What is an index-linked Certificate of Deposit (CD)?

An index-linked CD is a deposit obligation of the issuing bank and is often sold through bank branches and by both affiliated and unaffiliated brokers. Index-linked CDs provide the investor the ability to participate in the appreciation, if any, of a particular index, during the term of the CD. Index-linked CDs may have complicated payout structures and may not be suitable or appropriate for all investors. Investors should carefully review the CD terms and investment risk considerations detailed in the relevant offering documents and disclosure statements.

March 2010