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Local bank pitches STIP-matching savings, laddered CDs and expanded FDIC coverage to Daniels County commissioners
Summary
At their Oct. 20 meeting, Daniels County commissioners heard a presentation from local bank representatives on options to reinvest county funds, including a STIP-matching savings product, laddered CDs and an ICS/Intrify reciprocal network to raise FDIC coverage while keeping deposits local.
At the Oct. 20 meeting, county officials met with representatives from a local bank to review options for reinvesting Daniels County funds. Bank representatives Michelle and Joanna outlined three main approaches: a variable savings product that would "essentially match STIP," laddered certificates of deposit and a reciprocal network (referred to in the presentation as Intrify/ICS) that would spread deposits across institutions to extend FDIC protection.
Michelle told commissioners STIP yields had been "4.44" in September and were averaging about "4.3" so far in October, and she cautioned that STIP remains a strong baseline for short-term yield. She said a bank-matched savings product would adjust monthly to track STIP while remaining a liquid, variable-rate account. The bank also described a program that can allow FDIC coverage up to about $150 million by placing funds through a network of participating banks while the county keeps an account with the presenting bank.
Commissioners and staff discussed whether to pursue laddered CDs for longer-term yield. The bank noted limits on how much can be placed in specific term windows (for example, weekly placement maximums for certain multi-year terms), and it offered example structures and an illustration for a $1 million or $3 million placement so the commissioners could see potential interest income. The representatives said a one-year CD rate they were offering was approximately "5.11" at the time of the meeting and that six- and 12-month products were also in the market.
The bank agreed to prepare written proposals and separate illustrative materials for the county and for the county school accounts, and staff asked for documentation the board could take to their auditors. Joanna offered to produce two short proposals and sample income figures; commissioners said they would review those in a future meeting.
Next steps: bank staff will deliver written proposals and sample calculations for commissioners and county finance staff to review.
