IDS CERTIFICATE CO /MN/
497, 1996-04-30
Previous: NEW ENGLAND FUNDS TRUST II, 497, 1996-04-30
Next: IDS CERTIFICATE CO /MN/, 497, 1996-04-30



<PAGE>
PAGE 1

IDS
Cash Reserve
Certificate

(Icon of) Piggy Bank

Earn attractive rates with ready access to you cash reserves.

AMERICAN EXPRESS Financial Advisors

Distributed by 
American Express
Financial Advisors Inc.
<PAGE>
PAGE 2

To our certificate owners

(Photo of) Stuart Sedlacek
President, IDS Certificate Company

From the president

I'd like to welcome new and prospective investors to the IDS Cash
Reserve Certificate and thank you for your interest and trust in
us.  I want to assure you that we are committed to safeguarding
your investment and helping you reach your financial goals through
systematic savings.

In today's changing interest rate environment, it is more important
than ever to incorporate sound financial planning into your
investment decisions.  The foundation of a sound financial plan is
having solid cash reserves -- a primary reserve for short-term cash
needs and a secondary reserve for investment opportunities and
intermediate-term goals.

The key to building the cash reserves you need is to save on a
regular, disciplined basis, even if it's only a modest amount. 
You'll be surprised how fast regular savings add up.

That's where the IDS Cash Reserve Certificate comes in.  It's a
great way to establish your primary cash reserve for emergencies,
unexpected opportunities, or other short-term cash needs.  Equally
important, it's a safe, liquid investment that yields a
competitive, money market return for your money.  You can start
investing in an IDS Cash Reserve Certificate for as little as $50 a
month when you take advantage of an automatic deposit service.  The
interest you earn on your certificate is guaranteed by IDS
Certificate Company (IDSC) for three months and you pay no penalty
when you withdraw your funds, if you time your withdrawal to be at
the end of the certificate month.

No matter what the economic environment may be, you can count on
the safety and security of your IDS certificate.  For over 100
years, IDSC and its parent have carefully and prudently managed its
certificate business.  Even during the Great Depression, when bank
assets were frozen, IDS certificate holders never lost a penny of
principal or interest.

I invite you to learn more about the benefits of the IDS Cash
Reserve Certificate in the following pages and enclosed prospectus.

Your American Express financial advisor will be pleased to answer
any questions you may have--and show you how the IDS Cash Reserve
Certificate can become part of the foundation of your financial
plan.

Stuart Sedlacek
President, IDS Certificate Company<PAGE>
PAGE 3
Current annual interest rates for

_____________________________, 19_____,

for the initial term for a new purchase.  Interest rates for future
terms may be higher or lower than these rates.

Simple interest rate ________________%

Effective annualized yield*_________________%

*Assuming monthly compounding.

These interest rates apply to the initial three-month term of your
certificate purchased for $__________.  The rate may vary depending
on:  the amount you invest, your geographic location and whether
the certificate is purchased for an IRA or a qualified retirement
plan account.

Rates for new purchases may change weekly.  The interest rate that
will apply to your certificate will be the higher of the rate in
effect on the date of your application or that in effect on the
date your application is accepted by IDSC.  However, if your
application bears a date more than seven days prior to IDSC's
receipt of your application, the rate will be the higher of the
rate in effect seven days prior to receipt and that in effect on
the date of acceptance.  Please refer to the attached prospectus
for information as to how rates are set.
<PAGE>
PAGE 4 
To our certificate owners

Earn competitive certificate rates with ready access to your money
with...

The IDS Cash Reserve Certificate

Guaranteed principal and interest

IDSC guarantees that you will get back every penny you put in--and
we guarantee a specified interest rate for every three months you
own your certificate.

A century of safety and stability

IDSC and its parent, American Express Financial Corporation, have
never missed a payment to certificate owners since we opened for
business in 1894.

The backing of quality investments

Though IDS certificates are not insured by the FDIC as bank
deposits are, federal law requires that we back our certificates
dollar-for-dollar with cash and qualified investments, valued at
amortized cost.  In fact, as Dec. 31, 1995, the amortized cost of
our investments exceeded the required carrying value of outstanding
certificates by more than $129 million.

Yields that compare favorably with banks

We set our interest rates using a leading national index of three-
month bank and thrift certificate of deposit rates.  From May 1990
to February 1996, IDS Cash Reserve Certificate's annual effective
yields were generally higher than those of average three-month
certificates of deposit and money market deposit accounts.<PAGE>
PAGE 5
The more you save, the more you'll earn

The interest rate on your certificate is guaranteed by IDSC for
three months.  Near the end of that term, we'll notify you of the
available rate for the next three months.  Plus, you can qualify to
earn a higher interest rate, depending on the balance of your
account.  Three rate tiers are available so the more you
accumulate, the more interest you'll earn!  Interest on IDS Cash
Reserve Certificates is earned and compounded monthly.

Your money is available when you need it

You pay no withdrawal penalty for either a partial or complete
withdrawal of funds.  You may, at any time, make a partial
withdrawal from your certificate if you withdraw at least $100 and
keep a balance of at least $1,000 in the certificate after the
withdrawal.  Interest is paid through the end of the last completed
certificate month.  Withdrawals before month end will result in
loss of interest on the amount withdrawn.  You'll get the best
result by timing a withdrawal at the end of the certificate month.

An affordable way to build assets

You can start building your cash reserves right away, with
automatic monthly investments of as little as $50 per month.

Convenient service

Make deposits by mail or by authorizing monthly deposits from your
bank account or paycheck or by depositing your Social Security
check.  Use the mail or telephone to make withdrawals or transfer
your investment into another IDS certificate.
<PAGE>
PAGE 6

THIS PAGE INTENTIONALLY LEFT BLANK
<PAGE>
PAGE 7
IDS Cash Reserve Certificate

Prospectus April 24, 1996

Earn attractive rates with ready access to your cash reserves

IDS Cash Reserve Certificates are issued by IDS Certificate Company
(IDSC).  You can purchase this certificate with an initial
investment of at least $1,000 or monthly investments of at least
$50.  Your principal and interest are guaranteed by IDSC.  Your
certificate earns a fixed rate of interest, declared every three
months.  Investments in the certificate may continue for 
successive three-month terms up to a total of 20 years from the
issue date of the certificate.  Unless you receive prior
authorization from IDSC, your total investment, excluding interest
earned, cannot exceed $1 million.  Your interest rate will be
determined as described in "About the certificate."  

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION, NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY
STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OF ADEQUACY OF
THIS PROSPECTUS.  ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.

This certificate is backed by IDSC's investments on deposit rather
than guaranteed or insured by the government or someone else.  See
"Invested and guaranteed by IDSC" and "Regulated by government"
under "How your money is used and protected."

This prospectus describes terms and conditions of your IDS Cash
Reserve Certificate.  It contains facts that can help you decide if
the certificate is the right investment for you.  Read the
prospectus before you invest and keep it for future reference.  No
one has the authority to change the terms and conditions of the IDS
Cash Reserve Certificate as described in the prospectus, or to bind
IDSC by any statement not in it.

IDS Certificate Company
IDS Tower 10
Minneapolis, MN  55440-0010
1-800-437-3133 (toll free) or (612) 671-3800 
(Minneapolis/St. Paul area)

TTY numbers:
1-800-846-4293 (toll free) or (612) 671-1630 
(Minneapolis/St. Paul area)

An American Express Company
<PAGE>
PAGE 8
Where to get information about IDSC

IDSC is subject to the reporting requirements of the Securities
Exchange Act of 1934.  Reports and other information on IDSC are
filed with the Securities and Exchange Commission (SEC).  Copies
can be obtained from the Public Reference Section of the SEC, 450
5th St., N.W., Washington, D.C. 20549, at prescribed rates.  Or you
can inspect and copy information in person at the SEC's Public
Reference Section and at the following regional offices:

Northeast Regional Office
7 World Trade Center, Suite 1300
New York, NY  10048

Midwest Regional Office
Northwestern Atrium Center
500 West Madison St. Suite 1400
Chicago, IL  60611

Pacific Regional Office
5670 Wilshire Blvd., 11th Floor
Los Angeles, CA  90036

Initial interest rates

IDSC guarantees a fixed interest rate for each three-month term
during the life of the certificate.  For your initial term, IDSC
guarantees that when the rate for new purchases takes effect, the
rate will be within a specified range of the average rate for
three-month certificates of deposit as published in the most recent
BANK RATE MONITOR Top 25 Market AverageTM, North Palm Beach, FL 
33408, as explained under "About the certificate."

Here are the interest rates in effect on the date of this
prospectus, April 24, 1996:

Investment               Simple              Effective
amount                   interest rate*      annualized yield**
$50 to $999  
$1,000 to $24,999
$25,000 or more  

*Rates may depend on factors described in "Rates for new purchases" 
 under "About the certificate."

**Assuming monthly compounding.

These rates may or may not be in effect when you apply to purchase
your certificate.  Rates for later three-month terms are set at the
discretion of IDSC and may also differ from the rates shown here.

We reserve the right to issue other securities with different
terms.
<PAGE>
PAGE 9
Contents
Table of Contents

About the certificate
     Investment amounts and terms                            p
     Face amount and principal                               p
     Value at maturity                                       p
     Receiving cash during the term                          p
     Interest                                                p
     Rates for new purchases                                 p

How to invest and withdraw funds      
     Buying your certificate                                 p
     Additional investments                                  p
     Full and partial withdrawals                            p
     When your certificate term ends                         p
     Transfers to other accounts                             p
     Two ways to request a withdrawal or transfer            p
     Three ways to receive payment when you withdraw funds   p
     Retirement plans:  special policies                     p
     Transfer of ownership                                   p
     For more information                                    p

Taxes on your earnings      
      Retirement accounts                                    p
      Gifts to minors                                        p
      Foreign investors                                      p

How your money is used and protected
      Invested and guaranteed by IDSC                        p
      Regulated by government                                p
      Backed by our investments                              p
      Investment policies                                    p

How your money is managed
      Relationship between IDSC and American
        Express Financial Corporation                        p
      Capital structure and certificates issued              p
      Investment management and services                     p
      Distribution                                           p
      Employment of other American Express affiliates        p
      Directors and officers                                 p
      Auditors                                               p

Financial information      
Summary of selected financial information                    p
Management's discussion and analysis of
 financial condition and results of operations      
Report of independent auditors                               p

Financial statements                                         p

Notes to financial statements                                p
<PAGE>
PAGE 10
About the certificate

Investment amounts and terms

You can purchase this certificate with an initial investment of at
least $1,000 or monthly investments of at least $50 through
scheduled bank authorization or payroll deduction.  Your total
investments over the life of the certificate may not exceed $1
million unless you receive prior authorization from IDSC.

The certificate may be used as an investment for your Individual
Retirement Account (IRA), 401(k) plan account or other qualified
retirement plan account.  A minimum investment of $50 per month is
required for these types of accounts.  If so used, the amount of
your contribution (investment) will be subject to any limitations
of the plan and applicable federal law.

Face amount and principal

The face amount of the certificate is the amount of your initial
investment, and will remain the same over the life of the
certificate.

The principal is the amount that is reinvested at the beginning of
each subsequent term, and is calculated as follows:

      Principal equals  Face Amount (initial investment)
            plus        At the end of a term, interest credited to
                        your account during the term
            minus       Any interest paid to you in cash
            plus        Any additional investments to your
                        certificate
            minus       Any withdrawals, fees and applicable
                        penalties.

For example:  Assume your initial investment (face amount) of
$5,000 has earned $75 of interest during the term.  You have not
taken any interest as cash, or made any withdrawals.  You have
invested an additional $2,500 prior to the beginning of the next
term.  Your principal for the next term will equal:

            $5,000.00   Face Amount (initial investment)
      plus     $75.00   Interest credited to your account
      minus    ($0.00)  Interest paid to you in cash
      plus  $2,500.00   Additional investment to your certificate
      minus    ($0.00)  Withdrawals and applicable penalties 
                        or fees

            $7,575.00   Principal at the beginning of the next
                        term.

<PAGE>
PAGE 11
Value at maturity

Your certificate matures 20 years from its issue date.  At
maturity, the value of your certificate will be the total of your
actual investment, plus credited interest not paid to you in cash,
less withdrawals, penalties and fees.  When your certificate 
matures, you will receive a check for your principal, plus any
credited interest, less any withdrawals, penalties and fees.  Bank
authorizations will automatically be stopped at maturity or full
withdrawal.

Receiving cash during the term

If you need your money before your certificate matures, you may
withdraw part or all of its value at any time, less any penalties
that apply.  Procedures for withdrawing money, as well as
conditions under which penalties apply, are described in "How to
invest and withdraw funds."

Interest

Your investments earn interest from the date they are credited to
your account.  Interest is compounded and credited at the end of
each certificate month (on the monthly anniversary of the issue
date).

IDSC declares and guarantees a fixed rate of interest for each
three-month term during the life of your certificate.  We calculate
the amount of interest you earn each certificate month by:

      o     applying the interest rate then in effect to your
            balance each day,
      o     adding these daily amounts to get a monthly total, and
      o     subtracting interest accrued on any amount you withdraw
            during the certificate month.

Interest is calculated on a 30-day month and 360-day year basis.

Rates for new purchases  

When your application is accepted, and we have received your
initial investment, we will send you a confirmation showing the
rate that your investment will earn for the first term.  For
accounts of $1,000 to $24,999.99 IDSC guarantees that this rate
will be within a range from 20 basis points (0.20%) below to 80
basis points (0.80%) above the average interest rate published for
3-month CDs in the BANK RATE MONITOR Top 25 Market AverageTM (the
BRM Average).  For example, if the average rate most recently
published is 4.00%, our rate in effect for that week for amounts of
$1,000 to $24,999.99 would be between 3.80% to 4.80%.  For accounts
of $25,000 or more, this rate will be within a range from 0 basis
points (0.0%) below to 100 basis points (1.00%) above the same
index rate.  For accounts of less than $1,000, this rate will be
within a range of 90 basis points (0.90%) below to 10 basis points
(0.10%) above this average interest rate.
  <PAGE>
PAGE 12
The BANK RATE MONITOR is a weekly magazine published in North Palm
Beach, FL 33408 by Advertising News Service Inc., an independent
national news organization that collects and disseminates
information about bank products and interest rates.  Advertising
News Service Inc. has no connection with IDSC, American Express
Financial Corporation (AEFC), or any of their affiliates.  

