Index-linked CDs

Index-linked CDs can offer you access to a wide range of markets by linking the returns on these CDs to the performance of a market index. They are linked to the performance of specific underlying assets and are not equivalent to investing in that asset.

Index-linked CDs may offer 100% principal protection when held to maturity and are FDIC insured up to the statutory limits. Principal protection is the return of an investor's initial principal amount if held to maturity. This principal protection is backed by the full faith and credit of the CD issuer.

The Details

Index-linked CDs offer:

FDIC insurance for up to $100,000 per account ($250,000 for certain retirement accounts, including IRAs). Please refer to the FDIC Web site for more details
The potential for enhanced returns on your deposits based on potential index/market performance

They provide investors the opportunity to participate in the potential gains, however, market value will fluctuate and you may not receive 100% of your original investment if you withdraw early from your index-linked CD.

Interested in learning more about index-linked CDs? Find an investment professional at a WaMu financial center near you for a free consultation.

Top Questions

How do I purchase an index-linked CD?
Our investment professionals can help you. Find an investment professional at a WaMu financial center near you to schedule a free consultation.

What are the fees associated with index-linked CD purchases?
All fees are built into the price when purchased. Fees may apply if sold prior to maturity. You may be required to pay taxes in interest income that has not been paid during the tax year. Investors should consult their own tax advisors prior to investment.

Is an index-linked CD right for me?
If you're cautiously optimistic about equity and other markets, but you're also seeking protection of your principal investment, an index-linked CD may be right for you. You should carefully evaluate index-linked CDs with respect to your financial objectives, suitability, calculation methods, tax considerations and other risk factors. Before investing, talk to one of our investment professionals who can help you determine if an index-linked CD is suitable for your unique goals and financial needs.

Find an investment professional at a WaMu financial center near you to schedule a free consultation.