Here’s a question I received from a reader regarding the Premium Certificate of Deposit accounts at Millennium Bank:
Have you ever heard of a bank called Millennium Bank? They are Swiss, not FDIC insured, and will give me 7.25% on a 1-year CD, which is not redeemable until maturity. I really want to do it, but I’m hesitant because they’re not American and not insured. If you’ve heard anything about them, I’m more than willing to listen.
I answered the question to the best of my limited knowledge. A deposit at Millennium Bank will likely be safe, despite not being insured by the FDIC. However, there may be hefty undisclosed fees for maintaining an account with the foreign bank as an American citizen. These fees would likely eat into the interest income.
If there are any Americans with experience with a Geneva-based savings account similar to the one offered by Millennium Bank, please feel free to write in with a comment below to describe your satisfaction, problems, and anything else you’d like to add. I don’t expect many readers to have this experience, but it never hurts to ask.
Updated February 10, 2011 and originally published February 6, 2007. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.