Equity Linked Deposit Account

Equity Linked Deposit Account Meaning:
An Equity Linked Deposit Account or sometimes abbreviated as either an ELDA or ELD is a variant of a deposit account. Different from a traditional deposit account, the Interest rate return on this type of account could be linked to the performance of a specific share index or may be linked to shares of a company or fund.

Equity Linked Deposit Account Example:
This type of product does depend on the bank for your specific country for specific terms as some offer 100% capital security while others indicate the principal may not be protected at all and may lose all the security in a worst case.In addition the maximum potential gain under some equity linked deposit accounts could be capped while others offer uncapped potential returns. Please note that some jurisdictions do protect this type of deposit under its deposit protection scheme.