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INDEXED CDs (principal FDIC-insured)
Index-linked CDs are certificates of deposit issued by banks for which the rate of return or interest rate is determined by an underlying index or benchmark. The CD issuers listed below are U.S. banks meaning each depositor's principal is insured by the FDIC up to $100,000 per depositor, however there is no guarantee that the investor will earn interest as the underlying index or benchmark has the potential to be negative during the term of the CD. In the case of a negative return in the underlying index, the investor receives their principal back upon the maturity of the CD - but no interest for an effective yield of 0.00%. In some cases the issuing bank will limit the upside potential return on each CD. Terms on indexed CDs vary from bank to bank.
|
BANK |
TERM |
INDEXED RETURN |
MINIMUM($USD) |
| Salem Five Bank Stock Index Retirement CD | 3-year | The three-year Stock Index Retirement CD will earn interest based on 65% of the Standard & Poor's 500 Index® gain and the five-year Stock Index Retirement CD will earn interest based on 70% of the Standard & Poor's 500 Index® gain, with no rate cap for an unlimited upside. In addition, a 100% return of principal is guaranteed. | $5,000 |
| State Farm Bank | 5-year |
|
$100 |
| everbank.com | 5-year |
|
$10,000 |
|
90-day |
|
$20,000 | |
| everbank.com | 1-year | WorldCurrency New Zealand Dollar CD - 6.65% APY** | $10,000 |
| everbank.com | 1-year | WorldCurrency Australian Dollar CD - 5.13% APY** | $10,000 |
| Patriot Bank | Various | 100% increase in Dow Jones Industrial Average | $1,000 |
| CollegeSure CD | 1 year to 22 years |
|
$500 |
| Capital One Bank | 9-month |
|
$10,000 |
* If return is negative during term of CD no interest is paid and investor receives only principal back
** Currency apprecation or depreciation applies if investor converts back to U.S. dollars.
Posted 7/25/07
