
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, January 11, 1994                   TAG: 9401110055
SECTION: BUSINESS                    PAGE: B-5   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Short

CENTRAL FIDELITY OFFERS NO-RISK CD

Central Fidelity Banks Inc. said Monday it has introduced a three-year certificate of deposit and IRA that enables investors to earn stock market returns without risk to principal.

The Stock Market Plus CD and IRA pays an interest rate based on monthly changes in the Standard and Poor's 500 composite stock price index.

The initial investment is held in a Central Fidelity certificate of deposit or IRA, which are insured to limits set by the Federal Deposit Insurance Corp.

The account has a three-year term. Minimum deposit is $2,500 for the certificate and $2,000 for the IRA.

At account opening, customers are given a beginning S&P 500 index value. At the end of each 12-month period, monthly index values are averaged and compared to the beginning index.

If the average annual figure is higher than the beginning index value, the percentage difference is paid as simple interest. If the annual figure is equal to or less than the beginning value, no interest is paid. The value is reset at the start of each annual payment period.

- Staff report

by CNB