Local governments may invest their excess funds in certificates of deposit with maturities from seven days to several years, depending upon their cash flow needs. the interest on certificates of deposit is calculated on an actual 360-day basis and payable at maturity. Government Banking customers can open certificates of deposit by phone or by visiting a local NBT Bank office.
Rates quoted on Government CDs are subject to change throughout each day, based on market conditions and collateral availability. Once a CD is opened, the rate is fixed until the CD matures. At maturity, a CD can be either credited to the customer's account or held pending the customer's instructions.