My mother told me that in 1994, she had $10K to put into a savings account or CD. She went to the local Citibank and didn't like the interest rates that they were offering on their savings/CD accounts. The bank representative told her about an interesting product that they were offering. It was some sort of S&P 500 investment, except there was no risk. The representative told her that she could invest her $10K in this product for 5 years, and if after five years the S&P 500 had dropped, the bank would eat the loss and return the $10K to her. But if after five years the S&P 500 had risen, then she could keep all the profits. The representative assured her that she would not lose any money, so she thought it was a great deal and put her $10K in it.
My mother said that in 1999, the S&P 500 had gone up during those 5 years, and the bank returned about $25K to her. Looking at a chart of the S&P 500, it rose over 150% during that period, so she really did get to keep most/all of the profits. She said she asked Citibank if she could invest in that product again, but they said they were no longer offering that product.
Is there a name for this type of a risk-free investment product, where the bank is willing to return 100% of your principal if the investment goes south? I wonder if any bank offers such a product nowadays.