Deposits turn to rates and inflation in US

Rates and inflation-linked certificates of deposit are being launched by US providers as sales of the government-backed investments continue to be robust. Wells Fargo, HSBC and JP Morgan are all offering structures which expose investors to changes in either consumer inflation, the yield curve, or the six-month London Interbank Offered Rate.

Wells Fargo's deposit structure is a long-term play linked to changes in the US Consumer Price Index (CPI), which compiles the price of a basket of consumer goods and services. It has a maturity of seven years and pays a guaranteed 3.25% for the first three. Interest payments will be made quarterly for the rest of the product's life, linked to the performance of the CPI plus a base rate of between 1.4-1.6% (with the exact level to be determined at strike). If that figure is negative, the coupon

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