Prudential Financial has introduced Prudential Protection Account, a new retirement solution that is insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per participant.
According to the Prudential, the new product is a principal and accrued interest guaranteed investment option for its 401(k) clients and their employees.
The new account is an alternative value vehicle that allows for FDIC insurance for individual participants in 401(a) and 401(k) defined contribution plans and governmental 457 plans.
Funds invested in the account will be considered deposits of Prudential Bank & Trust, FSB. Prudential Bank & Trust, FSB is a Member FDIC.
Prudential Retirement vice president Carlos Mello said Prudential Protection Account complements the broad suite of institutional solutions that Prudential offer to plan sponsors and their participants.
It offers liquidity, principal protection, and a competitive rate of return for plans that use Prudential’s recordkeeping platform,” Mello said.