Board chooses CD for savings
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.