Concord bank offers a 100-year CD

I assumed the point of this product was to buy it in a tax deferred account, then loan against it. You’d have zero risk of a margin call ever happening. Then after you’re dead it’s a guaranteed payoff of the loan. Would be a very very cheap way to convert your tax deferred accounts into tax free liquid cash now.

This is a nice alternative to an annuity. It's actually better since you will get your principle back. You can gift it to someone or use it as a way to finance you retirement and be sure of the regular income for a very long time. You can even put it in your Will.

There&#x27;s a 10 year interest penalty for early withdrawal. and on the faq[1] it says:<p>&gt; Note that in the case that you withdraw the CD before 10 years, the penalty would reduce the principal value of the CD.<p>Does that mean if they close within 10 years, the FDIC insurance would be below the principal?<p>[1] <a href="https:&#x2F;&#x2F;www.waldenmutual.com&#x2F;posts&#x2F;coming-soon-our-100-year-grow-local-cd-sustainable-banking" rel="nofollow noreferrer">https:&#x2F;&#x2F;www.waldenmutual.com&#x2F;posts&#x2F;coming-soon-our-100-year-...</a>

CD: Certificate of Deposit.

&gt; Like most CDs, this one, which has a 4.75% interest rate<p>I am not familiar with CDs, but how can an establishment promise returns of 4.75% for 100 years? That seems exceedingly high. What if there is deflation in 2055 or a recession that sends the rates back to 1-2%?

They are not the only ones doing long term fixed income like this, I wonder what&#x27;s with the sudden interest in everyone jumping on offering stuff like this.<p>The duration risk is ridiculously high though. Personally, I&#x27;d want 15-20% yield for that sort of risk.

Whom is this a good deal for? 1.045^40 is less than 6, so you&#x27;d get back a 6x return after like 40 years if you don&#x27;t touch the money? Even with the full $150k you end up with $1M which hardly seems like anywhere near enough to sustain you in retirement in 2063.

With rates at 5%, duration of a 30y bond: 15y, 50y bond: 18y, 100y bond: 20y.<p>In other words you barely get any duration benefit for a 100y bond over a 50y bond because anything beyond 50y is so heavily discounted it doesn’t matter.<p>There isn’t really any reason to buy that beyond the cool factor.

They’re offering a 100 year CD because they’re betting that the fed rate will remain higher than their current level for…well basically forever (or longer than any of us will live). I think it’s actually a pretty safe bet.<p>If they’re right, this is a terrible way to save your money.

I&#x27;d be interested to know their math model expecting a certain percentage to not have a beneficiary exercise it once the original account holder passes away.

The article doesn’t say but I’m assuming it’s callable, in which case it’s all loss and no gain since they can just refinance it when rates go down.

Seriously ? &quot;Fixed %&quot; ?? Even that papers that bringed Silicon Bank down was better - covers 15% of inflation...

What happens if USA joins the Euro in 2088?

I have exactly 0% confidence banks or the United States will exist in 100 years. And I&#x27;m thinking there will be 3-7 territories run by trillionaire and&#x2F;or religious feudal dictators.

“Walden Mutual, which opened last year“<p>Mmmhmm, I’ll pass.

Is it a pressed or burned disc? Pressed discs should already survive 100 years if stored carefully.