Indexed Certificate Of Deposit - Indexed CD


DEFINITION of 'Indexed Certificate Of Deposit - Indexed CD'

A savings certificate entitling the bearer to receive an interest rate that is indexed to inflation. The indexed certificate of deposit (indexed CD) yields a rate of return that is linked to a stock market index, such as the S&P 500 or the NASDAQ 100.

BREAKING DOWN 'Indexed Certificate Of Deposit - Indexed CD'

Although indexed CDs have their principle guaranteed by the Federal Deposit Insurance Corporation (FDIC) like any other certificate of deposit (CD), the returns based on a market index and are not guaranteed in any way. Many look at these products as either a safer way into the stock market, or a riskier money market product.

  1. Inflation

    The rate at which the general level of prices for goods and services ...
  2. Price Inflation

    An increase in the price of a standardized good/service or a ...
  3. Fixed Income

    A type of investing or budgeting style for which real return ...
  4. Federal Deposit Insurance Corporation ...

    The U.S. corporation insuring deposits in the U.S. against bank ...
  5. Interest Rate

    The amount charged, expressed as a percentage of principal, by ...
  6. Fully Indexed Interest Rate

    The interest rate on an adjustable-rate loan that is calculated ...
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