Term Notes

Earn more for your organization with term investment options.

One of the easiest ways to invest if your organization doesn’t need immediate access to its money—many non-profit organizations use term notes as a fixed income portion of their investment portfolio.

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An easy way to earn more on your organization’s investments

Cornerstone Fund term notes are one of the easiest ways to invest if you don’t need immediate access to the funds. Many organizations use term notes to earn more on capital campaign pledges or as a fixed income investment, unrelated to the stock market. Cornerstone Fund term notes can be opened for as little as $500. Term notes are available in a variety of terms, from three months to five years.

Invest across a range of maturities to seek to earn even more

To earn even more on funds that need to remain accessible, consider an investment ladder —investing funds across a range of maturities to maintain liquidity and improve yield. Suppose you maintained a $15,000 reserve fund. An appropriate ladder might invest $5,000 for a 12-month term, $5,000 for a 24-month term, and $5,000 for a 36-month term. Assuming the reserve isn’t needed when the 12-month investment matures, the funds can be reinvested at a 36-month term at the typically higher rates for longer-term investments repeating the process for the 24-month investment, assuring that funds will be maturing each year.

Such a ladder would provide an initial average investment yield similar to a 24-month investment — and after one year, with the rollover of the 12- and 24-month investments, the average yield would be equivalent to an 36-month rate, with funds maturing every 12 months. While laddering offers investors liquidity and the potential for yield enhancement in ever-changing markets, laddering may result in lower over-all yields in a falling interest rate environment.

Receive a rebate when you invest in the Cornerstone Fund

To participate in the Matching Rebate program, an organization and/or its members invest in the Cornerstone Fund in an amount that fully matches the borrower’s loan balance. Once the investments match the loan balance, the borrower will receive a rebate in the amount of 1.0% of the loan. Although rebate checks are issued annually (each January), we calculate the Matching Rebate every month to give the borrower the most credit, since investment balances are always changing. Rebates are also provided in 0.25% increments.

For example, if a organization’s loan balance is $100,000 and the agency’s donors and/or members (they simply list the agency on their investment applications) collectively invests $75,000 in the Cornerstone Fund in any combination of term notes, demand notes, IRAs, and/or ESAs,, the organization will receive a rebate check in the amount of approximately $750. Similarly, if an agency’s loan balance is $300,000, and its members invest $150,000, then the organization will receive a rebate check for $1,500. Rebate checks are issued annually as long as a loan is still active and the investment balance reaches at least 0.25% of the year-end balance.

 

Frequently Asked Questions

What is the minimum opening balance requirement?

A Cornerstone Fund Term Note can be opened for as little as $500.


How much interest does the account earn?

Cornerstone Fund Term Notes earn competitive* interest. Check out our current rates, and we encourage you to compare them to other financial institutions.


What are the monthly service charges?

There are no monthly service charges with Cornerstone Fund Term Notes.


How can I access my account?

You can easily access your account online. Enroll here.


What term lengths are available?

Term notes are available in 3-month, 6-month, 12-month (1-year), 24-month (2-year), 36-month (4-year), and 60-month (5-year) terms. Interest rates are generally higher for longer-term, higher balance investments.


How does my organization enroll in the Interest Rebate program?

Investors (both individuals and organizations) can designate that their investment be counted toward your organization. Once your loan balance is matched with investment dollars, you’ll receive an interest rebate of 1.0%.



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