collars

Dear Sir I think I have got it Am I correct in saying that the collar is basically an instrument to save you cash? In other words if you are depositing want an interest rate at 5% and are not speculating, so if the interest rate goes to 6% for example you can cap collar it there and the benefit from 6 upwards goes to your buyer of the put? In other words you keep your bottom level where you need it and save cash by basically selling any benefit above your requirement?? If I am right this will be the first time I really understood these