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Daniels County hears bank pitch to boost returns while keeping funds local
Summary
Bank representatives outlined options — matching STIP on a savings account, laddered CDs, and a reciprocal ICS/Intrify program to extend FDIC coverage — and answered commissioners’ questions about liquidity, term limits and separating school funds from county accounts.
Daniels County commissioners heard a presentation Oct. 20 from local bank representatives on ways to increase interest earnings for county funds while keeping deposits and lending local.
A bank representative described three main options: a savings account that would be adjusted monthly to match the State Investment Pool (STIP) benchmark, laddered certificates of deposit for fixed terms, and an ICS/Intrify reciprocal network that spreads deposits across member banks to extend FDIC coverage. The representative said STIP averaged 4.3% in October and was 4.44% in September, and noted one‑year CD specials were being marketed by other institutions.
The presentation stressed tradeoffs between yield and liquidity. The bank representative said the Intrify/ICS arrangement ‘‘leverages FDIC coverage’’ and can allow the county to keep funds with the presenting bank while receiving insurance across many institutions. Commissioners asked whether multi‑year CDs were available, whether funds could be called early, and how much could be placed at different term lengths; the representative described weekly placement limits for multi‑year reciprocal placements and said internal CDs could be structured to limit penalties to forfeited interest rather than principal.
Commissioners also discussed keeping school funds separate. A county official said the schools ‘‘have their own’’ accounts and did not want to change them; the bank representative confirmed county and school funds would be kept separate in any proposed structure. Staff asked for written proposals and sample calculations (for example, a $1 million scenario) so the board could compare projected interest earnings across different options.
The presentation concluded with the bank offering follow‑up materials and account comparisons for the commissioners and county staff to review. No formal action was taken; staff said they would provide written proposals for board consideration at a future meeting.
