Participate in Stock Market Gains, Enjoy FDIC Insurance Too

Several banks have introduced Equity participation CDs. Like any CD, these carry FDIC insurance up to $100,000 per depositor. But unlike a regular CD, they pay interest that is linked to the increase in a stock market index such as the S&P 500 or the NASDAQ 100. Each bank's CD has different features and some are more attractive than others. For example:

• Some of the CDs are callable by the bank. The CD may have a 5-year term, but be callable by the bank after two years at a pre-specified price.
• Some of the CDs offer a return linked to the average increase in the stock market index, such as the average of the closing index prices at the end of each year for five years.
• Some of the CDs have a limited right to redeem, so it is best to invest in these when you intend to hold for the entire term (typically 5 or 6 years). Many of the CDs have an immediate option to redeem if death occurs.
• The denominations are often as small as $1000.

Who should consider these equity linked CDs? Investors desiring exposure to the major stock market indexes but unwilling to risk principal. Additionally, investors who do not need the liquidity of their principal for the term of the CD. Would you like to see a brochure with all of the details? Just check off on the enclosed coupon and we'll send the details right away.