I found a company that guarantees to pay out 1.5 to 2% interest EVERY DAY. All the money market and savings accounts pay out 4-5%, but only once a month or even once for the entire term. Is this rate of return even possible? Should I trust it? I'm thinking every investor would be breaking down their walls to invest with them.
2007-12-03 08:14:36 · 14 answers · asked by jean l 1 in Business & Finance ➔ Investing
PONZI SCHEME!! Seriously, how can ANYONE offer an investment that pays 730%
2007-12-03 09:40:25 · answer #1 · answered by Dom 5 · 0⤊ 0⤋
No its not possible. If it was I would put 100 dollars into it and at the end of 1 year (365 days) i would have 137,740.83. In 2 years i would have 189 million and in 3 years i would have 261 billion dollars making me the richest man in the world meaning I could buy out every share of walmart, give all those shares away to the poor and STILL be the richest man in the world with the left over change. All with 100 dollars and 3 years of time. So I would say its NOT possible.
2007-12-03 09:22:04 · answer #2 · answered by Anonymous · 1⤊ 0⤋
These types of financial companies in India are called 'fly by night companies'! They advertise in mega style and promise so much for the return and after collection of even initial deposits, they wound up and abscond for ever! Even some highly reputed companies ( these are called as "Chit Funds") have cheated people for hundreds of millions of US dollar equivalent of our currency!
Every day 2% means, annually it works out to 770%, even if we take it as simple interest! For compounded interest on daily or monthly basis the final payout after a year would knock out the paying company to declare bankruptcy!
Your saying that savings account in the banks pay 4-5 % once a month is also wrong! It is for a whole year! If you deposit 100 bucks you would get after one year just 105 bucks only!
So, just forget that company and alert all the people on this scam plus a call to police to take action!
2007-12-03 08:30:39 · answer #3 · answered by anjana 6 · 0⤊ 0⤋
Have you ever heard of the term ponzi scheme?? Call me 'wild & crazy' here, but this could well be one.
They sound extremely trustworthy. Anybody that promises 700% a year absolutely is honest & aboveboard. Remember what P.T. Barnum said - there's a sucker born every minute.
2007-12-03 09:09:47 · answer #4 · answered by exactduke 7 · 0⤊ 0⤋
Not unless you are lucky to recognize the next great product and its stock. The company that made the Monster drink line had those types of returns.
2007-12-03 08:20:13 · answer #5 · answered by sad_state_of_affairs 2 · 0⤊ 0⤋
There's the old saying: "if it sound too good to be true, it probably is." Do you realize what 1.5-2% per day would be on an annualized basis? Impossible.
2007-12-03 08:34:04 · answer #6 · answered by Anonymous · 0⤊ 0⤋
I WISH it was true. But it sounds like a 2% APR (annual rate) that accumulates daily.
2007-12-03 08:20:22 · answer #7 · answered by Barbara 2 · 0⤊ 0⤋
not possible, don't trust them 2% a day is about 700% a year and that is too much
2007-12-03 08:47:14 · answer #8 · answered by R B 4 · 1⤊ 0⤋
it's got to be either a ponzi scheme/pyramid or something else illegal or something where you might lose your entire investment to pay that kind of money - I wouldn't risk it
2007-12-03 08:33:27 · answer #9 · answered by Anonymous · 0⤊ 0⤋
This seems to be a very profitable investment.
(Not so much for you, but very much so for the people taking your money!)
2007-12-03 08:18:40 · answer #10 · answered by psychopiet 6 · 4⤊ 0⤋