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What are Market Linked CDs?

Market Linked CDs (or MLCDs) are an investment offered by a bank and purchased in your investment account or IRA. They are FDIC insured against loss of principal at maturity, and provide the opportunity for market participation and growth through performance linked to an underlying asset such as stocks or bonds. 

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Some Benefits and Risks of MLCDs

  MLCDs are FDIC insured and offered by some of the nation’s largest, and well known banks

They allow you to invest and have the potential for higher returns than traditional CDs while offering you the financial confidence of knowing that they are principally protected through FDIC insurance if held to maturity. However, there is no guarantee that any amount in excess of the principal invested will be paid at MLCD maturity.

They usually have terms between 3 and 7 years

Market Linked CDs provide the opportunity for market participation in the performance of the underlying asset, without sacrificing the security of a CD

Liquidity risk will exist if the issuer chooses not to maintain a secondary market.  Available liquidity may vary by issuer.  Early withdrawal is generally not permitted.  There may be substantial penalties for early withdrawals

Investors who sell MLCDs prior to maturity are subject to secondary market risk including the risk of loss, as the market price may be less than the initial principal or face value.  There is no guarantee of principal return unless the MLCD is held to maturity

Any amount higher than the maximum amount insured by the FDIC is an obligation of the issuer and is not insured by the FDIC

Opportunity Cost can be defined as the forgone “risk-free rate of return” that would be received if the principal was invested in other fixed income investments

Investors should carefully read the disclosure statement and all offering documents prior to investing. These documents contain a detailed explanation of the risks, tax treatment, and other relevant information about the investment. Additionally, investors should consult their accounting, legal or tax advisors before investing. Market-Linked CDs are sold through financial professionals. For a full list of potential risks, please visit the SEC’s website

Please note that the basic FDIC Deposit insurance coverage limits are: Single accounts (owned by one person) $250,000 per owner; Joint accounts (two or more persons) $250,000 per co-owner; IRAs and certain other retirement accounts $250,000 per owner; and Trust Accounts $250,000 per beneficiary subject to specific limitations and requirements.

About Brent and the Philadelphia Group


  • Has helped clients better strategize  since 2005
  • 2015 MBA from NYU, emphasis in Finance and Economics
  • Holds series 7 and 66 registrations with LPL Financial, and has a Life Insurance license, all to offer clients a broad solution set
  • Lives in North County, San Diego, with his wife Barbara

LPL Financial

  • LPL is the nation’s largest, Independent broker dealer according to Financial Planning Magazine, based on total revenue (June 1996-2018)
  • With headquarters on both coasts, LPL Financial supports financial advisors in helping their clients by offering a robust mix of services and tools
  • The Philadelphia Group has over 30 financial advisors
  • Offices in San Diego and Philadelphia
  • Our independence from proprietary relationships allows our clients to feel truly confident 

Let’s Get in Touch


The Philadelphia Group

120 Birmingham Drive

Ste 120c

Cardiff, CA 92007




(760) 230-3067

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Private Advisor Group, a registered investment advisor. Private Advisor Group and The Philadelphia Group are separate entities from LPL Financial. The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: CA, NJ, MO, PA

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