Fed Funds & EBA Accounts
Bankers’ Bank of Kansas maintains a Fed Funds Pool whereby we act as your agent and place your bank’s overnight funds with highly rated upstream banks throughout the country. Distributing your funds among a number of banks in the Pool helps lessen your risk of undue concentration of funds, while providing a very competitive return.
- Funds may be invested in increments of as little as $1,000.
- Customers investing more than $5 million receive an additional margin above the standard agent rate.
- Interest is credited to accounts daily.
- Your bank has access to the Excess Balance Account (EBA) maintained with the Federal Reserve, giving you added safety for overnight investments.
- A list of upstream banks is monitored closely and reported to you quarterly.
Agent Federal Funds Sales/Purchases
Bankers’ Bank of Kansas will also sell funds downstream, either secured or unsecured, to assist your bank with its cash management needs. These funds will be sold on an “as available” basis. Unsecured limits are based on bank ratings and are determined quarterly. Secured funding is sold at a lower borrowing rate to those banks pledging qualified securities.