Certificate of deposit (CD)

 AA CDCD isis aa time time deposit deposit with with aa bank bank..

 Like Like most most time time deposit, deposit, funds funds can can not not

withdrawn withdrawn before before maturity maturity without without paying paying

a penalty.

 CD’s CD’s have have specific specific maturity maturity date, date, interest interest

rate and itit can be issued inin any

denomination denomination..

 The The main main advantage advantage ofof CDCD isis their their safety safety..

 Anyone Anyone can can earn earn more more than than aa saving saving

account account interest interest..

What is Money Market?

AsAs per per RBI RBI definitions definitions ““ AA market market for for short short terms terms

financial financial assets assets that that are are close close substitute substitute for for

money, money, facilitates facilitates the the exchange exchange ofof money money inin

primary primary and and secondary secondary market” market”..

 The The money money market market isis aa mechanism mechanism that that deals deals

with with the the lending lending and and borrowing borrowing ofof short short term term

funds funds (less (less than than one one year) year)..

 AA segment segment ofof the the financial financial market market inin which which

financial financial instruments instruments with with high high liquidity liquidity and and very very

short short maturities maturities are are traded traded..

ItIt doesn’t doesn’t actually actually deal deal inin cash cash oror money money
but but deals deals with with substitute substitute ofof cash cash like like trade trade

bills, bills, promissory promissory notes notes && govt govt papers papers

which which can can converted converted into into cash cash without without any any

loss loss atat low low transaction transaction cost cost..

 ItIt includes includes allall individual, individual, institution institution and and

intermediaries intermediaries..

2 ! Features of Money Market?

 ItIt isis aa market market purely purely for for short short--terms terms funds funds oror

financial financial assets assets called called near near money money..

 ItIt deals deals with with financial financial assets assets having having aa maturity maturity

period period less less than than one one year year only only..

 InIn Money Money Market Market transaction transaction can can not not take take place place

formal formal like like stock stock exchange, exchange, only only through through oral oral

communication, communication, relevant relevant document document and and written written

communication communication transaction transaction can can bebe done done..Continued……..

Transaction Transaction have have toto bebe conducted conducted without without the the

help help ofof brokers brokers..

 ItIt isis not not aa single single homogeneous homogeneous market, market, itit

comprises comprises of of several several submarket submarket like like call call money money

market, market, acceptance acceptance && bill bill market market..

 The The component component ofof Money Money Market Market are are the the

commercial commercial banks, banks, acceptance acceptance houses houses && NBFC NBFC
 (Non (Non--banking banking financial financial companies) companies)..

Ds offer a slightly higher yield than T-Bills because of the slightly higher default risk for a bank but, overall, the
likelihood that a large bank will go broke is pretty slim. Of course, the amount of interest you earn depends on a
number of other factors such as the current interest rate environment, how much money you invest, the length of time
and the particular bank you choose. While nearly every bank offers CDs, the rates are rarely competitive, so it's
important to shop around. 

A fundamental concept to understand when buying a CD is the difference between annual percentage yield (APY)
andannual percentage rate (APR). APY is the total amount of interest you earn in one year, taking compound
interest into account. APR is simply the stated interest you earn in one year, without taking compounding into
account. (To learn more, read APR vs. APY: How The Distinction Affects You.)

nvestopedia explains Certificate Of Deposit - CD

A certificate of deposit is a promissory note issued by a bank. It is a time deposit that restricts holders
from withdrawing funds on demand. Although it is still possible to withdraw the money, this action will
often incur a penalty. 

For example, let's say that you purchase a $10,000 CD with an interest rate of 5% compounded
annually and a term of one year. At year's end,  the CD will have grown to $10,500 ($10,000 * 1.05).

CDs of less than $100,000 are called "small CDs"; CDs for more than $100,000 are called "large CDs" or
"jumbo CDs". Almost all large CDs, as well as some small CDs, are negotiable.

Reverse Mortgage Powerpoint - Presentation Transcript

1. Answers to your reverse mortgage questions Presented by Diane Quitmeyer <Rep Name> Reverse Mortgage
Consultant MetLife Bank 1

2. Would you like to live better today, and be more prepared for the future? A reverse mortgage could help... 2

3. What you should know •  Reverse mortgages are an important financial option •  Reverse mortgages can be an
important part of living with less worry and fewer restraints •  It’s to your advantage to get all the facts so you can make an
informed decision 3

4. What is a reverse mortgage? A reverse mortgage can help many seniors with their financial needs: •  A loan that allows
homeowners age 62+ to tap into their home equity •  You can use the proceeds for what you need •  It is not advisable to use
reverse mortgage proceeds to make a financial investment since the costs of the loan may exceed the investment return •  You can
even use a reverse mortgage to purchase a home 4
5. Reverse mortgage facts •  You continue to live in and own your home •  The bank makes payments to you—that’s why
it’s called a “reverse” mortgage •  You remain responsible for property taxes, homeowner’s insurance, and maintenance of the
home, but you do not make monthly mortgage payments •  Your loan does not need to be repaid until the last borrower
permanently moves out or passes away •  There are no income qualifications 5

