SaverNotes 6% Beats Best CD Rates – Guaranteed!
Keeping the overall math simple, say you buy a $1,000 bond paying 2.00% interest, you receive $20 in interest, at maturity you cash in the bond and get your $1,000 back.
While you are holding that bond and receiving interest, rates go up to 4.00% for bonds that are selling now. If you have to “mark-to-market” or sell your $1,000 bond (to pay people pulling millions of dollars out of your bank) you go and sell the bond to generate cash to pay them.
The interest payment on that bond is fixed at $20 so to generate a 4.00% return to the new buyer the value of the bond is $500 ($20/4% = $500). Same bond, same interest payment but to generate a 4% return the current value is $500 instead of $1,000.
Rinse and repeat millions of times and you can see how the capital of the bank eroded. The bank had 60% of its assets in fixed income bonds and the run on the bank caused it to continue to take market loses as it had little liquidity, could not raise cash fast enough from its shareholders and continued to sell its bonds at losses to meet cash withdrawals.
Headquartered in Eden Prairie, MN., SaveNotes, LLC provides a unique alternative to stocks, bonds and CD’s by providing fixed income with high return, while remaining easy to invest.
SaverNotes pays interest to its investors based on a variety of available investment amounts and maturity dates. SaverNotes have no fees or expenses and are available for any Minnesota investor. Current rates range from 3.00% to 6.00% based on terms of two to five years. Investors can also invest through their IRA account.
Learn about how this investment fund was made possible through our investment partnerships and our experienced legal, wealth management, banking and accounting advisors at www.SaverNotes.com.
At the top of the website is a Learn More tab, click on this, enter your email address and zip code (confirming your MN residence) and click submit. You will have access to the Prospectus, Subscription Agreement and instructions on how SaverNotes can help you earn more interest.