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Time Deposit Program
Program Description
The Time Deposit Program was created in 1945 by the State Bank Deposit Law of California. The program allows the State Treasurer to place deposits with eligible California financial institutions. The program assures a yield to the Pooled Money Investment Account above the Treasury bill yield and makes money available to community banks at generally better rates than they can get from other sources. All time deposits are collateralized by at least 110% of the funds on deposit.
Eligible institutions include federally-insured commercial banks, savings banks and credit unions licensed to accept deposits in the State of California. Participants also must have a Community Reinvestment Act (CRA) rating of not less than satisfactory*. This rating is based on the institution’s lending and investment practices, and the services it offers, in the community. The lending evaluation examines the institution’s activities with respect to home mortgages, and loans for small businesses, small farms, and community development, including affordable housing and not-for-profit organizations that meet low-to-moderate-income (LMI) housing needs. Investment evaluation criteria include grants to intermediaries that lend in LMI areas or to LMI individuals who promote community development, organizations that fund small business, and projects eligible for low-income housing tax credits. The service evaluation looks at the ability of the institution to meet the needs of the community through checking, savings, credit and other customary retail banking services. Reviews of applications for lines of credit, home loans, auto loans, etc. assess the banking opportunities the institution provides to applicants from various income levels and neighborhoods.
The State Treasurer places a high priority on community investment. Every effort is made to assure access to the Time Deposit Program for institutions that rely more on public and private deposits to lend and invest within their neighborhoods. By accessing funds through the Time Deposit Program, financial institutions can re-invest in the California communities they serve.
Time Deposit Program
Participation Information as of 4/30/13
| Institution Size | # of Institutions | Total Deposits |
|---|---|---|
| Total Assets | % of TD Program | % of TD Program |
| < $5 billion | 79.4% | 47.3% |
| $5-10 billion | 9.5% | 19.4% |
| $10-20 billion | 1.6% | 1.1% |
| $20-50 billion | 3.2% | 11.3% |
| > $50 billion | 6.3% | 20.9% |
A summary of participants and time deposit transactions can be found in the PMIB Monthly Reports. If you would like additional information regarding participation in the Time Deposit Program please contact the Time Deposit Administrator at (916) 653-3147 or via email.
*Credit Unions are not required to have CRA ratings