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Yankee CD

Source: Investopedia
This Article has been Edited for Accessibility

Yankee CD

What is '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.

Explaining '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.


Additional Resources

  1. Presentation: The Capital Markets [warrington.ufl.edu]
  2. Understanding Digital Markets [ebusiness.mit.edu]
  3. Basic Business Dictionaries Compared [rucore.libraries.rutgers.edu]
  4. Quiz 2: Corporate Finance [stern.nyu.edu]
  5. 12 [lts.library.cornell.edu]
  6. Econ 600 – Economics Of Organizations And Management [www3.nd.edu]