WHAT IS GOLDEN WEST FINANCIAL CORPORATION'S "COST OF SAVINGS INDEX?

Golden West Financial Corporation is the parent company of World Savings. World Savings bor-rows money from consumers in the form of deposits and then lends the money out as home mortgages.
The interest rates in effect on these deposits are the basis for the Cost of Savings Index (COSI). The COSI is not based on actual interest paid on deposit accounts, but rather on a weighted annualized rate of all interest rates in effect on deposit accounts as of the last day of each month.

WHEN IS THE INDEX ANNOUNCED?
Golden West computes the COSI as of the last day of each calendar month and announces it on or near the last business day prior to the fifteenth day of the following calendar month. For example, Golden West announces the February COSI on or near the last business day prior to the fifteenth of March. It is in effect until the announcement of the March COSI in April.

HOW IS COSI CALCULATED?
The monthly index is a ratio of monthly interest costs to total funds, expressed as a percentage. Annualized interest, the numerator, is calculated by multiplying the deposit balances at the end of
each month by the weighted average interest rate of each account type that was effective on the last
day of the month.
Total deposits, the denominator, is the total bal-ance of deposits on the last day of the month. The quotient resulting from dividing the annual-iz-ed interest by total deposits, multiplied by 100 and expressed, as a percentage, is the Weighted Average Cost of Savings (COSI) COSI Calculation

Cost of Savings Index Links

Goldenwest Financial's Calculation for the Cost of Savings Index This is the parent company for the Cost of Savings Index Mortgage.

Goldenwest Financial's Cost of Savings Index Definition This is the parent company for the Cost of Savings Index Mortgage.

For COSI program highlights, click here

Cost of Savings Index

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