Fed Funds

With CBB’s Federal Funds sales/purchase program, we accept your excess liquidity as an “agent” and then sell it to a number of highly-rated domestic financial institutions whose credit criteria we review quarterly.

We consolidate individual banks’ funds into large blocks to attract higher rates and minimize risk. And we do not burden you with wire transfer fees or long-distance telephone charges. CBB manages all allocations and accounting, and distributes your excess funds proportionately to the purchasing institutions.

We also purchase excess liquidity as “principal” on a limited basis and use these assets to fund our short-term investments.

Our Federal Funds program also gives you …

  • Competitive rates through the pooling of funds
  • There’s no charge for daily investments or returned funds
  • Concentrated credit risk is eliminated
  • There are no administrative functions
  • All of this activity is easily tracked online by CBLink

In addition, excess liquidity can be swept into the Federal Reserve Bank Excess Balance Account (EBA), a limited-purpose account for maintaining the cash balances of institutions eligible to earn interest on excess liquidity. CBB is the only bankers’ bank with an EBA serviced by the Federal Reserve Bank of Richmond.

If you designate CBB as your agent bank, your benefits will include …

  • Higher yields on overnight Fed Funds investments
  • Improved capital ratios
  • Greater risk diversification
  • Daily interest credit
  • Availability identical to all current overnight Fed Funds investments