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Investment Opportunities

Note:  APY is based on interest remaining in the account and compounded quarterly (monthly for congregation investments).

Penalties for Early Withdrawal:  The Church Extension Fund is not required to redeem any note prior to its maturity.  However, as a matter of policy and practice, the Church Extension Fund may redeem, at its discretion, such notes, regardless of maturity, at the request of the investor, upon the showing of necessity or emergency.  An interest penalty is assessed when an early redemption is requested by the investor.

Download TexasCEF Offering Circular in Adobe Acrobat format.

Download Individual Investment Application in Adobe Acrobat format.

There are four types of investment opportunities available for individual investors from the Texas District Church Extension Fund:

1. Dedicated Savings:   This is a Save-by-Mail plan that permits addition to the initial investment (minimum of $10.00) and withdrawal privileges at any time with no loss of interest.  The interest rate on all Save-by-Mail accounts (new and outstanding) may be adjusted at any time.  The interest rate is 2.500% .  An investment record of additions, subtractions and interest earnings is mailed to the investor semiannually.
2. Fixed Rate Notes:  These notes have a specific term, fixed interest rate and require a minimum investment.  They are available for terms of one-year, three-years and five-years.  They are automatically renewable at the option of the Church Extension Fund for a like term at the interest rate then in effect for Fixed Rate Notes of the same term, if not presented for payment by the holder prior to their due date.  The Church Extension Fund apprises investors of impending maturity in writing at least 30 days prior to the due date.   Interest is paid quarterly.  The investor has the option of receiving interest by check on a monthly, quarterly, semiannual or annual basis (provided that the amount of each check is at lease $50) or leaving it on deposit to be compounded.  Method of receiving interest payments is elected at the time of investment and may be changed by written request of the investor.
   
   The rates of interest for all Fixed Rate Notes will be set by the Church Extension Fund.   The rate of interest on new Fixed Rate Notes to be offered is is subject to change at any time.
   
   Fixed Rate Notes submitted prior to maturity are subject to an interest penalty, being the loss of 90 days of interest for 1-Year Notes and 3-Year Notes, and being the loss of 180 days of interest for 5-Year Notes
   
3. Floating Rate Notes:  These notes have a specific term, an interest rate that adjust monthly and require a minimum investment.  They are available for terms of one-year, three-years and five-years.  They are automatically renewable at the option of the Church Extension Fund for a like term if not presented for payment by the holder prior to their due date.  The Church Extension Fund apprises investors of impending maturity in writing at least 30 days prior to the due date.   Interest is paid quarterly.  The investor has the option of receiving interest by check on a monthly, quarterly, semiannual or annual basis (provided that the amount of each check is at lease $50) or leaving it on deposit to be compounded.  Method of receiving interest payments is elected at the time of investment and may be changed by written request of the investor.
   
   The rates of interest for Floating Rate Notes is indexed to the monthly average U.S. Treasury Constant Maturity, lagging by two months, plus a margin added by CEF.
   
   Additions to Floating Rate Notes are permitted at any time and do not extend the maturity date of the note.
   
   Floating Rate Notes submitted prior to maturity are subject to an interest penalty, being the loss of 90 days of interest for 1-Year Notes and 3-Year Notes, and being the loss of 180 days of interest for 5-Year Notes
   
4. K.I.D.S. Savings Stamps:  These are sold primarily to children and youth through the Sunday School and Parochial Schools of Texas District congregations.  Stamps have cash value of $.25 or $1.00 and may be accumulated in stamp books.  Filled stamp books may be transferred to Dedicated Savings ("Save-by-Mail") accounts for the face value of all stamps accumulated.   Texas congregations receive the saving stamps on consignment in blocks of $100, and sell them to their members and/or members' children.  The stamps may be purchased on account and paid for as they are sold.

IRA Investments:  The Texas Church Extension Fund DOES NOT offer to investors the opportunity to place Fixed Rate Notes or Dedicated Savings Accounts in individual retirement accounts ("IRA's").

The Church Extension Fund, however, has made arrangements for investors seeking IRA investments with the Lutheran Church Extension Fund (LCEF) - Missouri Synod, 1333 South Kirkwood Road, St. Louis, MO 63122 (1-800-843-5233) using Magna Trust Company of St. Louis ("Magna") as custodian of self-directed IRAs.  Upon direction of the individual investor, Magna will invest the investors funds in the LCEF, which will in turn invest funds with the Church Extension Fund.

Investments Available Only to Congregations:

Congregation Savings Account.  Account is designed to provide a short-term investment vehicle for congregation funds.  The account features a variable interest rate, monthly compounding of interest and monthly statements.  Additional deposits and withdrawals may be made at any time, in any amount, without penalty.

Building Fund Account.  Account is designed to provide an investment vehicle for congregations accumulating funds for a building project.  The account features a variable interest rate, monthly compounding of interest and quarterly statements.  Additional deposits may be made at any time, in any amount.  Withdrawals for building project may be made at any time, without penalty.  A substantial interest penalty is charged for withdrawals for any other purpose.

Application

Download Congregation Investment Application in Adobe Acrobat format.

The information available through the TexasCEF web site is neither an offer to sell nor a request to buy any investments. This offer is made only in the Offering Circular which is available by contacting TexasCEF at 1-800-951-3478 or by written request to TexasCEF, 7900 East Highway 290, Austin, Texas 78724.