bank rates

Will These Indexed CDs Be Winners?

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.

Indexed CDsThe 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.

Since then we’ve been looking around for a couple of examples, to give you a sense of what banks are currently offering.

We came up with one from Everbank that is pegged to the price of precious metals and and another from Harris Bank that’s linked to the S&P 500.


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Comments (2)
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2 Existing Comments
  1. Klaus Schauser said:
    on May 12th at 02:43 pm

    Does anyone have any firsthand experience with these things? Ever made any money off of one?

  2. CrankySaver said:
    on May 13th at 09:35 am

    I’ll bet not many readers have ever bought an indexed CD — and for good reason. They always seemed like more of a gimmick that was guaranteed to make money for the bank or broker, not the investor.

    The only reason that’s changed is that the Federal Reserve has distorted the financial markets so much, and for so long, that you can’t make anything with traditional CDs.

    Here’s one interesting thing I learned from the tech guys at Bankaholic World Headquarters. Twice as many readers were clicking on the link for the CD indexed to precious metals than the S&P 500. Looks like we’re still feeling a little pessimistic about the future.