Changes to the Missouri State Treasurer's Time Deposits

INVEST IN MISSOURI puts more in Missouri communities

The State Treasurer'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 the State Treasurer 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, the State Treasurer is beginning to put more money in community banks, allowing for job creation and community investment.

Missouri Time Deposit Enhancements --
Effective January 1, 2010
Year Old Law New Law
2010

Interest rate capped at U.S. Treasury Yield -- disincentive for state to place deposits.

First $7 million in deposits at each bank capped -- amount above is uncapped.
2011 First $5 million in deposits at each bank capped -- amount above is uncapped.
2012 First $3 million in deposits at each bank capped -- amount above is uncapped.
2013 First $1 million in deposits at each bank capped -- amount above is uncapped.
2014 No Cap