The BRM Average is an index of rates and annual effective yields
offered on various length certificates of deposit by large banks
and thrifts in 25 metropolitan areas.  The frequency of compounding
varies among the banks and thrifts.  Certificates of deposit in the
BRM Average are government insured fixed-rate time deposits.

The BANK RATE MONITOR may be available in your local library.  To
obtain information on the current BRM Average rates, call the
Client Service Organization at the telephone numbers listed on the
back cover.

Rates for new purchases are reviewed and may change weekly. 
Normally, the rate you receive will be the higher of:

      o     the rate in effect on the date of your application, or
      o     the rate in effect on the date your application is 
            accepted by IDSC.

However if your application bears a date more than seven days
before its receipt by IDSC, the rate you receive will be the higher
of:
      o     the rate in effect on the date your application is
            accepted by IDSC, or
      o     the rate in effect seven days prior to receipt.

Except for specific promotions, IDSC guarantees an initial rate 25
basis points above the rate offered to the general public on this
IDS certificate if it is purchased by using the CD transfer service
offered by American Express Financial Advisors Inc. to help you
transfer money from a bank or thrift CD account to American Express
Financial Advisors Inc. investments.  To be eligible for this rate,
you must transfer at least $10,000 from a CD account to IDSC to
purchase one or more IDS Cash Reserve Certificates and/or IDS
Flexible Savings Certificates, and this rate will only apply to
those certificates.

Promotions and pricing flexibility: From time to time, IDSC may
sponsor or participate in promotions involving one or more of the
certificates and their respective terms.  For example, we may offer
different rates to new clients, to existing clients, or to
individuals who purchase or use other products or services offered
by American Express Financial Advisors Inc. or its affiliates. 
Rates also may vary depending on the amount you invest, your
geographic location and whether the certificate is purchased for an
IRA or qualified retirement plan account. These promotions will
generally be for a specified period of time.  If we offer a
promotion, the rates for new purchases will be within the range of
rates described under "Rates for new purchases," above.

<PAGE>
PAGE 13
Rates for future terms:  Interest on your certificate for future
three-month terms may be greater or less than the rates you receive
during the first three months.  In setting future rates, a primary
consideration will be the prevailing investment climate, including
3-month CD rates as reflected in the BRM Average.  Nevertheless, we
have complete discretion as to what interest shall be declared
beyond the initial three-month term.  If the BRM Average is no
longer publicly available or feasible to use, IDSC may use another
similar index as a guide for setting rates.

Performance:  From February 1991 through February 1996, IDS Cash
Reserve yields were generally higher than average bank and thrift
3-month CD yields, as measured by the BRM Average (prior to January
13, 1993, yields were measured by the BRM National Index, an
average of CD yields in 10 cities).

          Yield from February 1991 through February 1996
8%                      _____ IDS Cash Reserve Certificate
                        ..... Money Market Deposit Account
6%                      ***** Certificate of Deposit - Three Month
 
4%          Three lines comparing the yields for IDS Cash Reserve
            Certificate versus money market deposit accounts and
2%          three-month certificates of deposit, with IDS Cash
            Reserve's line generally above the other two.

      91       92       93       94       95       96

This graph compares past yields offered on IDS Cash Reserve
Certificate to those of 3-month CDs and money market deposit
accounts and should not be considered a prediction of future
performance.

How to invest and withdraw funds

Buying your certificate

Your American Express financial advisor will help you fill out and
submit an application to open an account with us and purchase a
certificate.  We will process the application at our corporate
offices in Minneapolis.  When your application is accepted, and we
have received your initial investment, we will send you a
confirmation of your purchase, indicating your account number and
applicable rate of interest for your first term, as described under
"Rates for new purchases."  See "Purchase policies" below.

Additional investments

You may make additional investments at any time.  Additional
investments must be at least $50 and your total investment, less
withdrawals, may not exceed $1 million (unless you receive prior
authorization from IDSC to invest more).  You will earn interest on
additional investments from the date we accept them.  IDSC will
send a confirmation of additional investments.

<PAGE>
PAGE 14
Important: When opening an account, you must provide IDSC with your
correct Taxpayer Identification Number (Social Security or Employer
Identification Number).  See "Taxes on your earnings."

Purchase policies

o     Investments must be received and accepted in the Minneapolis
      headquarters on a business day before 3 p.m. Central time to
      be included in your account that day.  Otherwise your
      purchase will be processed the next business day.

o     You have 15 days from the date of purchase to cancel your
      investment without penalty by either writing or calling the 
      Client Service Organization at the address or phone number on
      the back of this prospectus.  If you decide to cancel your
      certificate within this 15-day period you will not earn any
      interest.

o     If you purchase a certificate with a personal check or other
      non-guaranteed funds, AEFC will wait one day for the process
      of converting your check to federal funds (e.g., monies of
      member banks with the Federal Reserve Bank) before your
      purchase will be accepted and you begin earning interest.

o     IDSC has complete discretion to determine whether to accept
      an application and sell a certificate.


o     You must maintain a balance of at least $1,000 in your Cash
      Reserve Certificate account unless you are using an
      authorized systematic pay-in or payout arrangement.  If you
      use a scheduled pay-in arrangement, your minimum balance
      requirement is $50.

o     If you make no investments for a period of at least 12
      consecutive months and your principal is less than $1,000, we
      will send you a notice of our intent to cancel the
      certificate.  After the notice, if an investment is not made
      within 60 days your certificate will be canceled, and we will
      send you a check for its full value.

A number of special policies apply to purchases, withdrawals and
exchanges within IRAs, 401(k) plans and other qualified retirement
plans.  See "Retirement plans:  special policies."

                  Three ways to make investments
1
By scheduled investment plan

Contact your financial advisor to set up one of the following
scheduled plans for monthly investments:

o     bank authorization (automatic deduction from your bank
      account)
o     automatic payroll deduction
o     direct deposit of Social Security check
<PAGE>
PAGE 15
o     other plan approved by IDSC
o     monthly minimum investment must be $50.

To cancel a bank authorization, you must instruct IDSC in writing
or over the phone.  We must receive notice at least three business
days before the date funds would normally be withdrawn from your
bank account.

2
By mail

For monthly or lump sum investments, send your check along with
your name and account number to:

Regular mail:                       Express mail:
American Express Financial          American Express Financial
Advisors Inc.                       Advisors Inc.
Client Service Organization         Client Service Organization
IDS Tower 10                        733 Marquette Ave.
Minneapolis, MN  55440-0010         Minneapolis, MN  55402

3
By wire

If you have an established account, you may wire money to:

     Norwest Bank Minneapolis
     Routing No. 091000019
     Minneapolis, MN
     Attn:  Domestic Wire Dept.

Give these instructions:

      Credit IDS Account #00-30-015 for personal account # (your
      account number) for (your name).

If this information is not included, the order may be rejected and
all money received, less any costs AEFC incurs, will be returned
promptly.

o     Minimum amounts each wire investment:   $1,000

o     Wire orders can be accepted only on days when your bank,
      AEFC, IDSC and Norwest Bank Minneapolis are open for
      business.

o     Wire purchases are completed when wired payment is received
      and we accept the purchase.

o     Bank wire purchases are not sent until the next business day.

o     Wire investments must be received and accepted in the
      Minneapolis headquarters on a business day before 3 p.m.
      Central time to be credited that day.  Otherwise your
      purchase will be processed the next business day.

<PAGE>
PAGE 16
o     IDSC, AEFC and its other subsidiaries are not responsible for
      any delays that occur in wiring funds, including delays in
      processing by the bank.

o     You must pay any fee the bank charges for wiring.

Full and partial withdrawals

You may withdraw your certificate for its full value at any time. 
If you purchase this certificate for an IRA, 401(k), or other
retirement plan account, early withdrawals or cash payments of
interest taken prematurely may be subject to IRS penalty taxes.

o     Complete withdrawal of your certificate is made by giving us
      proper instructions.

To complete these transactions, see "Two ways to request a
withdrawal or transfer."

o     If your withdrawal request is received in the Minneapolis
      headquarters on a business day before 3 p.m. Central time, it
      will be processed that day and payment will be sent the next
      business day.  Otherwise, your request will be processed one
      business day later.

o     You may make an unscheduled partial withdrawal of at least
      $100 at any time.

o     Interest payments in cash may be sent to you at the end of
      each certificate month, quarter, or on a semiannual or annual
      basis.

o     Scheduled partial withdrawals may be sent to you monthly,
      quarterly, semiannually or annually.  The minimum withdrawal
      amount is $50.

o     Withdrawals before the end of the certificate month will
      result in loss of interest on the amount withdrawn.  You'll
      get the best result by timing a withdrawal at the end of the
      certificate month.

o     Withdrawals that reduce your certificate's principal below a
      break point for a lower interest rate will cause the
      remaining principal to earn the lower interest rate for the
      rest of the term from the date of the withdrawal.

o     You may not make a withdrawal from your certificate if that
      withdrawal causes your balance to fall below $1,000 unless
      you are making bank authorization or payroll deduction
      payments or taking systematic payments from your certificate. 
      In these instances, the remaining balance will earn the lower
      interest rate in effect for balances of less than $1,000.

When your certificate term ends

Shortly before the end of your certificate's term we will send you
a notice indicating the interest rate that will apply to the new <PAGE>
PAGE 17
term.  Unless you tell us otherwise, your certificate will
automatically continue for another term.  The interest rate that
will apply to your new term will be the rate in effect on the day
the new term begins.  This rate of interest will not be changed
during that term unless your certificate's principal falls below a
break point for a lower interest rate.

Other full and partial withdrawal policies:

o     If you request a partial or full withdrawal of a certificate
      recently purchased or added to by a check or money order that
      is not guaranteed, we will wait for your check to clear. 
      Please expect a minimum of 10 days from the date of your
      payment before IDSC mails a check to you.  (A check may be
      mailed earlier if your bank provides evidence that your check
      has cleared.)

o     If your certificate is pledged as collateral, any withdrawal
      will be delayed until we get approval from the secured party.

o     Any payments to you may be delayed under applicable rules,
      regulations or orders of the SEC.

Transfers to other accounts

You may transfer part or all of your certificate for any other IDSC
certificate or into another existing American Express Financial
Advisors Inc. account that has the same registered ownership
(subject to any terms and conditions that may apply).

Two ways to request a withdrawal or transfer

1
By phone

Call the Client Service Organization at the telephone numbers
listed on the back cover between 8 a.m. and 6 p.m. your local time.

o     Maximum phone request:  $50,000

o     Transfers into an American Express Financial Advisors Inc.
      account with the same ownership.

o     We will honor any telephone request believed to be authentic
      and will use reasonable procedures to confirm that it is. 
      This includes asking identifying questions and tape recording
      calls.  So long as reasonable procedures are followed,
      neither IDSC nor AEFC or its other subsidiaries will be
      liable for any loss resulting from fraudulent requests.

You may request that telephone withdrawals not be authorized from
your account by writing the Client Service Organization.

2
By mail

Send your name, account number and request for a withdrawal or
transfer to:<PAGE>
PAGE 18
Regular mail:
American Express Financial Advisors Inc.
Client Service Organization
IDS Tower 10
Minneapolis, MN  55440-0010

Express mail:
American Express Financial Advisors Inc.
Client Service Organization
733 Marquette Ave.
Minneapolis, MN  55402

Written requests are required for:

o     Transactions over $50,000

o     Pension plans and custodial accounts where the minor has
      reached the age at which custodianship should terminate.

o     Transferring into an American Express Financial Advisors Inc.
      account with a different ownership (all current registered
      owners must sign the request).

o     A telephone withdrawal request will not be allowed within 30
      days of a phoned-in address change.

Three ways to receive payment when you withdraw funds

1
By regular or express mail

o     Mailed to address on record; please allow seven days for
      mailing

o     Payable to name(s) you requested

o     For express mail, you will pay a charge that will vary
      depending on the courier you select.  We will deduct the
      courier charge from your remaining certificate balance
      provided that balance would not be less than $1,000.  If the
      balance would be less than $1,000, the charge is deducted
      from proceeds of the withdrawal.

2
By wire

o     Minimum wire withdrawal: $1,000

o     Request that money be wired to your bank

o     Bank account must be in same ownership as IDSC account

o     Pre-authorization required.  Complete the bank wire
      authorization section in the application or use a form
      supplied by your American Express financial advisor.  All
      registered owners must sign

<PAGE>
PAGE 19
o     Service fee, if any, is deducted from your balance (for
      partial withdrawals) or from the proceeds of a full
      withdrawal.

3
By electronic transfer

o     Available only for preauthorized scheduled partial
      withdrawals and other full or partial withdrawals

o     No charge

o     Deposited electronically in your bank account

o     Allow three to five business days from request to deposit.

Retirement plans:  special policies

o     If the certificate is purchased for a 401(k) plan or other
      qualified retirement plan account, the terms and conditions
      of the certificate apply to the plan as the owner of this
      certificate.  However, the terms of the plan, as interpreted
      by the plan trustee or administrator, will determine how a
      participant's individual account under the plan is
      administered.  These terms may differ from the terms of the
      certificate.

o     If your certificate is held in a Custodial Retirement Plan
      (or Keogh plan), special rules may apply at maturity.  If no
      other investment instructions are provided directing how to
      handle your certificate at maturity, the full value of the
      certificate will automatically transfer to a new or existing
      cash management account according to the rules outlined in
      the Custodial Retirement Plan document. 

o     The annual custodial fee for IRA or non-401(k) qualified
      retirement plans may be deducted from your certificate
      account.  It may reduce the amount payable at maturity or the
      amount received upon an early withdrawal.

o     Retirement plan withdrawals may be subject to withdrawal
      penalties or loss of interest even if they are not subject to
      federal tax penalties.

o     If you withdraw all funds from your last account in an IRA
      plan, a $25 termination fee will apply.

o     The IRA termination fee will be waived if withdrawal occurs
      upon the owner's death.

