DES MOINES, IA - State Treasurer Michael L. Fitzgerald announced that, as a result of Tuesday’s online Invest in Iowa auction, $41 million will be deposited in 27 banks across the state. The state will receive an average rate of return of 1.02% on these one-year certificates of deposit. “All banks that participated in this auction received funds,” Fitzgerald said. “Competitive bidding is continuing to push the average rate of return to its highest number since 2009.”
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 $291 million invested in Iowa banks.
“Over the last 14 years, this program has deposited millions of dollars in Iowa’s financial institutions,” Fitzgerald said. “This has allowed us to earn over $23 million in interest during that time. Invest in Iowa truly embodies what its name suggests: an investment in our people and in our future.”
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 12, 2016 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.