What is a Mission Development Certificate?

A Mission Development Certificate (MDC) is a time deposit similar to certificates of deposit offered by banks.

Who Can Invest in One?

Presbyterians, churches, presbyteries and related entities can invest in Mission Development Certificates.

In addition to Mission Development Certificates, the program offers a Mission Building Certificate available only to churches, presbyteries and the Synod. A Mission Building Certificate operates similar to a money market account.

How Does a Certificate Earn Interest?

Mission Development Certificates have varying maturities of 6, 12, 24, 36 and 60 months. When a person purchases a certificate the interest rate is fixed for the term. At maturity, the MDC can be reinvested or redeemed in full. Presently 98% of our current investors elect to reinvest some or all of the original investment. This is exceptionally high and reflects the trust and confidence the current investors have in the program.

How is the Interest Paid Out and to Whom?

There are two types of certificates: “Growth” functions like a savings account with the interest paid at maturity and “Income” functions like a certificate of deposit. Typically the interest on income MDC’s is paid every six months. For larger investments, an investor can elect to receive earned interest monthly, quarterly, semi-annually or annually.

How Do the Interest Rates Compare to Commercial Banks?

We compare our interest rates offered by local and national banks weekly. Anyone can call our office for current interest rates or find them at our website, www.mdcnw.org. Our interest rates are consistently above the local and national average interest rates offered. For example, the 12 and 24 month interest rates offered are 3.1 and 2.8 times greater than the national average respectfully. The Mission Building Certificate interest rate is 10 times the money market rate currently offered by Bank of America.

How Has the MDC Programs Fared in Past Economic Downturns?

The Board of Directors and staff are committed to the original vision of offering low cost loans to churches. Our goal is to provide a simple, straightforward and transparent program to our investors and borrowers. Since 1955, the Mission Development Certificate program has been able to repay in full to our investors even in the past and recent economic downturns. Unlike mutual funds, no one has lost a penny. In fact, as investors fled the FDIC insured banks, we experienced steady new deposits.

How is the MDC Program Linked to the Public Banking Sector?

The MDC program is not a bank nor is it FDIC insured. We are a non-profit organization that offers low interest loans to churches through the sale of interest bearing certificates. The program is registered with the state securities division of Alaska, Washington and Idaho and follows the national guidelines for church extension funds.