You limit your upside to limit your downside. No withdrawals at all Another aspect to consider is how long your money will be tied up. Make sure you won't need the money until maturity. South Federal doesn't allow withdrawals for the first year, and after that there's a penalty. Stock market indexed CDs also differ from other CDs in that there is likely to be a set starting and ending date.
Banks advertise the offering and then send a packet of information to anyone who requests it.
Everyone who wants to participate has to send money by a certain date. Terms, minimum investments, payout dates and the way interest is determined will vary from bank to bank and maybe even offer to offer. Expect to hear much more about these CDs as more banks jump into the fray in an attempt to broaden their investment offerings to customers. Bankrate Inc. All rights reserved.