Any form of investment has inherent risks involved. As investors, you have to conduct your due diligence before jumping into something. Never ever give your hard-earned money to some investment scheme you dont fully understand.
Recently, Rural Banks offering high interest rates for their Time Deposit products have experienced some setbacks. We saw how G7 Rural Bank went belly-up, one of the biggest and trusted rural banks, a few weeks back.
To know more about it.. follow this Forum Thread
And now, rumors are hounding investors of the Legacy Banks, with issues of solvency and integrity.
To know more about it.. read this article from Inquireror follow this Forum Thread for recent updates.
As simple investors, we probably won’t know the real deal, until all the dust settles. But, if you have done your assigment before placing any investment, and you have understood all the risks involved — then, there’s no need to worry. Besides, PDIC will always be there to insure your money.
So, is it Risky? If you just followed the herd and didn’t do any research — yes, it’s Risky. But, if you have considered all the elements — like bank history, reasonable interest rate for your investment, and PDIC limit — then, the Risk is minimized or even close to Nil.
