Due to the recent increase in interest rates by the Federal Reserve, the Virginia United Methodist Development Company announces the following new rates for Savings and Investment Certificates. These rates will be effective July 1, 2018.
Savings Certificates: 1.5%
Investment Certificates:
- 6 mos: 2.0%
- 12 mos: 2.7%
- 24 mos: 3.0%
- 36 mos: 3.2%
- 48 mos: 3.3%
- 60 mos: 3.4%
60 Month IRA Certificates: 3.4%
Commenting on the new rates, Ted Soto said, “We are constantly reviewing the CD rates offered by banks because we want to remain competitive in the market place. This most recent change provides United Methodist investors (churches, agencies and individuals) the most generous returns on short term investments, i.e. those of 5 years or less.”
Investments in the Development Company provide a highly connectional ministry to the Virginia Conference of the United Methodist Church. As required by its bylaws, the Development Company first sets aside 10% of all investments in cash or liquid form to provide for needed withdrawals as they arise. The remaining 90% is quickly loaned out to Virginia United Methodist Churches for: a) the acquisition of land, b) the building of new structures, c) major expansions or renovations, or d) refinancing of current loans or mortgages. In most cases, the Development Company provides a mortgage rate which is lower than even local banks can offer, and always without prepayment penalties. As Mr. Soto commented “This is Methodists Helping Other Methodists and we’re thrilled to be able to act as the conduit. It’s the purest form of a ‘win win’ and helps advance Christ’s mission on earth.”
Asked how long these rates will remain in effect, Mr. Soto laughed. “Only time will tell,” he commented. Because the Fed has indicated that they expect to raise rates twice more in 2018, the Development Company may be forced to increase its rates again in October. “Regardless of what happens,” he commented, “we will remain competitive in the marketplace and the very best alternative for United Methodists.”