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 DETROIT, Dec. 13 /PRNewswire/ -- NBD Bank begins offering its new Escalating Rate Certificate of Deposit (CD) today, Dec. 13, 1993.
 Bob Hobbs, vice president and director of NBD's Retail Sales and Product Management Department, said the new product offers a guaranteed increase in the interest rate and annual percentage yield (APY) for each year of its five-year term.
 "Even if market rates decline or stay flat, the interest rate paid on this CD will increase by a predetermined and guaranteed amount during each subsequent year," Hobbs said.
 In addition to a guaranteed increasing return, NBD's Escalating Rate CD offers greater flexibility than standard CDs.
 "Unlike a standard 5-year CD, which has a substantial penalty for early withdrawal, the 5-Year Escalating Rate CD provides an annual grace period during which funds can be withdrawn without penalty," Hobbs said. "If market conditions are favorable for reinvestment, the customer is not locked in. It's really a win-win situation."
 Hobbs said, "Many people have moved away from CDs because of lower interest rates, yet they still want to balance their portfolios with risk-free investments. This new CD allows them to do so. It offers FDIC insurance, a guaranteed increasing yield and annual liquidity -- money funds or stocks can't offer this combination of benefits."
 The APY during the first year of the Escalating Rate CD will compare favorably to a standard 1-year CD. The cumulative yield, if held for the full five years, will be slightly less than that of a standard 5-year CD, which means the investor trades a small amount in yield for liquidity.
 The new CD requires a minimum deposit of $500 and is also available to IRA investors.
 NBD's new Escalating Rate CD is available through NBD branches in Michigan, Illinois and Ohio.
 -0- 12/13/93
 /NOTE TO EDITORS: ILLINOIS EDITORS - NBD Bancorp is the parent company of two metropolitan Chicago banks with total assets of over $5 billion and 40 offices. OHIO EDITORS - NBD Bancorp is the parent company of NBD Bank with 23 offices in Columbus and Dayton, Ohio./
 /CONTACT: Robert J. Darmanin of NBD, 313-225-2831/

CO: NBD Bank ST: Michigan, Illinois, Ohio IN: FIN SU: PDT

ML -- DE011 -- 3104 12/13/93 10:45 EST
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Publication:PR Newswire
Date:Dec 13, 1993

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