If you’re looking to protect your principal but would still like to participate in the long-term potential of the stock market, consider adding a market-linked CD (MLCD) to your portfolio.
An MLCD is an FDIC-insured product linked to the performance of one or more securities or market indexes, such as the S&P 500. MLCDs can also be linked to benchmarks, such as the Consumer Price Index.
MLCDs combine the upside potential of the stock market with the security of the traditional CD. Advantages include:
MLCDs may not be right for everyone. There are early withdrawal penalties, tax implications and possible high-end caps that may limit your potential returns. Talk with a BB&T Investment Services, Inc. Investment Counselor to learn whether MLCDs are well suited to your financial goals.
BB&T Investment Services, Inc. offers a wide range of MLCDs from a select few recognized providers in the industry,1 including: