MARKET LINKED CD^'S

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What are Market Linked CD's?

Market Linked Certificates of Deposit are a particular type of principal-protected structured investment product issued by Wells Fargo Bank, N.A.
A Market Linked Certificate of Deposit should not be confused with a conventional certificate of deposit (CD).  Unlike conventional CD's that offer a fixed coupon, a Market Linked CD typically offers no fixed coupon but provides a return linked to the future performance of an underlying market measure.  Market measures may include major domestic or international equity indexes, commodity indexes or a basket of commodities, a basket of currencies, an inflation benchmark, or any number of other investment instruments or indices.  The return of a Market Linked CD may be more or less than an equivalent deposit that earns a fixed rate of interest.  Accordingly, Market Linked CD's have investment characteristics that are different from, and involve risks that are not associated with, conventional deposits.

Features and Characteristics

Market Linked CD's provide potential benefits beyond that of conventional CD's, as well as risks due to their unique market component.  These products are designed to met specific investment objectives or views that often may not be met by traditional investment products available in the market.  Therefore, Market Linked CD's can be used as an alternative to a direct investment, part of an overall asset allocation strategy, or a risk-reduction strategy in a portfolio.

Some key characteristics of Market Linked CD's include:

Principal Protection - Market Linked CD's provide principal protection for the deposit amount if held to maturity.  In case of bank insolvency, it is important to note that the deposit amountof a Market Linked CD is insured by the Federal Deposit Insurance Corporation (FDIC) up to the applicable FDIC insurance limits.  Regardless of the performance of the underlying market measure, at maturity, you will receive the original amount invested.  If you choose to sell your Market Linked CD prior to maturity, the deposit amount of your investment is not protected and your Market Linked CD may be worth less than the initial amount invested.

Growth Potential - All or part of the return on a Market Linked CD is based on the performance of an underlying market measure.  The manner of determining the market-based return will vary from issue to issue, so it is important that you carefully review the offering terms, disclosure statement and any supplemental information before deciding to invest in the Market Linked CD.

Investor Protection - The deposit amount of a Market Linked CD is insured by the FDIC up to applicable limits.  There is no maximum limit on the amount that may be invested in Market Linked CD's, but the FDIC deposit insurance only covers Market Linked CD's up to the insurance limit, including the aggregate of the deposit amount and any interest that has been finally determined, through the date of the insured bank's closing.  The Emergency Economic Stabilization Act temporarily increased the basic deposit insurance limit per individual owner for all account ownership categories from $100,000 to $250,000.  This increase is effective through December 31, 2013.  IRA's and certain other retirement accounts for which the deposit insurance limit was already $250,000 prior to October 3, 2008 have not been changed.  After December 31, 2013, account ownership categories for which the deposit insurance limit was raised will revert to the $100,000 limit.  Thus, a CD with a maturity after December 31, 2013 held in an account ownership category for which the insurance limit was $100,000 prior to October 3, 2008 will temporarily have an insurance limit of $250,000 and will revert to the $100,000 limit after December 31, 2013.  Please consider this when evaluating specific CD's.

Risks

Investors need to be aware of certain risk factors associated with Market Linked CDs, including limited liquidity, performance risk, market risk, call risk, credit risk, limited pricing and tax implications. Investors in Market Linked CDs are subject to the credit risk of Wells Fargo Bank for deposits above the applicable FDIC insurance limits. Investors who purchase Market Linked CDs should be willing and able to hold the investment until maturity. For a more complete description of the risks associated with an investment in a particular Market Linked CD, investors should review the offering terms supplement and disclosure statement.

To learn more about Market Linked CD's, take a look at our brochure.  If you feel that Market Linked CD's may be of interest to you, please contact us and we'll let you know what steps are next.

A sale of a Market Linked CD prior to maturity is subject to market value fluctuation such that proceeds from the sale could be substantially less than the original deposit amount. The Market Linked CD may not be a suitable investment for all investors. In particular, no investor should purchase the Market Linked CD unless they understand and are able to bear the associated market, liquidity, and yield risks. Investors should also understand the credit risk associated with the issuer of the Market Linked CDs.  If the market linked component of the Market Linked CD does not appreciate, an investor will only receive the original deposit amount at maturity (unless a minimum return is specified) and lose the time value of money. Principal protection commitment is backed by Wells Fargo Bank, N.A., member FDIC. See offering terms supplement and disclosure statement for further details.