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.This looks to me like a lawsuit waiting to happen.Anyone remember the Auction Rate Securities debacle? Auction rate securies were marketed as a 'safe and liquid' place to earn a higher rate on your money, as you could always get your money back out at the next auction (generally 7 days) if you needed it. And it worked, until it didn't.And money market funds that broke the buck?Both generated lots of lawsuits.Disclose all you want, if it's being marketed as a liquid account that checks can be written on, people are not going to accept it if there is EVER a loss, so there will be lawsuits if that occurs.AJ
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