National Covenant Properties Approves Rate Changes

Rates on Variable Rate Certificates and Demand Investment Accounts will move to 1.5% and Individual Retirement Accounts and Health Savings Accounts will change to 3%, according to NCP President Steve Dawson.

The five-year Fixed Rate Certificates will move to 3%; however, the current rate of 3.5% will continue to be honored for all new funds received through the remainder of June and postmarked no later than June 30, Dawson explained. Conversion of existing funds also will qualify for the current 3.5% five-year rate if converted by the June 30 deadline, Dawson noted.

National Covenant Properties uses the funds to support loans to local Covenant churches for various construction purposes, as well as other appropriate ministry projects. Rates on those loans will move to 4.5% effective July 1.

“The board wrestled with the desire to provide the highest level of return possible for investors, recognizing the sad reality of a marketplace that has witnessed rates of return plummeting in recent months and years,” Dawson said. “Adjusting rates to be more in line with market realities is important if programs like these are to remain viable over the long term.”

Many analysts believe rates generally will continue to be depressed for the next 18 to 24 months and perhaps longer.

National Covenant Properties, which is an affiliate of the Evangelical Covenant Church, currently oversees $360 million in assets, working with more than 6,000 investors and administering some $260 million in loans.