LiquidYield Deposits: Access to Liquidity with a Higher Yield
LiquidYield is a one-year term deposit that provides members with an opportunity to earn a higher yield without sacrificing access to immediate liquidity. The initial rate on the LiquidYield deposit is set above the Federal Reserve’s Interest on Excess Reserve (IOER) rate at the time the deposit is placed by 5 basis points and pays a return based upon a predetermined step-up schedule each month.
At any time during the term of the deposit, members can:
- Leverage LiquidYield as collateral for advances borrowing
- Utilize it to satisfy regulatory requirements for short-term liquidity needs
Terms
Maturity Term: 12, 18 or 24 months
Interest Rate: The initial rate and succeeding step-up rates are determined by FHLB Dallas at the time the deposit is placed. For rates, contact Member Services at 844.345.2265.
Step-up Frequency: Monthly
Initial Rate Determination: IOER plus a predetermined spread at the time the deposit is placed.
Principal and Interest Payments: Interest is credited monthly. Principal and remaining interest are paid at maturity.
Day Count: 12-month term is Actual/360. 18- and 24-month terms are 30/360
Withdrawal Policy: An early withdrawal penalty may be assessed on term deposits withdrawn before maturity. Funds will not be returned until 21 days after a request for early withdrawal.