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<font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong>Types of Certificates of Deposit:</strong></font><br /><br /><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><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 size="1" face="Verdana, Arial, Helvetica, sans-serif"><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 size="1" face="Verdana, Arial, Helvetica, sans-serif"><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 size="1" face="Verdana, Arial, Helvetica, sans-serif"><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 size="1" face="Verdana, Arial, Helvetica, sans-serif"><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 size="1" face="Verdana, Arial, Helvetica, sans-serif"><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 size="1" face="Verdana, Arial, Helvetica, sans-serif"><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 size="1" face="Verdana, Arial, Helvetica, sans-serif">Access to all financial institutions active in the CD market</font> </li><li><font size="1" face="Verdana, Arial, Helvetica, sans-serif">Waive fees for any placement, or renewal</font> </li><li><font size="1" face="Verdana, Arial, Helvetica, sans-serif"></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif">Direct wiring of monthly interest</font> </li><li><font size="1" face="Verdana, Arial, Helvetica, sans-serif">Monthly account statements</font> </li><li><font size="1" face="Verdana, Arial, Helvetica, sans-serif">Interest accrual processing</font> </li><li><font size="1" face="Verdana, Arial, Helvetica, sans-serif">Safekeeping service</font> </li></ul><font size="1" face="Verdana, Arial, Helvetica, sans-serif">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> <br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><p style="MARGIN: auto 0in" class="msonospacing"><b><span style="FONT-FAMILY: Verdana; FONT-SIZE: 9pt">Brokered CDs and Bank CD Disclosure Notice </span></b><span style="FONT-FAMILY: Verdana; FONT-SIZE: 8pt"></span></p><p /><p style="MARGIN: auto 0in" class="msonospacing"><b><i><span style="FONT-FAMILY: Verdana; FONT-SIZE: 8pt">Important Information for Regulated Institutions</span></i></b><span style="FONT-FAMILY: Verdana; FONT-SIZE: 8pt"><br /><b><i>Banks & Credit Union, Licensed Entities & Consumers</i></b></span></p><p /><p><span style="FONT-FAMILY: Verdana; FONT-SIZE: 7pt">U. S. Sterling in its capacity as a CD referral service, CD broker or agent, does not provide tax, legal or accounting advice or interpretations or guidance on financial transaction, or their subsequent treatment for consumer transaction. Specifically, the treatment of time deposits or other financial instruments, for entry on any financial records and for treatment thereof, for government, public or regulatory reporting purposes, U.S. Sterling its successor’s, representatives or affiliates, cannot make any representation, warranties or provide interpretive guidance. As U.S. Sterling does not provide accounting or legal advice, please contact you legal and compliance department for treatment of financial transactions and reporting requirements.</span></p><p />
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