Advance Discounts

Take advantage of special pricing on select advances that help you lower your cost of funds and optimize your balance sheet. Our advance discounts offer flexible structures, competitive rates, and enhanced member benefits.

Term Advance Special Discounts

Take advantage of our extended 5 bps long‑term advance discount program, designed to help members lock in attractive funding opportunities. Choose from four specials, add the symmetrical prepay feature to capture potential gains if rates rise, and even structure fixed‑rate and amortizing advances as forward‑starting to secure today’s pricing without immediate funding.

Universal Terms

  • All advances must be fully capitalized and are not eligible for the Reduced Capitalization Advance Program (RCAP).
  • Members may execute multiple specials per day; however, individual terms apply and discounts cannot be combined.
  • Daily maximum of $50 million principal value, inclusive of all four specials.
  • Discounts are available through March 31, 2026.
  • Terms and conditions are subject to change.
To execute, please call 855.345.2244, option 1. Advances executed on eBanking are not eligible for pricing discounts.

 

Applies to any callable fixed-rate advance (A122) with the following conditions:

  • The principal value of each advance must be at least $5,000,000 or greater.
  • The maturity date of each advance must be at least two years or greater than the settlement date, and cannot exceed five years from the settlement date.
  • The first call date must be at least one year or greater than the settlement date.
  • Members may forward start the advance, but the settlement date cannot exceed one year from the execution date.

All advances must be fully capitalized and are not eligible for the Reduced Capitalization Advance Program (RCAP).

Applies to any fixed-rate fixed-term advance (A121) with the following conditions:

  • The principal value must be at least $1,000,000 or greater.
  • The maturity date must be at least six months or greater than the settlement date and cannot exceed 10 years from the settlement date.
  • Members may forward start the advance with a one-year term or longer, but the settlement date cannot exceed one year from the execution date.

All advances must be fully capitalized and are not eligible for the Reduced Capitalization Advance Program (RCAP).

Applies to any individual fixed-rate amortizing advance (A290) with the following conditions:

  • The principal value must be at least $1,000,000 or greater.
  • The maturity and amortization date must be at least five years or greater than the settlement date, and cannot exceed 20 years from the settlement date.
  • Members may forward start the advance, but the settlement date cannot exceed one year from the execution date.

All advances must be fully capitalized and are not eligible for the Reduced Capitalization Advance Program (RCAP).

Applies to any SOFR Floater advance (A300) with the following conditions:

  • The principal value must be at least $1,000,000 or greater.
  • The maturity date must be at least six months or greater than the settlement date and cannot exceed 10 years from the settlement date.
  • Members may forward start the advance up to 6 months from the execution date.

All advances must be fully capitalized and are not eligible for the Reduced Capitalization Advance Program (RCAP).

Early Bird Discounts

Members can receive an early bird pricing discount of 2 basis points (bps) off regular advance rates for eligible advances executed before 10 a.m. An additional 1–2 bps volume discount may be available for advance amounts over $100 million. Eligible products include:

  • Short Term Advance (A120)
  • Fixed Rate, Fixed Term Advances with 1- and 3‑month maturities (A121)

Note that early bird discounts cannot be combined with any other discounts. 

Top Member Strategies That Benefit From Our Advance Specials

Discounted advances paired with a lower all-in cost driven by the Dividend Effect making them one of the cheapest term wholesale funding options—even as other sources grow more expensive across the curve. Members may find strong value in longer term advances, especially when pairing them with various strategies outlined below. 

Add Call Protection to Hedge Mortgage Portfolios

The fixed-rate callable advances structure gives members the option to cancel an advance. This is an excellent tool to hedge prepay risk inherent in residential mortgage assets. Callable advances are available with both Bermudan (quarterly, semi-annual, annual) and European (single date) option structures.

Investment Leverage

Match funding long-term fixed-rate securities such as mortgage-backed securities (MBS), commercial mortgage-backed securities (CMBS), municipal bonds, and corporate bonds is a popular strategy. You may take our fixed-rate advance, swap it to floating, and match fund floating rate securities such as collateralized loan obligations (CLOs), collateralized mortgage obligations (CMOs), and FFELP Student Loans. The matched cash flows under this special help generate locked-in spread income to support net interest margin (NIM), enabling you to hedge interest rate risk and benefit from asset duration.

CRE and Multi-Family Loan Leverage

Members can actively utilize advances under these specials to fund long-term prepay protected commercial real estate (CRE) and multi-family loans. Safeguard your liquidity for the life of the loans through amortizing or fixed-rate advances with the specials to capture a stable NIM.

Forward Start Advances to Roll Upcoming Maturities

Capture today’s rates for tomorrow’s needs. Use these specials to forward start an advance on the date of an upcoming funding maturity and ensure liquidity for the future.

Extend Liability Duration to Help with ALM

Execute longer-term advances under these specials to increase liability duration. Members can take advantage of the funding specials to create a more asset sensitive balance sheet. Let us help you meet your asset liability management (ALM) goals.

 

Disclaimer

The Federal Home Loan Bank of Chicago (FHLBank Chicago) makes no representations or warranties (express or implied) about the accuracy, currency, completeness, or suitability of any information provided on this page. The data and valuations provided on this page are for information purposes only and are provided as an accommodation and without charge. The information provided on this page is not intended to constitute legal, accounting, investment or financial advice or solicitation, or the rendering of legal, accounting, consulting, or other professional services of any kind. You should consult with your accountants, counsel, financial representatives, consultants and/or other advisors regarding the extent this information may be useful to you and with respect to any legal, tax, business and/or financial matters or questions. The information provided on this page may contain forward-looking statements which are based upon the FHLBank Chicago’s current expectations and speak only as of the date(s) thereof. These forward-looking statements involve risks and uncertainties including, but not limited to, the risk factors set forth in the FHLBank Chicago’s periodic filings with the Securities and Exchange Commission, which are available on its website at www.fhlbc.com. This page may provide relevant links to other outside web sites unrelated to FHLBank Chicago. FHLBank Chicago is not responsible for such linked sites nor the content of any of the linked sites. You understand that when going to a third-party web site, that site is governed by the third party’s privacy policy and terms of use, and the third party is solely responsible for the content and offerings presented on its website.

In addition, certain information provided on this page speaks only as of the particular date or dates included, and the information may have become out of date. FHLBank Chicago does not undertake an obligation, and disclaims any duty, to update any of the information included on this page. Because the situation relating to the LIBOR transition continues to evolve, information here may become stale at any given time.