This table provides the standard interest rates offered by Central Ban

This table provides the standard interest rates offered by Central Bank for CDs, listed according to term offering and purchase amount. The interest rates listed are annual rates, compounded annually, to be paid when the CD comes to term. No bonuses or other adjustments are included.

General memo to employees of Central Bank:

January 15th

In order to improve and stabilize our bank’s investment opportunities, we are seeking to shift the balance of our customers’ CD accounts towards those with longer maturity terms. We have begun testing two incentive programs. All CDs purchased with terms of at least 5 years now receive, as a bonus, an additional 0.1% interest during the first year to be added to the standard rate. Moreover, preferred customers (those who have previously bought CDs of any term length in amounts of $10,000 or more) will receive a bonus of 0.2% during the first year when they purchase a CD with a term of 5 or 10 years in the amount of at least $10,000. Other CDs continue at the standard rates.

We have also revised the schedule of penalties for early withdrawal and made these applicable to all new CDs. The penalties are as follows: For any CD, early withdrawal less than a year after the CD is purchased results in a loss of all interest. For 2-year CDs, early withdrawal after the first year results in the loss of one year of interest. For 5-year and 10-year CDs, withdrawal after the first year results in the loss of two years of interest and of any accrued bonus interest.