Product Brochures - Federal Home Loan Bank of Des Moines

Long-term Fixed-Rate AdvancesPRODUCTOverviewAdvance TypeLong-termFunds AvailabilitySame dayLong-term Fixed-Rate Advances can be used to provide liquidity to fund seasonal cash flowneeds, are a resource to reduce overall cost of funds, can be used to mitigate interest rate risk orto fund specific investment opportunities. Maturities are from one year to 20 years.FEATURES• Competitively priced alternative to retail deposit market• Community Investment Advance pricing available with approved application• Subject to prepayment fee if repaid prior to maturity dateTerm LimitationsOne year to 20 yearsMinimumRequirement$100,000Interest BillingEnd of monthAvailable for CIAYes, with approvedapplicationExampleLooking for the most efficient source of funding, amember compared the cost and characteristics oftheir traditional CD portfolio with Long-term Fixed-Rate Advances. The member found that they couldobtain fixed rate, fixed term advances at a lower costthan available from retail depositors.The member reduced rates being paid for retail CDsand funded any cash shortfalls with Long-termFixed-Rate Advances. Additionally, the member couldbegin offering the longer term loans its customersdesired since it now had access to dependable longterm funding.Rates Variable/FixedFixedCertain restrictions apply. Please reference the Bank’sMember Products Policy and Collateral Procedures.QUESTIONSPlease call the MoneyDesk at 800.544.3452,ext. 1013 or emailmoneydesk@fhlbdm.com6/1/12