State Treasury Earns Highest Interest Rate in 10 years Investing in Iowa Financial Institutions
August 29, 2018
Auction brings highest average rate since 2008
DES MOINES, IA - State Treasurer Michael L. Fitzgerald announced the results of the Tuesday, August 21 online Invest in Iowa auction; $100 million will be deposited in 41 financial institutions across the state. The state will receive an average rate of return of 2.52% on these one-year certificates of deposit. “This program’s average rate of return continues to rise,” Fitzgerald said. “This is the highest rate in over a decade. The demand for the auction was strong and will boost the state’s economy but 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.
“Invest in Iowa is a win-win-win for Iowa’s financial institutions, our citizens and our state,” Fitzgerald said. “We currently have over $300 million invested in Iowa financial institutions and over the past fifteen years we have earned $34 million in interest for the state. Every auction stands as a testament to how well this program supports local institutions across 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 October 10 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.