State Treasury Offers One-Year Deposits to Iowa’s Financial Institutions
February 26, 2019
DES MOINES, IA - State Treasurer Michael L. Fitzgerald announced the results of the Tuesday, February 19 online Invest in Iowa auction; over $63 million will be deposited in 36 financial institutions across the state. The state will receive an average rate of return of 2.61% on these one-year certificates of deposit. “We continue to see significant interest in this program,” Fitzgerald said. “This auction was strong and will boost the state’s economy by putting money back into Iowa.”
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 state 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 have the money they need to keep the economy moving. The financial institutions hold the funds as CDs and use the money to make loans.
“Every auction stands as a testament to how well this program supports local institutions across the state,” stated Fitzgerald. “We currently have over $348 million invested in Iowa financial institutions and over the past sixteen years we have earned $39 million in interest for the state.
Invest in Iowa quarterly auctions are held on the second Tuesday of January, April, July and October. In response to growing interest in this program, two auctions offering one-year term CDs are also held throughout the year. The next auction is scheduled for April 9 at 10 a.m. and will offer six-month 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 or contact the treasurer’s office at 515-281-5368.