Transfer of ownership

While the certificate is not negotiable, IDSC will transfer
ownership upon written notification to our Client Service
Organization.  However, if you have purchased your certificate for
an IRA, 401(k) plan or other qualified retirement plan, you may be
unable to transfer or assign the certificate without losing the
account's favorable tax status.  Please consult your tax advisor.<PAGE>
PAGE 20
For more information

For information on purchases, withdrawals, exchanges, transfers of
ownership, proper instructions and other service questions
regarding your certificate, please consult your financial advisor
or call the Client Service Organization at the telephone numbers
listed on the back cover.

Taxes on your earnings

Interest on your certificate is taxable when credited to your
account.  Each calendar year we provide the certificate owner and
the IRS with reports of all earnings over $10 (Form 1099). 
Withdrawals are reported to the certificate owner and the IRS on
Form 1099-B, Proceeds from Broker Transactions.

Retirement accounts

If you are using the certificate as an investment for an IRA,
401(k) plan account or other qualified retirement plan account,
income tax rules for your IRA or qualified plan apply.  Generally,
you will pay no income taxes on your investment's earnings--and, in
many cases, on part or all of the investment itself--until you
begin to make withdrawals.

IDSC will withhold federal income taxes of 10% on IRA withdrawals
unless you tell us not to.  IDSC is required to withhold federal
income taxes of 20% on most other qualified plan distributions,
unless the distribution is directly rolled over to another
qualified plan or IRA.

Withdrawals from retirement accounts are generally subject to a
penalty tax of 10% by the IRS if you make them before age 59-1/2,
unless you are disabled or if they are made by your beneficiary in
the event of your death.  Other exceptions also may apply.  Also,
withdrawals of principal during a certificate month may be subject
to the certificate's provision for loss of interest.

Consult your tax advisor to see how these rules apply to you before
you request a distribution from your plan or IRA.

Gifts to minors

The certificate may be given to a minor under either the Uniform
Gifts or Uniform Transfers to Minors Act (UGMA/UTMA), whichever
applies in your state.  UGMAs/UTMAs are irrevocable.  Generally,
under federal tax laws, income over $1,200 on property owned by
children under age 14 will be taxed at the parents' marginal tax
rate, while income on property owned by children 14 or older will
be taxed at the child's rate.

Your Taxpayer Identification Number (TIN) and backup withholding:
As with any financial account you open, you must list your current
and correct Taxpayer Identification Number (TIN)--either your
Social Security or Employer Identification Number.  The TIN must be
certified under penalties of perjury on your application when you
open an account with IDSC.<PAGE>
PAGE 21
If you don't provide the TIN to IDSC, or the TIN you report is
incorrect, you could be subject to backup withholding of 31% of
your interest earnings.  You could also be subject to further
penalties, such as:

o     a $50 penalty for each failure to supply your correct TIN,
o     a civil penalty of $500 if you make a false statement that
      results in no backup withholding, and
o     criminal penalties for falsifying information.

You could also be subject to backup withholding because you failed
to report interest on your tax return as required.

To help you determine the correct TIN to use on various types of
accounts, please use this chart:

How to determine the correct TIN

                              Use the Social Security or
For this type of account      Employer Identification Number of

Individual or joint account   The individual or individuals listed
                              on the account

Custodian account of a        The minor
minor (Uniform Gifts/
Transfers to Minors Act)

A living trust                The grantor-trustee (the person who
                              puts the money into the trust)

An irrevocable trust,         The legal entity (not the personal
pension trust or estate       representative or trustee, unless no
                              legal entity is designated in the
                              account title)

Sole proprietorship           The owner 

Partnership                   The partnership

Corporate                     The corporation

Association, club or          The organization
tax-exempt organization

For details on TIN requirements, ask your financial advisor or
local American Express Financial Advisors Inc. office for Federal
Form W-9, "Request for Taxpayer Identification Number and
Certification."

Foreign investors

If you are not a citizen or resident of the United States, you must
supply IDSC with Form W-8, Certificate of Foreign Status when you
purchase your certificate, and you must resupply it every three
years.  You must also supply a current mailing address and an
address of foreign residency, if different.  IDSC will not accept
purchases of certificates by nonresident aliens without an<PAGE>
PAGE 22
appropriately certified Form W-8 (or approved substitute).  Also,
if you do not supply Form W-8 you will be subject to backup
withholding on interest payments and withdrawals.  Interest on the
certificate is "portfolio interest" as defined in U.S. Internal
Revenue Code Section 871(h) if earned by a nonresident alien.  Even
though your interest income is not taxed by the U.S. government, it
will be reported at year end to you and to the U.S. government on a
Form 1042S, Foreign Person's U.S. Source Income Subject to
Withholding.  The United States participates in various tax
treaties with foreign countries, which provide for sharing of tax
information.

Estate tax:  If you are a nonresident alien and you die while
owning a certificate then, depending on the circumstances, IDSC, at
a minimum, will need a statement from persons IDSC believes are
knowledgeable about your estate.  The statement must be in a form
satisfactory to IDSC and must tell us that, on your date of death,
your estate did not include any property in the United States for
U.S. estate tax purposes.  In other cases, we generally will not
take action regarding your certificate until we receive a transfer
certificate from the IRS or evidence satisfactory to IDSC that the
estate is being administered by an executive or administrator
appointed, qualified and acting within the United States.  In
general, a transfer certificate provides assurance that the IRS
will not claim your IDS certificate to satisfy estate taxes.

Important:  This information is a brief and selective summary of
certain federal tax rules that apply to this certificate.  Tax
matters are highly individual and complex, and you should consult a
qualified tax advisor about your personal situation.

How your money is used and protected

Invested and guaranteed by IDSC

The IDS Cash Reserve Certificate is issued and guaranteed by IDSC,
a wholly owned subsidiary of AEFC.  We are by far the largest
issuer of face amount certificates in the United States, with total
assets of more than $3.9 billion and a net worth in excess of $250
million on Dec. 31, 1995.

We back our certificates by investing the money received and
keeping the invested assets on deposit.  Our investments generate
interest and dividends, out of which we pay:

o     interest to certificate owners
o     various expenses, including taxes, fees to AEFC for advisory
      and other services and distribution fees to American Express
      Financial Advisors Inc.

For a review of significant events relating to our business, see
"Management's discussion and analysis of financial condition and
results of operations."  Our certificates are not rated by a
national rating agency.

<PAGE>
PAGE 23
Most banks and thrifts offer investments known as certificates of
deposit (CDs) that are similar to our certificates in many ways. 
Early withdrawals of bank CDs often result in penalties.  Banks and
thrifts generally have federal deposit insurance for their deposits
and lend much of the money you deposit to individuals, businesses
and other enterprises.  Other financial institutions may offer
investments with comparable combinations of safety and return on
investment.

Regulated by government

Because the IDS Cash Reserve Certificate is a security, its offer
and sale are subject to regulation under federal and state
securities laws.  (It is a face-amount certificate--not a bank
product, an equity investment, a form of life insurance or an
investment trust.)

The federal Investment Company Act of 1940 requires us to keep
investments on deposit in a segregated custodial account to protect
all of our outstanding certificates.  These investments back the
entire value of your certificate account.  Their amortized cost
must exceed the required carrying value of the outstanding
certificates by at least $250,000.  As of Dec. 31, 1995, the
amortized cost of these investments exceeded the required carrying
value of our outstanding certificates by more than $129 million.

Backed by our investments

Our investments are varied and of high quality.  This was the
composition of our portfolio as of Dec. 31, 1995:

                                   Net amount      
Type of investment                 invested
Government agency bonds               38%
Corporate and other bonds             34
Preferred stocks                      17
Mortgages                              6
Municipal bonds                        3
Cash and cash equivalents              2

More than 96% of our securities portfolio (bonds and preferred
stocks) is rated investment grade.  For additional information
regarding securities ratings, please refer to Note 3B in the
financial statements.

Most of our investments are on deposit with American Express Trust
Company (formerly IDS Bank & Trust), Minneapolis, although we also
maintain separate deposits as required by certain states.  American
Express Trust Company is a wholly owned subsidiary of AEFC.  Copies
of our Dec. 31, 1995 schedule of Investments in Securities of
Unaffiliated Issuers are available upon request.  For comments
regarding the valuation, carrying values and unrealized
appreciation (depreciation) of investment securities, see Notes 1,
2 and 3 to the financial statements.

<PAGE>
PAGE 24
Investment policies

In deciding how to diversify the portfolio--among what types of
investments in what amounts--the officers and directors of IDSC use
their best judgment, subject to applicable law.  The following
policies currently govern our investment decisions:

Purchasing securities on margin --  We will not purchase any
securities on margin or participate on a joint basis or a joint-
and-several basis in any trading account in securities.

Commodities --  We have not and do not intend to purchase or sell
commodities or commodity contracts.

Underwriting --  We do not intend to engage in the public
distribution of securities issued by others.  However, if we
purchase unregistered securities and later resell them, we may be
considered an underwriter under federal securities laws.

Borrowing money --  From time to time we have established a line of
credit if management believed borrowing was necessary or desirable. 
While a line of credit does not currently exist, it may be
established again in the future.  We may pledge some of our assets
as security.  We may occasionally use repurchase agreements as a
way to borrow money.  Under these agreements, we sell debt
securities to our lender, and repurchase them at the sales price
plus an agreed-upon interest rate within a specified period of
time.

Real estate --  We may invest directly in real estate, though we
have not generally done so in the past.  We do invest in mortgage
loans.

Lending securities --  We may lend some of our securities to
broker-dealers and receive cash equal to the market value of the
securities as collateral.  We invest this cash in short-term
securities.  If the market value of the securities goes up, the
borrower pays us additional cash.  During the course of the loan,
the borrower makes cash payments to us equal to all interest,
dividends and other distributions paid on the loaned securities. We
will try to vote these securities if a major event affecting our
investment is under consideration.

When-issued securities --  Most of our investments are in debt
securities, some of which are purchased on a when-issued basis.  It
may take as long as 45 days or more before these securities are
issued and delivered to us.  We generally do not pay for these
securities or start earning on them until delivery.  We have
established procedures to ensure that sufficient cash is available
to meet when-issued commitments.  When-issued securities are
subject to market fluctuations and they may affect IDSC's
investment portfolio the same as owned securities.

Financial transactions --  We buy or sell various types of options
contracts for hedging purposes or as a trading technique to
facilitate securities purchases or sales.  We buy interest rate
caps for hedging purposes.  These pay us a return if interest rates<PAGE>
PAGE 25
rise above a specified level.  IDSC may enter into other financial
transactions, including futures and other derivatives, for the
purpose of managing the interest rate exposures associated with
IDSC's assets or liabilities.  Derivatives are financial
instruments whose performance is derived, at least in part, from
the performance of an underlying asset, security or index.  A small
change in the value of the underlying asset, security or index may
cause a sizable gain or loss in the fair value of the derivative.

Illiquid securities --  A security is illiquid if it cannot be sold
in the normal course of business within seven days at approximately
its current market value.  Some investments cannot be resold to the
U.S. public because of their terms or government regulations.  All
securities, however can be sold in private sales, and many may be
sold to other institutions and qualified buyers or on foreign
markets.  IDSC's investment advisor will follow guidelines
established by the board and consider relevant factors such as the
nature of the security and the number of likely buyers when
determining whether a security is illiquid.  No more than 15% of
IDSC's investment portfolio will be held in securities that are
illiquid.  In valuing its investment portfolio to determine this
15% limit, IDSC will use statutory accounting under an SEC order. 
This means that, for this purpose, the portfolio will be valued in
accordance with applicable Minnesota law governing investments of
life insurance companies, rather than generally accepted accounting
principles.

Restrictions --  There are no restrictions on concentration of
investments in any particular industry or group of industries or on
rates of portfolio turnover.

How your money is managed

Relationship between IDSC and American Express Financial
Corporation

IDSC was originally organized as Investors Syndicate of America,
Inc., a Minnesota corporation, on Oct. 15, 1940, and began business
as an issuer of face amount investment certificates on Jan. 1,
1941.  The company became a Delaware corporation on Dec. 31, 1977,
and changed its name to IDS Certificate Company on April 2, 1984.

Before IDSC was created, AEFC (formerly known as IDS Financial
Corporation) had issued similar certificates since 1894.  As of
Jan. 1, 1995, IDS Financial Corporation became AEFC.  IDSC and AEFC
have never failed to meet their certificate payments.

During its many years in operation, AEFC has become a leading
manager of investments in mortgages and securities.  As of Dec. 31,
1995, AEFC managed investments, including its own, of more than
$129 billion.  American Express Financial Advisors Inc., a wholly
owned subsidiary of AEFC, provides a broad range of financial
planning services for individuals and businesses through its
nationwide network of more than 175 offices and more than 7800
financial advisors.  AEFC financial planning services are
comprehensive, beginning with a detailed written analysis that's
tailored to your needs.  Your analysis may address one or all of<PAGE>
PAGE 26
these six essential areas:  financial position, protection
planning, investment planning, income tax planning, retirement
planning and estate planning.

AEFC itself is a wholly owned subsidiary of American Express
Company, a financial services company with executive offices at
American Express Tower, World Financial Center, New York, NY 10285. 
American Express Company is a financial services company engaged
through subsidiaries in other business including:

o     travel related services (including American Express(trademark) Card and
      Travelers Cheque operations through American Express Travel
      Related Services Company, Inc. and its subsidiaries), and

o     international banking services (through American Express Bank
      Ltd. and its subsidiaries).

American Express Financial Advisors Inc. is not a bank, and the
securities offered by it, such as face amount certificates issued
by IDSC, are not backed or guaranteed by any bank, nor are they
insured by the FDIC.

Capital structure and certificates issued

IDSC has authorized, issued and has outstanding 150,000 shares of
common stock, par value of $10 per share.  AEFC owns all of the
outstanding shares.

As of Dec. 31, 1995, IDSC had issued (in face amount)
$13,074,792,382 of installment certificates and $14,769,642,620 of
single payment certificates.

