COSI Index & CODI Index – What are they?
John Thomas
July 19, 2007
Tags: CODI Index, COSI Index
COSI Index & CODI Index – What are They?
COSI Index
Cost of Savings Index (COSI)
A bank receives money from consumers in the form of deposits and then lends money as home mortgages or other loans. The interest rates in effect on these deposits are the basis for the COSI index. It is not based on actual interest paid, but rather the weighted annualized average of all interest rates in effect on deposit accounts on the last day of each month.
CODI Index
Certificates of Deposit Index (CODI)
Similar to the Cost of Savings Index above, this index is based on an average of the 12 most recent monthly yields on 3-month certificates of deposit (CDs).
