DES MOINES – State Treasurer Roby Smith announced the result of Invest in Iowa’s April 11 auction. Across 25 financial institutions from around the state, $100 million will be deposited as six-month certificates of deposit (CDs), earning the state an average rate of return of 4.89%. “The success of the most recent online auction for Invest in Iowa was incredible! With the average bid rate of 4.89%, the State will net more than $2.4 million in interest, the second highest amount in the program’s history,” said Smith.
Invest in Iowa 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.
“These auctions are vital for our state,” continued Smith. “Participating financial institutions are able to secure this money to lend to local businesses and individuals, putting additional dollars into local economies while maximizing the return on investment of Iowa taxpayer dollars.”
Invest in Iowa’s 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. For more information on the auction or to register as a participating financial institution, visit BidIowa.com.
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