Filed Pursuant to Rule 424(b)(2)
Registration No.: 333-157700
THE MONEY TREE INC.
SUBORDINATED DEMAND NOTES
RATE SUPPLEMENT DATED JULY 2, 2010
TO THE PROSPECTUS DATED JULY 2, 2010
This document supplements, and should be read in conjunction with, the prospectus of The Money Tree Inc. dated July 2, 2010 relating to the Subordinated Demand Notes. Below is a chart showing the current interest rates for the various daily average balances of Demand Notes held by you:
Daily Balance | $1.00 to $9,999.99 | $10,000.00 to $49,999.99 | $50,000.00 to $99,999.99 | $100,000.00 and Over | ||||
| Annual Effective Yield | 3.05 | 3.30 | 3.82 | 4.08 | ||||
Annual Interest Rate | 3.00 | 3.25 | 3.75 | 4.00 | ||||
When we establish an interest rate for each range of balances, it becomes effective for and applied to all Demand Notes with a daily balance within that range, whether existing or newly issued. If your average daily balance changes at any time during which you hold Demand Notes, your interest rate will change accordingly. The interest rate is a variable rate and interest is compounded daily (based on a 365-day year). The interest rate may be the same or different for each range of balances and we may increase or decrease the rate for any range independently of the others without notice to you after the date of purchase. In other words, we can change the interest rate payable to you at any time in our discretion. Interest is only payable when you make a demand for payment of the principal of a Demand Note. The above interest rates shall be in effect until we file a later dated rate supplement.
An offer may only be made by prospectus dated July 2, 2010, delivered in connection with this rate supplement dated July 2, 2010. See “Risk Factors” beginning on page 10 of the prospectus for certain factors you should consider before buying the Demand Notes.
The Demand Notes are not certificates of deposit or similar obligations guaranteed by any depository institution, and they are not insured by the Federal Deposit Insurance Corporation (FDIC) or any governmental or private insurance fund, or any other entity.
The date of this rate supplement is July 2, 2010.
