The city’s Finance Department will begin to invest up to $50 million in local banks in the coming weeks through Certificates of Deposits (CDs) and other FDIC-insured deposits with an effort to distribute money to a range of local banks while ensuring the deposits are fully protected by FDIC insurance.

As a result, the $50 million in deposits with local banks will improve upon yields on current investment opportunities, while providing capital to local banks.

Local banks include Arizona chartered banks and banks with a physical presence in Maricopa County.

The finance department primarily invests in U.S. government and U.S. government-backed securities. As a result of the instability and uncertainty in global markets, investors have been fleeing to the safety of U.S. Treasury securities, pushing interest rates to historic lows, with two-year U.S. treasury notes currently yielding only 0.25 – 0.30 percent. Many local banks currently provide much higher rates on FDIC-insured CDs, making this a better investment for the city while providing funds for the local community.

The finance department will be accepting applications from local banks that have an interest in providing CDs and other FDIC-insured products to the city. Local banks can contact the city’s finance department at (602) 262-7166 for more information or to submit an application.

(1) comment

Loreen
Loreen

I hope that local banks ( after the investment of course) will have not say that they are not able to provide you with a credit because they have no money. This was their excuse. My second hope is that it is going to be way easier to be approved for
payday advance loans for an average person. It is almost impossible to get some fast cash with banks these days. So thanx to the city’s Finance Department the procedure can become way easier and much more faster when ti comes to borrowing money from you local bank

Welcome to the discussion.

Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.