State Treasury Invests in Iowa's Economy
August 21, 2015
State Treasurer Michael L. Fitzgerald announced that, as a result of Tuesday’s online auction, $100 million will be deposited in 37 banks across the state. The state will receive an average rate of return of 0.57% on these one-year certificates of deposit. “This was another successful auction this year,” Fitzgerald said. “This program is a great win-win-win for the State, financial institutions and Iowans.”
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 banks six times a year, which allows the state to earn a competitive return on the funds while ensuring local banks 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. Currently the Invest in Iowa program has over $367 million invested in Iowa banks.
“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 facilitate 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 October 14, 2015 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.