FNC, Institutional Investment & Brokered Deposit Specialists

Brokered CDs provide an important source of cost-effective funding for qualified banks.

The cost of CD funding for qualified banks is consistently lower than the cost of deposits obtained through other sources, including listing services and the internet.

Rates Available during the Week of 1/4/10 in Various Markets

Maturity	Broker/Dealer Market¹	Internet Rates²	Rate Listing Services³
3 Months	.60	1.21	1.15
6 Months	.60	1.59	1.37
1 Year	.80	1.99	1.95
2 Years	1.75	2.25	2.25

¹Rates include fees to brokers. ²Average of the top ten internet rates per money-rates.com. ³Average of the top five national listing services; do not include fees to listing service.

Brokered CDs are stable. The broker/dealer community has developed a deep and competitive market for CDs—current outstanding issuance is over $1 trillion. Early withdrawal is limited to the death or legal incompetence of the depositor.
Brokered CDs provide an excellent opportunity to obtain the longer-term funding needed to match the maturities of assets. While 85% of bank deposit liabilities are three months or less, 45% of brokered CDs have durations of one year or more.
Brokered CDs are cost-effective. Banks can control the amount raised and the maturities. And higher denominations mean less paperwork, processing and servicing.

FNC has been an active participant in the CD market since 1985. In the last five years alone, FNC has helped institutions of all sizes raise deposits through the issuance of over $100 billion in brokered CDs.

If your bank is well capitalized, FNC can show you the many advantages of brokered deposits.

Contact FNC to learn more about how efficiently brokered CDs can help you increase deposits, minimize administrative work and maximize results without compromising local deposit structures. You can also call 800-FNC-4141 for information.