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CENTRAL FIDELITY INTRODUCES STOCK MARKET PLUS CD AND IRA

 RICHMOND, Va., Jan. 10 /PRNewswire/ -- Central Fidelity has introduced an innovative three-year certificate of deposit and IRA product which enables investors to earn stock market returns without any risk to their initial investment.
 The Stock Market Plus CD and IRA becomes available today at all of Central Fidelity's 230 offices across Virginia. The product pays an interest rate, based on the performance of the Standard and Poor's 500 Composite Stock Price Index. The entire initial investment is held in a Central Fidelity certificate of deposit or IRA and is FDIC insured up to current coverage limits. The account has a three-year term and a minimum deposit requirement of $2,500 ($2,000 for the IRA). There, is a substantial penalty for early withdrawal.
 Interest for each 12-month period is calculated based on monthly changes in the S&P 500 Composite Stock Price Index. At account opening, customers are given a beginning S&P 500(R) Index value. At the end of each 12-month period, monthly S&P 500 Index values are averaged and compared to the beginning index. If the average annual figure is higher than the beginning index value, the percentage difference is paid as simple interest. If the annual figure is equal to or less than the beginning index value, no interest is paid. The beginning index value is reset at the start of each annual interest payment period.
 "The Stock Market Plus CD/IRA is ideal for investors who seek traditionally higher returns that the stock market may provide, yet are concerned about risk to their savings," explained Lewis N. Miller Jr., president, Central Fidelity Banks, Inc. (NASDAQ-NMS: CFBS). "In the current interest rate environment, Central Fidelity is pleased to provide investors with an alternative for potentially earning more interest as well as a way to diversify their portfolios."
 Central Fidelity Banks, Inc., is a Richmond-based bank holding company with $9.1 billion in assets and 230 branch offices throughout the state.
 -0- 1/10/94
 /CONTACT: Susan Lawrence Mistr, public relations manager of Central Fidelity Banks, 804-697-7261/
 (CFBS)


CO: Central Fidelity Banks, Inc. ST: Virginia IN: FIN SU: PDT

KD-IH -- DC023 -- 0652 01/10/94 15:12 EST
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Publication:PR Newswire
Date:Jan 10, 1994
Words:362
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