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Retirement Savings: How Much Should I Save Each Month?Update on Federal Savings
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POSTED
ON BY Ken Tumin
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.
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.