A fixed interest rate can help financial institutions meet liquidity needs, manage the balance sheet, and mitigate interest-rate risk. The Federal Home Loan Bank of Chicago offers Fixed Rate Advances in a variety of structures and terms, allowing members to tailor their mix of liabilities to fit any management strategy.
| Features | Short Term | Fixed Rate, Fixed Term | Callable Fixed Rate | Putable Fixed Rate* | Fixed Rate Amortizer |
|---|---|---|---|---|---|
| Advance Code | A120 | A121 | A122 | A123 | A290 |
| Interest Rate Type | Fixed | Fixed | Fixed | Fixed | Fixed |
| Minimum Size | $5mm | $5mm | |||
| Term | 1–27 days | 28 days– 30 years | 1–15 years | 2 days– 10 years | 1–30 years |
| Term Extension Option | |||||
| Principal Expansion Option | |||||
| FHLBank Chicago-Owned Embedded Option | Putable on specified put date(s) | ||||
| Member-Owned Embedded Option | Callable on specified call date(s) | ||||
| Principal Repayment | At maturity | At maturity | At maturity | At maturity | Defined schedule |
| Prepayment Fee | • | • | • | • | • |
| Symmetrical Prepayment Feature Availability | • | • | • | ||
| Community Advances Eligibility | • | • | • | ||
| Activity Stock | 4.5% or 2% | 4.5% or 2% | 4.5% or 2% | 4.5% or 2% | 4.5% or 2% |
| Uses | Liquidity | Laddered /barbell funding, hedge interest-rate risk | Funding, hedge prepayment risk, hedge interest-rate risk | Below-market funding | Match funding, blended funding |
Same-day funding is available for transactions initiated prior to 3 p.m. (Central Time).
*The member must review and provide acknowledgement of a disclosure statement regarding the risks associated with this advance.
For additional information on advance products and terms, please contact your Sales Director or review the Member Products Guide. Product terms above are subject to change. Other terms may be available upon request.