Board chooses CD for sav­ings

The Weekly Vista - - News - KEITH BRYANT kbryant@nwadg.com

The mu­nic­i­pal de­pos­i­tory board chose to in­vest $245,000 in a cer­tifi­cate of de­posit, or CD, with Ally Bank, ma­tur­ing Nov. 1, 2021, and earn­ing 3.15 per­cent in­ter­est.

The city’s mu­nic­i­pal de­pos­i­tory board in­cludes mayor Peter Christie, city coun­cil mem­ber Doug Fowler and fi­nance direc­tor Cary El­sten. The board makes decisions re­gard­ing in­vest­ments with city funds.

This was cho­sen over a CD with Wells Fargo that would last one year longer and ac­crue 3.35 per­cent in­ter­est.

El­sten said that, with a bro­kered CD like this, if the city needs the funds be­fore it ma­tures, the CD can be sold for mar­ket value — though that value can change with in­ter­est rates over time.

“You’ve got to de­cide if you’re go­ing to need the money,” she said.

Fowler said that in­ter­est rates may con­tinue to climb, which could re­duce the mar­ket value of this in­vest­ment if it needs to be sold early.

With that in mind, he said, the ex­tra year the Wells Fargo loan would need to ma­ture may not be worth it, he said.

“I just don’t like block­ing my money up for longer than I have to,” Fowler said.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.