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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) |
| EverBank | 6-month | WorldCurrency Pacific Advantage CD - indexed 40% to New Zealand dollar, 20% to Hong Kong dollar, 20% to Singapore dollar, and 20% to Japanese Yen - current yield 1.78% APY** | $20,000 |
| College Savings Bank | 5-year | The InvestorSure CD is a variable rate certificate of deposit indexed to the Standard & Poor’s 500 Composite Index. Unlike many investments, the InvestorSure CD does not risk principal. Should the value of the S&P 500 decline over the investment period, you will receive your full investment back at maturity. Investments held to maturity will also receive at least 85 percent of the average increase in the S&P 500 based on a formula*. InvestorSure CDs are issued exclusively by College Savings Bank |
$500 |
| New Dominion Bank CD | various | CD rates are indexed to the WSJ prime rate. Rates are reset annually based on prime rate. | $3,000 |
| EverBank | 7-year | MarketSafe CD - indexed to price of Gold Bullion, investors receives return based on average spot price of gold, if the return on gold is negative during lifetime of CD then investor receives principal back but no interest | $20,000 |
8-year |
MarketSafe CD - indexed to price of Silver Bullion, investors receives return based on average spot price of silver, if the return on gold is negative during lifetime of CD then investor receives principal back but no interest | $20,000 | |
| 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 | 90% of increase in S&P500 Index* | $100 |
| EverBank | 5-year | WorldCurrency Petrol Index CD - indexed 33% to Norwegian krone, 33% to British pound, and 33% to Mexican peso - 3.33% APY** | $20,000 |
|
90-day |
WorldCurrency Commodity Index CD - indexed 25% to Australian dollar, 25% Canadian dollar, 25% South African Rand, and 25% New Zealand dollar - 5.09% APY** | $20,000 | |
| East-West Bank | 5.5-years | Indexed to Hang Seng China Enterprise Index, 80% participation in increase or 1% minimum guarantee return | $5,000 |
| EverBank | 1-year | WorldCurrency New Zealand Dollar CD - 6.13% APY** | $10,000 |
| EverBank | 1-year | WorldCurrency Australian Dollar CD - 5.25% APY** | $10,000 |
| Weymouth Bank | 3-year or 5-year | Indexed to Dow Jones Industrial Average subject to participation rate. Principal guaranteed if held to maturity | $1,000 |
| Patriot Bank | Various | 100% increase in Dow Jones Industrial Average | $1,000 |
| CollegeSure CD | 1 year to 22 years | Indexed to increase at the rate of increase in college tuition. Minimum rate is 2.00%. Return for period ending 7/31/2006 was 5.74%. | $500 |
| Capital One Bank | 9-month | Variable interest rate tied to the 90-day T-Bill auction discount rate plus 0.25% | $10,000 |
| 1st National Bank of Nevada | 1-year | Interest is calculated at 50% of Prime Rate + .75% (75 basis points) | $2,500 |
* 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 4/2/08