Brockton, MA · Member since 2019 · 26 posts · 9 votes
Hello all,
I have been looking at this new CD for a few months now. My research says it’s legitimate, can’t find anything saying otherwise online. Anyone using this? A 1 month CD returning 6% seems too good to be true but I’d love to park some of my savings ($20k ish)in there and collect $100 in interest every month.
Here’s a link
https://myloan.doctor/hcf-high-yield-cd-account/
Would love to hear from anyone who has used or anyone who has thoughts on it.
Hi Dan, It's probably too harsh to say it was a total fraud. I think all of us got our money back. The product was incorrectly advertised to make it look like a CD and that was very confusing and people were not made aware of the risks associated. Their customer service was very prompt but they also failed to answer my questions on the insurance/safety of the funds. They should have been more transparent with their mode of operation. I did not face any problem when I requested withdrawal of my funds. Infact I made a mistake by appending a digit to my account number for which the funds went back to them and they again wired it back. I and other folks got their money back along with the interest. They had also closed it to new customers well before they finally shut down the program.
I sure did enjoy the 6 percent while it lasted! Im getting 1 percent now on 125k. No idea what to do with it! Hows that 15 percent drivers loan club doing? Sounds great. But scary! Would we be surprised to see the same thing happen to them?
Financial Advisor · Indianapolis, IN · Member since 2018 · 294 posts · 165 votes
6y
@Brian S.
Anything with a yield like that will certainly have a heightened risk profile.
Think about it logically, you are getting 15 net of all their fees?? So they are either levered 4x which is risky in its own regard or these businesses are paying high teen rates which is a reflection on the business risk.
There is certainly a time and place for it but again it’s a far stretch from a CD.