A Certificate of Deposit or CD is considered to be the only way to invest your money without worrying about risk. Most come in fixed interest rates so that you will be receiving a predetermined amount of interest on your money. Terms can be three months to five years.
Key Financial Group offers our Safe Money Investors five main types of certificates of deposit:
- Traditional CD
- Most common; fixed rate of return for a predetermined time period of 6 months to 5 years)
- Variable Rate CD
- Higher interest rate; maturity depends on the market’s favor
- Callable CD
- Higher return; maturity depends on the bank’s favor)–even if the financial institution calls the CDs, the investors still walk away with all of their principle that they originally put into the CDs. Callable CDs are still a better investment option than gambling with the stock market.
- Brokered CD
- Managed by brokers who sells a large CD to multiple investors, making it a shared CD that has a common interest rate
- Market-Linked Certificates of Deposit (“MLCDs”)
- Since 1987, over $25 billion of MLCDs were purchased by retail clients. They offer the same protection and safety of traditional “fixed” CDs with the potential to earn above market interest. Current Annual Caps range from 4% – 6.25%. In addition, MLCDs can be linked to Commodities as well as Stocks, thus providing a great diversification tool.
- 2013 Marked Linked CDs Term Sheet
- Brochure_BNP PARIBAS
Key Financial Group has exclusive representation for our issuing banks of the market-linked certificates of deposit. These issuing banks of Market-Linked CDs do not deal directly with depositors unless they have at least $5 million, rather retail MLCDs are purchased through “Deposit Brokers: (Broker-Dealers, Trust Companies, etc.):
According to FINRA in Notice to Members 02-69: “Brokered CDs and CDs are issued by banks via a “master CD” to deposit brokers which in turn sell interests in the master certificate to individual retail investors. FDIC Insurance attaches to the individual CD’s, represented in the master CD. The master CDs are held by a deposit broker as a custodian.”
*NOTICE TO OUR SAFE MONEY INVESTORS*
All of our promotional CD’s that are advertised have certain restrictions on terms and deposit amounts as well as each individual bank’s requirements for opening an account. Since we deal with hundreds of banks participating in our promotions, each bank’s requirement will vary. You will need to discuss these issues with your account representative at Key Financial Group.
There are a wide variety of annuities that are fit for various needs. Some examples are:
- Immediate Annuities
- Lifetime Annuities
- Defferred Annuities
- Fixed Annuities
- Variable Annuities
- Fixed Annuities
- CD Annuities