was reading the following from their executive statement. The English doesnt really seem very professional, especially in the last sentence. Seems like 3rd grade to me.
“What is the catch? Deposits in most countries are protected by a form of deposit insurance. Deposits in international private banks are not. It is therefore important to choose an international private financial institution that is strong. Millennium Bank is strong. “
June 5th, 2007 at 1:43 pm
I sent them an email with the following questions:
1) I have USD$100,000 to invest, what is the best rate I can get?
2) How many branches do you have?
3) When was the current branch opened?
4) Who is the president of your bank?
5) Has anyone lost money by investing in a CD?
6) Are you a member of any bank associations local or international?
Lets see how they respond.
Can someone send them an email and ask who the president of the bank is and what is their email address. I want to see if we get conflicting answers.
Their email address is:
client-services@mlnbank.com
June 5th, 2007 at 2:57 pm
Other countries often have higher interest rates because they have higher inflation. Since you have to keep money in their local currency it means that by PPP their currency should decline at approximately the difference in the rates, all else being equal.
Thus you cannot get higher real returns in this way without taking on higher risk. However it doesn’t mean that just because they offer higher nominal returns that it is more risky.
In fact if you have some reason to own that currency then this may make sense.
June 5th, 2007 at 2:59 pm
Overseas banks can offer higher interest also due to different prevailing rates for their country. NZ banks offer 8% CDs — probably guaranteed by the NZ FDIC equivalent. But due to currency flux, you may end up getting less than 8%. (There’s a local bank here that offer 25K 1mo NZ CDs.)
June 5th, 2007 at 3:50 pm
I looked into that bank a few months ago, lured by their high rate. I found the same stuff you did, plus some ‘unsatisfied’ customers who’d posted their experience on the web. I can’t *conclusively* say so, but that wanna-be-Swiss connection plus what I read was enough to keep me away from them.
I’m glad you’re posting about it though, because if it’s really not legit, it needs to be discussed more openly.
June 5th, 2007 at 5:04 pm
Thanks for the comments. If you really want nice foreign rates, check out the Everbank Icelandic Krona CDs paying 12.5% APY right now!
But as mentioned before, if the account is denominated is US Dollars, it’s got to have some currency exchange risk built in. The issue with Mill Bank is that you have no idea what they are investing in. Way too vague.
There seems to be at least two US-based banks also name Millennium Bank, all with two n’s. Shrug.
June 6th, 2007 at 8:00 am
If it is a bank we do not already know or have a relationship with at Sovereign, I cannont comment on safety.
Thanks.
Regards,
Jack Crooks, Currency Director
Crooks Currency Group
P. S. Bob Bauman, our legal counsel did comment on this type of inquiry previously, as follows:
Dear Sir/Madame:
We checked with two leading and trusted financial advisors with whom we work in Zurich. They report that the “bank” you named is not registered as a financial institution as required by law (see: http://www.ebk.admin.ch/e/institute/index.html) nor does it appear in the trade registry of Swiss corporations.
It appears that the “bank” is little more than a web site full of words. To quote one of our experts: “Unless we missed something?this is a sham…”
I hope this information is helpful.
BOB BAUMAN, Legal Counsel
The Sovereign Society Inc.
Lavita Turner
Customer Service/Conference Associate
The Sovereign Society
98 SE 6th Avenue, Suite 2
Delray Beach, FL 33483
Telephone: 888-358-8125
*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~
Any and all communications from Sovereign Society employees should not be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice.
.
——————————————————————————–
June 6th, 2007 at 11:53 pm
nony-mouse you are right. when you go to the website and look on thetab, it has only one “n”, which I had looked at. oh well, still wouldn’t dump money there.
June 7th, 2007 at 1:26 am
As everyone knows, you can get a 5% rate FDIC insured a lot of different places.
Is the extra 3% return really worth risking never seeing your money again? I don’t think so!
If you had $10,000 invested, 5% would get you $10,512 & 8% would get $10,830. Is the extra $318 worth losing the $10,000?
