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Cathay Bank Investment

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JenAnn
JenAnn Posts: 4 Newbie
First Post
edited 16 March 2023 at 4:09PM in Savings & investments
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???
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  • Band7
    Band7 Posts: 2,285 Forumite
    1,000 Posts Name Dropper
    £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
    Albermarle Posts: 27,820 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    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
  • 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
    Band7 Posts: 2,285 Forumite
    1,000 Posts Name Dropper
    edited 16 March 2023 at 7:57PM
    OMG. This is how "my bank has blocked my account and won't tell me why" stories start. Don't go there.
  • wmb194
    wmb194 Posts: 4,905 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 16 March 2023 at 8:04PM
    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


  • 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

  • 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.
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