Time Deposit Program
- 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.