Florida-based C1 Bank, which recently changed its name from Community Bank, is offering a unique proposition to well-heeled clients: any customer who takes out a five-year, $1 million certificate of deposit can receive a 2012 Mercedes-Benz as an up-front interest payment.
There are, naturally, several restrictions apply to receiving the Mercedes. Customers can only choose from a 2012 Mercedes SLK350, E350 sedan, ML350, or E350 convertible with a list price of $59,585 (including destination and other fees). The bank says that its predicted interest rate of 1.20 percent equates to about $61,294 in interest over the course of the CD, more than covering the cost of the new Mercedes. However, the equivalent value of car payments will be reported as taxable income. Finally, customers of C1 Bank must maintain a minimum balance of $1 million for the entire five year period of the CD.
Whether the bank’s offer makes sense for customers would depend on a variety of criteria, but it’s certainly a unique opportunity. Moreover, it means customers will reap a financial benefit (in the form of the new Mercedes) immediately, rather than waiting until the CD ends after five years. C1 Bank says that with given the relatively low interest rates even for five-year CDs, getting a brand-new Mercedes at the outset of the financial arrangement can be a “thrilling opportunity” for customers.
Source: C1 Bank