DES MOINES, IA (01/24/2020) (readMedia)-- State Treasurer Michael Fitzgerald announces the results of his most recent Invest in Iowa online auction; over $71 million will be deposited in 24 financial institutions across the state as a result of the January 14 auction. The state will receive an average rate of return of 1.70% on these six-month certificates of deposit (CDs). "This program is a win-win for Iowa," said Fitzgerald. "I am thrilled we have this program available to help facilitate lending around the state."
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 financial institutions six times a year, which 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.
"Over the last 17 years, this program has deposited millions of dollars into Iowa's financial institutions," Fitzgerald stated. "This has allowed us to earn over $42 million in interest during that time. We currently have over $294 million invested in Iowa financial institutions."
Invest in Iowa quarterly auctions are held on the second Tuesday of January, April, July and October. Two additional auctions offering one-year term CDs are also held throughout the year. The next auction is scheduled for February 18, 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. Keep up with all of the treasurer's office programs on Facebook and Twitter.