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Historical MSBI Rates

Date      3-Month      6-Month
10/18/2012 0.22 0.36
4/18/2012 0.30 0.48
1/18/2011 0.51 0.64
10/18/2011 0.35 0.50
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MSBI CDs

CD Program From The Minnesota State Board Of Investment

The Minnesota State Board of Investment (MSBI) has offered a Certificate of Deposit Program to financial institutions throughout the state of Minnesota since 1980. The program is on-going, offered quarterly, with the amount of funds committed depending upon the State's cash position and the relative attractiveness of CD's to other investment alternatives. UBB Securities has been a clearinghouse bank for this program since its inception.

Who may participate?
Any financial institution chartered in Minnesota and covered by FDIC insurance is eligible. The subscribing institution must be "well capitalized" as defined under FDIC regulation: (1) has a Total Risk-Based Capital Ratio of at least 10%; (2) has a Tier 1 Risk-Based Capital Ratio of at least 6%; (3) has a Tier 1 Leverage Ratio of at least 5%; and (4) is not subject to any agreement to meet and maintain a specific capital level for any capital measure. No FDIC waivers will be accepted.

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What maturities are available?
The MSBI will purchase CD's with three and/or six month maturities at each quarterly offering. The maturity date may vary, but always mid-month each January, April, July and October. In an instance of a weekend or holiday, the date will be moved forward appropriately.

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What are the subscription dates of the CD offerings?
Subscription dates may vary, but always at the beginning of the months of January, April, July and October. In an instance of a weekend or holiday, the date will be moved forward appropriately.

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When will the CD's settle?
The settlement date is the same as the maturity of the previous subscription. In an instance of a weekend or holiday, the date will be moved forward appropriately.

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How is the rate determined?
The yield will be set by the MSBI using the average secondary CD rate quoted by the New York Federal Reserve Bank on the morning of the subscription date or otherwise determined by MSBI officials. Click here to see historical rates.

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How is the interest calculated?
Interest is computed on a 360 day basis and is payable at maturity.

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Is collateral necessary?
No. The FDIC has stated that it will insure up to $250,000 in each financial institution for each participant's share of the retirement plan under the control of the MSBI.  Since 1996, UBB Securities has also been a custodial bank for the MSBI Securities Repurchase Program.

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What are the subscription minimum/maximum amounts?
The minimum subscription amount is $100,000. The maximum amount any financial institution may have outstanding at any given time is $1.5 million.

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How will the funds be transferred?
As the clearinghouse, UBB Securities will deposit funds in the financial institution's DDA account at UBB on settlement day for purchases; UBB Securities will charge the financial institution's DDA account at UBB on settlement day for maturities.

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What is the necessary paperwork?
UBB Securities will make the subscription order to the MSBI on subscription day on behalf of the subscribing institution. The MSBI will send all required paperwork to each financial institution along with a letter of instruction. The financial institution issuing the CD will hold the Certificate in safekeeping for the MSBI. UBB Securities will send a confirmation of the subscription outlining the settlement details.

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Please Note: Portions of the above program description were provided by the Minnesota State Board of Investments and may change with or without notice. UBB Securities deems that all statements contained herein, while not guaranteed, are based upon information we believe to be accurate and reliable.