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Local bank pitches CD laddering, IntraFi/ICS and sweep accounts as ways to boost county returns
Summary
A bank representative explained options for reinvesting Daniels County public funds — including reciprocal CDs through IntraFi/ICS, laddered CDs and sweep accounts tied to STIP — and said the bank would provide written proposals and rate examples for the commission to consider.
Daniels County commissioners spent part of Tuesday’s meeting hearing a local bank’s proposal for reinvesting county funds in ways that aim to keep deposits local while improving returns and FDIC coverage.
A bank representative (speaker 9) described three main options: laddered certificates of deposit, a reciprocal network program (IntraFi/ICS) that expands FDIC coverage across participating banks, and sweep or savings products that can be adjusted monthly to track STIP. The presenter said some CD placements have weekly limits in the network (for example, $500,000 per week for certain terms) and that the bank can offer a portal for county staff to review where funds sit.
Why it matters: the county holds public operating and restricted funds that may earn more if deployed into a mix of short‑to‑midterm products; commissioners said they want to balance yield, liquidity and the county’s preference to keep funds local.
The bank’s ballpark figures included an estimate of about 3.85% for a one‑year CD from the presenting institution; another attendee noted a separate offer of 5.11% for a one‑year CD from a different institution. The bank representative stressed that STIP currently provides a strong short‑term return and that reciprocal products are variable and may not lock in a long term rate.
Commissioners asked for written comparisons and asked the bank to prepare sample proposals (for example, showing income on $1 million or $3 million placed into different structures). The presenter said he would provide materials and work with county staff (Joanna/Colleen were mentioned as county contacts) to show specific scenarios.
No formal decision was made; the county will review written proposals and rate comparisons before moving funds or changing its current arrangements.
Next steps: the bank will send term sheets and examples for the county to review, and county staff will share account statements if the bank needs them for a detailed comparison.
