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Term Deposit Facility Resource Center

The Term Deposit Facility is a program through which the Federal Reserve Banks offer interest-bearing term deposits to eligible institutions. A term deposit is a deposit with a specific maturity date. The Term Deposit Facility was established to facilitate the conduct of monetary policy by providing a tool that may be used to manage the aggregate quantity of reserve balances held by depository institutions. An increase in term deposits outstanding drains reserve balances because funds to pay for them are removed from the accounts of participating institutions for the life of the term deposit.

Operation Results

Recent operation results may be found on the Board of Governors' website (Off-site Link).

An archive of previous operation results may be found on the Board of Governors' website (Off-site Link).

Term Deposit Facility Operations

Term deposits may be awarded through a competitive single-price auction format with a non-competitive bidding option, a fixed-rate format at the interest rate specified in advance, or a floating-rate format. The interest rate paid on term deposits awarded through a floating-rate format will be the operation effective interest rate, which is determined by the average of the daily effective rates over the term of the instrument. The daily effective rate is the sum of the value of the reference rate for that day and the spread rate for the operation.

Term Deposit Facility Overview (PDF)

Please refer to the Board of Governors' website (Off-site Link) for all press releases related to the Term Deposit Facility.

To receive notices of upcoming Term Deposit Facility operations and summary results, please complete the Email Notification form (Off-site Link). Please note that credentialed Term Deposit Facility participants will automatically receive all email notifications.

Term Deposit Facility Application

Click the button below to access the Term Deposit Facility application.

Term Deposit Facility Logon

The following materials have been prepared to help familiarize participants with auction operations, fixed-rate operations and floating-rate operations under the Term Deposit Facility:

Term Deposit Facility Setup

Any institution eligible to receive interest on balances held at a Federal Reserve Bank can participate in the Term Deposit Facility upon the approval of its Reserve Bank. To participate, eligible institutions must complete the steps outlined on the Term Deposit Facility Setup page. The typical time from submission of the necessary forms, requests and agreements to being ready to participate is between 7 and 10 business days provided that all required materials are complete and accurate. Errors or omissions can delay the process.

Questions?

Please contact your Term Deposit Facility District Contact with questions about the Term Deposit Facility. For technical assistance with the Term Deposit Facility application, contact the Federal Reserve’s Customer Contact Center.

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