DES MOINES – State Treasurer Roby Smith announced that, as a result of his January 10th Invest in Iowa auction, $72 million will be deposited in 15 financial institutions across the state with Iowa earning an average rate of return of 4.77% on these six-month certificates of deposit (CDs). “This auction is great for Iowa and for our financial institutions,” Treasurer Smith said. “We are depositing the funds in local institutions to ensure they have the money they need to invest in their local economy while maximizing the return on investment of Iowa taxpayer dollars. Iowa will earn $1.7 million in interest from this auction.”
The Invest in Iowa program offers deposits of State dollars to financial institutions to get low-cost funds into Iowa communities. Using an online auction process, approved Iowa financial institutions can place electronic bids on available funds. The financial institutions then hold the funds as CDs and use the money to make loans.
“I’m thrilled about the results of the first auction of the year,” Smith added. “Demand for the funds was great, which is a reflection of the current market. We offer auctions six-times a year, and I am excited to continue to grow the program.”
Invest in Iowa quarterly auctions are held on the second Tuesday of January, April, July and October and offer six-month CDs. Additional auctions offering one-year CDs occur in February and August with the next auction February 21, 2023. For more information on the auction or to register as a participating financial institution, visit BidIowa.com.