I was visiting EverBank’s website yesterday and I came across a new CD (certificate of deposit) product offering which peaked my interest, so I thought of sharing this with you my dear readers. EverBank calls this financial product the “New World Energy Index CD.” Essentially this CD is composed of the currencies of 3 non-Middle Eastern countries: Australian dollar, Canadian dollar, and Norway krone.
As you all should know, diversifying your cash holdings into foreign currencies is one good way to protect your wealth from potential financial problems in your home country and to also gain from the potential appreciation of the foreign currency holdings. With CDs you also earn interest in addition to potential currency appreciation so you stand to gain double. The only risk clearly evident with this product is the possibility that one or more of the 3 currencies will depreicate severely relative to the US Dollar. My opinion is that this is not likely to happen anytime soon but don’t take my word for it – do your own research. Also the short term nature of this CD fund makes it easier to “bail out” if ever such a depreciation was to occur.
Here are the details of the New World Energy Index CD:
Features of our New World Energy Index CD:
- Available in 3- and 6-month terms.
- Comprised of 3 non-Middle Eastern energy producing countries:
- 33.3% Australian dollar: Coal and uranium.
- 33.3% Canadian dollar: Oil, tar sands, natural gas and uranium.
- 33.3% Norwegian krone: Oil and natural gas.
- Returns based on a fixed-interest rate and any changes in the values of the currencies that comprise the Index CD versus the U.S. dollar. If any of the currencies lose value versus the U.S. dollar, you could potentially experience a loss of principal.
- No monthly access fees.
- Open with a competitive minimum deposit of $20,000.
- FDIC insured for bank insolvency.
I should also mention that this product IS available to non-US citizens as well, even though the bank based in the U.S.A
Stay tuned to this blog as I will be introducing other CD products from EverBank.
Happy investing everyone!
Alan out.