John talked about a new type of Certificate of Deposit product which is still FDIC insured but is linked to the stock market for returns. Gives risk-averse investors better rates than regular CDs without the chance of losing principal.
There are two types: one with a duration of 5-7 years and a shorter callable one.
The callable type states that the bank can recall the CD after a year but will return the principal plus 8% interest. If the bank doesn’t recall it you still get the 8% and keep the CD with another chance at getting an additional 8% the next year.
The other longer type you keep until maturity in 5-7 years and participate in the whatever gains the stock market has during that time. If the stock market is down at maturity time or if the owner dies before maturity then all the money is restored to the original principal amount.
Give John a call for more information about this type of risk-free investment vehicle.