Yankee Certificate Of Deposit - Definition

A certificate of deposit that is issued in a U.S. market by a branch of a foreign bank. Most Yankee CDs come from New York. Yankee CDs are negotiable with a minimum Face Value of $100,000. For example, let's assume Bank ABC is in Spain and issues CDs in the United States that are denominated in U.S. dollars. Bank ABC partners with an American bank to issue these Yankee CDs in the United States. In some cases, a bank issues its CDs in a number of international markets.

The key advantage of the Yankee CD is that it is low Risk. Investors are very unlikely to lose their money when it is invested in these instruments. However, the flip side of this is that it is also low Interest.



Terms near "Yankee Certificate Of Deposit"

Yankee Market
Yard
Year over year (YOY)
Year to Date (YTD)
YER
YER
Yield
Yield Curve
Yield on cost (YOC)
Yield to Call (YTC)
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