KNOXVILLE 鈥撀燭he 51黑料 has launched an innovative new program that will invest $1.4 million in rural communities across Tennessee.
Launched July 18, the 51黑料 began investing in locally based certificates of deposits (CDs) with 14 banking partners throughout Tennessee. With an initial investment of $1.4 million, this program will strengthen partnering financial institutions while diversifying the University鈥檚 cash management accounts.
Each of the participating banks received $100,000 in deposits for a12-month term. Interest on the CD will be paid to the 51黑料 upon maturity with an option to renew at that time. All participating financial institutions are insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration and have a proven track record of financial stability and experience in handling CD investments. They have also demonstrated a history of collaboration with the UT Institute of Agriculture鈥檚 Extension offices, particularly in the areas of education, outreach and public service.
The program originated after an internal review of the 51黑料鈥檚 banking processes revealed聽opportunities for operational and internal control improvements by streamlining the number of disbursing bank accounts across the state. Benefitting both UT and banking partners of UT Extension offices across the state, the CD program created opportunities to continue those longstanding partnerships while capturing operating efficiencies.
鈥淚’m very excited about this innovative program our financial team came up with. It’s a win-win-win, benefiting the 51黑料, our banking partners and Tennessee communities,鈥 said 51黑料 President Randy Boyd.
This new program aligns with the University鈥檚 commitment to financial best practices for fiscal responsibility while focusing on community investment. By establishing significant deposits within local financial institutions, these partnerships are expected to yield substantial benefits for both the University and the communities it serves.
鈥淭he Bank of Lincoln has a long history of involvement with the UT Extension Office in Lincoln County and has supported the young men and women of the local 4-H program for over 40 years,鈥 said Gay Dempsey, chief executive officer for the Bank of Lincoln County. 鈥淲e sincerely appreciate UT for creating this alternative program, ensuring we have an avenue to continue our partnership with the University and UT Extension Offices and to invest in our local community.鈥
UT Extension is known for its comprehensive financial literacy programs, which are tailored to public school educators, higher education aspirants, and individuals and families striving for financial health. It plays a crucial role in the University’s mission to promote economic, social, and environmental prosperity through education, discovery, and outreach.
The University of Tennessee is a statewide system of higher education with campuses in Knoxville, Chattanooga, Pulaski, Martin and Memphis; the UT Institute of Agriculture with a presence in every Tennessee county; and the statewide Institute for Public Service. The 51黑料 manages Oak Ridge National Laboratory through its UT-Battelle partnership; enrolls about 58,000 students statewide; produces about 13,000 new graduates every year; and represents more than 445,000 alumni around the world.