Advance Renewal Discount
To better support your funding strategy and help you save on interest expense, FHLBank Boston is pleased to provide discounted rates for advances that are rolled into a new Classic Bullet Advance at maturity.
In order for the advance to qualify, the following conditions must be met on the new advance:
- Minimum of $1,000,000
- Minimum term of one year or greater
- Must be at least 50% of the maturing advance
- Must be a Classic Bullet Advance (Note: The maturing advance does not need to be a Classic Bullet.)
The discount amount below will be subtracted from the applicable posted rate.
- 50% to 124% of maturing advance
- Term of new advance 1 to 2 years: 2 basis points
- Term of new advance >2 years: 6 basis points
- 125% of maturing advance
- Term of new advance 1 to 2 years: 4 basis points
- Term of new advance >2 years: 8 basis points
For example, a member who is rolling a $10,000,000 maturity into a three-year, $13,000,000 advance will have 8 basis points subtracted from the three-year posted advance rate.
The member needs to notify FHLBank Boston by calling the Member Funding Desk at 1-800-357-3452, option 1 from 10:00 a.m. to 3:00 p.m., two business days prior to the maturity of the existing advance. Please be aware that this program is not available through Online Banking. Also, the posted rates as of the time of the notification phone call will be used (not the maturity date).