“What most investors don’t realize is that for a limited time, one American bank is offering an exclusive, under-the-radar CD that yields up to 13.16% annually. And just like any other CD – the principal is 100% insured by the FDIC for up to $250,000.”
That’s what draw my eye to the latest tease from Ian Wyatt for his High Yield Wealth newsletter — and given his past propensity to refer to imply that riskier investments were like “savings accounts,” I was a bit skeptical. But still, if he’s going to come right out and say that it’s genuinely FDIC insured we’ll have to take notice. So that’s what we’re doing for our Friday File today — a look at a tempting teaser. We’re actually due to be releasing the “Idea of the Month” article this week if we were to be on our regular publishing schedule, but, to be honest, I was most of the way through looking at one pick and ran into too many red flags, so I’m retreating and will reconsider and publish the March “Idea of the Month” article next week.
(If you’re curious, the idea I was researching was Heckmann (HEK), the water company that’s focused on energy, particularly water disposal and trucking for shale projects — I like the price hit they took with their earnings release and major merger announcement, I like the goal of consolidating the industry, but the more I read the more I saw too many negatives that may not have worked themselves out yet … sometimes you need to listen to the voice in your head that says, “wait!”)
So on to our CD.
And I hope it didn’t escape your eye that the teaser pitches a yield of “up to” 13.16% — meaning, of course, that the yield is not as guaranteed as the principal. But still, anything with a guarantee is worth a look. So what’s he teasing?
Well, it’s apparently a CD with a set offering period, which is a little unusual but certainly not unheard of. And there’s a minimum investment, which is typical (and apparently low in this case). He says that …
“the offering period ends on March 27, 2012 at 11am PST….
“… anyone can buy the 13.16% CD today with as little as $1,000…”
Then he gets into the real spiel about this investment:
“The Only CD ...