JPMorgan plans variable-rate range accrual CDs tied to Libor, Russell

By Angela McDaniels

Tacoma, Wash., June 13 - JPMorgan Chase Bank, NA plans to price callable variable-rate range accrual certificates of deposit due June 29, 2027 linked to six-month Libor and the Russell 2000 index, according to a term sheet.

The interest rate will be 6% for the first year. Beginning June 29, 2013, the interest rate will be equal to the interest factor multiplied by the proportion of days on which the index closes at or above 600. The interest factor will be (a) 1.05 times (b) 6% minus six-month Libor. The interest factor cannot be less than zero or more than 6.3% per year. Interest will be payable quarterly.

The payout at maturity will be par.

Beginning June 29, 2013, the CDs will be callable at par on any interest payment date.

The CDs (Cusip: 48124JEU8) are expected to price June 26 and settle June 29.

J.P. Morgan Securities LLC is the agent. Incapital LLC is the distributor.

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