A couple of weeks ago we suggested that traditional CD rates are so low, this might be a good time to take a chance on an indexed CD.
The return on indexed or market-linked certificates of deposit isn’t fixed as it is with traditional CDs.
It’s tied to a stock market index like the S&P 500, although it can also be dependent on everything from commodity prices to Treasury bill rates.
If the index goes up, you make money.
If goes down, you earn nothing.
So we’ve been looking for a couple of examples, to give you a sense of what banks are currently offering.
Everbank is selling a MarketSafe Diversified Metals CD that’s pegged to the price of gold, silver and platinum.
It’s a 5-year CD with a minimum deposit of $1,500. There are no fees and a 100% participation rate.
While your principal is FDIC insured, the total return is capped at no more than 50% of that principal.
This offer expires Thursday and you can get more info by calling (800) 926-4922.
Harris Bank is selling an S&P 500 Index Linked CD that tracks the performance of the popular stock index.
It’s also a 5-year CD with a $15,000 minimum deposit. There are no fees and a 100% participation rate.
Your principal is FDIC insured, but the total return is capped at no more than 35% of your principal.
This CD must be purchased by May 25. You can get more info by calling (888) 360-6394.