Florida's Treasure Coast Edition

Warning From the Securities & Exchange Commission

High Yield 1-Year CDs may not mature for 20 or 30 years. 

Many older people are at risk because they trust investors without thoroughly checking them out.  We are fortunate to have the Securities and Exchange Commission (SEC) looking out for all of us.  They have posted a warning about deceptive sales practices being used by some brokers (not banks).   

The certificates of deposit (CDs) they are selling are  One-Year high-yield (CDs) that cannot be redeemed after the year without high penalties. Thatís because the CDs are "one year non-malleable" which means they are actually 20-30 year CDs with significant penalties for early redemption. This is where the deception comes into play because the terminology used misleads the buyer to believe that they can  redeem the CDs in one year.  

Many seniors are looking for the security of a CD for their savings.  Some brokers are trying to sell these CDs to older people for their retirement. These CDs maybe a safe investment however, these are not recommended for an 80-year-old investor. The 80-year-old would have to be 100 to 110 years older before they could  redeem the CD without penalty. 

Make sure you use a legitimate brokerage firm,  insurance company or bank,  to purchase CDs or other investments like stock, bonds, mutual funds or annuities. Make sure that you fully understand what you are purchasing, if the seller or selling agency does not thoroughly explain the product a red flag should go up.  The SEC has a brochure for consumers to help warn you of inappropriate purchases.

Jane Bryant Quinn, a respected financial columnist from the Washington Post, has also issued warnings to her readers. Read her article in the Washington Post.


In Association with




Advertise Your Business Here!

Click Here for Details!


HomeAbout UsArticlesAdvertiseContact UsEmployment
EditorialsPromotionsWeatherWeb Site DesignWeb Site Management
Copyright © 2001-2002 LivingToday.TV, Inc.  All Rights Reserved.