Investment management and services

Under an Investment Advisory and Services Agreement, AEFC acts as
our investment advisor and is responsible for:

      o     providing investment research,
      o     making specific investment recommendations, and
      o     executing purchase and sale orders according to our
            policy of obtaining the best price and execution.

All these activities are subject to direction and control by our
board of directors and officers.  Our agreement with AEFC requires
annual renewal by our board, including a majority of directors who
are not interested persons of AEFC or IDSC as defined in the
federal Investment Company Act of 1940.

For its services, we pay AEFC a monthly fee, equal on an annual
basis to a percentage of the total book value of certain assets
(included assets).

Advisory and Services Fee Computation

Included Assets            Percentage of total book value

First $250 million                    0.75%
Next 250 million                      0.65<PAGE>
PAGE 27
Next 250 million                      0.55
Next 250 million                      0.50
Any amount over $1 billion            0.45

Included assets are all assets of IDSC except mortgage loans, real
estate, and any other asset on which we pay an advisory or service
fee.

Advisory and services fees for the past three years were:

                              Percentage of
Year        Total fees        included assets

1995        $16,472,458       0.50%
1994        $13,565,432       0.51
1993        $15,036,091       0.50

Estimated advisory and services fees for 1996 are $19,152,000.

Other expenses payable by IDSC:  The Investment Advisory and
Services Agreement provides that we will pay:

o     costs incurred by us in connection with real estate and
      mortgages,
o     taxes,
o     depository and custodian fees,
o     brokerage commissions,
o     fees and expenses for services not covered by other
      agreements and provided to us at our request, or by
      requirement, by attorneys, auditors, examiners and
      professional consultants who are not officers or employees of
      AEFC,
o     fees and expenses of our directors who are not officers or
      employees of AEFC,
o     provision for certificate reserves (interest accrued on
      certificate owner accounts), and
o     expenses of customer settlements not attributable to sales
      function. 


Distribution

Under a Distribution Agreement with American Express Financial
Advisors Inc., we pay for the distribution of this certificate as
follows:

o     0.25% of the initial payment on the issue date of the
      certificate, and
o     0.25% of the certificate's reserve at the beginning of the
      second and subsequent quarters from issue date.  This fee is
      not assessed to your certificate account.

Total distribution fees paid to American Express Financial Advisors
Inc. for all series of certificates amounted to $35,120,612 during
the year ended Dec. 31, 1995.  We expect to pay American Express
Financial Advisors Inc. distribution fees amounting to $39,384,000
during 1996.<PAGE>
PAGE 28
See Note 1 to Financial Statements regarding deferral of
distribution fee expense.

American Express Financial Advisors Inc. pays commissions to its
financial advisors and pays other selling expenses in connection
with services to us.  Our board of directors, including a majority
of directors who are not interested persons of American Express
Financial Advisors Inc. or IDSC, approved this distribution
agreement.

Employment of other American Express affiliates

AEFC may employ an affiliate of American Express Company as
executing broker for our portfolio transactions only if:

o     we receive prices and executions at least as favorable as
      those offered by qualified independent brokers performing
      similar services;

o     the affiliate charges us commissions consistent with those
      charged to comparable unaffiliated customers for similar
      transactions; and

o     the affiliate's employment is consistent with the terms of
      the current Investment Advisory and Services Agreement and
      federal securities laws.

Directors and officers

IDSC's directors, chairman, president and controller are elected
annually for a term of one year.  The other executive officers are
appointed by the president.

We paid a total of $40,000 during 1995 to directors not employed by
AEFC.

Board of Directors

David R. Hubers* 
Born in 1943.  Director since 1987.

President and chief executive officer of AEFC since 1993.  Senior
vice president and chief financial officer of AEFC from 1984 to
1993.

Charles W. Johnson 
Born in 1929.  Director since 1989.

Director, Communications Holdings, Inc.  Former vice president and
group executive, Industrial Systems, with Honeywell Inc.  Retired
1989.  

<PAGE>
PAGE 29
Richard W. Kling
Born in 1940.  Director since 1996.

Chairman of the board of directors since 1996.  Director of IDS
Life Insurance Company since 1984; president since 1994.  Executive
vice president of Marketing and Products from 1988 to 1994.  Senior
vice president of AEFC since 1994.  Director of IDS Life Series

Edward Landes  
Born in 1919.  Director since 1984.

Development consultant.  Director of Endowment Development, YMCA of
Metropolitan Minneapolis.  Former sales manager - Supplies Division
and district manager - Data Processing Division of IBM Corporation. 
Retired 1983.

John V. Luck, Ph.D. 
Born in 1929.  Director since 1987.

Former senior vice president - Science and Technology with General
Mills, Inc.  Employed with General Mills Inc. since 1970.  Retired
1987.

James A. Mitchell*
Born in 1941.  Director since 1994. 

Chairman of the board of directors since 1994.  Executive vice
president - marketing and products of AEFC since 1994.  Senior vice
president - insurance operations of AEFC and president and chief
executive officer of IDS Life Insurance Company from 1986 to 1994.

Harrison Randolph 
Born in 1916.  Director since 1968.

Consultant.

Gordon H. Ritz 
Born in 1926.  Director since 1968.

Director, Mid-America Publishing and Atrix International, Inc.,
Former director, Sunstar Foods,  President, Com Rad Broadcasting
Corp.

Stuart A. Sedlacek* 
Born in 1957.  Director since 1994.

President since 1994.  Vice president - assured assets of AEFC
since 1994.  Vice president and portfolio manager from 1988 to
1994.  Executive vice president - assured assets of IDS Life
Insurance Company since 1994.

*"Interested Person" of IDSC as that term is defined in Investment
Company Act of 1940.

<PAGE>
PAGE 30
Executive officers

Stuart A. Sedlacek 
Born in 1957.  President since 1994.

Morris Goodwin Jr. 
Born in 1951.  Vice president and treasurer since 1989.

Vice president and corporate treasurer of AEFC since 1989.  Chief
financial officer and treasurer of American Express Trust Company
from 1988 to 1989.

Timothy S. Meehan 
Born in 1957.  Secretary since 1995.

Secretary of AEFC and American Express Financial Advisors Inc.
since 1995.  Senior counsel to AEFC since 1995.  Counsel from 1990
to 1995.

Lorraine R. Hart
Born in 1951.  Vice president-investments since 1994.

Vice president - insurance investments of AEFC since 1989.  Vice
president, investments of IDS Life Insurance Company since 1992.

Jay C. Hatlestad
Born in 1957.  Vice president and controller of IDSC since 1994.

Manager of investment accounting of IDS Life Insurance Company from
1986 to 1994.

Bruce A. Kohn 
Born in 1951.  Vice president and general counsel since 1993.

Counsel to AEFC since 1992.  Associate counsel from 1987 to 1992.

F. Dale Simmons 
Born in 1937.  Vice president - Real Estate Loan Management since
1993.

Vice president of AEFC since 1992.  Senior portfolio manager of
AEFC since 1989.  Assistant vice president from 1987 to 1992.

The officers and directors as a group beneficially own less than 1%
of the common stock of American Express Company.

IDSC has provisions in its bylaws relating to the indemnification
of its officers and directors against liability, as permitted by
law.  Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers or
persons controlling the registrant pursuant to the foregoing
provisions, the registrant has been informed that in the opinion of
the SEC such indemnification is against public policy as expressed
in the Act and is therefore unenforceable.

<PAGE>
PAGE 31
Auditors

A firm of independent auditors audits our financial statements at
the close of each fiscal year (Dec. 31).  Copies of our annual
financial statements (audited) and semiannual financial statements
(unaudited) are available to any certificate owner upon request.

Ernst & Young LLP, Minneapolis, has audited the financial
statements for each of the years in the three-year period ended
Dec. 31, 1995. These statements are included in this prospectus. 
Ernst & Young LLP is also the auditor for American Express Company,
the parent company of AEFC and IDSC.

Other certificates issued by IDSC:  Your American Express financial
advisor can give you more information on four other certificates
issued by IDSC.  These certificates offer a wide range of
investment terms and features.

IDS Flexible Savings Certificate - A single payment certificate
that permits additional investments and on which IDSC guarantees
interest in advance for a term of 6, 12, 18, 24, 30 or 36 months.

IDS Future Value Certificate - A single payment certificate on
which IDSC guarantees interest in advance for four, five, six,
seven, eight, nine or ten-year maturity.

IDS Installment Certificate - An installment payment certificate on
which IDSC declares interest in advance for a three-month period
and offers bonuses in the third through sixth years for regular
investments.

IDS Stock Market Certificate - A single payment certificate that
calculates all or part of your interest based on stock market
performance, as measured by a broad market index, with IDSC's
guarantee of return of principal.
<PAGE>
PAGE 32

Summary of selected financial information

The following selected financial information has been derived from
the audited financial statements and should be read in conjunction
with those statements and the related notes to financial
statements.  Also see Management's Discussion and Analysis of
Financial Condition and Results of Operations for additional
comments.

<TABLE><CAPTION>
Year Ended Dec. 31,                                       1995         1994        1993         1992      1991  
                                                                               ($ thousands)         
<S>                                                   <C>          <C>         <C>          <C>           <C>
Statement of Operations Data:
Investment income                                       $256,913     $207,975    $236,859     $294,799    $351,970
Investment expenses                                       62,817       58,690      65,404       69,630      63,353

Net investment income before provision for
  certificate reserves and income tax benefit            194,096      149,285     171,455      225,169     288,617
Net provision for certificate reserves                   176,407      107,288     123,516      178,175     258,443

Net investment income before income taxes                 17,689       41,997      47,939       46,994      30,174
Income tax benefit                                         9,097        2,663       3,365       11,666      20,537

Net investment income                                     26,786       44,660      51,304       58,660      50,711

Realized gain (loss) on investments - net:
Securities of unaffiliated issuers                           452       (7,514)     (9,870)      (9,498)       (129)
Other - unaffiliated                                        (120)       1,638        (418)        (500)     (1,053)

Total gain (loss) on investments                             332       (5,876)    (10,288)      (9,998)     (1,182)
Income tax benefit (expense)                                (117)       2,047       4,617            -         402

Net realized gain (loss) on investments                      215       (3,829)     (5,671)      (9,998)       (780)
Net income - wholly owned subsidiary                         373          241         120            3         139

Net income                                               $27,374      $41,072     $45,753      $48,665     $50,070

Dividends declared:
Cash                                                          $-      $40,200     $64,500      $83,750     $74,800
In-kind(a)                                                     -            -           -       64,558      25,466

Balance Sheet Data:
Total assets                                          $3,912,131   $3,040,857  $2,951,405   $3,444,985  $3,971,583
Certificate loans                                         51,147       58,203      67,429       77,347      88,570
Certificate reserves                                   3,628,574    2,887,405   2,777,451    3,256,472   3,712,570
Stockholder's equity                                     250,307      141,852     161,138      179,885     223,820

IDS Certificate Company (IDSC) is 100% owned by American Express Financial Corporation (Parent).

(a) Consisted of an investment security at amortized cost in 1992 and a reduction in the note receivable from 
Parent in 1991.
/TABLE
<PAGE>
PAGE 33

Management's discussion and analysis of financial condition and
results of operations

Results of operations:

IDS Certificate Company's (IDSC) earnings are derived primarily
from the after-tax yield on invested assets less investment
expenses and interest credited on certificate reserve liabilities. 
Changes in earnings' trends occur largely due to changes in the
rates of return on investments and the rates of interest credited
to certificate holder accounts and also, the mix of fully taxable
and tax-advantaged investments in the IDSC portfolio.

During the years 1992 and 1993, total assets and certificate
reserve liabilities decreased due to certificate maturities and
surrenders exceeding certificate sales.  The excess of certificate
maturities and surrenders over certificate sales in 1992 and 1993
primarily reflected lower accrual rates declared by IDSC in those
years, which in turn, reflected lower interest rates available in
the marketplace.

During the years 1994 and 1995, total assets and certificate
reserves increased due to certificate sales exceeding certificate
maturities and surrenders.  The excess of certificate sales over
certificate maturities and surrenders resulted primarily from
higher accrual rates declared by IDSC during the last six months of
1994 and the first six months of 1995, reflecting rising interest
rates in the marketplace.  The increase in total assets in 1995
reflects also an increase of $81 million in net unrealized
appreciation on investment securities classified as available for
sale.  The increase in total assets in 1994 was tempered by $23
million of net unrealized depreciation on investment securities
classified as available for sale, net of deferred taxes of $13
million.

1995 Compared to 1994:

Gross investment income increased 24% due primarily to a higher
average balance of invested assets and slightly higher investment
yields.

The 7.1% increase in investment expenses resulted primarily from
higher distribution fees due to higher sales of certificates that
provide for no deferral of those fees, and higher investment
advisory and services fee due to a higher asset base on which the
fee is calculated.  These increases were partially offset by lower
amortization of the cost of options and interest rate caps.  The
lower amortization of interest rate caps reflects the net of $1.7
million of accelerated amortization and $5.6 million higher
interest earned under the cap agreements.

Net provision for certificate reserves increased 65% reflecting a
higher average balance of certificate reserves and higher accrual
rates.

<PAGE>
PAGE 34
The increase in income tax benefit resulted primarily from a
greater portion of net investment income  before income tax benefit
being attributable to tax-advantaged income.

1994 Compared to 1993:

Gross investment income decreased 12% due primarily to a lower
average balance of invested assets and slightly lower investment
yields.

The 10% decrease in investment expenses resulted primarily from
lower amortization of the cost of interest rate caps and $2.3
million of interest earned under the cap agreements in 1994.  Lower
amortization of deferred distribution fees, and lower investment
advisory and services fees due to a lower average asset base on
which the fee is calculated contributed also to the decrease in 
investment expenses.

Net provision for certificate reserves decreased 13% reflecting
lower accrual rates during the first six months of the year and a
lower average balance of certificate reserves.

The decrease in income tax benefit resulted primarily from lower
tax-advantaged income.

Liquidity and cash flow:

IDSC's principal sources of cash are reserve payments from sales of
face-amount certificates and cash flows from investments.  In turn,
IDSC's principal uses of cash are payments to  certificate holders
for matured and surrendered certificates, purchase of investments
and payments of dividends to its Parent.

