MARKET LINKED CERTIFICATES OF DEPOSIT (MLCDs) FDIC Insured and Principal Protected + The Potential for Real Interest

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1 MARKET LINKED CERTIFICATES OF DEPOSIT (MLCDs) FDIC Insured and Principal Protected + The Potential for Real Interest 2014

2 INTRODUCTION MLCDs were developed by Chase Bank in 1987, and offer the potential for enhanced returns by linking the interest paid to the performance of Commodities, Equities, or an Equity Index. With traditional bank CDs still paying less than annually, Market Linked Certificates of Deposit have become a popular alternative for many conservative investors. MLCDs offer the following potential benefits: 1. Guaranteed interest up to 1.50% annually 2. The potential for maximum interest up to annually % principal protection when held to maturity 4. Full FDIC protection in the unlikely event that the issuing bank fails 5. The potential to sell the CDs at par or greater during the 2 nd half of the term Five year traditional CDs are currently paying an average of only.79% annually, while most of our MLCDs offer guaranteed interest of at least with the potential to earn much more. 2

3 MLCD BENEFITS Risk vs. Reward: MLCDs are the only product to offer safety plus the potential to earn reasonable rates of return. Potential: The majority of our MLCDs pay annual interest up to a CAP. Annual Interest CAPS currently range from 5.50% to, depending on which CD is purchased. Guaranteed Interest: Most of our MLCDs also offer guaranteed minimum interest. Annual Minimum Returns currently range from to 1.50%, depending which CD is purchased. FDIC Insurance: The CDs qualify for FDIC coverage, generally up to $250,000 per issuer. Principal Protection: MLCD purchasers will receive a full return of their deposit at maturity, regardless of the performance of the underlying asset the CDs are linked to. Survivor Option: In the event that the owner passes away, the beneficiaries will receive 100% of deposit back. This unique feature potentially makes MLCDs the perfect investment for elderly investors looking for higher returns without risking their principal. Liquidity: While MLCDs are designed to be held to maturity, the issuer will buy the CDs back prior to maturity. If the CDs are sold before the maturity date, the liquidation price may be less or more than the original deposit amount. Liquidation prices generally (but not always) return to par during the second half of the term. 3

4 2014 MLCDs This document is for discussion purposes only and is not intended to constitute an offer or a solicitation to engage in the purchase of any financial instruments. Prior to any purchase, depositors must carefully review the preliminary disclosures produced by the issuing bank. These documents are available upon request. MLCDs will be held at Provident Trust Group, which was founded in 2004 and offers account services to over 30,000 clients, who hold in excess of $3 Billion at Provident Trust. To participate in this month s offerings, the Provident account must be open and funded prior to the monthly deadlines. 4

5 MLCD SUMMARY MARKET LINKED CDS - MAY 2014 All MLCDs are FDIC Insured and 100% Principal Protected when held to maturity MLCD OVERVIEW LINKED TO MAXIMUM MINIMUM MAXIMUM YIELD MINIMUM YIELD MONTHLY DEADLINE BOW 7CIA 7 YEAR COMMODITY 1% or 7.25% LY 5 COMMODITIES COCOA, COFFEE, CORN, LEAD, NATURAL GAS 50.75% 7.25% GS 7EQ GOLDMAN SACHS 7 YEAR EQUITY 1% to 6.25% LY 10 EQUITIES AAPL, BAX, LLY, EXC, HPQ, MRK, MSFT, TGT, SO, VZ 43.75% 6.25% BOW 7EIA 7 YEAR EQUITY 1% or LY 5 EQUITIES AAPL, T, BMY, MCD, PPL 49.00% GS 5.5MB GOLDMAN SACHS 5.5 YEAR MULTI-ASSET GSMBMA5 6.83% LY (MAY 11 - MAY 14) UNCAPPED 125% INDEX GAINS (UNCAPPED) JPM 7HYB JPMORGAN 7 YEAR BOND 1% - LY JPUSHY3E 6.03% LY (MAY 11 - MAY 14) UNCAPPED BOW 6.5MSP 6.5 YEAR EQUITY MSDIUSP7 5.93% LY (MAY 09 - MAY 14) 115% INDEX GAINS (UNCAPPED) CASES MUST BE FAXED TO PRIOR TO THE MONTHLY DEADLINES PRELIMINARY DISCLOSURES AND TERM SHEETS MUST BE REVIEWED PRIOR TO PURCHASE THIS DOCUMENT IS FOR DISCUSSION PURPOSES AND DOES NOT CONSTITUTE AN OFFER TO PURCHASE MLCDS. DEPOSITORS MUST REVIEW THE ISSUER GENERATED PRELIMINARY DISCLOSURES AND TERM SHEETS PRIOR TO PURCHASING THE CDS. MLCDS ARE 100% PRINCIPAL PROTECTED WHEN HELD TO MATURITY. WHILE THERE ARE NO SURRENDER CHARGES WHEN SELLING MLCDS PRIOR TO MATURITY, THE LIQUIDATION VALUE MAY BE LESS OR MORE THAN ORIGINAL DEPOSIT. PAST PERFORMANCE IS NOT A PREDICTION OR GUARANTEE OF FUTURE RESULTS. UNLESS AN MLCD OFFERS A MINIMUM, MAY BE ZERO.