Charter One Financial Inc. is joining the swelling ranks of banks offering insured certificates of deposit with yields tied to the stock market.
The financial services division of Ohio's largest savings bank, Charter One Bank, announced Monday that it would roll out a CD next week based on the performance of the Standard & Poor's index of 500 stocks.
Charter One, which has $5 billion in total assets and 96 offices statewide, maintains it is the first bank to offer such a product in Ohio.
But the Citibank unit of Citicorp. as well as NationsBank, has launched similar products elsewhere. Bank South and Great Western Bank joined the trend this month.
"We are offering this new product to provide our conservative customers and others, who may be considering investing in mutual funds or stocks, the opportunity to invest in a safe investment that is FDIC-insured," said Charles John Koch, president and chief executive officer of Charter One Financial.