even a safe investment deserves a smart strategy

even a safe investment d e s e rv e s a s ma rt st r at e g y Certificate of Deposit Accounts From t. rowe price savings bank A Smart Place to Sta...
Author: Lucinda Ellis
1 downloads 1 Views 349KB Size
even a safe investment d e s e rv e s a s ma rt st r at e g y

Certificate of Deposit Accounts

From t. rowe price savings bank

A Smart Place to Start Since 1937, T. Rowe Price has been committed to helping investors succeed through disciplined investment management that puts investors’ interests first. We created T. Rowe Price Savings Bank to offer certificate of deposit (CD) investors that same commitment through flexible solutions and world-class service. Now let us show you how a T. Rowe Price Savings Bank CD account can enhance your investment strategy with a name you trust.

enjoy a rewarding c o m b i n at i o n o f s a f e t y and flexibility A CD account can be an effective investment tool for diversifying your investment mix and creating a reliable source of interest payments. That’s why T. Rowe Price Savings Bank has designed CD accounts to meet the needs of every type of investor—all with full-service ease and convenience. Our regular and IRA CDs offer you the security of Federal Deposit Insurance Corporation (FDIC) insurance and competitive interest rates that are guaranteed for the full term of your deposit. You can also select from three different investment levels and terms from 30 days to five years (six months to five years for IRA CDs), or choose our convenient Smart Ladder CDs®. As an added benefit, our Mini-Jumbo and Jumbo CD levels offer the Savings Bank’s highest interest rates to help you maximize your earning power.* Choose one or more of our CD products as an effective strategy to help achieve your financial goals. n Classic CD $1,000 minimum deposit n Mini-Jumbo CD $50,000 minimum deposit n Jumbo CD $100,000 minimum deposit n Smart Ladder CDs—Classic

$25,000 minimum deposit

n Smart Ladder CDs—Mini-Jumbo

$50,000 minimum deposit

n Smart Ladder CDs—Jumbo

$100,000 minimum deposit

For your convenience, the interest payments from your CDs can remain on deposit or can be transferred into an account of your choice.** *Please see our rate sheet for a list of the attractive rates currently offered for Savings Bank Standard CDs and Smart Ladder CDs and our Disclosure and Agreement for additional information regarding our accounts. **Available for accounts of $5,000 or more that have terms of 91 days or longer. t. rowe price savings bank

troweprice.com/bankingservices

1-800-445-8881

n 1

full-service f e at u r e s a n d b e n e f i t s

t. rowe price savings bank provides: n n n n n n n n n n

FDIC insurance Competitive interest rates Low minimum deposit of $1,000 for Classic CDs Higher rates with Mini-Jumbo and Jumbo CDs Smart Ladder CDs IRA accounts* Terms from 30 days to 60 months** Flexible options to invest your interest payments*** Annual statements Automatic renewal feature

FDIC protection The FDIC basic deposit insurance coverage is $250,000 per depositor. Please note that there is separate $250,000 coverage per depositor for certain retirement accounts (like Traditional and Roth IRAs).

Hassle-free automatic renewal We’ve made it easier to continue to enjoy the benefits of having a T. Rowe Price Savings Bank account. Consider our automatic renewal feature. At maturity, your CD will automatically renew for the same term at the then-current offering rate, unless you instruct us otherwise. You have seven calendar days following the maturity date to change the term, make additional deposits, or withdraw funds without penalty. In addition, if you choose Smart Ladder CDs, each CD will renew into a five-year term at its maturity. See page 4 and the enclosed Disclosure and Agreement for additional details.



*Please read the Traditional and Roth IRA Summary & Agreement before investing. **IRA CDs available from 6 months to 60 months. ***Available for accounts of $5,000 or more that have terms of 91 days or longer. 2 n

t. rowe price savings bank

troweprice.com/bankingservices

1-800-445-8881

r e d u c e t h e i m pac t o f r at e v o l at i l i t y w i t h cd laddering A good way to help protect yourself against sharp interest rate swings is to invest in a collection of individual CDs and stagger their maturities. Commonly known as CD laddering, this popular investment strategy allows you to lock in potentially higher yields on your long-term CDs. The chart below illustrates how a CD ladder works. Every year, one of your CDs will mature. You can roll it over into a new CD with a longer term and, if rates are increasing, receive a higher rate for the renewal term.