Certificate sales volume increased 38% in 1995, reflecting higher
accrual rates and clients' ongoing desire for safety of principal.
Sales of certificates totaled $1.5 billion compared to  $1.1
billion in 1994 and $.6 billion during 1993.  Certificate sales in
1995 benefitted also from a  special introductory promotion of
IDSC's 11-month term Flexible Savings certificate.

The special promotion of the 11-month term Flexible Savings
certificate was offered from May 10, 1995 to July 3, 1995,  and
applied only to sales of new certificate accounts during the
promotion period. Certificates sold during the promotion period
received a special interest rate of 7.0% for the 11-month term and
totaled $562 million.

IDSC, as an issuer of face-amount certificates, is affected
whenever there is a significant change in interest rates.  In view
of the uncertainty in the investment markets and due to the
short-term repricing nature of certificate reserve liabilities,
IDSC continues to invest in securities that provide for more
immediate, periodic interest/principal payments, resulting in
improved liquidity.  To accomplish this, IDSC continues to invest
much of its cash flow in mortgage-backed securities and
intermediate-term bonds.
<PAGE>
PAGE 35
IDSC's investment program is designed to maintain an investment
portfolio that will produce  the highest possible after-tax yield
within acceptable risk standards with additional emphasis  on
liquidity.  The program considers investment securities as
investments acquired to meet anticipated certificate holder
obligations.  

Effective Jan.1, 1994, IDSC adopted Statement of Financial
Accounting Standards (SFAS) No. 115, "Accounting for Certain
Investments in Debt and Equity Securities".  Under the SFAS No.
115, debt securities that IDSC has both the positive intent and
ability to hold to maturity are carried at amortized cost.  Debt
securities IDSC does not have the positive intent to hold to
maturity, as well as all marketable equity securities, are
classified as available for sale and carried at fair value.  The
available-for-sale classification does not mean that IDSC expects
to sell these securities, but that under SFAS No. 115 positive
intent criteria, these securities are available to meet possible
liquidity needs should there be significant changes in market
interest rates or certificate holder demand.  See notes 1 and 3 to
the financial statements for additional information relating to
SFAS No. 115.

At Dec. 31, 1995, securities classified as held to maturity and
carried at amortized cost  were $1.0 billion.  Securities
classified as available for sale and carried at fair value were
$2.4 billion. These securities, which comprise 90% of IDSC's total
invested assets, are well diversified.  Of these securities, 97%
are of investment grade and, other than U.S. Government Agency
mortgage-backed securities, no one issuer represents more than 1%
of these securities.  See note 3 to financial statements for
additional information on ratings and diversification. 

During the year ended Dec. 31, 1995, investment securities,
primarily municipal bonds, with an amortized cost and fair value of
$112 million and $117 million, respectively, were reclassified from
held to maturity to available for sale.  The reclassification was
made on Dec. 4, 1995, as a result of IDSC adopting the FASB Special
Report, "A Guide to Implementation of Statement 115 on Accounting
for Certain Investments in Debt and Equity Securities".  There were
no other transfers of securities during the years 1995 and 1994.

Derivative financial instruments:

IDSC enters into transactions involving interest rate caps, and
purchased and written call options to manage its exposure to rising
interest rates.  IDSC does not enter into such   transactions for
trading purposes.  There is a possibility that the value of these
instruments will change due to fluctuations in a factor from which
the instruments derive their values.  IDSC is not subject to this
market risk because these instruments are largely used to hedge
such risks, and therefore, the cash flow and income effects of the
instruments are inverse to the effects of the underlying
transactions.  See note 9 to financial statements for additional
information regarding derivative financial instruments. 

<PAGE>
PAGE 36
Capital contributions:

To maintain its regulatory capital requirements, IDSC received a
capital contribution from its Parent of $28.5 million in 1995.

Ratios:

The ratio of stockholder's equity, excluding net unrealized holding
gains and losses on investment securities, to total assets less
certificate loans and net unrealized holding gains and losses on
investment securities at Dec. 31, 1995 was 5.79% compared to 5.49%
in 1994.  IDSC intends to manage this ratio to 5.0% in 1996, which
meets current regulatory requirements. 

<PAGE>
PAGE 37
Annual Financial Information

Report of Independent Auditors 

The Board of Directors and Security Holders
IDS Certificate Company:

We have audited the accompanying balance sheets of IDS Certificate
Company, a wholly owned subsidiary of American Express Financial
Corporation, as of December 31, 1995 and 1994, and the related
statements of operations, stockholder's equity and cash flows for
each of the three years in the period ended December 31, 1995. 
These financial statements are the responsibility of the management
of IDS Certificate Company.  Our responsibility is to  express an
opinion on these financial statements based on our audits. 

We conducted our audits in accordance with generally accepted
auditing standards.  Those standards require that we plan and
perform the audit to obtain reasonable assurance about  whether the
financial statements are free of material misstatement.  An audit
includes  examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements.  Our
procedures included confirmation of investments owned as of
December 31, 1995 and 1994 by correspondence with custodians and
brokers.  An audit also includes assessing the accounting
principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. 
We believe that our audits provide a reasonable basis for our
opinion.

In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of IDS
Certificate Company at December 31, 1995 and 1994, and the results
of its operations and its cash flows for each of the three years in
the period  ended December 31, 1995, in conformity with generally
accepted accounting principles.

As discussed in note 1 to the financial statements, IDS Certificate
Company changed its method of accounting for certain investments in
debt and equity securities in 1994.



ERNST & YOUNG  LLP
Minneapolis, Minnesota
February 8, 1996

<PAGE>
PAGE 38
IDS Certificate Company

Responsibility for Preparation of Financial Statements

The management of IDS Certificate Company (IDSC) is responsible for
the preparation and fair presentation of its financial statements. 
The financial statements have been prepared in conformity  with
generally accepted accounting principles appropriate in the
circumstances, and include amounts based on the best judgment of
management.  IDSC's management is also responsible for the accuracy
and consistency of other financial information included in the
prospectus.

In recognition of its responsibility for the integrity and
objectivity of data in the financial statements, IDSC maintains a
system of internal control over financial reporting.   The system
is designed to provide reasonable, but not absolute, assurance with
respect to the reliability of IDSC's financial statements.  The
concept of reasonable assurance is based on the notion that the
cost of the internal control system should not exceed the benefits
derived.

The internal control system is founded on an ethical climate and
includes an organizational  structure with clearly defined lines of
responsibility, policies and procedures, a Code of Conduct, and the
careful selection and training of employees.  Internal auditors
monitor and assess the effectiveness of the internal control system
and report their findings to management  throughout the year. 
IDSC's independent auditors are engaged to express an opinion on
the year-end financial statements and, with the coordinated support
of the internal auditors, review the financial records and related
data and test the internal control system over financial reporting.

<PAGE>
PAGE 39
Balance Sheets, Dec. 31,
<TABLE><CAPTION>
Assets

Qualified Assets (note 2)                                         1995           1994
                                                                   ($ thousands)
<S>                                                         <C>           <C>
Investments in unaffiliated issuers (notes 3, 4 and 10):
  Cash and cash equivalents                                    $56,873       $140,128
  Held-to-maturity securities                                1,002,905      1,245,793
  Available-for-sale securities                              2,408,491      1,226,674
  First mortgage loans on real estate                          233,394        253,968
  Certificate loans - secured by certificate reserves           51,147         58,203

Investments in and advances to affiliates                        5,655          5,399

Total investments                                            3,758,465      2,930,165

Receivables:                                                                    
  Dividends and interest                                        49,632         42,261
  Investment securities sold                                    42,872          7,269

Total receivables                                               92,504         49,530

Other (notes 9 and 10)                                          32,778         25,094

Total qualified assets                                       3,883,747      3,004,789

                                                                                
Other Assets                                                                              

Deferred distribution fees                                      28,286         27,142
Deferred federal income taxes (note 8)                               -          8,372
Other                                                               98            554

Total other assets                                              28,384         36,068


Total assets                                                $3,912,131     $3,040,857

See notes to financial statements.                                              <PAGE>
PAGE 40
Balance Sheets, Dec. 31,                                                                 

Liabilities and Stockholder's Equity                         
                                                                          
Liabilities                                                       1995           1994
                                                                      ($ thousands)  
Certificate Reserves (notes 5 and 10):                              
Installment certificates:
  Reserves to mature                                          $330,415       $335,712
  Additional credits and accrued interest                       21,555         19,698
  Advance payments and accrued interest                          1,394          1,634
  Other                                                             55             56
Fully paid certificates:                                              
  Reserves to mature                                         3,127,301      2,389,198
  Additional credits and accrued interest                      147,468        140,766
Due to unlocated certificate holders                               386            341

Total certificate reserves                                   3,628,574      2,887,405

Accounts Payable and Accrued Liabilities:
  Due to Parent (note 7A)                                        1,541          1,186
  Due to Parent for federal income taxes                           103              -
  Due to affiliates (note 7B and 7C)                             2,068          2,883
  Payable for investment securities purchased                        -          1,362
  Accounts payable, accrued expenses and other (notes 9 and 10) 12,249          6,169

Total accounts payable and accrued liabilities                  15,961         11,600

Deferred federal income taxes (note 8)                          17,289              -

Total liabilities                                            3,661,824      2,899,005

Stockholder's Equity (notes 5B, 5C, and 6):

Common stock, $10 par - authorized and issued 150,000 shares     1,500          1,500
Additional paid-in capital                                     168,844        140,344
Retained earnings:
  Appropriated for predeclared additional credits/interest      18,878         18,398
  Appropriated for additional interest on advance payments          50             50
  Unappropriated                                                31,612          4,718
Unrealized holding gains (losses) on investment
  securities - net (note 3A)                                    29,423        (23,158)

Total stockholder's equity                                     250,307        141,852

Total liabilities and stockholder's equity                  $3,912,131     $3,040,857
 
See notes to financial statements.
/TABLE
<PAGE>
PAGE 41
<TABLE><CAPTION>
Statements of Operations                                                                  
                                                    
Year ended Dec. 31,                                            1995         1994        1993
                                                                 ($ thousands)  
<S>                                                      <C>         <C>          <C>
Investment Income:          
Interest income from investments:
  Bonds and notes:
    Unaffiliated issuers                                   $181,902     $125,546    $140,991
  Mortgage loans on real estate:
    Unaffiliated                                             22,171       24,006      24,071
    Affiliated                                                   56           68          78
  Certificate loans                                           2,963        3,342       3,882
Dividends                                                    48,614       54,170      67,115
Other                                                         1,207          843         722

Total investment income                                     256,913      207,975     236,859

Investment Expenses:
Parent and affiliated company fees (note 7):
  Distribution                                               33,977       27,007      28,477
  Investment advisory and services                           16,472       13,565      15,036
  Depositary                                                    242          183         201
Options (note 9)                                              8,038        9,854       9,419
Interest rate caps (note 9)                                   3,725        7,608      11,667
Other                                                           363          473         604 

Total investment expenses                                    62,817       58,690      65,404

Net investment income before provision
  for certificate reserves and income tax benefit          $194,096     $149,285    $171,455

See notes to financial statements.
<PAGE>
PAGE 42
Statements of Operations (continued)                                                      
                                                                                                           
Year ended Dec. 31,                                            1995         1994        1993
                                                                    ($ thousands)           
Provision for Certificate Reserves (notes 5 and 9):                  
According to the terms of the certificates:
  Provision for certificate reserves                        $11,009      $13,317     $20,555
  Interest on additional credits                              2,300        3,174       3,605
  Interest on advance payments                                   73           61          90
Additional credits/interest authorized by IDSC:
  On fully paid certificates                                157,857       85,101      93,546
  On installment certificates                                 6,288        6,741       6,704

Total provision before reserve recoveries                   177,527      108,394     124,500
Reserve recoveries from terminations
 prior to maturity                                           (1,120)      (1,106)       (984)

Net provision for certificate reserves                      176,407      107,288     123,516

Net investment income before income tax benefit              17,689       41,997      47,939
Income tax benefit (note 8)                                   9,097        2,663       3,365

Net investment income                                        26,786       44,660      51,304

Realized gain (loss) on investments - net:            
  Securities of unaffiliated issuers                            452       (7,514)     (9,870)
  Other-unaffiliated                                           (120)       1,638        (418)

Total gain (loss) on investments                               332        (5,876)    (10,288)

Income tax benefit (expense) (note 8):
  Current                                                      160         2,414      19,508
  Deferred                                                     (277)        (367)    (14,891)

Total income tax benefit (expense)                             (117)       2,047       4,617

Net realized gain (loss) on investments                         215       (3,829)     (5,671)

Net income - wholly owned subsidiary                            373          241         120

Net income                                                  $27,374      $41,072     $45,753
 
See notes to financial statements.
<PAGE>
PAGE 43
Statements of Stockholder's Equity                                                            
                                                   
Year ended Dec. 31,                                            1995         1994        1993
                                                                 ($ thousands)  

Common Stock:
Balance at beginning and end of year                         $1,500       $1,500      $1,500

Additional Paid-in Capital:
Balance at beginning of year                               $140,344     $147,144    $166,144
Contribution from Parent                                     28,500        3,000           -
Cash dividends declared                                           -       (9,800)    (19,000)

Balance at end of year                                     $168,844     $140,344    $147,144

Retained Earnings:
Appropriated for predeclared additional credits/interest (note 5B):
Balance at beginning of year                                $18,398       $2,726      $2,804
Transferred from (to) unappropriated retained earnings          480       15,672         (78)

Balance at end of year                                      $18,878      $18,398      $2,726

Appropriated for additional interest on advance payments (note 5C):
Balance at beginning of year                                    $50          $25        $100
Transferred from (to) unappropriated retained earnings            -           25         (75)

Balance at end of year                                          $50          $50         $25

Unappropriated (note 6):
Balance at beginning of year                                 $4,718       $9,743      $9,337
Net income                                                   27,374       41,072      45,753
Transferred (to) from appropriated retained earnings           (480)     (15,697)        153
Cash dividends declared                                           -      (30,400)    (45,500)

Balance at end of year                                      $31,612       $4,718      $9,743
 
Unrealized holding gains and losses on investment securities - 
  net (notes 1 and 3A):
Balance at beginning of year                               ($23,158)          $-          $-
Adjustment due to initial application of SFAS 115                 -        8,827           -
Change during year                                           52,581      (31,985)          -

Balance at end of year                                      $29,423     ($23,158)         $-

Total stockholder's equity                                 $250,307     $141,852    $161,138

See notes to financial statements.

