No. of Recommendations: 1

You wrote,

This is a vehicle by Duke Energy. It's really a means to invest in their debt. The ad in the local paper touts 1.61% APY. Since its a debt investment, it is not FDIC insured. But, it's an account with a lot of bank account similarities including free check writing above $250 and electronic transfers. Minimum balance is $1000 and no writing checks at the Walmart checkout to buy groceries. But, I suspect anyone interested in this would be looking for a place to store cash and receive a decent rate by today's standards.

I wonder if this discussion shouldn't be over on the Bond and Fixed Income board. Of course you're likely to get Charlie ranting about how this doesn't give you a real rate of return, but there are some people over there willing to have a rational discussion about very liquid and/or very short-term instruments.

However I will say that I wouldn't touch this product. I'd much rather stick my money in a 5 year Ally CD, which is currently paying 1.69% APY. Even if you don't hold for the money for that long, the penalty is only 60 day's worth of interest - or about 0.281% of the deposit. So even if you hold for only a year, you'll still get more than 1.4% APY. There are no deposit minimums for that and you're FDIC insured.

- Joel
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