Once we receive such notice, it cannot be cancelled. The rate of discount that we use to price a SLGS security that is redeemed before maturity is the current yield on a Treasury security with similar interest and principal payments and maturity. Thus, the early redemption price is a market price. This calculation may result in a premium or discount in the price, depending on whether the current Treasury borrowing rate is above or below the rate on the time deposit security. Zero-interest certificates are redeemed before maturity at the face amount.
Interest is added to the principal and is reinvested daily until redemption.
We publish marginal tax rate and the Treasury administrative cost factors in the Federal Register from time to time. We release the demand deposit rate as part of the daily rate table . Demand deposit securities are one-day certificates of indebtedness, which are automatically rolled over each day, unless redemption is requested.