Millenium Bank CD Rates and Bank Review

February 17, 2009 9 Comments »

If you have been in the market for CD (certificate of deposit) rates than you have most likely come across Millennium Bank. Not to be confused with the Millennium Bank of Virginia, the Millennium Bank of the West Indies is a subsidiary of the United Trust of Switzerland, SA. They are a Swiss-registered private trust company which was founded in 1931. The difference in their bank certificate of deposits and those offered in the US is that they are  not FDIC insured and thus may not be the safest investment route to take. That being said, MB’s stance on this issue is that you can trade in the security of federal insurance for more appetizing bank rates.

Millennium Bank CD (certificate of deposit) Rates

Premium Certificate Minimum Deposit Interest Rate
1 Year CD $5,000 6.00%
$25,000 6.50%
$100,000 7.00%
3 Year CD $5,000 6.25%
$25,000 6.75%
$100,000 7.25%
4 Year CD $5,000 6.50%
$25,000 7.00%
$100,000 7.50%
5 Year CD $5,000 6.75%
$25,000 7.50%
$100,000 7.75%

Needless to say their rates alone demolish those offered in the states. After looking around through on-line forums and digging a little further into where exactly their bank is located I have found a few major issues I would like to point out.

First, as far as forums go I see an estimated 75% of people saying “stay away” while the other 25% seem aprehensively curious. I have not, however, found anyone on any forum that has claimed to had their money disappear, however that may be because no one in these forums has actually invested with them.

Their physical location is a bit sketchy as well (Stoney Ground, Kingstown St. Vincent and the Grenadines, West Indies). Their population is roughly 125,000 with an unemployment rate of 22% and a middle to lower-class economy. It seems that their economy is basically supported on exporting bananas and importing tourists (not the sort of international financial hub one would hope for).

If you have successfully (or unsuccessfully) invested with this bank please tell us about your experience!

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  • JUSTIN CASE

    THIS MAY BE OUT OF CONTEXT, BUT YOU APPEAR TO HAVE A FAIRLY OPEN FORUM HERE. DOES ANYONE HAVE SOME INSITE ON US IBONDS THE RATE IS SHOWN AT 5.64%. I REALLY DONT KNOW IF THATS A TRUE APY, OR JUST SOME TYPE OF TEASE.

  • investor-ama

    I’ve seen this bank pumped through google adsense for a long time now and I have not heard of one person investing with them out of all the bank websites i check on a regular basis. Either this says their certificate of deposit customers don’t exist or don’t know how to use a computer.

  • Rob

    After this latest fiasco in Texas with their Caribbean connection I think it very unwise to consider this fantasy

  • BloggingBanks

    I hate to be the one to burst the bubble, but I have a feeling this non-fdic insured CD provider is another scam. The only way that you could achieve 6% income from fixed income right now is to buy corporate bonds or get an FDIc insured rewards checking account

  • http://PCH Sylvia annonymous

    I have a friend who has her life savings invested with this
    United Trust of Switzerland/Millenium Bank and is having great trouble getting answers to her desire to withdraw her money as she was notified that the acting guardianship of her account was changing. The so called United States broker replies that he has his money with them and also his mothers money so she should not worry?!!!!! Her money was in or is in a c.d. IRA drawing 6% return. Any ideas?

  • MarketWatch

    Sylvia,

    That sounds like a scary situation. Who changed the guardianship of her account?

    If I were you I would gather as much information as you can regarding the US broker (ie his/her office location, brokerage license #, etc)…if you don’t already have this info…

  • Rob of NYC

    Some recent info on Millenium
    Go to the bottom; their are 4-5 articles from Business week, reuters and others all about Millenium – none of them favorable.
    #

    By Blogger Rick, at 6:43 PM, February 21, 2009
    #

    Questions raised over Millennium Bank
    Staff Reporter 27.FEB.09

    The International Financial Services Authority (IFSA) will soon issue a statement about the offshore bank, Millennium Bank.

    On the heels of the allegations of fraud made against the Stanford Financial Group, online media organizations Reuters and Businessweek.com ran stories questioning the operations of the St. Vincent and the Grenadines based Millennium Bank.

    On the Millennium Bank website it is stated that the bank is “wholly-owned by United Trust of Switzerland S.A. a Swiss-registered trust company founded in 1931.”

    However, according to an article by Adrienne Cater in a Business Week blog on February 17, regulators in Switzerland are said to have never heard of United Trust. A spokesperson for the Swiss banking authority is quoted as saying: “United Trust of Switzerland is not a registered/licensed bank in Switzerland and has no other license of the Swiss Financial Supervisory Authority.”

    In light of this information, Reuters claim that they attempted to contact officials from Millennium Bank. However, the article dated Tuesday, February 17, says: “Millennium did not return calls requesting comment.” (http://www.reuters.com/article/newsOne/idUSTRE51H08J20090218)

    Newsweek also could not get comments from Millennium Bank.

    SEARCHLIGHT also made numerous attempts this week to contact Sheryl Hinds, of Millennium Bank, but to no avail.

    bendweekly.com/print/5094.html

    edumacation.com/MillenniumBankReuters20090217

    edumacation.com/MilleniumBankBusinessWeek20090217

    edumacation.com/MillenniumBankConsumerReports200903

    businessweek.com/investing/wall_street_news_blog/archives/2009/02/is_millennium_b.html

  • Pilm

    Millenium bank was, as most people suspected, a scam, which the SEC is now looking into. The bank is in receivership.

  • Poiq

    I invested in Millenium Bank and cashed out 2 of my 3 cds at the promised rates which were as high as 8.25% when they matured without any problems. However as SEC becomes involved with Millenium Bank I am unable to reach anyone, and now they are in receivership. I’m impressed that the SEC is so concerned about my money and because of that interest I cant get access to it.