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100 Year Certificate of Deposit

A 100 year Certificate of Deposit is being offered by a mutual bank in New Hampshire. Between $1,000 and $150,000 can be invested.

https://finance.yahoo.com/news/100-cd-brings-meaning-concept-192127054.html

Comments

  • An online bank with "impact" goals that started only in 2022 offering 100-yr CD, 4.75% fixed, as a publicity stunt - 10-yr interest penalty for early withdrawals. Alternatives? 30-yr Treasury bond or zero.
    "We had not yet opened for deposits in 2022, but have amassed over $22 million in the first quarter of 2023, with roughly a third of this coming from businesses, and two-thirds from consumers."
    https://walden-mutual-public.s3.amazonaws.com/WaldenMutual_AnnualReport_23-05.13.2023.pdf
  • Pretty nuts. Basically, you're saving the $$$ for your heirs or maybe even for THEIR heirs. Like a long-term annuity, but you see zero benefit, yourself.
  • Could you gift this to a child the day born? He’d then have reason to take care of his health and try to reach the century mark and enjoy his money.

    Haven’t looked at the details. Don’t do CDs. But if this is tradable, than it should behave like a long term bond with huge price swings.
  • This seems an unusual bank CD, not brokerage CD, so one would be stuck with 10-yr interest penalty.
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