DES MOINES, IA (07/16/2015)(readMedia)-- State Treasurer Michael L. Fitzgerald announced that, as a result of Tuesday's online auction, $100 million will be deposited in thirty-four banks across the state. The state will receive an average rate of return of 0.23% on these six-month certificates of deposit. "This was our most successful auction to date," Fitzgerald said. "This is the largest amount we have distributed at one time through this program."
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 $262 million invested in Iowa banks
"Demand for funds has been great this year," Fitzgerald stated. "This is a reflection of the current market. I am glad this program is available 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 August 18, 2015 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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