What kind of account could this be?

Question

My boyfriend opened an account yesterday at his bank. he put in just over $1000, and was told if he doesn't touch it until he's 60(he's 20 now) it will be worth over a million dollars. If he continues to put money in it will be a multi million account. He can withdraw from it only 6 times a year. This is what his grandpa did when he was younger, and now he's a multi millionaire. What kind of account could it be?

Answer 1

Sounds like a Money Market account.  If the account allows withdrawals, it can not be a retirement account.

Note:  Bankers tend to over exagerate the income potential of the accounts that they have.

If you invest $1000 a year for 40 years and earn 5%, you will have approximately $125,000 and the end of 40 years.   A nice chunk of change, but not $1 million.  Plus, 5% is impossible to get on a money market account these days.

Answer 2

could be a annuity fund.