In an effort to safely invest the state’s money, while also providing money to small towns throughout the state, we created Invest in Iowa. Started in 1983, Invest in Iowa is a way to deposit state funds in Iowa financial institutions. The treasurer’s office uses an auction format offering state deposits to Iowa financial institutions six times a year. This allows the state to earn a competitive return on the funds while ensuring local institutions 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. In 2018, the demand for money has been high.
On August 21, my office held an online Invest in Iowa auction; $100 million was deposited in 41 financial institutions across the state. The state will receive an average rate of return of 2.52% on these one-year certificates of deposit. This was the highest rate in over a decade. The demand for the auction was strong and will boost the state’s economy.
Our most recent online Invest in Iowa auction was held on October 9. $100 million was deposited in 33 financial institutions across the state. The average rate exceeded the established minimum by five basis points. The state will receive an average rate of return of 2.55% on these six-month certificates of deposit. I’m very pleased to announce this program’s average rate of return continues to rise.
We currently have over $344 million invested in Iowa financial institutions and over the past 15 years we have earned $36 million in interest for the state. Every auction stands as a testament to how well this program supports local institutions across the state.
The next auction is scheduled for January 9 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.”