Certificates of Deposit

Three-month time Certificates of Deposit (CDs) may be purchased by your parent firm in multiples of one hundred thousand dollars.  Purchases may be made at the beginning of any quarter.  CDs mature at the beginning of the next quarter, three months later.  Interest will be earned on deposits at the rate reported in the industry report for 3-month time CDs during the quarter in which they will be invested.  Interest (but not principal) will be credited to your account on the last day of the quarter in which the deposit is made (and thus is available to meet that quarter's expenses), with quarterly interest calculated at one-fourth of the annual rate.

IMPORTANT NOTE: While interest is credited on the last day of the quarter that the deposit is made, the funds from the deposit itself are not available until the next day—the first day of the subsequent quarter.  Thus, if your firm should need emergency cash during the quarter in which the funds are invested in CDs, the funds will not be available to meet the need.

To purchase time CDs, enter the amount of the purchase in thousands of dollars on the decision form under Time CDs.  If your firm decides to purchase $400,000 worth of CDs, for example, enter 400 on the decision form.  Do not include commas in your entry.  Repayment of the CDs, as well as crediting your account with earned interest, will be done automatically by the bank.

Limits:  0 to 9900 (in thousands of dollars), in hundred thousand dollar lots