What are the advantages of accessing an LGIP?

Public Unit Deposits, via an LGIP, offer the following advantages:

Convenient, cost-effective access to a previously untapped source of public unit deposits that serve as a compliment to FHLB Des Moines advances
LGIP deposits are fixed maturities and not transactional resulting in a more stable, less volatile and less rate sensitive source of funds
LGIP deposits eliminate the seasonal fluctuations typically found in other PUDs
Direct placement allows banks to avoid DTC clearing for certificates of deposit
Diversifies a financial institution’s mix of funding and liquidity
LGIP telephonic access and the FHLB Des Moines Money Desk make it convenient and easy to access funds
Using FHLB Des Moines Letters of Credit in lieu of securities as collateral provides flexibility in the management of a member bank’s investment portfolio