Longer Terms and Updated Rates Highlight Program Changes
The Michigan Department of Treasury has extended its
Certificate of Deposit Stimulus Program indefinitely and enhanced the program
options in response to the continuing national financial crisis. The Michigan CD
Stimulus Program has made up to $150 million available to invest in Michigan
banks and credits unions by purchasing Certificates of Deposit.
The department has added an additional 24-month term CD
option after receiving feedback from financial institutions. This is in addition
to the 6-month and 12-month options that have been available since the program's
inception in December, 2008. Additionally, rates will now be updated on a weekly
basis, every Monday morning, in order to ensure that the most competitive rates
are offered.
"While the credit crunch has eased a bit, many small business
and families still have borrowing needs," said State Treasurer Robert J. Kleine.
"The extension and refinement of this program means Michigan's banks and credits
unions will continue to have access to capital, and at below-market rates."
Financial institutions taking part will be asked to make a
concerted effort to prudently lend up to 80 percent of the funds to Michigan
businesses and consumers. The minimum CD to be purchased by the state will be
set at $100,000 with a $10 million maximum, per financial institution.
For more information about the Michigan CD Stimulus Program,
and to obtain copies of program guidelines, log on to
www.michigan.gov/MiCD.
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