DES MOINES, IA (02/27/2020) (readMedia)-- State Treasurer Michael Fitzgerald announces the results of his latest Invest in Iowa auction; over $74 million will be deposited in 28 financial institutions across the state from the February 18 auction. The state will receive an average rate of return of 1.65% on the one-year certificates of deposit (CDs). "With every auction, we loan funds to banks across the state," said Fitzgerald. "These banks then use those funds to make additional loans, thereby stimulating their local economies. On top of this, the state will earn over $1.2 million in interest due to the success of this auction." The February auction comes just one month after another successful six-month CD auction in January.
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 online 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.
"Invest in Iowa auctions are a great way to financially support Iowans across the entire state," Fitzgerald stated. "We currently have over $305 million invested in Iowa financial institutions. Over the last 17 years, we have earned over $44 million in interest for the state."
Invest in Iowa hosts auctions for six-month CDs on the second Tuesday of January, April, July and October. Two additional auctions offering one-year term CDs are also held throughout the year, with this February auction being the first. The next auction is scheduled for April 14, 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. Keep up with all of the treasurer's office programs on Facebook and Twitter.