<PAGE>
PAGE 44
Statements of Cash Flows                                                                        
                                                  
Year ended Dec. 31,                                            1995         1994        1993
                                                                 ($ thousands)
Cash flows from operating activities:
Net income                                                  $27,374      $41,072     $45,753
Adjustments to reconcile net income to net 
cash provided by operating activities:
  Net income of wholly owned subsidiary                        (373)        (241)       (120)
  Certificate reserves                                      176,407      107,288     123,516
  Interest income added to certificate loans                 (1,902)      (2,133)     (2,454)
  Amortization of premium/discount-net                       19,232       22,114      27,494
  Deferred federal income taxes                              (2,652)       4,263      11,446
  Deferred distribution fees                                 (1,144)      (7,527)      1,935
  Net (gain) loss on investments                               (332)       5,876      10,288
  (Increase) decrease in dividends and interest receivable   (7,371)      (1,829)     10,009
  (Increase) decrease in other assets                           466         (466)        967
  Increase (decrease) in other liabilities                   (1,549)      (3,210)      4,979

Net cash provided by operating activities                   208,156      165,207     233,813

Cash flows from investing activities:
Maturity and redemption of investments:
  Held-to-maturity securities                               315,766      350,411     641,778
  Available-for-sale securities                             325,521      173,547           -
  Other investments                                          46,004       35,130      21,373
Sale of investments:
  Held-to-maturity securities                                22,305        3,164     329,942
  Available-for-sale securities                              48,372      267,808           -
  Other investments                                              21            -       5,454
Certificate loan payments                                     6,061        7,508       8,991
Purchase of investments:
  Held-to-maturity securities                              (208,140)     (46,080)   (498,841)
  Available-for-sale securities                          (1,397,983)    (830,826)          -
  Other investments                                         (17,234)      (9,208)    (78,816)
Certificate loan fundings                                    (7,776)      (7,603)    (10,275)
Investment in subsidiary                                          -         (450)     (2,000)

Net cash (used in) provided by investing activities       ($867,083)    ($56,599)   $417,606

See notes to financial statements.
<PAGE>
PAGE 45
Statements of Cash Flows (continued)                                                                        
                                                  
Year ended Dec. 31,                                            1995         1994        1993
                                                                        ($ thousands)

Cash flows from financing activities:
Reserve payments by certificate holders                  $1,577,884   $1,185,762    $709,684
Proceeds from securities loaned to brokers                        -            -       6,150
Proceeds from reverse repurchase agreements                       -            -      72,800
Capital contribution from Parent                             28,500        3,000           -
Certificate maturities and cash surrenders               (1,030,712)  (1,171,101) (1,312,260)
Payments to brokers upon return of securities loaned              -            -      (7,793)
Payments under reverse repurchase agreements                      -            -     (72,800)
Dividends paid                                                    -      (40,200)    (64,500)

Net cash provided by (used in) financing activities         575,672      (22,539)   (668,719)

Net increase (decrease) in cash and cash equivalents        (83,255)      86,069     (17,300)
Cash and cash equivalents beginning of year                 140,128       54,059      71,359

Cash and cash equivalents end of year                       $56,873     $140,128     $54,059


Supplemental disclosures including non-cash transactions:
Cash received for income taxes                               $6,854       $2,416     $26,606
Certificate maturities and surrenders through loan
 reductions                                                  10,673       11,454      13,656
</TABLE>

See notes to financial statements.

<PAGE>
PAGE 46
Notes to Financial Statements ($ in thousands unless indicated
otherwise)


1.  Nature of business and summary of significant accounting
policies

Nature of business

IDS Certificate Company (IDSC) is a wholly owned subsidiary of
American Express Financial  Corporation (Parent), which is a wholly
owned subsidiary of American Express Company.  IDSC is registered
as an investment company under the Investment Company Act of 1940
("the 1940 Act") and is in the business of issuing face-amount
investment certificates.  The certificates issued by IDSC are not
insured by any government agency.  IDSC's certificates are sold
primarily by American Express Financial Advisors Inc.'s (an
affiliate) field force operating in 50 states, the District of
Columbia and Puerto Rico.  IDSC's Parent acts as investment advisor
for IDSC.

IDSC currently offers eight types of certificates with specified
maturities ranging from four to  twenty years.  Within their
specified maturity, most certificates have interest rate terms of
one to thirty-six months.  In addition, one type of certificate has
interest tied, in whole or in part, to any upward movement in a
broad-based stock market index.  Except for two types of
certificates, all of the certificates are available as qualified
investments for Individual Retirement Accounts or 401(k) plans and
other qualified retirement plans.

IDSC's gross income is derived primarily from interest and
dividends generated by its investments. IDSC's net income is
determined by deducting from such gross income its provision for
certificate reserves, and other expenses, including taxes, the fee
paid to Parent for investment advisory and other services, and the
distribution fees paid to American Express Financial Advisors Inc.

Described below are certain accounting policies that are important
to an understanding of the accompanying financial statements.

Basis of financial statement presentation

The accompanying financial statements are presented in accordance
with generally accepted accounting principles.  IDSC uses the
equity method of accounting for its wholly owned unconsolidated
subsidiary, which is the method prescribed by the Securities and
Exchange Commission (SEC) for issuers of face-amount certificates. 
Certain amounts from prior years have been reclassified to conform
to the current year presentation.

The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities and the reported amounts of income and expenses during
the year then ended.  Actual results could differ from those
estimates.
<PAGE>
PAGE 47

Fair values of financial instruments

The fair values of financial instruments disclosed in the notes to
financial statements are estimates based upon current market
conditions and perceived risks, and require varying degrees of
management judgment.

Preferred stock dividend income

IDSC recognizes dividend income from cumulative redeemable
preferred stocks with fixed maturity amounts on an accrual basis
similar to that used for recognizing interest income on debt
securities.  

Securities

Cash equivalents are carried at amortized cost, which approximates
fair value.  IDSC has defined cash and cash equivalents as cash in
banks and highly liquid investments with a maturity of three months
or less at acquisition and are not interest rate sensitive.

Debt securities that IDSC has both the positive intent and ability
to hold to maturity are carried at amortized cost.  Debt securities
IDSC does not have the positive intent to hold to maturity, as well
as all marketable equity securities, are classified as available
for sale and carried at fair value.  Unrealized holding gains and
losses on securities classified as available for sale are carried,
net of deferred income taxes, as a separate component of
stockholder's equity.

The basis for determining cost in computing realized gains and
losses on securities is specific identification.  When there is a
decline in value that is other than temporary, the securities are
carried at estimated realizable value with the amount of adjustment
included in income.

First mortgage loans on real estate

Mortgage loans are carried at amortized cost, less reserves for
losses, which is the basis for determining any realized gains or
losses.

Certificates

Investment certificates may be purchased either with a lump-sum
payment or by installment payments.  Certificate holders are
entitled to receive at maturity a definite sum of money.  Payments
from certificate holders are credited to investment certificate
reserves. Investment certificate reserves accumulate at specified
percentage rates.  Reserves also are maintained for advance
payments made by certificate holders, accrued interest thereon, and
for additional credits and accrued interest thereon.  On
certificates allowing for  the deduction of a surrender charge, the
cash surrender values may be less than accumulated investment
certificate reserves prior to maturity dates.  Cash surrender
values on  certificates allowing for no surrender charge are equal <PAGE>
PAGE 48
to certificate reserves.  The payment distribution, reserve
accumulation rates, cash surrender values, reserve values and other
matters are governed by the 1940 Act.

Deferred distribution fee expense

On certain series of certificates, distribution fees are deferred
and amortized over the estimated lives of the related certificates,
which is approximately 10 years.  Upon surrender, unamortized
deferred distribution fees are charged against income.

Federal income taxes

IDSC's taxable income or loss is included in the consolidated
federal income tax return of American Express Company.  IDSC
provides for income taxes on a separate return basis, except that,
under an agreement between Parent and American Express Company, tax
benefits are recognized for losses to the extent they can be used
in the consolidated return.  It is the policy of Parent and its
subsidiaries that Parent will reimburse a subsidiary for any  tax
benefits recorded.

2.  Deposit of assets and maintenance of qualified assets

A)  Under the provisions of its certificates and the 1940 Act, IDSC
was required to have qualified assets (as that term is defined in
Section 28(b) of the 1940 Act) in the amount of $3,619,188 and
$2,895,226 at Dec. 31, 1995 and 1994, respectively.  IDSC had
qualified assets of $3,838,482 at Dec. 31, 1995 and $3,040,416 at
Dec. 31, 1994, excluding net unrealized appreciation on
available-for-sale securities of $45,265 at Dec. 31, 1995 and net
unrealized depreciation of $35,627 at Dec. 31, 1994.

Qualified assets are valued in accordance with such provisions of
Minnesota Statutes as are applicable to investments of life
insurance companies.  Qualified assets for which no provision for
valuation is made in such statutes are valued in accordance with
rules, regulations or orders prescribed by the SEC.  These values
are the same as financial statement carrying values, except for
debt securities classified as available for sale and all marketable
equity securities, which are carried at fair value in the financial
statements but are valued at amortized cost for qualified asset and
deposit maintenance purposes.

B)  Pursuant to provisions of the certificates, the 1940 Act, the
central depositary agreement and to requirements of various states,
qualified assets of IDSC were deposited as follows:

<PAGE>
PAGE 49
<TABLE><CAPTION>
                                                 Dec. 31, 1995

                                                    Required
                                       Deposits     deposits       Excess
<S>                                 <C>           <C>            <C>
Deposits to meet certificate
liability requirements:
States                                     $414         $384          $30
Central Depositary                    3,678,295    3,548,334      129,961

Total                                $3,678,709   $3,548,718     $129,991


                                                 Dec. 31, 1994                         

                                                    Required
                                       Deposits     deposits       Excess
Deposits to meet certificate
liability requirements:
States                                     $417         $388          $29
Central Depositary                    2,939,538    2,817,716      121,822

Total                                $2,939,955   $2,818,104     $121,851
</TABLE>
The assets on deposit at Dec. 31, 1995 and 1994 consisted of
securities having a deposit value of $3,435,074 and $2,659,676,
respectively; mortgage loans of $229,554 and $252,263,
respectively; and other assets of $14,081 and $28,016,
respectively.  Mortgage loans on deposit include an affiliated
mortgage loan.

American Express Trust Company is the central depositary for IDSC. 
See note 7C.

3.  Investments in securities

A)  Fair values of investments in securities represent market
prices and estimated fair values when quoted prices are not
available.  Estimated fair values are determined by IDSC using
established procedures, involving review of market indexes, price
levels of current offerings and comparable issues, price estimates
and market data from independent brokers and financial files.  The
procedures are reviewed annually.  IDSC's vice president - 
investments reports to the board of directors on an annual basis
regarding such pricing sources and procedures to provide assurance
that fair value is being achieved.

The following is a summary of securities held to maturity and
securities available for sale at Dec. 31, 1995 and Dec. 31, 1994.


<PAGE>
PAGE 50
<TABLE><CAPTION>
                                                                 Dec. 31, 1995
                                                                           Gross       Gross   
                                              Amortized        Fair      unrealized  unrealized
                                                cost           value       gains       losses  
<S>                                          <C>           <C>             <C>           <C>
HELD TO MATURITY 
U.S. Government and agencies obligations           $415          $427           $12          $-
Mortgage-backed securities                       54,477        55,708         1,234           3
Corporate debt securities                       333,861       348,860        15,029          30
Stated maturity preferred stock                 614,152       643,436        30,072         788

                                             $1,002,905    $1,048,431       $46,347        $821
AVAILABLE FOR SALE
Mortgage-backed securities                   $1,321,051    $1,340,956       $21,349      $1,444
State and municipal obligations                 101,399       105,680         4,281           -
Corporate debt securities                       918,792       939,878        22,638       1,552
Stated maturity preferred stock                  21,229        21,365           192          56
Common stock                                        755           612             -         143

                                             $2,363,226    $2,408,491       $48,460      $3,195

                                                                 Dec. 31, 1994
                                                                           Gross       Gross   
                                              Amortized        Fair      unrealized  unrealized
                                                 cost         value        gains       losses  
HELD TO MATURITY 
U.S. Government and agencies obligations           $417          $417            $1          $1
Mortgage-backed securities                       65,101        66,329         1,251          23
State and municipal obligations                 145,205       150,856         5,659           8
Corporate debt securities                       405,716       408,087         5,683       3,312
Foreign government bonds and obligations         10,048        10,065            17           -
Stated maturity preferred stock                 619,306       616,655        10,201      12,852

                                             $1,245,793    $1,252,409       $22,812     $16,196
AVAILABLE FOR SALE
Mortgage-backed securities                     $745,513      $724,276        $1,079     $22,316
Corporate debt securities                       487,799       473,865           460      14,394
Stated maturity preferred stock                  28,234        27,894            50         390
Common stock                                        755           639             -         116

                                             $1,262,301    $1,226,674        $1,589     $37,216
</TABLE>

The amortized cost and fair value of securities held to maturity
and available for sale, by contractual maturity, at Dec. 31, 1995,
are shown below.  Cash flows will differ from contractual
maturities because issuers may have the right to call or prepay
obligations.
<TABLE><CAPTION>
                                                               Amortized        Fair  
                                                                  cost          value 
<S>                                                           <C>            <C>
HELD TO MATURITY 
Due within 1 year                                                $94,577       $95,440
Due after 1 through 5 years                                      388,529       407,994
Due after 5 years through 10 years                               269,579       283,685
Due after 10 years                                               195,743       205,604
                                                                 948,428       992,723
Mortgage-backed securities                                        54,477        55,708

                                                              $1,002,905    $1,048,431
AVAILABLE FOR SALE
Due within 1 year                                               $146,731      $148,072
Due after 1 through 5 years                                      746,470       765,480
Due after 5 years through 10 years                                38,433        41,945
Due after 10 years                                               109,786       111,426
                                                               1,041,420     1,066,923
Mortgage-backed securities                                     1,321,051     1,340,956
Common stock                                                         755           612

                                                              $2,363,226    $2,408,491
/TABLE
<PAGE>
PAGE 51
During the years ended Dec. 31, 1995 and 1994, there were no
securities classified as trading securities.

