Hi, All.
Compass Bank, recently renamed to BBVA Compass Bank, is now advertising a zero-percent CD here in Central Texas. At least, that's how I read this blurb from their email, echoing their ad in last Sunday's Austin American-Statesman:
Introducing the Power CDSM from BBVA Compass
The equity-indexed Power CD protects your principal and provides the potential to earn 6% APY each year during the term.*
Additionally, you'll enjoy:
Five-year time deposit Full return of principal at maturity Principal insured up to FDIC limits Principal amounts deposited in the Power CD will earn an annual interest payment of
6% APY each year during the term that the S&P 500 Index is equal or higher on an anniversary date, than the S&P 500 Index on the issue date.* Otherwise, no interest payment will be made for that year, but your principal remains protected.
This offer is only available through Thursday, March 19, 2009.
As I read it, Compass does not promise any interest at all. IF the stock market is higher a year from today, they will pay 6% (in a check, not compounded) for that year. But if the market is down on the anniversary date, they pay NO interest for that year. But they do promise to refund all my principal in 5 years, guaranteed by FDIC.
Any takers?
RC