The Flexible Investment Note is designed for the individual who intends to make frequent additions and/or reductions to their investment, and generally has a smaller sum to invest.  It is also intended for congregations which have operational funds to invest or who are making additions on a regular basis.

The initial investment in a Flexible Investment Note must be at least $10, and there is a minimum balance requirement of $10.  Any subsequent addition or withdrawal must be for at least $5, and is generally made using an Addition/Reduction Form. The entire balance of the investment may be redeemed at any time by returning the endorsed original certificate to CEF.

Interest accrues daily and compounds quarterly. The investor receives a Summary Statement reflecting all activity, including the interest earned on the account, each quarter.

The Flexible Investment Note is an excellent investment program for that short-term need such as next year’s vacation, refinishing the church’s parking lot, or accumulating funds to convert to a Term Note when the balance becomes large enough.  If you are not considering one for yourself, why not open one for your children or grandchildren and help them start a systematic savings investment plan for their future.

Term Notes are designed for the investor who is able to and wishes to invest for a longer period of time.  The Term Notes offered by CEF are:

        1 Year           $ 1,000 Minimum

        3 Years         $ 1,000 Minimum

        5 Years         $ 1,000 Minimum

        5 Years         $25,000 Minimum (generally receives a higher interest rate)

        1 Year – Adjustable Rate Note - $ 1,000 Minimum

Interest on these notes accrues daily and is compounded quarterly.  The investor may also choose to have the interest on their investment paid out to them on a monthly, quarterly or annual basis via direct deposit or check mailed to them. 

The annual interest earned on Notes is taxable as ordinary income and is reported to the Internal Revenue Service (with the exception of IRA accounts).  The income earned on an IRA account is not taxable and not reported as income until the day the investor begins to withdraw the earnings.

All Notes are dated as of the date the investment is received by CEF.

The CEF has always been able to allow for the early redemption of Notes. However, CEF cannot guarantee that it will always be able to do so in the future. The early redemption of a Note will be subject to an interest penalty of 90-days worth of interest.  Before a Note can be redeemed, the endorsed original certificate must be returned to the CEF Office.

Adjustable Rate Notes are excellent investment vehicles in a climate of rising interest rates.  The effective interest rate on each Note is adjusted during its term on the first day of each calendar quarter based on the 12th District Federal Reserve Bank cost of funds, plus or minus a percentage, 30 days prior to the first day of each quarter.

Additions to the Note may be made at any time during the term of the Note with a $25.00 minimum requirement. This applies to Adjustable Rate Notes only, NOT  to fixed rate notes.

Information as to interest payments, redemption, security dates of notes and taxes on interest is as noted in the Term Notes section above.

A CEF IRA may be opened by completing a New IRA Account Application. The same application form is used for an initial CEF IRA investment, rollovers and transfer. GoldStar Trust Company is currently our IRA Custodian.

        Flexible, $250 Minimum

        1 Year, $1,000 Minimum

        3 Year, $1,000 Minimum

        5 Year, $1,000 Minimum

        5 Year, $25,000 Minimum

CEF is a non-profit religious organization; therefore, CEF investments are not SIPC or FDIC insured bank deposit accounts.  This is not an offer to sell investments or a solicitation to buy. The offer is made solely by CEF’s Offering Circular.