Wells Fargo Bank plans to price CDs linked to Consumer Price Index

By Angela McDaniels

Tacoma, Wash., June 10 - Wells Fargo Bank, NA plans to price certificates of deposit due June 30, 2016 linked to the Consumer Price Index, according to a term sheet.

Interest is payable quarterly. For the first three years, the interest rate is 3.25%. After that, it will equal a base rate of 1.4% to 1.6% plus the percentage change in the level of the index, subject to a floor of zero. The exact base rate will be set at pricing.

The payout at maturity will be par.

The CDs are expected to price June 23 and settle June 30.

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