State Treasury Offers Six Month Deposits to Iowa’s Financial Institutions in October
October 10, 2019
DES MOINES, IA - State Treasurer Michael L. Fitzgerald announced the results of his most recent Invest in Iowa online auction; $100 million will be deposited in 37 financial institutions across the state as a result of the October 8 auction. The state will receive an average rate of return of 1.80% on these six-month certificates of deposit. “The demand for money was high with the highest total amount of bids since October 2018,” Fitzgerald said. “Every auction stands as a testament to how well this program supports 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 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.
“Invest in Iowa auctions are a win-win for Iowa,” stated Fitzgerald. “We currently have over $285 million invested in Iowa financial institutions and over the past seventeen years we have earned over $43 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 January 14, 2020, 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.