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Inflation Linked Certificate of Deposits
Inflation Linked Certificates of Deposit (ILCDs) assist investors in offsetting the effects of inflation. The ILCD pays interest monthly at a CD base rate plus a monthly CPI adjustment that reflects the year-over-year changes in the CPI. In effect, the actual CD rate "floats" up and down with current inflation on a monthly basis. The adjustment may be positive or negative. In the event of a decrease in the CPI, the combined rate will fall below the CD Base Rate but not below 0.00%.
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