Market-Linked CDs offer investors the potential to earn enhanced returns compared to those available with traditional deposit products. A very common method in which market-linked deposits are issued is in the form of principal protected Certificates of Deposit.

Designed for buy and hold strategies, the investor profile is broad, including pension funds, baby boomers, vital adults, families saving for college expenses and retirees. They have the ability to provide: 100% principal protection when held to maturity; the potential for enhanced returns on their deposits; focused exposure to a specific financial view; and investment horizons of one to seven years. They are tools that individuals and their financial advisors should consider to meet certain financial objectives. The CDs can be used as a complement to existing assets in a portfolio or as a way to employ a tactical or strategic view. They can also provide an efficient means to attain the true benefits of portfolio diversification, allowing investors and depositors to conveniently gain access to alternative asset classes that may be difficult to gain access to directly.

While market-linked CDs may offer 100% principal protection when held to maturity, if withdrawals are made prior to maturity, an investor has the potential to lose money in addition to the potential costs of withdrawal or early surrender penalties. Market-linked CDs may be subject to a cap or participation rate that limits the potential for enhanced returns.