Keeping the Economy Moving; State Treasury Offers Six Month Deposits to Iowa’s Financial Institutions
July 23, 2020
DES MOINES, IA -- State Treasurer Michael Fitzgerald announces the results of his most recent Invest in Iowa online auction; $26 million will be deposited in 12 financial institutions across the state from the July 14 auction. The State of Iowa will receive an average rate of return of .35% on these six-month certificates of deposit (CDs). “We offer quarterly six-month term CDs auctions that allow the State to earn a return on the funds while ensuring local bankers have the money they need to keep the economy moving,” Fitzgerald said. “I know many businesses’ budgets have been impacted during this pandemic. These auctions can help get money back into Iowa’s local communities across the state.”
Fitzgerald created the Invest in Iowa program in 1983 as a way to deposit State funds in Iowa financial institutions. The Treasurer’s Office uses an auction format offering deposits to Iowa financial institutions six times a year, which allows the State to earn a competitive return on the funds while ensuring local institutions hold the funds as CDs and use the money to make loans.
“The online process ensures fairness while improving competitiveness in the placement of funds in Iowa financial institutions,” added Fitzgerald. “Over the past 18 years, we have earned over $44 million in interest through the Invest in Iowa program for the State.”
Invest in Iowa hosts auctions for six-month CDs on the second Tuesday of January, April, July and October. Two additional auctions offering one-year term CDs are also held throughout the year. The next auction is scheduled for Tuesday, August 18, at 10 a.m. and will offer one-year term CDs. Each auction has an established minimum interest rate and a minimum bid. To learn more about the Invest in Iowa program, visit IowaTreasurer.gov, select “Invest in Iowa” under the “For Businesses” tab. Keep up with all of Treasurer Fitzgerald’s programs on Facebook and Twitter.