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#2112708 - 12/30/16 05:47 PM CDS over 5 years
Tabbetha, CRCM Offline
Junior Member
Joined: Feb 2009
Posts: 44
Mississippi
I've never seen a CD over 5 years at a bank. Can a bank offer a CD for longer than 5 years?

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Operations Compliance
#2112729 - 12/30/16 06:44 PM Re: CDS over 5 years Tabbetha, CRCM
BrianC Offline
Power Poster
BrianC
Joined: Nov 2004
Posts: 6,206
Illinois
There is no regulatory prohibition, but I imagine most ALCO committees do not want to absorb that much interest rate risk on the deposit portfolio.
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#2112743 - 12/30/16 07:23 PM Re: CDS over 5 years Tabbetha, CRCM
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
There are no legal term limits, only regrets expressed by some banks that did it. There have been some questions in the Guru fora regarding negative interest rates, already common in Europe. How is your bank going to look when it's paying interest and no one else is?
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#2112766 - 12/30/16 09:19 PM Re: CDS over 5 years Tabbetha, CRCM
Tabbetha, CRCM Offline
Junior Member
Joined: Feb 2009
Posts: 44
Mississippi
Pretty stupid if you ask me. Thanks for the input!

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