FAQ’s Regarding DevCo’s special 4% Reserve Certificate
What is the special certificate that DevCo is offering at Annual Conference?
The Virginia United Methodist Development Company, LLC (DevCo) will offer a special 6 Month, 4% Reserve Certificate during Annual Conference, June 15 – 17.
How does this rate compares to other financial institutions?
Typical rates for 6 Month CD’s range from 0.1% to 0.4%.
What does this mean?
An investment of $1,000 in DevCo’s 4% Reserve Certificate would pay $20.00 after 6 months. The CD’s mentioned above would pay 50¢ to $2.00
Is this offer only available to churches?
No! This offer is for churches, Districts, United Methodist Agencies and individuals …. but only at Annual Conference.
What’s the Minimum Investment?
$1,000. There is no maximum limit.
Why is the Minimum so low?
God’s blessings flow to all of us and we at DevCo want everyone and every church in the Conference to be able to take advantage of this great offer.
What do I need to do to open an account?
Complete an application by going to https://vaumdevco.org/resources/forms/. Churches – please use the Organizational Investment Application. Individuals – please use the Individual Investment Application. Then write a check to Virginia United Methodist Development Company LLC for the amount you wish to invest and staple it to the check. Then give it to anyone from the Foundation at Annual Conference.
How can open an account if I don’t use checks?
We have several options:
- You can ask your bank to make a cashier’s check or Money order made payable to Virginia United Methodist Development Company LLC. Please know that this option will carry a fee from your bank
- You can also use Bill Pay and have your institution send a check to Virginia United Methodist Development Company LLC – PO Box 5606 Glen Allen, VA 23058. The window to receive checks via Bill Pay is from June 15 to June 20. In order to use this option, we will need to receive your application during Annual Conference.
- RECOMMENDED – You can also use Electronic Fund Transfer (EFT). The form is available online at https://vaumdevco.org/resources/forms/ and you can write the Routing Number and Account Number and we will debit your account directly. This form can also be used if the investor wants to be paid out at maturity.
What happens at the maturity of the investment certificate?
The Development Company will send a letter in mid-November giving investors the following options:
- If nothing is done, the certificate will automatically renew into a new 6 month investment certificate at the then-prevailing interest rate. (The current rate for 6 Month certificates is 1.7% annualized.)
- Investor(s) can change the term of the investment certificate to a 12, 24, 36, 48 or 60 months.
- Investor can transfer the funds to an individual or congregational savings certificate which has no holding period requirement
- The investor can request for the investment to be paid out at maturity.
What is the penalty if I / we need some or all of the funds before maturity?
The penalty for early withdrawals is the loss of 3 months of interest on the amount that the investor withdraws.
Are funds FDIC insured?
No. DevCo investments are not FDIC insured due to federal regulation prohibiting religious institutions for being FDIC insured. Nevertheless, your investments are safeguarded through strict investment and lending policies guided by the book of discipline, healthy collateral coverage on its loans and strong oversight by its Board of Directors and staff.
What does DevCo do with these investments?
Our bylaws required that we set 10% aside in cash/liquid form as a reserve. Then we loan the remaining 90% to Virginia United Methodist churches wanting to build a new Fellowship Hall, add more Sunday School rooms, replace an aging roof, or refinance their mortgage to lower their costs. This is a very connectional ministry of Methodists Helping Methodists!
Who should I call if I have questions?
Call Leo Rodriguez at 804-521-1150.
