Product Brochures - Federal Home Loan Bank of Des Moines

Short-term Fixed-Rate AdvancesPRODUCTOverviewAdvance TypeShort-termFunds AvailabilitySame dayTerm LimitationsThree business daysto less than one yearMinimumRequirement$100,000Interest BillingAt maturity or endof monthShort-term Fixed-Rate Advances can be used to supplement retail deposits and manage interestrate risk. Members are able to obtain same day funding with terms of three business days toless than one year.FEATURES• Fixed rate during term• Interest is due at maturity with term to maturity of three business days to six months• Interest is due at the end of the month with term to maturity greater than six months• Subject to prepayment fee if repaid prior to maturity dateExampleServing a community with a strong economy, a member was experiencing increasing commercialand mortgage loan demand while its deposit base was growing at a much slower pace. To ensurethey could readily meet loan demand, the member obtained three-month, Short-term Fixed-RateAdvances. While they restructured their deposit mix in an effort to attract new funds, the advancesallowed the member to fund loans until deposits reached the desired levels.Another member used FHLB Des Moines to manage their cash position and generally had fundsborrowed over quarter ends and settlement days. To lower their funding costs when OvernightAdvances were expensive, the member rolled their Overnight Advance into a Short-term Fixed-RateAdvance and then rolled back into the Overnight Advance when rates declined.Certain restrictions apply. Please reference the Bank’s Member Products Policy and Collateral Procedures.Available for CIANoRates Variable/FixedFixedQUESTIONSPlease call the MoneyDesk at 800.544.3452,ext. 1013 or emailmoneydesk@fhlbdm.com6/1/12