DES MOINES, IA (10/15/2015)(readMedia)-- State Treasurer Michael L. Fitzgerald announced that, as a result of Tuesday's online auction, $100 million will be deposited in 42 banks across the state. The state will receive an average rate of return of 0.31% on these six-month certificates of deposit. "This was our last auction for 2015," Fitzgerald said. "I am looking forward to what next year will bring!"
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 $332 million invested in Iowa banks.
"We have seen a growing demand for this program over the last few years," Fitzgerald stated. "This allows us to increase the amount of funds available for bidding. I am glad this program continues to help facilitate lending around the state."
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 January 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.
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