Interest rates— With National Republic Bank of Chicago market sensitive deposits, you can profit from future interest-rate increases without putting your principal at risk. 
 
If you are considering investing in bonds or in a bond fund, today’s low interest rates may discourage you from doing so. If you think interest rates are likely to go up soon, you may be especially discouraged from investing in bonds because you know that, when interest rates go up, bond values go down.  
 
If you believe interest rates are likely to go up soon, a structured investment linked to the five-year, ten-year or thirty-year yield on U.S. Treasury securities gives you a way to put your money to work now and benefit if the interest rate your structured investment is linked to goes up. If the reference interest rate you select does not go up, you are certain of getting back 100% of your principal.  
 
In investments linked to yields on U.S. Treasury securities, National Republic Bank of Chicago offers market sensitive deposits of a fixed term of one year.  
 
A interest-rate example: Participation rates and protection offered on a one-year structured investment linked to the yield on 10-year U.S. Treasury notes when the CD rate on a $100,000 deposit is 2.0% 
 
The participation rates that a particular structured investment offers depends upon market conditions prevailing at the time you make the investment. Market conditions and participation rates on offer are likely to vary from day to day, week to week and month to month.  
 
The table below shows the protection and degrees of participation National Republic Bank of Chicago offered recently on a one-year structured investment linked to the yield on 10-year U.S. Treasury notes. At the time, a one-year $100,000 CD paid an annual interest rate of 2.0%.  
 
On the day you are ready to make an investment, National Republic Bank of Chicago will provide you with the participation rate currently available.   
 
Amount you     Yield on                 Yield on               Amount           Return you 
invest in               10 year                  10 year              you would        would earn 
structured             U.S. Treasury         U.S. Treasury       get back          on linked 
investment            notes on                notes one            in one             structured 
                            investment            year later             year               investment 
                            date                                                         (Example only) 
 
$100,000      2.95%         4.40%                 $111,373      11.4% 
$100,000       2.95%         4.20%                 $109,804      9.8% 
$100,000       2.95%         4.00%                 $108,235       8.2% 
$100,000       2.95%         3.80%                 $106,667       6.7% 
$100,000       2.95%         3.60%                 $105,098       5.1% 
$100,000       2.95%         3.40%                $103,529       3.5% 
$100,000       2.95%         3.30%                 $102,745       2.7% 
$100,000       2.95%         3.20%                 $101,961       2.0% 
$100,000       2.95%         3.10%                 $101,176       1.2% 
$100,000       2.95%         3.00%                $100,392       0.4% 
$100,000       2.95%         2.95%                 $100,000       0% 
$100,000       2.95%         2.90%                 $100,000       0% 
$100,000       2.95%         2.85%                 $100,000       0% 
$100,000       2.95%         2.80%                 $100,000       0% 
$100,000       2.95%         2.75%                 $100,000       0% 
$100,000       2.95%         2.70%                 $100,000       0% 
$100,000       2.95%         2.65%                 $100,000       0% 
$100,000       2.95%         2.60%                 $100,000       0% 
$100,000       2.95%         2.55%                 $100,000       0% 
$100,000       2.95%         2.50%                 $100,000       0% 
$100,000       2.95%         2.45%                 $100,000       0% 
 
*The potential payoffs shown in the table are for illustrative purposes only. The market conditions on which the table is based may never occur again. How much of the increase in the yield on 10-year U.S. Treasury notes you will be entitled to for a particular structured investment depends on conditions prevailing in the financial markets at the time that you invest in the structured investment. 
 
 
When you compare investing in this structured investment to investing in a one-year CD that pays 2% interest, you see that you come out ahead in the structured investment if, in one year, the yield on 10-year U.S. Treasury notes has increased to 3.2% or higher.  
If you think the yield on 10-year U.S. Treasury notes is likely to be 3.2% or more in one year, then you may find this structured investment more attractive than a CD that pays 2% interest.  
 
The higher the current CD rate, the higher your participation rate in increases in commodity prices 
As do market sensitive deposits linked to equities, commodities and currencies, market sensitive deposits linked to interest rates offer higher participation rates when CDs pay higher rates. When you are considering investing in a structured investment linked to interest rates, National Republic Bank of Chicago will provide you with the participation rates currently available for the dollar amount you are considering investing.  
With every CD rate, there is an increase in the reference interest rate above which the structured investment pays you a better return than would a CD. If you believe the yield on 5 year, 10 year or 30 year U.S. Treasury notes is likely to reach this level in one year or go higher and it does, then you are better off invested in the structured investment than with your money in a CD.  
 
With a National Republic Bank of Chicago structured investment linked to the yield on 5 year, 10 year or 30 year U.S. Treasury notes, if interest rates do not increase as you expect, then you still get back 100% of your principal. You lose no money. The portion of your structured investment that guarantees return of at least 100% of your principal is insured by the FDIC. 
 
 
FDIC
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