Overview

No one can predict the financial marketplace with certainty. But with Wachovia's 24-Month Step Rate CD, you can predict a rate increase every six months—guaranteed—regardless of market conditions.

• Open your account with a $1,000 minimum balance. ^{note 1}
• Make partial withdrawals without penalty on each of the three days your rate increases.
• Enjoy peace of mind with maximum FDIC insurance.
• Gain superior account protection and security with Wachovia Security Plus^SM.

Here's how your rate steps up every 6 months:

Balance Tier	Interest Rate	APY note 2
$1,000 - $9,999,999	2.83%	2.87%
Blended Yield	0.00%	3.10%
Step Rate Bump 6 Months	2.98%	3.02%
Step Rate Bump 12 Months	3.13%	3.18%
Step Rate Bump 18 Months	3.28%	3.33%

What You Get

Wachovia's 24-Month Step Rate CD gives you the advantages of a fixed rate CD with the extra benefit of an automatic rate increase every six months.

Withdraw Funds from Your Principal

Every six months, on the day your rate automatically increases, you may make withdrawals from your CD principal, as long as your balance does not fall below the $1,000 minimum .

How Your Money Grows

You earn interest from the date of your first deposit up to the date of your last withdrawal. Your interest compounds daily, and is credited monthly or quarterly and at maturity. We calculate interest using the daily-balance method, which applies a daily rate to the account balance each day using actual calendar days, months, and years.

Get Regular Interest Payments

If you're looking for a steady income stream, you can receive regular CD interest payments monthly or quarterly. The interest paid to you reduces the amount of future earnings.

Plan Your Withdrawals and Maintain Your Minimum Balance to Avoid Penalty

You may make withdrawals from principal without penalty only on the day of a rate increase, or three times during the full 24-month term of your CD. Withdrawals of principal on other dates will result in a penalty of 180 days interest.

Your principal must remain at or above the $1,000 required minimum balance. If withdrawal brings the CD balance below the required minimum, the account will be closed and a penalty of 180 days interest will be imposed.

What Happens When Your CD Matures

We'll send you a reminder by mail well in advance of your maturity date. You'll have a seven-day grace period after the maturity date to renew, change your term, or withdraw your funds without penalty. Unless you instruct us otherwise, we'll automatically renew your account for the same term, at the interest rate in effect at that time.

Free Online Banking

Check account balances anytime, anywhere. Transfer funds between your eligible Wachovia accounts and your non-Wachovia accounts at other financial institutions ^{note 4}; receive and view bank statements online, set up Balance Alerts, or manage your accounts from your mobile device ^{note 5} with Wachovia Mobile^SM.

FDIC Insured

Your deposits are FDIC insured up to at least $100,000 per depositor. You can have much more FDIC protection by having more than one type of account ownership at Wachovia. For example individual and joint accounts are insured separately, so you can have up to $100,000 in an individual account and up to another $100,000 in joint accounts, so your total deposits can be insured up to $200,000. Other ownerships may qualify for even more FDIC coverage.

Please see FDIC: Insuring Your Deposits for more information.

Wachovia Security Plus^SM—Account Security and Identity Protection

With Wachovia Security Plus^SM, you have many layers of protection to help keep you safe from fraud and identity theft, including account protection service, fraud monitoring technology and consumer education and awareness. With our Online Services Guarantee we are dedicated to providing you a safe and dependable service for accessing your financial information online.

FAQs

About 24-Month Step Rate CD

• What's the minimum amount required to open a 24-Month Step Rate CD?
• How often does the rate on my 24-Month Step-Rate CD increase?
• Can I withdraw funds from my 24-Month Step Rate CD?
• Can I deposit more funds into my 24-Month Step Rate CD account after it's open?
• What are my options when my 24-Month Step-Rate CD matures?
• Do I need to open a Wachovia Checking Account in order to get a 24-Month Step Rate CD?

About CDs in general

• How does a Certificate of Deposit (CD) work and what reasons do I have for opening one?
• What's the minimum amount required to open a CD account?
• Can I deposit more funds into my CD account after it's open?
• Can I withdraw funds from my CD?
• How will I know when my CD is maturing?
• What are my options when my CD matures?
• Will I receive a monthly statement for my CD?
• What is FDIC Insurance?
• Is there any way I can open a second $100,000 CD and still get FDIC Insurance?
• Can I make automatic transfers from my checking account to my CD?
• Do I need to open a checking account in order to get a CD?
• Where can I find more frequently asked questions about Wachovia Savings Accounts and CDs?

About 24-Month Step Rate CD

What's the minimum amount required to open a 24-Month Step-Rate CD?

The minimum opening deposit for a Wachovia 24-Month Step-Rate CD is $1,000.

How often does the rate on my 24-Month Step-Rate CD increase?

After you open your 24-Month Step Rate CD the rate will automatically increase at six months, 12 months, and 18 months.

Can I withdraw funds from my 24-Month Step Rate CD?

