What are the advantages of accessing an LGIP?

Public Unit Deposits, via an LGIP, offer the following advantages:

  • Convenient, cost-effective access to a previously untapped source of public unit deposits that serve as a compliment to FHLB Des Moines advances
  • LGIP deposits are fixed maturities and not transactional resulting in a more stable, less volatile and less rate sensitive source of funds
  • LGIP deposits eliminate the seasonal fluctuations typically found in other PUDs
  • Direct placement allows banks to avoid DTC clearing for certificates of deposit
  • Diversifies a financial institution’s mix of funding and liquidity
  • LGIP telephonic access and the FHLB Des Moines Money Desk make it convenient and easy to access funds  
  • Using FHLB Des Moines Letters of Credit in lieu of securities as collateral provides flexibility in the management of a member bank’s investment portfolio