Is 100 percent of my index-linked Certificate of Deposit (CD) protected?
The principal is protected. Index-linked CDs are 100 percent principal-protected, subject to early withdrawal penalties (if applicable) and Federal Deposit Insurance Corporation (FDIC) insurance limits.
However, if interest payments on the CD are contingent on changes in the index that are measured on a specified date, the interest is not protected until that date.
Last Reviewed: April 2021
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