November 19, 2015

Federal Reserve announces TDF test operation

For release at 10:00 a.m. EST

The Federal Reserve plans to continue its previously announced periodic testing of the Term Deposit Facility (TDF) with one operation in December. These test operations are aimed at ensuring the operational readiness of the TDF and providing eligible institutions with an opportunity to maintain familiarity with term deposit procedures. TDF test operations are a matter of prudent planning and have no implications for the near-term conduct of monetary policy.

One operation will be conducted on December 3, 2015, for seven-day term deposits. The operation will offer floating-rate term deposits with the maximum individual award amount set at $5 billion, and the rate set equal to the sum of the interest rate on excess reserves (currently 25 basis points) plus a fixed spread of 1 basis point. Term deposits offered in the operation will include an early withdrawal feature and settle on the same day the operation is executed. Complete details will be announced on the day prior to the operation on the Board's website. The schedule and terms for future test operations will be announced at later dates.

Additional information, including the steps that institutions must complete to be eligible to participate in term deposit operations are available at .

For media inquiries, call 202-452-2955.

Last Update: November 19, 2015