PrimeLink CDs
The PrimeLink CD is a variable-rate certificate of deposit* that is insured up to $100,000 by the FDIC.
How PrimeLink CDs Work
You choose a fixed period of time for which you want the account. The terms available for a PrimeLink certificate of deposit range from one to five years. (The spread is the difference between the prime rate and the interest rate you earn on the CD.) Then, when the Prime Rate increases, you'll watch your interest rate rise*. View more details about PrimeLink CD features.
Example:
Let's say you put $20,000 into a 1-year PrimeLink CD when the prime rate is at 8.00%. Assume the current spread is 3 percentage points. The interest rate on our PrimeLink CD would be 5.00% (8.00% prime rate minus 3.00% spread). So, for example, if the Prime Rate rises to 8.25%, your PrimeLink CD would rise to 5.25%. Of course, if the Prime Rate goes down, so will your rate. *The Interest rate for this product is tied to the prime rate as reported in the Wall Street Journal. The Interest Rate is variable and will automatically change when the prime rate increases or decreases. No notice will be provided when there are changes in the Interest Rate and Annual Percentage Yield for variable-rate products.
**There is a penalty for withdrawal of principal before the stated maturity date. The penalty is equal to one half of the simple interest for the term of the CD, earned or unearned. Penalty will be assessed based upon portion of principal withdrawn.
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