variable-rate certificate of deposit

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Variable-Rate Certificate of Deposit

A certificate of deposit for which the interest rate changes according to some formula at set intervals. Investors use variable-rate certificates of deposit when they want a low-risk investment but expect prevailing interest rates to rise during the life of the CD. See also: Variable-rate bond.

variable-rate certificate of deposit

A certificate of deposit that pays a rate of interest that changes at predetermined intervals according to a specified formula or a key interest rate. This savings instrument is most appropriate if the investor expects short-term interest rates to rise before the certificates mature.
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The InvestorSure CD is a variable rate certificate of deposit that offers the formulaic upside performance of the S&P 500, without downside risk.
The CollegeSure CD is a variable rate certificate of deposit that is tied to a college costs index and designed to help families save for their children's future cost of college.
The new InvestorSure CD is a variable rate certificate of deposit indexed to the Standard & Poor's 500 Composite Index.

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