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Farm Cash Management® (FCM) account
An FCM account is a convenient way to earn significant income
from cash-on-hand. It combines the high return of a short-term
investment account with the convenience of your GreenStone revolving
line-of-credit. Farms and other qualifying businesses that experience
periods when cash accumulates should find an FCM account beneficial.
Self-funding operations that maintain an open line of credit just
for emergencies or special opportunities may also find an FCM
account valuable.
Benefits of an FCM™ account
- Pays a very good interest rate for a liquid investment.
- Earnings are exempt from state and local income taxes.
- The cost of borrowing is reduced because investment earnings
both delay and reduce the need to draw on your line-of-credit.
- Provides automatic funds management for maximum convenience
and simplicity.
How an FCM™ account works
Investing in an FCM account is as simple as making a payment
on a loan. In fact, you have the same choice of methods: in person,
by mail, or electronic. Whenever a payment is greater than the
balance in your revolving line-of-credit, an FCM account automatically
invests your surplus in short-term, AgriBank Investment Bonds.
Interest accrues on these bonds daily and is added to your investment
at month’s end. You have access to your money at all times
and can draw on your investment account the same way you would
draw on your line-of-credit -- just complete a draft or transfer
funds electronically. If you draw out more funds than your investment
and earnings total, an FCM account will automatically access your
line-of-credit. This means you’ll delay incurring any interest
expense until after all your invested funds and earnings have
been used! For more information, please see our frequently
asked questions.
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About AgriBank and its Investment Bonds
(IB)
AgriBank, FCB, is a financial institution that provides various
services to GreenStone plus the funds needed to make loans. In
the same way that member-borrowers cooperatively own GreenStone,
AgriBank is owned by GreenStone and the other associations AgriBank
serves. Most of the funds AgriBank provides are obtained through
the Federal Farm Credit Banks Funding Corporation. It sells bonds
through brokers on Wall Street. But AgriBank can also issue its
own bonds and offer them to the members, employees, and retirees
of the associations it serves. Selling these bonds reduces AgriBank’s
dependence on the funding corporation and funds that are invested
in AgriBank Investment Bonds are used to fund loans made by the
associations served by AgriBank. For more information regarding
the financial status of AgriBank, click
here to view the annual report.
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About Investment Risk
AgriBank Investment Bonds are backed solely by AgriBank, FCB.
They are not insured or guaranteed by any government body or the
Farm Credit System. For information on AgriBank, FCB, its assets
and financial condition, see the latest AgriBank
Annual Report.
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About Investment Return
AgriBank Investment Bonds pay very attractive rates and the
earnings are not subject to state or local income taxes. Rates
vary with changing economic conditions.
| Current Rates |
|---|
| Rate - 0.3000% |
| APY - 0.3000% |
© 2004-2008 Greenstone Farm Credit Services.