Sustainable Banking
Our 100-Year Local Impact CD – 4.75% Fixed APY*
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Join us for the long run and start your legacy in local food
In 1790, just before he died, Ben Franklin bequeathed 1,000 pounds sterling (roughly $4,000 at the time) to the cities of Boston and Philadelphia. Franklin restricted use of most of the funds for the next 100 years, and designated that 25% not be touched until the 200th anniversary of his death. By 1994 these trust funds were worth some $6.5m, demonstrating the power of compounding over a long period of time.
In that vein, we are pleased to present our first-of-its-kind 100-year Local Impact Certificate of Deposit (CD). Our 100-Year Local Impact CDs enable you to similarly endow a charity, trust or family member, conveying to them the benefit of long-term compounding. Or, setup a separate Grow Local account alongside your CD, and automatically withdraw the interest penalty free on an ongoing basis without ever touching the principal. In Ben Franklin’s case, the initial income from his funds was designated to support apprenticeships in various trades.
Following History's Steps into the Future
The beauty of the mutual bank structure is that it instills our commitment to the long-term. As a mutual, we answer to our depositors. In other words, we’re designed for long-term impact rather than short-term profit. Building a truly sustainable bank – and addressing some of the more intractable problems in our food system – requires a commitment to timescales beyond the next quarter or year.
Many banks now offer attractive "teaser" rates in an effort to get you in the door. These inflated rates only last for a short time – similar to an introductory rate on a credit card. Instead, we are offering similarly high rates for the long-term, in exchange for a commitment from you to partner with us in transforming our local food economy.
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We would love to have you, but note we plan to limit total sales.
Some FAQs:
Who is this designed for?
Anyone (subject to the Bank’s identity verification) with assets they would like to pass to charity or a future generation, with a minimum investment of $1,000 and a maximum of $150,000. The CD makes for a good addition to a Donor Advised Fund, part of a charitable giving strategy, or a trust intended to benefit a future generation, but it is also an attractive fixed income alternative for an individual or organization, even if not held to maturity. We ask holders to complete a beneficiary form at the time you open the CD.
Why are you selling a 100-year CD?
First, we see no better way to demonstrate our commitment to the long term than by offering our partners the opportunity to invest alongside us in this way. Second, we often see a need to write longer term loans; for example, a low margin farm may not be able to support the payments on a 10-year mortgage for farmland, but if those terms are extended to 30 years, the payment is manageable. In order to support those longer-term loans, we need longer-term deposits to ensure we can properly manage our balance sheet.
What if I change my mind and need to withdraw the money?
Our Local Impact CDs are more flexible than they appear. In approximately 15 years, more than half of your deposit will be interest, which is withdrawable on demand, penalty free.
You may also withdraw your entire deposit at any time by request, subject to a penalty of 10 years' interest.
As an example, if you purchased a CD for $1,000 and withdrew it after 20 years, you would receive $1,942, or an effective interest rate of 3.32%. If you withdrew it after 30 years, you would receive $3,443, or an effective interest rate of 4.12%. Partial withdrawals of principal are not permitted. Note that in the case that you withdraw the CD before 10 years, the penalty would reduce the principal value of the CD. If you like, you can use this calculator to model various scenarios.
What are the risks?
Just like your savings, your certificate of deposit is backed by the full faith and credit of the FDIC.** In the event that there were ever an issue, our 100-year CDs are fully insured up to $250,000 for each individual or entity.
How do I purchase?
Start the process by applying for a Grow Local account using promo code "100year", or by emailing us at partners@waldenmutual.com. Note we expect to cap total sales to a limited amount and will no longer accept new CDs after this allotment. Orders will be fulfilled on a first-come, first-served basis.
What is the APY (Annual Percentage Yield)?
4.75% APY* as of today, fixed for the life of the CD.
Can the bank redeem the CD early? (Also known as a “callable CD”)
No. Only the account holder can choose to redeem the CD prior to maturity (with applicable penalty for early withdrawal).
Additional Disclosures
· Minimum purchase $1,000, maximum purchase of $150,000 per individual or organization.
· Interest paid can be withdrawn penalty-free at any time, automatically or by request.
· Partial withdrawal of principal is not permitted.
· We ask for a completed beneficiary form at account opening.
· We expect to cap sales of our 100-year CDs, and reserve the right to cease accepting deposits at any time.
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* Annual percentage yield fixed at 4.75% for the life of the CD. Rate valid as of December 21st, 2023, subject to change. Daily compounding, posted monthly. Applies to 100-year CD accounts only, for all balances.
** Federal Deposit Insurance Corporation. Insurance coverage limited to $250,000.
