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Time Deposit Program

 Time Deposit Program

Program Highlights:

Requirements

  • Headquartered in California
  • Community Reinvestment Act (CRA) rating of “Satisfactory” or better
  • Creditworthiness evaluation including average or better rating by a recognized rating service1
  • Collateral in accordance with the Government Code

How does it work?

  • Initial deposit typically placed with 3-month term
  • Rates set and negotiated by telephone two days before funds wired
    • Rates based on Treasury bills + 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 a Federal Home Loan Bank (FHLB) 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 Sections 16522 and 16612 in the Deposit Law.

1 The State Treasurer’s Office utilizes S&P Global Market Intelligence and Kroll Bond Rating Agency, among others.