This week, the average yield on a five-year CD is 1.71 percent. Depositing $1,500 will result in $132.71 in interest at the end of five years.
EverBank has CD that gives investors exposure to the volatile commodities market with a downside guarantee: 100 percent of the deposited principal is guaranteed. And there are no account fees.
Of course, there are a couple of caveats. The minimum investment is $1,500 and the CD is only available for purchase until March 17.
The investment is locked in for five years with no early withdrawals, except in case of death. But even kicking the bucket won’t guarantee a 100 percent refund of principal.
The ultimate payoff after five years is determined by the returns over that time period. The interim returns are added up each year to get the cumulative return. It could be a nothing or anything above zero.
There’s also a participation factor calculated into the payment. The tax implications are a bit trickier than your average CD, too.
What do you think, worth the risk?