Time Deposit Program

Time Deposit Program

Program Highlights:

Requirements

  • Community Reinvestment Act (CRA) rating of “Satisfactory” or better
  • Creditworthiness evaluation including average or better rating by a recognized rating service1
  • Collateral - at least 110% of total funds on deposit

How does it work?

  • Initial deposit typically placed with 3-month term
  • Rates set and communicated by telephone two days before funds wired
    • Rates based on treasury bill + spread
    • Spread determined by financial institution’s rating
    • Spreads can vary
    • Quarterly interest payments
    • ACH or wire transfers available
  • Option to renew deposits at maturity for 3 or 6-month terms

Common Types of Acceptable Collateral

  • Letters of Credit issued by the Federal Home Loan Bank of San Francisco with the State Treasurer listed as the beneficiary
  • Bonds, notes, or other obligations of the United States

For a complete list of collateral options, please refer to Government Code Sections 16522 and 16612.


1 The State Treasurer’s Office utilizes SNL Financial, Kroll Bond Rating Agency, and Bank Rate