Receive a 2 basis point reduction when you take out a short-term A120 advance by 10:00 a.m.

Starting on September 5, 2017, the Federal Home Loan Bank of Chicago is providing a 2 basis point “Early Bird Discount” to manage your early-day funding needs. Here’s how to receive the discount:

• The Early Bird Discount applies only to fixed-rate advances with overnight to 27-day maturities (A120 advances) executed, in aggregate, on eBanking up to $200 million per member, per day. For advance transactions above this limit, members can execute the transaction by calling the Member Transaction Desk at 855-345-2244, option 1 (855-FHLB-CHI, option 1).
• On eBanking, the full transaction must be submitted before 10:00 a.m. to obtain the 2 bps discount.
• If calling in to the Member Transaction Desk is required for the advance (i.e. borrowing more than $200 million), requests must be received before 10:00 a.m. to get the 2 bps discount.

At 10:00 a.m. the discount no longer applies and the Daily Rate Sheet indications (or current market rate) determine the advance rate.

Be An Early Bird and Enjoy the Best Pricing Available

While we know late-day funding needs exist, A120 advance transactions completed after 3:00 p.m. will incur a minimum 2 bps increase in the rate as long as funds are available. Accessing funds after 3:00 p.m. must be done by calling the Member Transaction Desk at 855-345-2244, option 1 (855-FHLB-CHI, option 1), since eBanking closes at 3:00 p.m.; avoid the late-day funding cost by taking advantage of the new Early Bird Discount!

Getting Started

Please contact us to learn how to get set up to execute transactions through eBanking if your institution is not yet enabled to do so. For questions regarding the Early Bird Discount, please contact your Sales Director, email mtd@fhlbc.com, or call 855-345-2244, option 1 (855-FHLB-CHI, option 1).