Bank CD Indexed to One-Year Treasury Yield
August 15, 2007
PFF Bank and Trust is offering a one year CD in which the rate is indexed to the 1-year Treasury yield + 15 basis points. This CD allows additions at anytime of $500 or more without extending the maturity term. The minimum deposit to open the CD is $1,000.00.
When factoring in the broker commissions paid on a 1-year Treasury Bill and the 15 basis points added on the CD, then the PFF bank and Trust Variable CD could earn between $200 and $300 more per year on a $100,000.00 than an investor would earn by purchasing the one year Treasury Bill.
