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<font face="Verdana, Arial, Helvetica, sans-serif" size="1"><strong>Types of Certificates of Deposit:</strong></font><br /><br /><font face="Verdana, Arial, Helvetica, sans-serif" size="1"><strong>Fixed-Rate CDs</strong> - This is the most common and, perhaps, the simplest bank certificate of deposit available. Issued by a bank, they are both non-callable and non-transferable. The interest paid by the bank is fixed for the term of the CD. Interest payments can be monthly, quarterly, semi-annually, annually or at maturity. In addition, most fixed-rate CDs have a term from one (1) month to 30 years. Non-transferable CDs have an Early Withdrawal Penalty (EWP). </font><p><font face="Verdana, Arial, Helvetica, sans-serif" size="1"><strong>Callable CDs</strong> - These are CDs on which the bank reserves the right to call prior to maturity. Generally, these CDs have a term of six months to ten years. Callable CDs can be fixed-rate, or behave like a Zero Coupon. </font></p><p><font face="Verdana, Arial, Helvetica, sans-serif" size="1"><strong>Non-Callable CDs</strong> - Also known as a 'Bullet CD,' they work the same as a Fixed-Rate CD, wherein the interest rate is fixed for the agreed term. A Bullet CD can also work like a Zero Coupon CD, as well. </font></p><p><font face="Verdana, Arial, Helvetica, sans-serif" size="1"><strong>Step-Up CDs</strong> - Here, the fixed interest rate is set in advance to attract investors with the expectation of an increasing interest rate environment. Generally, there is one opportunity to step up to a higher paying interest rate for the remainder of the term, but there can be more than one step-up opportunity. </font></p><p><font face="Verdana, Arial, Helvetica, sans-serif" size="1"><strong>Zero Coupon CDs</strong> - These CDs are more attractive to the investor who does not require interest payments during the term of the CD. Interest has a deep discount at the beginning of the CD term: for example, if an investor wanted the CD principal to mature at $100,000 in five years with an interest rate of 5%, the customer would initially place $79,991.23 with the bank. At its maturity, the initial investment after five years would amount to $100,000. Zero Coupon CDs can be 'Bullets', or Callable CDs. It should be noted, however, that interest earned on the CD is taxable each year, even though the interest is not received in the form of a check. </font></p><p><font face="Verdana, Arial, Helvetica, sans-serif" size="1"><strong>Variable CDs</strong> - For this type of CD, the interest paid may vary with a predetermined index, such as LIBOR (London Inter-Bank Offering Rate), the US Prime Bank Rate, S&P, or other indices. Generally, there is a floor and ceiling between which the rate will not exceed. </font></p><p><font face="Verdana, Arial, Helvetica, sans-serif" size="1"><strong>Custodial CD Placement</strong> - We are proud to make available this innovative service to our clients. This program combines CDs offering superior yields with a full range of 'back office' services. We can open a custodial account for you that provides the following benefits: </font></p><ul><li><font face="Verdana, Arial, Helvetica, sans-serif" size="1">Access to all financial institutions active in the CD market</font> </li><li><font face="Verdana, Arial, Helvetica, sans-serif" size="1">Waive fees for any placement, or renewal</font> </li><li><font face="Verdana, Arial, Helvetica, sans-serif" size="1"></font><font face="Verdana, Arial, Helvetica, sans-serif" size="1">Direct wiring of monthly interest</font> </li><li><font face="Verdana, Arial, Helvetica, sans-serif" size="1">Monthly account statements</font> </li><li><font face="Verdana, Arial, Helvetica, sans-serif" size="1">Interest accrual processing</font> </li><li><font face="Verdana, Arial, Helvetica, sans-serif" size="1">Safekeeping service</font> </li></ul><font face="Verdana, Arial, Helvetica, sans-serif" size="1">Whether you are responsible for a large diversified institutional portfolio or you are an individual investor, this program will save you time and money while greatly simplifying investment management of those funds.</font>
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