The proceeds from sales of available-for-sale securities and the
gross realized gains and gross realized losses on those sales
during the years ended Dec. 31, 1995 and 1994, were as follows:
<TABLE><CAPTION>
                                                                    1995          1994
<S>                                                              <C>          <C>
Proceeds                                                         $83,970      $265,008
Gross realized gains                                                  36           363
Gross realized losses                                              1,854        10,140
</TABLE>

Sales of held-to-maturity securities, due to significant credit
deterioration, during the years ended Dec. 31, 1995 and 1994, were
as follows:

<TABLE><CAPTION>
                                                                    1995          1994
<S>                                                              <C>            <C>
Amortized cost                                                   $22,782        $3,158
Gross realized gains                                                   2             5
Gross realized losses                                                479             -
</TABLE>
During the year ended Dec. 31, 1995, securities with an amortized
cost and fair value of $111,967 and $116,882, respectively, were
reclassified from held to maturity to available for sale.  The
reclassification was made on Dec. 4, 1995, as a result of IDSC
adopting the FASB Special Report, "A Guide to Implementation of
Statement 115 on Accounting for Certain Investments in Debt and
Equity Securities."

B)  Investments in securities with fixed maturities comprised 90%
and 84% of IDSC's total invested assets at Dec. 31, 1995 and 1994,
respectively.  Securities are rated by Moody's and Standard & Poors
(S&P), or by Parent's internal analysts, using criteria similar to
Moody's and S&P, when a public rating does not exist.  A summary of
investments in securities with fixed maturities by rating of
investment is as follows:

<TABLE><CAPTION>
Rating                                                              1995          1994
<S>                                                                  <C>           <C>
Aaa/AAA                                                              44%           36%
Aa/AA                                                                 2             5 
Aa/A                                                                  2             3 
A/A                                                                  23            25 
A/BBB                                                                 6             3 
Baa/BBB                                                              20            24 
Below investment grade                                                3             4 

                                                                    100%          100%
</TABLE>
Of the securities rated Aaa/AAA, 92% at Dec. 31, 1995 and 88% at
Dec. 31, 1994 are U.S. Government Agency mortgage-backed securities
that are not rated by a public rating agency.  Approximately 11% at
Dec. 31, 1995 and 17% at Dec. 31, 1994 of other securities with
fixed maturities are rated by Parent's internal analysts.  At Dec. <PAGE>
PAGE 52
31, 1995 and 1994 no one issuer, other than U.S. Government Agency
mortgage-backed securities, is greater than 1% of IDSC's total
investment in securities with fixed maturities.

C)  IDSC reserves freedom of action with respect to its acquisition
of restricted securities that offer advantageous and desirable
investment opportunities.  In a private negotiation, IDSC may
purchase for its portfolio all or part of an issue of restricted
securities.  Since IDSC would intend to purchase such securities
for investment and not for distribution, it would not be acting as
a distributor if such securities are resold by IDSC at a later
date.

The fair values of restricted securities are determined by the
board of directors using the procedures and factors described in
paragraph A of note 3.

In the event IDSC were to be deemed to be a distributor of the
restricted securities, it is possible that IDSC would be required
to bear the costs of registering those securities under the
Securities Act of 1933, although in most cases such costs would be
borne by the issuer of the restricted securities.

4.  Investments in first mortgage loans on real estate

As of Jan. 1, 1995, IDSC adopted Statement of Financial Accounting
Standards No. 114, "Accounting by Creditors for Impairment of a
Loan" (SFAS No. 114), as amended by Statement of Financial
Accounting Standards No. 118, "Accounting by Creditors for
Impairment of a Loan - Income Recognition and Disclosures" (SFAS
No. 118).  The adoption of the new rules did not have a material
impact on IDSC's results of operations or financial condition.

SFAS No. 114 applies to all loans except for smaller-balance
homogeneous loans that are collectively evaluated for impairment. 
Impairment is measured as the excess of the loan's recorded
investment over its present value of expected principal and
interest payments discounted at the loan's effective interest rate,
or the fair value of collateral.  The amount of the impairment is
recorded in a reserve for loss on mortgage loans.  

Based on management's judgment as to the ultimate collectibility of
principal, interest payments received are either recognized as
income or applied to the recorded investment in the loan until it
has been recovered.

The reserve for loss on mortgage loans is maintained at a level
that management believes is  appropriate to absorb estimated credit
losses in the mortgage loan portfolio.  The level of the reserve
account is determined based on several factors, including
historical experience, expected future principal and interest
payments, estimated collateral values, and current and anticipated
economic and political conditions.  Management regularly evaluates
the adequacy of the reserve for loss on mortgage loans.

At Dec. 31, 1995, IDSC's recorded investment in impaired mortgage
loans was $1,004 and the reserve for loss on that amount was $611. 
<PAGE>
PAGE 53
During 1995, the average recorded investment in impaired mortgage
loans was $1,052. 

IDSC recognized $53 of interest income related to impaired mortgage
loans for the year ended Dec. 31, 1995. 

There were no changes in the reserve for loss on mortgage loans of
$611 during the year ended Dec. 31, 1995.

At Dec. 31, 1995 and 1994, approximately 6% and 9%, respectively,
of IDSC's invested assets were first mortgage loans on real estate.

A summary of first mortgage loans by region and by type of real
estate is as follows:
<TABLE><CAPTION>
Region                                                              1995          1994
<S>                                                                 <C>           <C>
East North Central                                                   22%           25%
South Atlantic                                                       22            24 
West North Central                                                   19            18 
Middle Atlantic                                                       17           16 
Mountain                                                              9             6 
West South Central                                                    5             5 
Pacific                                                               3             3 
New England                                                           3             3 
                                                                    100%          100%

Property Type                                                       1995          1994

Apartments                                                           39%           41%
Retail/shopping centers                                              32            30 
Industrial buildings                                                 12            12 
Office buildings                                                      8             8 
Retirement homes                                                      1             1 
Other                                                                 8             8 

                                                                    100%          100%
</TABLE>                                                                   
The carrying amounts and fair values of first mortgage loans on
real estate are as follows at Dec. 31.  The fair values are
estimated using discounted cash flow analysis, using market
interest rates currently being offered for loans with similar terms
to borrowers of similar credit quality.


<TABLE><CAPTION>
                                                    Dec. 31, 1995            Dec. 31, 1994     

                                               Carrying        Fair        Carrying      Fair  
                                                amount         value        amount       value 
<S>                                            <C>           <C>           <C>         <C>
Commercial                                     $234,005      $248,860      $254,531    $246,874
Residential                                           -             -            48          43
                                                234,005       248,860       254,579     246,917
Reserve for losses                                 (611)            -          (611)          -

Net first mortgage loans on real estate        $233,394      $248,860      $253,968    $246,917
</TABLE>
At Dec. 31, 1995 and 1994, there were no commitments for fundings
of first mortgage loans.  If there were any commitments, IDSC
employs policies and procedures to ensure the creditworthiness of
the borrowers and that funds will be available on the funding date.
IDSC's first mortgage loan fundings are restricted to 75% or less
of the market value of the real estate at the time of the loan
funding.
<PAGE>
PAGE 54
5.  Certificate reserves

Reserves maintained on outstanding certificates have been computed
in accordance with the provisions of the certificates and Section
28 of the 1940 Act.  The average rates of accumulation on
certificate reserves at Dec. 31, 1995 and 1994 were:
<TABLE><CAPTION>
                                                         
                                                                 1995    

                                                               Average      Average  
                                                Reserve         gross      additional
                                                balance      accumulation    credit  
                                               at Dec. 31        rate         rate   
<S>                                           <C>                <C>          <C>
Installment certificates:
Reserves to mature:
  With guaranteed rates                           $40,232           3.50%       1.35%
  Without guaranteed rates (A)                    290,183              -        3.23 
Additional credits and accrued interest            21,555           3.13           - 
Advance payments and accrued interest (C)           1,394           3.13        1.72 
Other                                                  55              -           - 
Fully paid certificates:
Reserves to mature: 
  With guaranteed rates                           210,365           3.24        1.85 
  Without guaranteed rates (A) and (D)          2,916,936              -        5.70 
Additional credits and accrued interest           147,468           3.26           - 
Due to unlocated certificate holders                  386              -           - 

                                               $3,628,574

                                                                 1994    

                                                               Average      Average  
                                                Reserve         gross      additional
                                                balance      accumulation    credit  
                                               at Dec. 31        rate         rate   

Installment certificates:
Reserves to mature:
  With guaranteed rates                           $49,278           3.49%       1.51%
  Without guaranteed rates (A)                    286,434              -        2.97 
Additional credits and accrued interest            19,698           3.11           - 
Advance payments and accrued interest               1,634           3.08        1.92 
Other                                                  56              -           - 
Fully paid certificates:
Reserves to mature:
  With guaranteed rates                           234,822           3.25        1.09 
  Without guaranteed rates (A) and (D)          2,154,376              -        4.81 
Additional credits and accrued interest           140,766           3.35           - 
Due to unlocated certificate holders                 341               -           - 

                                               $2,887,405
</TABLE>
A)  There is no minimum rate of accrual on these reserves. 
Interest is declared periodically, quarterly or annually, in
accordance with the terms of the separate series of certificates.

B)  On certain series of single payment certificates, additional
interest is predeclared for periods greater than one year.  At Dec.
31, 1995, $18,878 of retained earnings had been appropriated for
the predeclared additional interest, which represents the
difference between certificate reserves on these series, calculated
on a statutory basis, and the reserves maintained per books.

C)  Certain series of installment certificates guarantee accrual of
interest on advance payments at an average of 3.13%.  IDSC has
increased the rate of accrual to 4.85% through April 30, 1997.  An
appropriation of retained earnings amounting to $50 has been made,
which represents the estimated additional accrual that will result
from the increase granted by IDSC.<PAGE>
PAGE 55
D)  IDS Stock Market Certificate enables the certificate holder to
participate in any relative rise in a major stock market index
without risking loss of principal.  Generally the certificate has a
term of 12 months and may continue for up to 14 successive terms.
The reserve balance at Dec. 31, 1995 and 1994 was $211,093 and
$263,494, respectively.

E)  The carrying amounts and fair values of certificate reserves
consisted of the following  at Dec. 31, 1995 and 1994.  Fair values
of certificate reserves with interest rate terms of one year or
less approximated the carrying values less any applicable surrender
charges.

The fair values for other certificate reserves are determined by a
discounted cash flow analysis using interest rates currently
offered for certificates with similar remaining terms, less any
applicable surrender charges.
<TABLE><CAPTION>
                                                          1995                      1994       

                                              Carrying         Fair       Carrying      Fair   
                                               amount         value        amount       value  
<S>                                          <C>           <C>           <C>         <C>
Reserves with terms of one year or less      $2,900,947    $2,899,542    $2,425,880  $2,415,970
Other                                           727,627       765,110       461,525     461,060

Total certificate reserves                    3,628,574     3,664,652     2,887,405   2,877,030
Unapplied certificate transactions                1,545         1,545         2,671       2,671
Certificate loans and accrued interest          (51,707)      (51,707)      (58,840)    (58,840)

Total                                        $3,578,412    $3,614,490    $2,831,236  $2,820,861

</TABLE>
6.  Dividend restriction

Certain series of installment certificates outstanding provide that
cash dividends may be paid by IDSC only in calendar years for which
additional credits of at least one-half of 1% on such series of
certificates have been authorized by IDSC.  This restriction has
been removed for 1996 and 1997 by action of IDSC on additional
credits in excess of this requirement. 

7.  Fees paid to Parent and affiliated companies ($ not in
thousands)

A)  The basis of computing fees paid or payable to Parent for
investment advisory and services is:

The investment advisory and services agreement with Parent provides
for a graduated scale of fees equal on an annual basis to 0.75% on
the first $250 million of total book value of assets of IDSC, 0.65%
on the next $250 million, 0.55% on the next $250 million, 0.50% on
the next $250 million and 0.45% on the amount in excess of $1
billion.  The fee is payable  monthly in an amount equal to
one-twelfth of each of the percentages set forth above. Excluded
from assets for purposes of this computation are first mortgage
loans, real estate and any other asset on which IDSC pays a service
fee.

B)  The basis of computing fees paid or payable to American Express
Financial Advisors Inc. (an affiliate) for distribution services
is:<PAGE>
PAGE 56
Fees payable to American Express Financial Advisors Inc. on sales
of IDSC's certificates are based upon terms of agreements giving
American Express Financial Advisors Inc. the exclusive  right to
distribute the certificates covered under the agreements.  The
agreements provide for payment of fees over a period of time.  The
aggregate fees payable under the agreements per  $1,000 face amount
of installment certificates and $1,000 purchase price of single
payments, and a summary of the periods over which the fees are
payable, shown by series are:
<TABLE><CAPTION>
                                                                                     Number of
                                                                                    certificate
                                                                                     years over
                                                        Aggregate fees payable         which
                                                                                     subsequent
                                                                First    Subsequent years' fees
                                                  Total          year       years   are payable
<S>                                              <C>           <C>         <C>           <C>
Installment certificates(a)                      $30.00        $ 6.00      $24.00        4
Single-payment certificates                       60.00         60.00           -        -
Future Value certificates                         50.00         50.00           -        -
</TABLE>
Fees on Cash Reserve and Flexible Savings (formerly Variable Term) 
certificates are paid at a rate of 0.25% of the purchase price at
the time of issuance and 0.25% of the reserves maintained for these
certificates at the beginning of the second and subsequent quarters
from issue date. 

Fees on the Investors Certificate are paid at an annualized rate of
1% of the reserves maintained for the certificates.  Fees are paid
at the end of each term on certificates with a one, two or
three-month term.  Fees are paid each quarter from date of issuance
on certificates with a six, 12, 24 or 36-month term.

