Banking change may mean more interest for county
LEXINGTON—By using a different investment product for deposits, Dawson County could gain a few dollars in the interest column.
Toby Owens, president of Pinnacle Bank in Lexington, and Dawson County treasurer Sharon Wood explained the Certificate of Deposit Account Registry Service (CDARS) program to commissioners during their final meeting of 2010 on Dec. 30.
CDARS is an alternative to money markets and allows investors to access FDIC insurance on multi-million-dollar deposits.
Dawson County’s current investment practice requires 103% collateral to cover deposits.
That collateral is accomplished through a collection of securities, according to county clerk Karla Zlatkovsky.
The CDARS program uses banks nationwide to secure the money without paying for securities. That allows the banks to pay more interest to the county.
No action was taken at the meeting. A resolution would be necessary to change the county’s investment practice.
In other business, commissioners:
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