How can a company offer an above-market rate for a certificate of deposit?
Some companies will offer you above-market certificate of deposit rates, but the rate is usually only for the short-term (less than one year). While discussing the terms of the transaction, the salesperson may try to “switch” you into another investment opportunity that pays higher commissions such as variable annuities. Even if you resist the sales pressure and buy only the certificate of deposit, the company now has contact information to formulate a call-back list. With this list, the company often contacts customers in hopes of convincing them to reconsider purchasing an annuity or other high-commissioned product, explaining how much money the investor could have made. And if you’re on the Federal Trade Commission’s “Do Not Call” list and complain about recurring phone calls, your complaint may not be valid since you have already established a business relationship with the company. Although this is a legal type of “bait and switch,” you need to make certain the investment product