Fees on the Stock Market Certificate are paid at a rate of 1.25% of
the purchase price on the first day of the certificate's term and
1.25% of the reserves maintained for these certificates at the
beginning of each subsequent term.

(a)  At the end of the sixth through the 10th year, an additional
fee is payable of 0.5% of the daily average balance of the
certificate reserve maintained during the sixth through the 10th
year, respectively.

C)  The basis of computing depositary fees paid or payable to
American Express Trust Company (an affiliate) is:

<TABLE><CAPTION>
<S>                                          <C>
Maintenance charge per account               5 cents per $1,000 of assets on deposit

Transaction charge                           $20 per transaction        

Security loan activity:
  Depositary Trust Company
    receive/deliver                          $20 per transaction
  Physical receive/deliver                   $25 per transaction
  Exchange collateral                        $15 per transaction
</TABLE>
A transaction consists of the receipt or withdrawal of securities
and commercial paper and/or a change in the security position.  The
charges are payable quarterly except for maintenance, which is an
annual fee.<PAGE>
PAGE 57

D)  The basis for computing fees paid or payable to American
Express Bank  Ltd. (an affiliate) for the distribution of the IDS
Special Deposits certificate on an annualized basis is:

1.25% of the reserves maintained for the certificates on an amount
from $100,000 to $249,000, 0.80% on an amount from $250,000 to
$499,000, 0.65% on an amount from $500,000 to $999,000 and
0.50% on an amount $1,000,000 or more.  Fees are paid at the end of
each term on certificates with a one, two or three-month term. 
Fees are paid at the end of each quarter from date of issuance on
certificates with a six, 12, 24 or 36-month term.

8.  Income taxes

Income tax expense (benefit) as shown in the statement of
operations for the three years ended Dec. 31, consists of:
<TABLE><CAPTION>
                                                         
                                                     1995            1994        1993
<S>                                              <C>              <C>        <C>
Federal:
  Current                                         ($6,285)        ($8,743)   ($19,777)
  Deferred                                         (2,652)          3,933      11,446
                                                   (8,937)         (4,810)     (8,331)
State                                                 (43)            100         349

                                                  ($8,980)        ($4,710)    ($7,982)
 
</TABLE>
Income tax expense (benefit) differs from that computed by using
the U.S. Statutory rate of 35%.  The principal causes of the
difference in each year are shown below:
<TABLE><CAPTION>
                                                     1995            1994        1993
<S>                                               <C>             <C>         <C>
Federal tax expense at U.S. statutory rate         $6,307         $12,642     $13,178
Tax-exempt interest                                (3,339)         (4,205)     (4,929)
Dividend exclusion                                (12,166)        (13,862)    (17,326)
Change in statutory rates                               -               -        (406)
Other, net                                            261             615       1,152

Federal tax benefit                               ($8,937)        ($4,810)    ($8,331)
</TABLE>

Deferred income taxes result from the net tax effects of temporary
differences.  Temporary differences are differences between the
tax bases of assets and liabilities and their  reported amounts in
the financial statements that will result in differences between
income for tax purposes and income for financial statement purposes
in future years.  Principal components of IDSC's deferred tax
assets and liabilities as of Dec. 31, are as follows.

<TABLE><CAPTION>
                                                     1995            1994
Deferred tax assets:
<S>                                              <C>              <C>      
Certificate reserves                              $10,312          $4,315            
Investment unrealized losses                            -          12,470            
Investments                                           348           1,390            
Investment reserves                                   843           1,120
Purchased/written call options                          -             283

Total deferred tax assets                         $11,503         $19,578


<PAGE>
PAGE 58
                                                    1995            1994
Deferred tax liabilities:

Investment unrealized gains                       $15,843              $-
Deferred distribution fees                          9,900           9,500
Dividends receivable                                  892           1,000
Return of capital dividends                           305             508
Purchased/written call options                      1,623               -
Other, net                                            229             198

Total deferred tax liabilities                     28,792          11,206

Net deferred tax assets (liabilities)            ($17,289)         $8,372            
</TABLE>

9.  Derivative financial instruments

IDSC enters into transactions involving derivative financial
instruments as an end user (nontrading). IDSC uses these
instruments to manage its exposure to interest rate risk, including
hedging specific transactions.  IDSC manages risks associated with
these instruments as described below.

Market risk is the possibility that the value of the derivative
financial instrument will change  due to fluctuations in a factor
from which the instrument derives its value, primarily an interest
rate or a major market index.  IDSC is not impacted by market risk
related to derivatives held because derivatives are largely used to
manage risk and, therefore, the cash flows and income effects of
the derivatives are inverse to the effects of the underlying hedged
transactions.

Credit exposure is the possibility that the counterparty will not
fulfill the terms of the  contract.  IDSC monitors credit exposure
related to derivative financial instruments through  established
approval procedures, including setting concentration limits by
counterparty, reviewing credit ratings and requiring collateral
where appropriate.  The majority of IDSC's counterparties to the
interest rate caps are rated A or better by nationally recognized
rating agencies.  The  counterparties to the call options are five
major broker/dealers.

The notional or contract amount of a derivative financial
instrument is generally used to calculate the cash flows that are
received or paid over the life of the agreement.  Notional amounts
do not represent market risk or credit exposure and are not
recorded on the balance sheet.

Credit exposure related to derivative financial instruments is
measured by the replacement cost of those contracts at the balance
sheet date.  The replacement cost represents the fair value of the
instrument, and is determined by market values, dealer quotes or
pricing models.


IDSC's holdings of derivative financial instruments were as follows
at Dec. 31, 1995 and 1994.



<PAGE>
PAGE 59
<TABLE><CAPTION>
                                                                      1995         

                                              Notional                                  Total  
                                            or contract      Carrying         Fair      credit 
                                               amount          value          value    exposure
<S>                                          <C>              <C>           <C>         <C>
Assets:
  Interest rate caps                           $970,000        $3,362        $2,128      $2,128
  Purchased call options                        152,406        27,138        24,161      24,161
  Total                                      $1,122,406       $30,500       $26,289     $26,289

Liabilities:
  Written call options                         $157,951        $9,333       $10,394          $-

                                                                      1994         

                                              Notional                                  Total  
                                            or contract      Carrying         Fair      credit 
                                               amount          value          value    exposure

Assets:
  Interest rate caps                         $1,020,000       $14,946       $24,727     $24,727
  Purchased call options                        191,496         7,770         8,886       8,886
  Total                                      $1,211,496       $22,716       $33,613     $33,613

Liabilities:
  Written call options                         $189,443        $2,070        $1,779          $-
</TABLE>

The fair values of derivative financial instruments are based on
market values, dealer quotes or pricing models.  The interest rate
caps expire on various dates from 1996 to 1997.  The options expire
in 1996.

Interest rate caps and options are used to manage IDSC's exposure
to rising interest rates. These instruments are used primarily to
protect the margin between the interest rate earned on investments
and the interest rate accrued to related investment certificate
holders.

The interest rate caps are quarterly reset caps and IDSC earns
interest on the notional amount to the extent the London Interbank
Offering Rate exceeds the reference rates specified in the cap
agreements.  These reference rates range from 4% to 9%.  The cost
of these caps of $3,362 at Dec. 31, 1995 is being amortized over
the terms of the agreements on a straight line basis and is
included in other qualified assets.  The amortization, net of any
interest earned, is included in investment expenses.

IDSC offers a series of certificates which pay interest based upon
the relative change in a major stock market index between the
beginning and end of the certificates' term.  The certificate
holders have the option of participating in the full amount of
increase in the index during the term (subject to a specified
maximum) or a lesser percentage of the increase plus a guaranteed
minimum rate of interest.  As a means of hedging its obligations
under the provisions of these certificates, IDSC purchases and
writes call options on the major market index.  The options are
cash settlement options, that is, there is no underlying security
to deliver at the time the contract is closed out.

<PAGE>
PAGE 60

The option contracts are less than one year in term.  The premiums
paid or received on these index options are reported in other
qualified assets or other liabilities, as appropriate, and are
amortized into investment expenses over the life of the option. 
The intrinsic value of these index  options is also reported in
other qualified assets or other liabilities, as appropriate.  The
unrealized gains and losses related to the changes in the intrinsic
value of these options are recognized currently in provision for
certificate reserves.  

Following is a summary of open option contracts at Dec. 31, 1995
and 1994.

<TABLE><CAPTION>
                                                              1995   

                                               Face         Average      Index at  
                                              amount     strike price  Dec. 31,1995
<S>                                         <C>               <C>            <C>
Purchased call options                      $152,406          539            616   
Written call options                         157,951          601            616   

                                                              1994   

                                               Face         Average      Index at  
                                              amount     strike price  Dec. 31,1995
                                                       
Purchased call options                      $191,496          460            459   
Written call options                         189,443          506            459   
</TABLE>                                                       

10.  Fair values of financial instruments                           

                                                       
IDSC is required to disclose fair value information for most on-
and off-balance sheet financial instruments for which it is
practical to estimate that value.  The carrying value of certain
financial instruments such as trade receivables and payables
approximates the fair value. Non-financial instruments, such as
deferred distribution fees, are excluded from required disclosure.
IDSC's off-balance sheet intangible assets, such as IDSC's name and
future earnings of the core business are also excluded.  IDSC's
management believes the value of these excluded assets is
significant.  The fair value of IDSC, therefore, cannot be
estimated by aggregating the amounts presented.

A summary of fair values of financial instruments as of Dec. 31, is
as follows:

<TABLE><CAPTION>
                                                          1995                      1994       

                                               Carrying         Fair       Carrying       Fair 
                                                value          value         value       value 
<S>                                           <C>           <C>           <C>         <C>
Financial assets
  Cash equivalents (note 1)                     $68,943       $68,943      $152,912    $152,912
  Investment securities (note 3)              3,411,396     3,456,922     2,472,467   2,479,083
  First mortgage loans on real estate (note 4)  233,394       248,860       253,968     246,917
  Derivative financial instruments (note 9)      30,500        26,289        22,716      33,613
Financial liabilities
  Certificate reserves (note 5)               3,578,412     3,614,490     2,831,236   2,820,861
  Derivative financial instruments (note 9)       9,333        10,394         2,070       1,779
</TABLE>

<PAGE>
PAGE 61
Quick telephone reference

Client Service Organization/Transaction Line
Withdrawals, transfers, inquiries

National/Minnesota:  800-437-3133
Mpls./St. Paul area: 612-671-3800

TTY Service
For the hearing impaired
800-846-4293

American Express Easy Access Line
Current rate information, account value, cash transaction
information (automated response, TouchtoneR phones only)

National/Minnesota:  800-272-4445
Mpls./St. Paul area: 612-671-1630

Distributed by American Express Financial Advisors Inc.

IDS Cash Reserve Certificate
IDS Tower 10
Minneapolis, MN  55440-0010

Distributed by 
American Express
Financial Advisors Inc.
<PAGE>
PAGE 62
IDS certificates

IDS certificates for a range of investment needs

IDSC offers the following certificates:

IDS Cash Reserve Certificate

(icon of) piggy bank

A safe, highly liquid investment for your short-term cash needs
like paying bills and meeting emergencies.  You can invest with a
single investment and make additional investments anytime you want,
or make automatic monthly investments of as little as $50. 
Interest rates are guaranteed by IDSC for a three-month term.  And
our interest rate tiers allow you to earn higher rates the more you
invest.

IDS Flexible Savings Certificate

(icon of) George Washington

An investment you can tailor to your own needs.  On this
certificate IDSC guarantees interest for a term of six months to
three years.  At any time, you can add to your investment, up to
25% of the initial or renewal amount, locking in your current
IDSC - guaranteed rate and protecting yourself against falling
market rates.  Larger investments may earn higher rates.  In
addition, you can withdraw up to 10% of your principal without
penalty.  And you can time this withdrawal to avoid loss of
interest.

IDS Future Value Certificate

(icon of) sunrise

Do you want a specific sum of money you can count on to meet a
future goal, like college tuition or a retirement nest egg?  You'll
know exactly how much you can expect, and when, with this
certificate.  IDSC guarantees interest for maturities of four
through 10 years.  Generally, rates will be higher than those paid
on shorter-term certificates.  What's more, our interest rate tiers
reward you with even higher rates when you save more.

IDS Installment Certificate

(icon of) steps

A great way to build your cash reserves through affordable
systematic savings.  You can start building your cash reserves
right away with regular investments of as little as $50 per month. 
It offers highly competitive yields and a bonus for regular savings
which can give a substantial boost to your total return.  IDSC
guarantees a specific interest rate for every three months you hold
your certificate.

<PAGE>
PAGE 63
IDS Stock Market Certificate

(icon of) building

The security of IDSC's guarantee that it will repay your principal
plus stock market returns is a combination that's hard to beat. 
It's available through this single payment certificate that lets
you share in the growth of U.S. industry without risking your money
in a volatile market.  The certificate guarantees return of your
principal but links your return to stock market performance, as
measured by a broad market index.  You decide whether part of your
return will be guaranteed by IDSC or whether all of it will be tied
to the market.

For more complete information including fees and expenses, contact
your American Express financial advisor for a prospectus.  Read it
carefully before you invest or send money.<PAGE>
PAGE 64

THIS PAGE INTENTIONALLY LEFT BLANK
<PAGE>
PAGE 65

THIS PAGE INTENTIONALLY LEFT BLANK
<PAGE>
PAGE 66

THIS PAGE INTENTIONALLY LEFT BLANK
<PAGE>
PAGE 67
Quick telephone reference

Client Service Organization/Transaction Line
Withdrawals, transfers, inquiries

National/Minnesota:  800-437-3133
Mpls./St. Paul area: 612-671-3800

TTY Service
For the hearing impaired
800-846-4293

American Express Easy Access Line
Current rate information, account value, cash transaction
information (automated response, TouchtoneR phones only)

National/Minnesota:  800-272-4445
Mpls./St. Paul area: 612-671-1630

AMERICAN EXPRESS 
Financial Advisors

IDS Cash Reserve Certificate
IDS Tower 10
Minneapolis, MN  55440-0010



© 2022 IncJournal is not affiliated with or endorsed by the U.S. Securities and Exchange Commission