6. Home Equity Conversion Mortgage (HECM) •  The vast majority of all reverse mortgages are HECMs •  Federally
insured—when the loan becomes due, HUD will pay the lender any shortfall between sale proceeds and amount owed •  Variable
rates are tied to an established index—fees and interest rate margins are capped for your protection 6

7. HECM for Purchase •  Designed to help you purchase* a home using the proceeds from a reverse mortgage on that
home •  You can be qualified, regardless of income or credit history •  One transaction with one closing simplifies the process
*Only applicable for the purchase of a 1- to 4-unit dwelling to be occupied as principal residence. 7

8. Who is eligible to apply? To qualify for a reverse mortgage, you must: •  Be age 62 or older •  Own your home—if you
have an existing mortgage, your reverse mortgage proceeds will first be used to pay off any existing mortgages •  Live in your
home as your principal residence •  Meet U.S. Department of Housing and Urban Development (HUD) minimum property
standards 8

9. How does the program work? •  You choose how you want to receive your funds: –  Single lump sum of cash – 
Monthly income for as long as you live in your home or, if you prefer, for a specified time period –  Line of credit you draw on as
needed –  Any combination of these •  Closing costs can be rolled into the loan •  You continue to live in and retain the title to
your home while you use your reverse mortgage proceeds •  When you leave the home, you or your heirs repay the loan,
including accrued interest on the money you took and accumulated monthly servicing and origination fees 9

10. How much can you get? The amount you can borrow depends on: •  Your age •  The type of reverse mortgage you
select •  Current interest rates •  Location of your home •  Appraised value of your home •  Federal Housing Administration
(FHA) lending limits 10

11. How can you use the funds? •  Pay your monthly bills •  Fix up your home •  Pay for prescriptions and healthcare • 
Retire your existing mortgage •  Make a major purchase or needed expenditure •  Travel •  Help your children or grandchildren
However, it is not advisable to use reverse mortgage proceeds to make a financial investment since the costs of the loan may
exceed the investment return 11

12. What about your government benefits? •  Reverse mortgage funds usually do not affect regular Social Security or
Medicare benefits •  Needs-based benefits, such as Medicaid and Supplemental Security Income (SSI), may be affected •  Contact
a tax professional about your particular situation 12

13. When does the loan become due? •  All borrowers permanently move out of the home, or don’t live in it for 12 months
OR •  You sell the home OR •  You fail to pay taxes or homeowner’s insurance, or to maintain the home OR •  The last surviving
borrower passes away 13

14. What about your heirs? •  The loan can be repaid by selling the property, refinancing, or using other assets—the choice
is up to you or your heirs •  Any sale proceeds in excess of the loan balance belong to you or your heirs •  The lender can never
claim from you or your estate more than the fair market price received if you sell the home—even if the loan balance exceeds that
fair market value 14

15. A review of the facts •  FACT: The bank will not own your home—you continue to be responsible for paying property
taxes, homeowner’s insurance, and any home maintenance •  FACT: You do not need to make monthly mortgage payments—
interest accrues on the portion of the loan amount disbursed •  FACT: There is no income qualification •  FACT: Your Social
Security and Medicare benefits will generally not be affected 15
16. Required independent counseling •  Ensure that you have the information you need to make the reverse mortgage
decisions that are right for you •  HUD-approved counselors are available nationwide and locally —you can meet face-to-face or
receive your counseling by phone, it is your choice; you will be presented with a list of local and nationwide HUD-approved
counselors for you to choose from* •  Counseling is regulated for your protection, and required before you can apply for a HECM
reverse mortgage •  The service is designed to help you review your alternatives, consider the financial implications, and more
*Counselors are not employed by MetLife Bank; therefore, your MetLife Bank reverse mortgage consultant or any other
associate of MetLife Bank cannot provide guidance on the selection or scheduling of counseling appointments. 16

17. Why MetLife Bank •  MetLife Bank is a MetLife company –  For more than 140 years, MetLife has been helping
individuals and families –  MetLife is a trusted name in the financial services industry •  Reverse mortgage professionals to help
with every step of the process •  Identity Theft Resolution Services, currently at no additional charge* *Identity Theft Resolution
Services are provided by Identity Theft 911®. 17

18. Identity Theft Resolution Services MetLife Bank is among the first to offer this service to reverse mortgage customers
•  One-on-one assistance should you become an identity theft victim •  Help in restoring your credit and regaining control of your
identity •  Ongoing monitoring services to watch for recurrences Identity Theft Resolution Services are provided by Identity
Theft 911®. 18

19. The next step is up to you I can help you with all of the process steps: •  Answering your questions •  Providing you
with a list of HUD-approved local and nationwide independent counselors so that you can set up your independent counseling • 
Completing your application •  Preparing for your closing Let’s start with an informal conversation 19

20. For more information Call me at any time: Diane Quitmeyer <Rep Name> 314-556-4100 <Rep Phone Number> I’m
here to help! 20