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SUPPLEMENT TO PROSPECTUS DATED AUGUST 14, 1998
SUBORDINATED NOTE INTEREST RATES
EFFECTIVE FEBRUARY 16, 1999
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BONUS INTEREST RATES
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PORTFOLIO AMOUNT (1) $5,000 - $24,999 $25,000 - $49,999 $50,000 - $99,999 Over $100,000
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INTEREST ANNUAL INTEREST ANNUAL INTEREST ANNUAL INTEREST ANNUAL
NOTE RATE % YIELD % RATE % YIELD % RATE % YIELD % RATE % YIELD %
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
365-Day Extendible (2) 9.75 9.75 10.00 10.00 10.25 10.25 10.50 10.50
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One Year Fixed-Term (2) 9.75 9.75 10.00 10.00 10.25 10.25 10.50 10.50
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Two Year Fixed-Term (3) 10.60 11.03 10.85 11.30 11.10 11.57 11.35 11.84
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These interest rates are only applicable to Notes with the listed maturities and principal amounts
of $5,000 or more that are purchased on or before March 15, 1999.
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</TABLE>
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<CAPTION>
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STANDARD INTEREST RATES
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PORTFOLIO AMOUNT (1) $1,000 - $24,999 $25,000 - $49,999 $50,000 - $99,999 Over $100,000
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INTEREST ANNUAL INTEREST ANNUAL INTEREST ANNUAL INTEREST ANNUAL
NOTE RATE % YIELD % RATE % YIELD % RATE % YIELD % RATE % YIELD %
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
365-Day Extendible (2) 9.50 9.50 9.75 9.75 10.00 10.00 10.25 10.25
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One Year Fixed-Term (2) 9.50 9.50 9.75 9.75 10.00 10.00 10.25 10.25
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Two Year Fixed-Term (3) 10.35 10.76 10.60 11.03 10.85 11.30 11.10 11.57
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These interest rates are only applicable to Notes with the listed maturities and principal amounts
of less than $5,000 that are purchased on or before March 15, 1999.
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(1) The portfolio amount used to determine the applicable interest rate is
calculated at the time a Note is purchased by aggregating the principal
amounts of all Notes owned at that time by the investor and the investor's
immediate family members. Immediate family members are considered to
be parents, children, siblings, grandparents and grandchildren. Members
of sibling families are also considered immediate family members if both
siblings are investors.
(2) Earns simple interest, which results in the Interest Rate and the Annual
Yield being equal during the initial term.
(3) Interest compounds quarterly. The Annual Yield calculation assumes that
accrued interest is paid annually.
The interest rates that are applicable to all other Notes are listed in
the Supplement effective January 3, 1999.
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IMPORTANT REMINDER...
YOU MUST RESPOND BY MARCH 15, 1999, TO QUALIFY FOR
THE .25% INTEREST RATE BONUS DESCRIBED INSIDE.
[LOGO]
ARCADIA FINANCIAL LTD
(612) 903-7829 * (800) 943-6843
[LOGO]
ARCADIA FINANCIAL LTD
INTEREST RATE SCHEDULE
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Includes Interest Rate Bonus Available through March 15, 1999
