Market-linked CDs start to draw in more savers with interest rates that beat typical CDs and the...

|By:, SA News Editor

Market-linked CDs start to draw in more savers with interest rates that beat typical CDs and the comfort of FDIC-insurance to protect against downside market risks. Though banks love the trend because they earn fees as high as 8% and skirt rules that would make the CDs securities with a higher degree of oversight, critics warn that returns are being smoothed with derivatives and trade in a secondary market without accurate pricing. Why does this sound so familiar?