Yankee CD
Definition of 'Yankee CD'A certificate of deposit (CD) that is issued in the United States by a branch or agency of a foreign bank. A Yankee CD is a foreign certificate of deposit denominated in U.S. dollars, issued in the U.S. to American investors. A foreign company can raise capital from U.S. investors by issuing Yankee CDs. |
|
Investopedia explains 'Yankee CD'Yankee CDs are negotiable instruments, and most have a minimum face value of $100,000, making them appropriate for large investors. Unlike traditional CDs that can be cashed before maturity for a small penalty, Yankee CDs usually cannot be cashed in prior to their date of maturity. If they are cashed in before maturity, the penalty can be substantial. Yankee CDs are usually issued in New York by foreign banks with branches in the U.S., and, in particular, New York. |
Related Definitions
Articles Of Interest
-
Getting To Know The Money Market
If you need liquidity and safety on a sum of money, don't forgo potential interest by keeping the funds as cash. -
Certificates Of Deposit
Safety is a hallmark of the traditional certificate of deposit (CD) sold by a bank or credit union. -
The Basics Of The T-Bill
The U.S. government has two primary methods of raising capital. One is by taxing individuals, businesses, trusts and estates; and the other is by issuing fixed-income securities that are backed ... -
Will 2014 Mark The Return Of The CD?
If bank rates follow the pattern that yields in the bond market have already begun to set, CD rates may be the first deposit rates to benefit from rising interest rates. -
Introduction To Commercial Paper
Commercial paper is a short-term instrument that can be a viable alternative for retail fixed-income investors looking for a better rate of return on their money. -
Analyzing The Best Retirement Plans And Investment Options
Understanding the various retirement investments - from annuities to 401(k)s and everything in between - is crucial to reaching your retirement goals. Here, we examined many of the popular investments ... -
The Cold, Hard Facts Behind Funding Your Retirement
Most people, depending on which side of retirement they’re on, feel they either won’t ever be able to retire or stay retired once they are. Many of us watched our parent’s generation put their ... -
Why Your Pension Plan Has Sovereign Debt In It
One type of security pensions tend to invest in is sovereign debt, or debt issued by a government. -
Will Obama’s Chained CPI Help Keep Inflation From Eating Into Your Savings?
Learn the ways in which inflation nibbles away at your retirement income, especially in light of the President’s proposal for Chained CPI adjustments to Social Security. -
Enough Money To Not Worry
Our retirement goals have not changed. We still want enough money to not have to worry about it. How we go about getting there, however, has been changed dramatically.
Free Annual Reports