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Union Bank of California introduces FDIC-insured market-linked CDs
By Jennifer Chiou
New York, Dec. 10 - Union Bank of California, NA announced the introduction of a principal- and Federal Deposit Insurance Corp.-protected market-linked certificate of deposit.
The new offering will allow investors to take advantage of potential market gains while safeguarding their principal, according to a news release.
The principal invested in the market-linked CD is insured by the FDIC and protected from market volatility if held to maturity, the release said.
Maturities vary with each offering, ranging from 18 months to seven years, the bank said, adding that early redemptions of the CDs are allowed quarterly at market value and, prior to maturity, the CDs may be worth less than the original investment.
The minimum investment is $10,000.
The CDs will be available to individual, corporate and institutional investors through UnionBanc Investment Services, LLC, the brokerage subsidiary of Union Bank.
"We are excited about the opportunity to offer a product that provides customers with the growth potential of the equity markets as well as a degree of safety," Steve Short, chief executive officer of UnionBanc Investment Services, said in the release.
Initially, the bank's CDs will be linked to the S&P 500 index, expanding to other indexes over time. Unlike traditional CDs, investors will not receive periodic interest payments and there is no assurance of gains or that any gains will match the performance of the index.
Investors interested in learning more may call 800 634-1100 and select option 4.
Based in San Francisco, UnionBanCal Corp. is a financial holding company whose primary subsidiary is Union Bank of California.
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