If you like the guaranteed earnings of certificates, but wish you could earn more, you’re not alone. Many consumers want to grow their money in a more substantial way; however, they don’t want to risk their principal.
A market-linked CD is a type of certificate of deposit that is linked to a market index, such as the S&P 500. It combines the long-term growth potential of the market with the security of a traditional certificate. Market-linked CD terms are typically slightly longer than traditional CDs and it’s important to allow these CDs to fully mature so that your principal isn’t at risk.
Market-linked CDs can be a good investment alternative because:
- Your principal is guaranteed when held to maturity
- Your potential rate of return is higher
- Your investment is FDIC insured, up to applicable limits
If you think market-linked CDs may be a fit for you and would like to learn more, please call Rahil Machiwalla. He’s available to chat by phone or can meet you at 1st United branch location.
Market-Linked CDs are not appropriate for all depositors including clients seeking a guaranteed interest payment or full participation in the stock market. If redeemed prior to maturity, the amount received will be subject to market risk including interest rate fluctuations and issuer credit quality. Market-Linked CDs are guaranteed by the issuing bank when held to maturity and are FDIC insured up to $250,000 per issuer, per depositor, per account ownership category.
*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the Credit Union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The Credit Union has contracted with CFS to make non-deposit investment products and services available to Credit Union members. Please consult a qualified tax advisor for specific tax advice.