For a 24-Month Step Rate CD, you can withdraw funds on each of the three days your rate is increased during the 24-month term. However, you must maintain the minimum balance of $1,000.

Withdrawals of principal before your CD matures will result in a penalty, which is based on the term of your CD account and the amount withdrawn. On terms:

• Up to and including 90 days, all interest earned
• 91 through 364 days, 90 days' interest
• 365 days and greater, 180 days' interest

Can I deposit more funds into my 24-Month Step Rate CD account after it's open?

No additional deposits are permitted after a 24-Month Step Rate CD has been opened.

What are my options when my 24-Month Step-Rate CD matures?

You'll have a seven day grace period after the maturity date to renew, change your term, or withdraw your funds without penalty. Unless you instruct us otherwise, we'll automatically renew your account for a 24-month Fixed Rate CD at the interest rate in effect at that time.

Do I need to open a Wachovia Checking Account in order to get a 24-Month Step Rate CD?

No, a Wachovia checking account is not required to open this CD.

About CDs in general

How does a Certificate of Deposit (CD) work and what reasons do I have for opening one?

A Certificate of Deposit is a financial product that pays you a guaranteed interest rate for a set period of time, which is known as the term. The term can range from a few months to several years. There are a number of reasons to open a CD:

• CDs typically pay higher interest rates than other financial deposit products, such as savings or money market deposit accounts. All these accounts are however, subject to fluctuations in the economy.
• The rate of a CD is set at the time you open the account and cannot change until the CD matures at the end of its term. Rates on savings and money market accounts are generally variable and can decrease or increase.
• Wachovia CDs are protected by FDIC insurance to the legal maximum.

What's the minimum amount required to open a CD account?

The minimum deposit for a Wachovia Featured CD is $5,000 and for a fixed rate CD is $1,000.

Can I deposit more funds into my CD account after it's open?

With a fixed rate CD, you can deposit additional funds when you renew it on the maturity date and during the seven days immediately following the maturity date. You can make deposits during the term with a Liquid CD.

Can I withdraw funds from my CD?

For a fixed rate CD, as long as the principal is not reduced, you can withdraw the interest earned on your CD account without penalty at any time. You can also set up regular interest payments from your CD by check or transfer to another Wachovia savings or checking account. The interest paid to you reduces the amount of future earnings.

Withdrawals of principal before your CD matures will result in a penalty, which is based on the term of your CD account and the amount withdrawn. On terms:

• Up to and including 90 days, all interest earned
• 91 through 364 days, 90 days' interest
• 365 days and greater, 180 days' interest

You can make withdrawals without penalty at specific time intervals from our Liquid CD and our 24-Month Step Rate CD.

How will I know when my CD is maturing?

You will receive a reminder in the mail well in advance of the maturity date.

What are my options when my CD matures?

You'll have a seven day grace period after the maturity date to renew, change your term, or withdraw your funds without penalty. Unless you instruct us otherwise, we'll automatically renew your account for the same term, at the interest rate in effect at that time.

Will I receive a monthly statement for my CD?

Monthly statements are not available for CDs. You can keep track of your CD balance and interest payments through Wachovia Online Banking. It's easy to enroll, simply go to wachovia.com/enroll. Online Banking gives you convenient and secure, 24/7 access to all your Wachovia accounts and balances. You may also call 800-WACHOVIA (800-922-4684), 24 hours a day, seven days a week—to keep track of your CD balance. You can also call this number to have your CD information included in your monthly checking statement by adding your CDs to your checking account.

What is FDIC Insurance?

FDIC stands for the Federal Deposit Insurance Corporation, which is an independent agency of the U.S. Government. The FDIC insures deposits at all federal and some state-chartered banks, savings associations, and industrial loan companies. Wachovia is a member of the FDIC.

Is there any way I can open a second $100,000 CD and still get FDIC Insurance?

There are several ways you can obtain considerably more than $100,000 FDIC insurance on deposits at Wachovia. Here's why:

• FDIC insurance covers up to $100,000 for each account ownership type.
• An account owner can have up to $100,000 in FDIC-insured deposits in each of several account types, including individual, joint, and up to $250,000 for qualifying retirement accounts.
• Up to $100,000 FDIC coverage is allotted for each qualifying beneficiary of a testamentary account.

For example, a couple could each have individual accounts with FDIC coverage of up to $100,000 plus a joint account with FDIC coverage of up to $200,000, for a combined total of $400,000 in FDIC-insured deposits at Wachovia. Opening testamentary accounts with several different beneficiaries or qualified retirement accounts could multiply the amount under FDIC protection.

Please see FDIC: Insuring Your Deposits for more information.

Can I make automatic transfers from my checking account to my CD?

Because deposits to your CD are limited, automatic transfers are not permitted.

Do I need to open a checking account in order to get a CD?

For our Featured CD, you will need a Wachovia checking account. We offer a wide variety of checking choices, including our popular Free Checking account.

Where can I find more frequently asked questions about Wachovia Savings Accounts and CDs?

More questions and answers are available in our Personal Finance FAQs.