Yes. Interest earned on your Duke Energy PremierNotes investment will constitute income to you and is taxable in the year that it is paid. Interest income is subject to federal and applicable state and local taxes. Consult your tax advisor for additional information.
No, PremierNotes investments are not transferable.
There are no maintenance fees associated with your investment, nor are there charges for your redemption checks (both initial and additional) or using the redemption checks. You may, however, be charged a fee by your commercial bank or financial institution if you make an investment or receive a redemption amount by wire transfer. You may also incur a charge in obtaining any applicable signature guarantee.
The following fee schedule applies:
Stop payment requests:
Redemptions for less than $250:
Investment balance less than $1,000:
We do not charge any fees for writing checks for $250 or more. There are also no administrative or maintenance fees and your checkbooks are free. PremierNotes does charge investors a $10 fee for checks written under $250, and fees do apply if you overdraft your investment. See the prospectus for more details on fees.
No. Beneficiaries are not offered on PremierNotes investments. However, we do offer joint ownership, with rights of survivorship, as well as Trust ownership. You should consult your attorney or other estate planning professional for estate planning advice applicable to your specific circumstances.
No, the conversion of redemption checks to electronic debit is not permitted.
PremierNotes pays a competitive floating rate of interest that is determined by the Duke Energy PremierNotes Committee or its designee on a weekly basis, and any rate changes become effective the following Monday. The rate of interest also increases when you invest more.
You can invest additional funds into an established PremierNotes investment by mailing an investment slip along with a check for $50 or more payable to Duke Energy PremierNotes to:
Duke Energy PremierNotes
P.O. Box 75974
Chicago, IL 60675-5974
Additionally, you may electronically transfer funds into your PremierNotes investment by automated clearing house (ACH) or wire transfer. Contact us at 800.659.3853 for more details.
After your PremierNotes investment is established, you may sign up for online access by calling 800.659.3853 and following the automated menu options for "Web activation." You may also call the same phone number to access your PremierNotes investment activity and balance information.
You may make changes to your address, ownership name, electronic fund transfer information and linked bank account by filling out the appropriate section of the change form, which can be found on our website. You may also request a copy of the change form by calling 800.659.3853. In order for us to process your request, the change form must include the signatures of each authorized signer listed on your PremierNotes investment and may require a medallion signature guarantee. See the change form for more details.
Send your completed change form to:
Duke Energy PremierNotes
P.O. Box 75708
Chicago, IL 60675-5708
You can redeem all or some of your investment by using your PremierNotes redemption checks, sending a written request to Duke Energy PremierNotes at the agent bank's correspondence address, and using our telephone redemption, wire transfer redemption and directed redemption options.
You can set up an electronic funds transfer (EFT) by completing the appropriate sections of the application form and including a voided blank check. See the application form for more details. For your convenience, we recommend you establish this feature when you enroll in PremierNotes.
Set up an electronic funds transfer (EFT) by completing the change form, including a voided check and mailing these items to the address listed on the change form.
PremierNotes is not a money market fund. The notes are not subject to regulation under the Investment Act of 1940, as amended. The notes are direct investments in new debt obligations of Duke Energy. See additional risks outlined in the prospectus.
At a minimum, you will receive a statement on a quarterly basis. You will also receive a statement for any month that has electronic transaction activity.
No, the notes are not equivalent to a deposit or other bank account, and are not subject to the protection of Federal Deposit Insurance Corporation (FDIC) regulation or insurance, or any other insurance. The notes are direct investments in new debt obligations of Duke Energy. See additional risks outlined in the prospectus. You should consider these risks and determine if investing in PremierNotes is an acceptable investment after considering your financial resources and investment objectives.
- While funds invested will begin to accrue interest on the day they are posted, they are available for redemption based on how the funds were invested:
- The initial investment will be available no more than seven business days after the date of credit.
- Funds invested via a check are available for redemption seven business days after the date of credit.
- Funds invested via ACH transfer are available for redemption five business days after the date of credit.
- Funds invested via wire transfer before 2 p.m. ET are available for redemption the same business day.
- Funds invested via wire transfer after 2 p.m. ET are available for redemption on the first business day after date of credit.
- Funds invested via the automated Social Security investment option are available for redemption the first business day after date of credit.
See the prospectus for more details on fund redemption options.
Any investment or redemption made by wire transfer must be $1,000 or more.
You will be notified if your notes will be redeemed and you will be given 30 days to provide additional funds to increase your investment to the applicable minimum balance required before your investment is redeemed. If the minimum investment balance of $1,000 is not attained or maintained, we may redeem the principal amount of your notes, together with accrued and unpaid interest, and mail the proceeds to your registered address. If you have enrolled in the Duke Energy Employee Investment or Duke Energy Retiree Investment options, the minimum required initial investment is only $100 per month until the minimum investment balance of $1,000 is attained. Thereafter, the $1,000 minimum investment balance must be maintained.
If the amount of your investment exceeds the maximum for three consecutive months, we may notify you in writing that we intend to redeem the amount of your investment in excess of $2,000,000. You will then have 30 days to redeem the excess portion of your investment. If you do not do so within a 30-day period, we may redeem the amount we have specified and mail a check to the registered holder of the notes, less any tax withholding, if applicable, and any other fees discussed in the prospectus.
A medallion signature guarantee is also known as a Securities Transfer Agents Medallion Program (STAMP) imprint. STAMP is the official signature guarantee program recognized and approved by the financial industry, and supported and endorsed by the Securities Transfer Association (STA). Transfer agents and others who rely on a signature guarantee from a member of STAMP are protected against loss from wrongful endorsements. The medallion signature guarantee is not to be confused with a notary public.
The notes are direct investments in new debt obligations of Duke Energy. Under the program, Duke Energy borrows directly from investors by issuing notes. In return, investors receive a competitive floating rate of interest that is very favorable compared to other cash alternatives like bank accounts, short-term CDs and money market mutual funds.
The maximum investment for any one investor is $2,000,000.
After completing the application form, you must send a personal or corporate check for a minimum of $1,000. Starter checks, bank checks, credit card checks, cashier checks, traveler's checks, money orders and third-party checks will not be accepted for your initial investment. If you are a Duke Energy employee or retiree investing through the Duke Energy Employee or Duke Energy Retiree Investment option, then the initial investment may be $100 or more per month until the minimum required balance of $1,000 is attained. Subsequent investments must be at least $50. Please review the application form and prospectus for additional details.
Interest is compounded daily and posted to your investment monthly. See the prospectus for more information.
Please contact your financial institution (bank, credit union or broker dealer) to determine if it is a participant in a medallion signature guarantee program.
You can download these materials on the PremierNotes website or request them by calling 800.659.3853. Our service agents are available from 8:30 a.m. to 5 p.m. ET, Monday through Friday, except holidays.
Duke Energy PremierNotes
P.O. Box 75708
Chicago, IL 60675-5708
In order to be an eligible investor, you must be a citizen of the United States, a corporation or partnership incorporated or established in or under the laws of the United States, or a trust or an estate treated as a United States person under Section 7701 of the Internal Revenue Code. You may invest individually or jointly with another eligible person. We also offer custodial arrangements for minors. See the prospectus and application form for further details.
This process protects you by making it more difficult for someone to forge your signature. It also limits the liability and losses if a signature turns out to be forged, as that liability is on the financial institution that accepted the signature and provided the medallion STAMP.