Say I want to borrow $225,000.00 to accrue interest on a 1.20% APY account. I promise the lender that I'll pay them a fixed-rate of this interest with agreement that I cannot withdraw nor touch the account by legal contract. I pay them their share and they charge interest on the sitting loan on top of this. I can keep a percentage of the accrued interest and still remain liable for the money and dues to the lender. I can think of a few ways that this would make sense for the lender/work:
1.Collect a larger portion of interest. By sharing the interest with me on a loan, they keep a percentage that they'd normally get -- but I am charged additional interest on a percentage of the loan as well that I'm expected to pay (think like a credit card kind of loan, but the benefit of this is that I keep a percentage of the interest on a month-to-month basis or it's given to me in segments).
2.This money could also be lent to fund, say, a margin-trading account. I keep the same percentage of money from any profits, but I'm expected to pay back interest on both the earnings and the amount lent that remains inside of the margin account itself.
3.The money can also be used to fund a stock/trading account. Regardless of whether I profit, I pay interest on the loan and split the profit shares 24/7. How can the lender lose with legal enforcing?
It's a win-win. I get to share interest to fund business/lifestyle endeavors of my own -- and the lender gets to charge me a prime rate of interest or their own rates -- and they get a portion of the interest back from the start. If I don't pay back, they still keep part of the money and lose none of it.
Is there such a thing like this that could be done? I'm thinking of doing so with $1,000,000.00.
$1,000,000.00 at 1.20% APR will yield me around 50% shared and I get ~$5K a year.
The means of interest they charge can be reasonable -- and they can even charge me based on the interest I accrued rather than the amount sitting in the account. Also, it can be arranged that I can continue to fund the same account (but cannot withdraw) and compound interest on the same interest I'm paid and charged against. I think this idea becomes a smarter, revolving loan.