FARMINGTON — Franklin County commissioners voted Tuesday to go with Franklin Savings Bank to deposit federal grant funds because the bank offered the highest interest.
Franklin Savings offered 0.60% interest on about $2 million in American Rescue Plan Act funds, with Bangor Savings Bank coming next at 0.50%. Both banks are in Farmington.
Beckie Bowering, head of business solutions for Franklin Savings, gave a presentation on April 5 interest rates the bank would offer to put federal funds in the bank.
The commissioners asked the county treasurer’s office to check with other banks. Bowering had come to the meeting last month at the request of commission chairman Terry Brann.
County chief financial officer Diane Dunham has been working hard on this, Treasurer Pam Prodan said Tuesday. Dunham produced a list of interest rates from several banks.
Bowering previously told commissioners the county could earn about $11,618 in annual interest on about $2 million.
Franklin County received about half of its $5.86 million in ARPA funds and is expected to receive the other half later this year.
To date, commissioners have pledged $1,119,683 or 38% of ARPA’s first allocation of funds, program administrator Sue Pratt wrote in an email Tuesday ahead of the meeting.
It does not include any projects approved at Tuesday’s meeting.
The bank had a fully insured cash sweep checking account into which money could be paid, where monthly earnings are estimated to be $968.18, Bowering told commissioners last month. The target account balance is $100,000. The money is in another local bank which pays 0.15% interest. If more money was deposited, interest income would be higher, she said.
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