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Update on Federal Savings

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A couple of months ago a banklike website with the name Federal Savings began offering certificates with a rate of over 8%. This Las Vegas newspaper article has an interview with the operator of Federal Savings. The Las Vegas police now have frozen the company's deposits ($2 million). The Las Vegas police were involved since Federal Savings is registered in Nevada.

Federal Savings also has an address in Seattle. On March 8, Washington State officials in the State Securities Division issued a cease and desist order to this business. The Securities Division alleges that the websites are "making material misrepresentations regarding the investments offered based upon vague and misleading information."

Similar opinions were in my February post on Federal Savings from Bankrate and from several commenters.

If you're planning to purchase a bank product on the web, make sure the website belongs to a real bank or credit union. You can confirm the web address by checking with the FDIC or NCUA database. See this post for more information.


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Comments
4 Comments.
Comment #1 by Anonymous posted on
Anonymous
Banking Guy, reading your article is a relief to me because I feel like someone is watching over our money. I have used so many of your references in placing my money to get the best interest rates available. I first learned about you in The Money Magazine, it seems like years ago, and I have gained so much extra interest by using your advice. Thank you so much..:)

1
Comment #2 by Duck (anonymous) posted on
Duck
Great job on the article BankingGuy glad to see some of these people hopefully will get some money back Note: Stamper said regulatory and law enforcement agencies are forcing his Web site investment business to fail and harming investors, by taking action against him and freezing his accounts.

"It's a self-fulfilling prophecy," Stamper said.Why didnt he just put it on main page then about not being fdic and it being a investment.

Cant say it enough research research research even then nothing is 100% except death and taxes
Thanks again BankingGuy
Duck

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Comment #3 by Anonymous posted on
Anonymous
good job banking guy.
it's important that you are looking after us (money) :)

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Comment #4 by ShraZZy (anonymous) posted on
ShraZZy
I think Stampler had some good points. His site doesnt say it is a FDIC member, it just says About FDIC. Of course, it can be misleading, but all ads and promotions are. If he was taking the deposit and investing in a jumbo CD, then that was his business plan.

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