DES MOINES, IA (01/12/2017)(readMedia)-- State Treasurer Michael L. Fitzgerald announced that, as a result of Tuesday's online Invest in Iowa auction, $50 million will be deposited in 17 banks across the state. The state will receive an average rate of return of 1.06% on these six-month certificates of deposit. "Our first auction of 2017 was a success," Fitzgerald said. "Competitive bidding pushed the 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.
"Invest in Iowa is a win-win-win for Iowa's financial institutions, our citizens and our state," Fitzgerald said. "Over the last 15 years, we have earned over $24 million in interest. I am glad this program can continue to support our financial 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 February 21, 2017 at 10 a.m. and will offer one-year 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.
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