GREAT WESTERN BANK INTRODUCES 'GW INVESTOR'S CD'
Innovative Investment Product Combines the Potential for Higher Interest with the Safety of Insured Principal; Return is Indexed to Annual Performance of the S&P 500 Index CHATSWORTH, Calif., Nov. 1 /PRNewswire/ -- Great Western Bank has introduced a new three-year certificate of deposit (CD) product that offers the potential for a significantly higher return than is possible with a traditional CD, but with the safety of insured principal. The "Great Western Investor's CD" will be available beginning today through the bank's 241 California and 150 Florida branches. Unlike traditional CDs, which offer a fixed rate of interest, the interest rate earned on the "GW Investor's CD" varies annually based on the performance of the Standard & Poor's 500 Index, which tracks the growth of 500 top U.S. companies. The product offers consumers the potential to earn unlimited interest over the three-year term of the investment with absolutely no risk to their principal. The minimum deposit is $5,000. Like other certificates of deposit, the "GW Investor's CD" is FDIC-insured up to a maximum of $100,000, and there are no up-front fees or commissions. There is a substantial penalty for early withdrawal. "The Great Western Investor's CD is ideal for investors seeking a savings vehicle that offers both safety and the potential for high return," said Curtis J. Crivelli, executive vice president of retail banking for Great Western. "It is targeted to investors who don't want to risk their principal by investing in a mutual fund or the stock market, but who also are not attracted to the lower return currently earned on traditional certificates of deposit. The Investor's CD is positioned somewhere in between and provides an excellent way to diversify one's portfolio." Interest for each 12-month period is calculated based on monthly increases or decreases in the S&P 500 Index. At the time of purchase, and for each subsequent year, a base index is determined. At the end of each 12-month term, the monthly values are averaged and compared to the base index. If this average annual figure is higher than the base index, the percentage difference is paid as simple interest. If the annual figure is equal to, or less than, the base index, no interest is paid but the principal investment remains intact. To insulate depositors from declines in the S&P 500 Index, the base index is reset annually. Merrill Lynch has been retained to advise Great Western in the management of the "GW Investor's CD." However, Merrill Lynch will not be involved in the sale of the product through its brokerage offices. For more information about the "GW Investor's CD," or for the location of the nearest Great Western Bank branch, consumers may call 800-GW-ASK-US (or 800-TDD-BY-GW for the deaf or hard of hearing). Great Western Bank is a subsidiary of Great Western Financial Corp. (NYSE: GWF). With assets of more than $38 billion, Great Western is a real estate-oriented, retail bank. One of the nation's leading residential mortgage lenders, the company operates more than 1,100 mortgage lending, retail banking and consumer finance offices nationwide. -0- 11/1/93 /CONTACT: Roger Cruzen, 800-523-4888 (California), or Gordon Turner, 800-354-1513 (Florida), both of Great Western/ (GWF)
CO: Great Western Bank; Great Western Financial Corp. ST: California IN: FIN SU: PDT
JL-LM -- LA012 -- 8907 11/01/93 06:01 EST
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|Date:||Nov 1, 1993|
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