Cathay Bank Investment 16 March at 4:08PM edited 16 March at 4:09PM in Savings & investments 12 replies 477 views

JenAnn

I have been told that Cathay Bank has an account where for a 6 month period, you can invest multiples of [the equivalent of] £10.000. For each £10.000 you get £100 [equivalent in sterling] cash payment per month. Is someone trying to scam me???

Band7

£100 a month would be £1,200 a year. That's 12% interest on £10,000. So that would be a definite scam, as the currently best rate in the UK for a £10k lump sum isn't even half that

If you have misunderstood and it's £100 a year on £10,000, that would be 1% and quite possible. A lot of the large banks pay such pitiful interest.

In any case, I doubt they have FSCS protection. Did you check that?

Albermarle

JenAnn said:

I have been told that Cathay Bank has an account where for a 6 month period, you can invest multiples of [the equivalent of] £10.000. For each £10.000 you get £100 [equivalent in sterling] cash payment per month. Is someone trying to scam me???

That 'offer' = a 12 % interest rate.

The best interest rates on offer for safe savings accounts in the UK are < 5%.

So almost certainly a scam as its too good to be true.

In any case if you google Cathay bank, they only offer accounts in Dollars

JenAnn

Thanks guys, the person recommending is my son's Taiwanese girlfriend  of 5 years who says that she would open up the account in my name if I transfer the money to her account & she would transfer it in dollars. She is definite that it is £100 per month . I am not inclined to trust her in spite of knowing her for so long. I am mainly concerned to know if she is scamming.
Haven't checked the FSCS - will do. I appreciate your comments. 

Band7

OMG. This is how "my bank has blocked my account and won't tell me why" stories start. Don't go there.

wmb194

JenAnn said:

Thanks guys, the person recommending is my son's Taiwanese girlfriend  of 5 years who says that she would open up the account in my name if I transfer the money to her account & she would transfer it in dollars. She is definite that it is £100 per month . I am not inclined to trust her in spite of knowing her for so long. I am mainly concerned to know if she is scamming.
Haven't checked the FSCS - will do. I appreciate your comments. 

Apart from 12% sounding like a scam on the face of it, just look around its website. It doesn't look to be offering anything very good at all, abysmal in fact.

FSCS wouldn't apply, it would be the US equivalent but it doesn't sound genuine so there would be nothing anyway.

It's also a very bad idea to put your money in the control of a third party and particularly when they're abroad/the supposed account is abroad.

https://www.cathaybank.com/personal/savings/cds

dunstonh

Thanks guys, the person recommending is my son's Taiwanese girlfriend  of 5 years who says that she would open up the account in my name if I transfer the money to her account & she would transfer it in dollars. 

Has he actually met her?
Is she real?
Is it somebody pretending to be her?
Some scammers play the long con.

Think it through.
You would be transferring money to a third party in a different country.    You will never see it again.

AmityNeon

JenAnn said:

Thanks guys, the person recommending is my son's Taiwanese girlfriend  of 5 years who says that she would open up the account in my name if I transfer the money to her account & she would transfer it in dollars. She is definite that it is £100 per month . I am not inclined to trust her in spite of knowing her for so long. I am mainly concerned to know if she is scamming.
Haven't checked the FSCS - will do. I appreciate your comments. 

12% is already too good to be true, it's not advertised by Cathay Bank, and now this?

Stop.

If you don't want to strain relations with your son and his relationship, just don't pry. If she starts pushing back and insisting that you (or your son) should partake, obviously you should refrain from doing so and demand she provides evidence of this miraculous offer, which may open her eyes if she's innocent, or help to save your family from future/further heartbreak.

https://www.santander.co.uk/personal/support/fraud-and-security/spotting-fraud-or-scams

JenAnn

Thanks to all.
The woman is real & has stayed with us for months at a time [never paying her way]. She is 58 yrs old with her own business teaching yoga & dance. It's difficult to believe she would scam me. She says that the bank doesn't advertise the deal online. [of course!]  My son  [also in his 50's]has PTSD & adores her which is why it's so hard, he would be devastated if it is true.
I definitely will not be investing!
Thanks once again for the advice

Band7

JenAnn said:
 She says that the bank doesn't advertise the deal online.

She's either been brainwashed by the scammers, or she is in complete cahoots with the scammers, or she is the actual scammer.

JenAnn said:

She is 58 yrs old with her own business teaching yoga & dance. 

An American  bank that offers a wide range of financial services with locations in nine states in the U.S., a branch in Hong Kong, and three representative offices in Beijing, Shanghai, and Taipei has revealed a secret investment deal to a yoga and dance teacher in the UK?  Yeah, sure    

JenAnn said:

It's difficult to believe she would scam me.  

Difficult to believe perhaps but it is certain that you would never see your money again. And you and your son would probably not see her again, either. Lock away your valuables if she comes to visit you again.

JenAnn said:

I definitely will not be investing!
 

Excellent decision, please stick with it.

JenAnn

She is a Taiwanese citizen & lives in Taiwan, my son has visited her there & met all of her family. He is due to visit her next month & she is due to stay here for a few months in the summer which is why it is so hard to believe that she would scam me. She says she has £30.000 [sterling equivalent] invested with the bank. Strange but I do not trust her now - is it the long game??
Thanks again to all, my money will be staying in the UK.