Yankee CDs are a savings tool designed for large investors.
They are issued by foreign banks seeking to attract capital from American depositors.
Yankee deposits have shorter maturities than regular CDs, often less than one year. During this period, customers may not be able to withdraw their funds without severe early withdrawal penalties.
The highest paying certificates of deposit (CD) pay higher interest rates than the best savings and money market accounts in exchange for keeping the funds on deposit for a fixed period of time.
A certificate of deposit with a variable interest rate (CD) is a financial instrument with a fixed term and a floating interest rate, which depends on many factors, from the base rate to the consumer price index (CPI) and market indices.
The 3-6-3 rule is a slang term for an informal practice in banking, especially in the 1950s, 1960s and 1970s, that was the result of the industry’s uncompetitive and simplistic conditions.
The account balance represents the available funds or present value of an account of a particular financial account, such as a checking, savings or investment account.
The annual equivalent rate (AER) is the actual interest rate on investments, loans or savings accounts that can be obtained after compounding interest.
The bank reconciliation report summarizes the banking and commercial activities by reconciling the organization’s bank account with its financial statements.