Speak with a Registered Agent: 1-866-223-2121

Speak with a Registered Agent: 1-866-223-2121

Compare Equity Linked CDs


The United States Securities and Exchange Commission has an informational page dedicated to equity linked CDs.  They are certificates of deposit that tie your rate of return to a stock index’s performance.  With FDIC insurance, equity linked CDs have an extra safeguard that other investment products do not.  The terms vary with different banks, but these CDs usually have a term of around five years.  When you compare equity linked CDs with other products, banks like to highlight the principal protection that they offer.  If there is a downturn in the market, the original principal will not be affected.

There are things to consider when looking into an equity linked CD.  They do not have liquidity before the term expires so they should not be used if you might need your money sooner than the five years or so.  Market risk and call risk are associated with equity linked CDs.  FDIC insurance covers the amount permitted by law, but always read all of the terms associated with the FDIC.  Many returns are calculated by averaging the index’s closing price over a period of time instead of upon the maturity of your CD.  Look into the equity linked CD criteria to find out the participation rate and whether or not there are caps associated with your product.  Since equity linked CDs can have different tax benefits than regular CDs, make sure you know those before purchasing.

For more information about the product mentioned in this article contact us here:

Newest Blog Posts

Information Request Form

If you have questions or would like more information, please complete this form and a licensed professional will be happy to help. For the fastest response, please select 'Phone' as your Contact Preference.

By providing your information and clicking 'Submit' above, you acknowledge that you have read and agree to this site's privacy policy. You also provide your consent to be contacted at the email address or phone number provided above (including any wireless number) by licensed agents or representatives from or on behalf of Somerset Wealth Strategies, LLC and other companies to provide the information requested and/or offer annuities or financial products. You understand that these calls or SMS messages may be generated using an automated telephone dialing system, a pre-recorded message, or artificial voice. Consent to receive such messages is not a condition to purchase any goods or services. You may opt out at any time by following the instructions in the messages you receive.  Receiving quotes and information through our website is free, and you are under no obligation to purchase any goods or services as a result of this request. You affirm that you are the subscriber of the provided telephone number or that the subscriber authorized you to provide the number. Message and data rates may apply. Somerset Wealth Strategies, LLC is committed to respecting your privacy and adhering to all applicable laws and regulations, including the Telephone Consumer Protection Act (TCPA).