Iowa Treasurer Announces Millions of Dollars Saved Through Interest

August 16, 2023

Over $235 million in interest was earned on the Pooled Money Fund for Iowa's 2023 fiscal year.

Iowa Treasurer Announces Millions of Dollars Saved Through Interest

Iowa State Treasurer Roby Smith reports over $235 million in interest was earned on the Pooled Money Fund for the State’s 2023 fiscal year, which runs from July to June thanks to a striking about of interest in the last year. That’s mainly from the Pooled Money Fund’s high balance and the increase in interest rates. As Treasurer, Smith is the State’s banker and chief financial officer. One of his responsibilities is to invest funds in a combined short-term investment pool, known as the Pooled Money Fund. The Pool includes the State’s general fund, the road use tax fund, the State’s two reserve funds and a number of smaller State funds. Any funds not currently in use are invested until needed for payments. Smith said that $235 million is a high amount of interest and the magnitude of the number is impressive. He added that every dollar of interest earned is one less dollar that the state’s Treasury Department has to collect from other sources. That means the more interest earned, the more tax-paying Iowans have to keep in their pockets.

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