The Farm Cash Management program combines the availability of a revolving line of credit with the high return of a short-term investment account. The program saves you money by putting your funds to work where they generate the best return. Returns are far superior to the investment option of a low interest savings account.
Here's How It Works
- When you have cash available, your operating loan is paid first and excess funds are then invested in an account comprised of AgriBank investment bonds.
- These bonds pay interest at rates that are significantly higher than what can be earned on typical commercial bank accounts – like checking, savings, money markets and certificates of deposit (CDs).
- When you need cash for operating expenses, the investment account funds are used first, before advancing funds on your operating loan, helping to minimize your operating loan interest cost.
- Funds are immediately available by writing a draft on your revolving line of credit
- Funds can be transferred via the Internet or by phone
- Farm Cash Management investment funds are liquid and available at any time
- Farm Cash Management has no limits on the number of drafts that can be written or the number of electronic funds transfers that can be made.
- There are no monthly or per check fees.
- Interest earned on AgriBank investment bonds is exempt from state and local income tax, so the tax-adjusted annual yield is even higher.
Ease of Use
- Using Farm Cash Management is as simple as making a loan payment or writing a draft on your operating loan.
- Access funds, make payments, and check your balance using your myFCI online account.
- Contact your local FCI office to get started.