It has been an age old practice and a classic marketing gimmick: attracting new and potential customers to open a bank account with the lure of prizes. We have seen banks offering simple things like flashlights, toasters, discount coupons and other things. One bank in Boulder, Colorado actually offered hunting rifles to customers who opened a new account with a large opening balance. But here comes the mother lode of this entire hullabaloo. A reputed bank in Tampa, Florida, is actually offering new customers a choice to get a car from Mercedes Benz. The choices are from the 2012 models, vis-a-vis, the E350 Sedan, the SLK 350 Roadster, the E350 Convertible and the ML350 Crossover.
Yes, you suspected right! There is a lot of fine print to this offer. New customers need to deposit a minimum balance of $1 million into C1 Bank’s 5 year CD product to avail this offer. Also, the car itself will be devouring a percentage of 1.2% from the gross amount (which you would have been paid otherwise). I say devour because the 1.2% comes around to $61,835.48 at the end of 5 years. If you do the math quickly enough, you will find that the bank is not giving away a Mercedes Benz, but you are simply buying one from them with no cash spent out of pocket. Another pain in the neck is the termination clause. If you want to end your agreement and withdraw the money from the bank, you will be fined a sum of $3000 and the cost of the car model.
We are no financial advisors and we also do not know how attractive an offer this is for people who actually have $1 million to spare. If you do go for this offer, you see that at the end of 5 years you have $1million without a cent in interest and a 5 year old car which will be worth around $30,000. We think that earning interest on the $1million and leasing a Merc every 2 years is a better deal.