Market Linked CDs
Market Linked CDs (or also known as Equity Linked CDs) are the only financial product that combines the guaranteed return of your principal and the protection of Federal Deposit Insurance Corporation (FDIC) Insurance with the potential to earn reasonable rates of return.
- MLCD Purchasers will receive a full return of their deposits at maturity.
- MLCDs qualify for FDIC coverage.
- MLCDs offer the potential to earn more interest than traditional CDs.
Market Linked CDs were initially developed by Chase Bank in 1987 for their wealthiest clients. Today, many well-known banks offer MLCDs with initial deposits as low as $25,000. Many MLCDs pay variable annual interest linked to the performance of commodities or stocks up to a Cap. These Caps are annual interest limits and currently range from 5% – 10%.
While anyone can invest in Market Linked CDs and they are an excellent compliment to any well-balanced portfolio, there are a few specific types of investors who may benefit from market linked CDs the most. The Baron Group recommends Market Linked CDs mostly to retired individuals, families investing in college funds or any conservative, risk averse investors.
However, just like with any other investment decision, each individual overall investment goals need to be evaluated in order to determine the most effective investment strategy.
MLCDs are priced on a monthly basis and our offerings will change each month.
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