how a cd ladder works 2023 2022 Maturity date

2021

2020 2019 2018 2017

2016 2015

2014 2013

a

b

c

d

Initial deposits

e

a

b

c

d

Reinvested deposits

e

When your one-year CD matures in 2014, you can reinvest the money in a five-year CD that matures in 2019. For example, if you have $100,000 to invest, you might put $20,000 each in a one-, two-, three-, four-, and five-year CD. Each year, one of the $20,000 CDs will mature. You can reinvest these assets in a new five-year CD to maintain the ladder, or we can do it for you with Smart Ladder CDs. See the next page for more information.

t. rowe price savings bank

troweprice.com/bankingservices

1-800-445-8881

n 3

smart ladder cds Smart Ladder CDs—an easy, hassle-free way to invest Smart Ladder CDs offer a convenient way to build and maintain a CD ladder. With a minimum deposit of $25,000 and a single application, T. Rowe Price Savings Bank sets up your CD ladder of five CDs, manages the annual renewals, and offers you the highest current interest rate based on your total minimum deposit and applicable term. For example, if you deposit $50,000 in Smart Ladder CDs, we’ll put $10,000 each in five CDs, and each will earn the applicable Mini-Jumbo rate.

smart ladder cds give you: n Three great ways to invest:



Classic: $25,000 total minimum deposit

n

Mini-Jumbo: $50,000 total minimum deposit n Jumbo: $100,000 total minimum deposit

n

n Easy sign up! Open five CDs with just one application. n Y  our minimum deposit is divided equally into five Smart Ladder CDs of 12, 24, 36, 48, and 60 months. n Automatic renewal of all five Smart Ladder CDs into a 60-month term at each maturity.

n The choice of receiving interest payments as often as monthly or leaving all interest in the account to realize the benefits of compounding. Compared with opening a single long-term CD, you can improve your liquidity with Smart Ladder CDs. You’ll also help to protect yourself from downturns in market interest rates and to maximize your returns over the long run. You can even use Smart Ladder CDs as part of an income stream during retirement. One investment and you’re set—we do the rest!

4 n

t. rowe price savings bank

troweprice.com/smartladdercds

1-800-445-8881

g e t sta rt e d to d ay To open a T. Rowe Price Savings Bank CD account, simply complete the enclosed application and return it in the postage-paid envelope along with a check made payable to T. Rowe Price Savings Bank. If you have questions about our CD accounts, please contact a T. Rowe Price Savings Bank representative at 1-800-445-8881. They’re available to assist you Monday through Friday 8 a.m. to 8 p.m. and Saturday from 10 a.m. to 2 p.m. ET. Or if you prefer, you can visit us online at troweprice.com/bankingservices or go to a T. Rowe Price Investor Center.

take advantage of online convenience It’s never been easier to stay up to date with our CD accounts. Visit our website at troweprice.com/bankingservices to find: n CD terms n Current interest rates n Annual percentage yields n Deposit instructions It’s everything you need on one comprehensive website.

1-800-445-8881 troweprice.com/bankingservices t. rowe price savings bank

troweprice.com/bankingservices

1-800-445-8881

n 1

t. r o w e p r i c e i n v e st o r c e n t e r l o c at i o n s For directions, call 1-800-225-5132 or visit our website: troweprice.com/investorcenters.

colorado Colorado Springs 2220 Briargate Pkwy. Colorado Springs, CO 80920 866-728-9925 district of columbia Washington, DC 1000 Connecticut Avenue, N.W. Suite A-100 Washington, DC 20036 888-801-0316

florida Tampa 4211 W. Boy Scout Blvd. 8th Floor Tampa, FL 33607 877-453-6447

virginia Tysons Corner 1600 Tysons Blvd. Suite 150 McLean, VA 22102 866-864-9847

maryland Baltimore 105 E. Lombard St. Baltimore, MD 21202 888-453-7326 Owings Mills Three Financial Center 4515 Painters Mill Rd. Owings Mills, MD 21117 877-374-5245

Smart Ladder CDs and the logo comprised of T. Rowe Price and the bighorn sheep are registered trademarks of T. Rowe Price Group, Inc. 05526-28 3/13 131252 K108-060