Term Fed funds

(redirected from Term Fed Fund)

Term Fed funds

Fed funds sold for a period of time longer than overnight.

Term Fed Funds

Federal funds that a bank borrows for a period of more than one day. Generally speaking, term fed funds have a maximum maturity of 90 days. Banks borrow term fed funds when they need to borrow funds for an extended (but still short-term) period of time and wish to lock in a low interest rate.