Market Linked CD’s Can Provide Higher Returns
Market linked CD’s are a good alternative to traditional bank CD’s and annuities. Bank CD’s are currently yielding 1% on a short term basis and no higher than 3% on a 5 to 7 year term. Market linked CD’s work differently as they have a guaranteed minimum return (usually .5% to 1%) but have an unlimited upside. Instead of providing a set return over a period of time, market CD’s base returns on the performance of the securities in the market such as indexes or individual stocks. If the investment yields a positive return in any given year, a portion is shared with the investor. If the investment has a negative or neutral return, the investor is credited with the minimum state return such as .5% or 1%. Market linked CD’s are FDIC insured just like a traditional CD. Read more
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