June 28th, 2007 at 1:23 pm
I researched this “bank” extensively and can say that either it is a ponzi scheme type of fraud or is a money laundering operation for tax evasion or drug dealers. If it is money laundering then your money is probably safe until the “bank” gets into trouble with US or European governments. There is no such institution as United Trust of Switzerland. Some investors of Millenium bank purchased the United Trust in a bankruptcy auction and is not even registered in Switzerland.
What about Royal Savings and Loan, Czech republic. Its interest rates are higher and is insured by Czech government which is quite stable. Any comments ???
July 24th, 2007 at 1:17 am
I am grateful for all this information. I was about to go “Wow” and send in my money for a 12.5% CD. Now I won’t. Thanks.
July 30th, 2007 at 3:52 pm
thank all for this invaluable info….as the Millenium website is pretty slick in it’s professional appearance and message ….creating a sense of security …..wow, think I’ll keep my investments in the US…..keep up the good detective work!
August 24th, 2007 at 7:16 am
Here is a great way to get good rates on CDs, even for short term and lower investment amounts:
https://www.auctions.zionsdirect.com/
Of course, I’m torn in posting this. More people going there means more competition to my bidding. But, with more bids coming in, hopefully they’ll be able to get better sponsor deals to pass on to us.
Happy Bidding!
November 2nd, 2007 at 7:18 am
I am from St. Vincent and the Grenadines, and I think that investors should be very concerned about investing in Millennium Bank (the one that’s registered here). I have seen this type come and go over the years. They are operating is very questionable manner.
This type behave like high rollers with an endless bank account and are usually big investors in political campaigns. True to form, of late a very expensive jet/s (Spirit of Millennium/Millennium Bank) arrives here every week and are given the executive treatment by some shady characters in high positions.
I could easily contribute further but it is not my job to do so.
November 16th, 2007 at 11:11 pm
First, let’s get past “FDIC” - If you’re investing in anything that earns greater interest than a domestic CD, that money is NOT FDIC insured. We give up that security when we choose to invest in Mutual Funds or the Stock Market.
Now,
Has anyone read the following? In my opinion, One Million people can read this no more than half will come to the same conclusion. Suffice it say, ALL offshore investments will pose greater risk with greater reward - our countries Billionaires have been putting their money overseas for decades, even Legit Swiss banks are full of American money. I’ve been to the Caribbean and some islands seem to have more foreign banks than actual people.
Anyway, the guy in this interview puts up a fight without revealing much of anything. It feels like shady people are making a lot of money with this shady bank. link
February 12th, 2008 at 4:16 pm
All I wish to know… Knowing the offshore risk factor,… Is, Where are the complaints against Millennium??? If they are sour, some one should have already been burnt. Helloooow!.. Where are you?!
February 14th, 2008 at 12:40 pm
I know the Millennium bank you are speaking of and I also am one of their clients and am very happy. It is true that they are NOT FDIC insured and as others have stated it’s because they are outside the US. I have been to the Bank and must say the employees are very pleasant and show great respect for my privacy. I am a real fan and will be there for the long haul with it extending to my heirs.
March 1st, 2008 at 5:06 am
[…] already written about Millennium Bank - the offshore bank offering 8% certificates of deposit that are not FDIC-Insured, let alone highly […]
March 4th, 2008 at 4:32 am
what about investments - re cd’s offering 8.5% in Panama. Is this safe.
After all the Donald is building his tower over there
March 4th, 2008 at 3:52 pm
I was hoping some investors for several years experience with this bank would comment. All the comments seem to say stay away from Millennium Bank. It may be too good to be true. I called up and spoke to a representative, the person I talked to said that he had been with them over nine years but if you are squeemish then don’t invest.
March 19th, 2008 at 5:24 am
[…] including Brentwood Bank. State Farm has had a variation of it for a while now as well. This is yet another product that uses clever marketing to hide important details from the less vigilant public. […]
March 31st, 2008 at 12:08 am
Need more information & story in re: Millennium Bank located in Caribbean of St. Vincent and Grenadines
April 12th, 2008 at 4:50 pm
Where can get anyone 5% on a CD at any reputable bank ( with FDIC ) in the USA after April 2008 ? The Fed will lower the rate to 2 % - from 5.25 %, soon; no matter the term, matterfact nowadays the longer term means lower rate…. The banks have wised up….Stelwagen