State Treasury Invests in Iowa's Economy
February 26, 2015
DES MOINES, IA - State Treasurer Michael L. Fitzgerald announced that, as a result of Tuesday’s online auction, $26.8 million will be deposited in nineteen financial institutions across the state. The state will receive an average rate of return of 0.38% on these one-year certificates of deposit. “We use online auctions to offer deposits of state dollars to Iowa financial institutions. This allows the state to earn a competitive return on its funds while providing local financial institutions with money they need to keep the economy moving,” Fitzgerald said.
Fitzgerald created the Invest in Iowa program in 1983 as a way to deposit state funds in Iowa financial institutions. The financial institutions hold the funds as CDs and use the money to make loans. The CDs offered quarterly must be held for a six-month term, while those offered biannually must be held for a one-year term.
“Demand for funds has been great this year,” Fitzgerald stated. “This is a reflection of the current market. I am glad this program is available to help stimulate lending around 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 14, 2015 at 10 a.m. and will offer sixth-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.