Ford is one of the most well-known and valuable brands in the world, and it offers investors a way to make money via the Ford Interest Advantage (FIA). This is a guide to understanding the Ford Interest Advantage.
Tap into Popular Ford Brand
“Brand Finance” ranked Ford as the 41st most popular brand in the world. The truth is that Ford can generate significant cash flow from sales of its cars and trucks. As a result, the automobile maker can tap into cheaper sources of capital. Ford Motor Credit Company is one of a growing number of brands offering their own financial investment products – General Motors and Google, to name a few.
Ford Interest Advantage Program
America’s successful industrial production has lead to more “alternative financing mechanisms.” The Ford Motor Credit Company allows investors to benefit from its own cheap capital sources by purchasing FIA Notes.
The minimum investment is USD$1,000 for the FIA Notes Program. The interest rates increase with higher amounts of money. An investment of USD$50,000 can receive an interest rate percentage of 1.05% (rates are subject to change). There are three categories of investments: 1. Under USD$15,000, 2. USD$15,000 to USD$50,000 and 3. Over USD$50,000. These rates apply to FIA notes opened between 5/1/2015 and 10/31/2015.
You have the choice of the following investment types: Individual, Joint, Custodian, Corporate and Trust. Your FIA Notes will be tied to your Social Security Number (SSN) or US Taxpayer ID Number (TIN). From time to time, the Ford Motor Credit Company may offer special bonuses for new investments.
Features of FIA Notes
Ford recognizes the benefits of online banking and offers a number of extremely modern features, including 24/7 access & transfer, online bill payment and the ability to scan checks for remote investment capture. Electronic statements and alerts can be sent to your email or smart phones.
The Ford Interest Advantage Program is neither a bank account nor a mutual fund. As such, it does not qualify for Federal Deposit Insurance Corporation (FDIC) insurance. Your FIA Notes are unsecured debt obligations and do not meet the investment quality standards set forth by the “Investment Company Act of 1940.” Ford has filed a registration statement with the Securities & Exchange Commission (SEC) relating to the FIA Notes. This program is only available to American customers.
How Ford Saves You Money
Unlike a small bank, Ford has a lot of cache, power and influence. Your local credit union or bank might not be able to offer the same services or interest rates as Ford. Economies of scale favors Ford.
Ford was the only American car manufacturer that rejected bailout money in 2008. It offers a more independent management team that can still handle the challenges of modern industrial production.
While Ford admits that FIA Notes do not satisfy certain investment grade criteria, they still might be used as alternative diversification investments. Investors can diversify from bank accounts, mutual funds and stocks. The program also offers people who have profited from the brand in the past the ability to keep that streak alive. Interesting side fact: the name “FIA Notes” is quite similar to the term emblazoned on all US Dollars: “Federal Reserve Notes.”
The FIA Notes have a higher interest rate than most bank accounts or certificates of deposit. There is free unlimited check writing for amounts above USD$250. There are no management fees. If you are interested in FIA Notes, then you can call 1-800-462-2614 for more information or visit www.fordcredit.com/FIA.
