DES MOINES, IA (08/19/2014)(readMedia)-- State Treasurer Michael L. Fitzgerald announced that Tuesday's Invest in Iowa online auction was one of the most successful to date. All thirty-six of Iowa's participating financial institutions received money, winning a total of $73.8 million. The state will receive an average rate of return of 0.30% on the invested funds. "We offer quarterly six-month term certificates of deposit (CDs) auctions which allow the state to earn a return on the funds while ensuring local bankers have the money they need to keep the economy moving," Treasurer Fitzgerald said. "In response to growing interest in this program, we decided to offer two one-year term certificates of deposit (CDs) and today we saw great results."
Fitzgerald created the Invest in Iowa program in 1983 as a way to invest state funds in Iowa financial institutions at competitive rates. The financial institutions hold the funds as CDs. The CDs offered quarterly must be held for a six-month term, while those offered biannually must be held for a one-year term. The financial institutions use the money to make loans.
"Demand for funds was great this year," Fitzgerald stated. "This is a reflection of the current market. I am glad this program is available to help stimulate lending around the state."
The Invest in Iowa auction has been conducted online since 2002. "The online process has proven to be an efficient and effective way to invest money in Iowa," Fitzgerald stated. "It ensures fairness while improving competitiveness in the placement of funds in Iowa financial institutions."
Invest in Iowa quarterly auctions are held on the second Tuesday of January, April, July and October. The next auction is scheduled for October 14, 2014 at 10 a.m. Each auction has an established minimum interest rate and a minimum bid. To learn more about the Invest in Iowa program, visit iowatreasurer.com, select "Invest In Iowa" under the "For Businesses" tab or contact the Treasurer's office at 515-281-5368.
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