Structured CDs and notes

Key Points

  • Structured CDs and notes typically pair a fixed income investment (such as a CD or bond) with a performance component (generally an option)
  • Structured CDs and notes may help you diversify your portfolio and protect it from market volatility
  • Structured products are complex products that involve investment risk and other substantial risks compared to traditional investments and may not be suitable for all investors

Potential benefits of structured CDs and notes

Diversification. Structured CDs and notes may provide diversification to a portfolio by offering exposure to asset classes that can be difficult to access directly. While diversification can help protect against certain investment risks, it does not assure a profit or protect against loss.

Reduced volatility. Structured CDs and notes may reduce the effects of market volatility within your portfolio.

Principal protection. If you select a 100% principal protected note or CD (see important disclosures below), the amount of your initial investment may be protected if you hold it until maturity. In addition, there is a possibility for gains on your initial investment.

Participation. Structured CDs and notes may provide enhanced performance and/or above market coupons.

Structured CDs and notes available from Ameriprise Financial

  • FDIC-insured structured CDs are issued by U.S. banks and your initial investment is backed by FDIC insurance up to applicable limits.
  • 100% principal-protected notes are issued by third-party banks. These notes sold through Ameriprise Financial are registered with the SEC and offer principal protection if the note is held to maturity, subject to the creditworthiness of the issuer.
  • Principal-at-risk structured notes may help mitigate market loss, to varying degrees and offer the possibility of enhanced performance potential. These notes generally have maturity ranges from three months to seven years.
  • Callable yield structured notes are a special class of knock-in securities referred to as callable yield notes or auto callable yield notes. The issuer has the right or the obligation to call the security away from the owner at preset call dates and at preset index levels, while also paying fixed or contingent coupon amounts at set intervals over the life of the note. 

Take the next step

An Ameriprise financial advisor can work with you to determine if one of these products may be suitable for you, and then construct a portfolio that uses structured CDs and/or notes with the objective of diversifying and minimizing the effects of market volatility. To find out more about structured CDs and/or notes, contact your Ameriprise financial advisor or locate an advisor near you.

Structured products are complex products that involve investment and other substantial risks compared to traditional investments and may not be suitable for all investors. Investors should consider the investment objectives, risks, charges and expenses of the structured product carefully before investing. The prospectus and term sheet contain this and other important information about the product. Clients should read the prospectus and term sheet carefully before investing.