Changes to Treasurer Zweifel's Time Deposits
INVEST IN MISSOURI puts more in Missouri communities
State Treasurer Zweifel's
INVEST
IN MISSOURI will
dramatically increase investment in communities through increased deposits with banks, thereby
providing millions of dollars of additional liquidity for community reinvestment and job creation.
Previous state law provided a disincentive for Treasurer Zweifel to place deposits with Missouri community banks by artificially capping the rate he
could receive when he invested taxpayer dollars. Time Deposits had been tied to the return of U.S. Treasury securities maturing over a similar period.
That yield had been as low as 0.20 percent. INVEST
IN MISSOURI has begun to phase out the restrictive cap, allowing the state to receive a yield closer
to the rates offered by banks to an individual, business, or any other government entity in Missouri.
This cap was costing Missouri taxpayers an estimated $10 to $15 million per year. By removing the cap, Treasurer Zweifel is beginning to put more money
in community banks, allowing for job creation and community investment.
Missouri Time Deposit Enhancements --
Effective January 1, 2010
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Year
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Old Law
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New Law
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2010
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Interest rate capped at U.S. Treasury Yield -- disincentive for state to place deposits.
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First $7 million in deposits at each bank capped -- amount above is uncapped.
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2011
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First $5 million in deposits at each bank capped -- amount above is uncapped.
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2012
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First $3 million in deposits at each bank capped -- amount above is uncapped.
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2013
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First $1 million in deposits at each bank capped -- amount above is uncapped.
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2014
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No Cap
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