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Products November 24, 2010
Pru Unveils FDIC-Insured Product
Prudential introduced the Prudential Protection Account in
response to the financial crises and plan sponsors’ demand for products
with built-in guarantees.
Reported by Fred Schneyer
The new product is a principal and accrued interest guaranteed investment option for its 401(k) clients and their employees that is insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per participant, the company said in a press release.
Funds invested in the account are considered deposits of Prudential Bank & Trust, FSB. Prudential Bank & Trust, FSB is a Member FDIC.
“Plan sponsors across the nation are obligated to not only find institutional solutions that help them manage pension benefits and risks for their employees but also to help their employees make smart financial decisions about their retirement savings,” said Carlos Mello, vice president, Prudential Retirement, in the news release. “These important decisions include choices about financial vehicles that provide growth and security throughout their retirement years.”