Recently a US Bank is selling 100 year CDs with ~4.00% annual interest. The CD take 100 years to mature. The minimum amount is US$1,000. which in 100 years when it matures will become US$10,000+ (approximate 10 times due to compound interest.) Now the question here is: "Is this a good investment for the investor?" Of course, the intnetion of the the investor is for some beneficiary who will inherit this CD. Historically, the US stock market appreciates around 8% per year which according to the rule of 72 investing in the stock market will double approximately every 9 or10 years. or 1000 times in 100 years - a much better return even though unlike CDs, such return is not guaranteed. My own experience with my Harvard pension in a diversified portfolio is that it increased approximately 10 times in 46 years. Basically at such long intervals you are betting on the future of the country you live in. I say these 100 year maturing CD is not a good investment. If you doubt the future of the country in 100 years any guarantee of payment probablky is not worth much.
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