Investment Management

Bank Collateral Pool

Allows banks and local governments statewide to participate in a pool designed
to provide greater efficiency and a lower risk.

Tennessee State Seal

Tennessee's Bank Collateral Pool was authorized by the General Assembly in 1990 to allow banks and local governments statewide to participate in a pool designed to provide greater efficiency and a lower risk when collateralizing public funds.

Bank Collateral Pool Participants

These institutions are currently members of the State of Tennessee Bank Collateral Pool as of May 21, 2024.

View current Bank Collateral Pool participants

CD Rates for State Depository Banks

Based upon review of current interest rates, the following rates have been established for State time deposits.
These rates are nominal rates based on a 360-day basis.

Maturity Period State Time Deposit Rate*
7 Days 5.35%
30 Days 5.40%
60 Days 5.43%
90 Days 5.44%
180 Days 5.47%

*Updated July 1, 2024. For further information, contact us at 615-532-1163.

Bank Collateral Legislation Update

House Bill 9073 and Senate Bill 9010, championed by House Speaker Cameron Sexton and Lt. Governor Randy McNally, and co-sponsored by Representative Rush Bricken and Senator Paul Bailey, were enacted into law during the General Assembly’s Third Special Session, allowing banks to use cash as a form of eligible collateral in addition to securities or a letter of credit to secure the public deposits that it holds. The legislation reduces the collateral pledge level to 90% for banks meeting the Collateral Pool Board-established criteria to pledge at the 100% level. This is a temporary reduction of the pledge level until December 31, 2026, to coincide with the deadline to expend all American Rescue Plan funds. Both changes in the law should help reduce the difficulty in securing the collateral necessary for public deposits.

Guidance for Financial Institutions

Bank Collateral Pool Board

Oversees the risk-sharing pool of collateral pledged by participating financial institutions to guarantee public deposits..

Learn about the Bank Collateral Pool Board

Frequently Asked Questions

Click any of the following questions to view the answer.

The biggest benefit for a bank to participate in the TN Bank Collateral Pool is the ability to pledge all necessary collateral to secure deposits from public entities across TN in one convenient location as opposed to having collateral accounts established for each of the bank’s public depositors.

Choosing a participating bank is strictly the choice of a local government official. However, when a participating bank is chosen, the local government official no longer has to maintain safekeeping receipts for all pledged collateral. Most importantly, the local government official no longer has to have the ability to monitor the daily market value of the collateral that is pledged to them. All of the work is done at the Treasury Department. All participating banks sign a contingent liability agreement guaranteeing that all public deposits in excess of FDIC insurance coverage are secured by the TN Bank Collateral Pool program.

The collateral pool utilizes two pledge levels; 100% and 115%. The Board of Directors of the TN Bank Collateral Pool establishes the pledge levels based upon a series of performance factors that are outlined in the Rules of the program.

There are no fees for a bank to join or operate in the collateral pool.

Banks must submit a monthly depository report by the 15th of each month. Additionally, each bank must submit the Annual Management Certification and Annual Certification for Independent Auditors each year no later than March 31. Click here to find all the reporting requirements and information.

Contact a member of the Treasury Department at or call (615) 532-1163. The bank will have one employee designated as a system administrator and will create access roles for the other employees at the bank that will need to access the online system.

Participating banks will be able to log into a secured portal and have the ability to easily pledge and release securities, view the securities that are currently pledged, view the market value of each security and the total market value of all securities pledged, and be able to see at-a-glance if the bank has sufficient collateral pledged.

If a bank needs to pledge or release a security pledged to the collateral pool and cannot access the online portal application, email a pledge or release form for each applicable security to . The form can be located under “Documents at a Glance”.

Contact Us

Have questions about Investment Management? Please visit the individual funds for more information and fund-specific contact information:

Tennessee Consolidated Retirement System

Bank Collateral Pool

Intermediate Investment Fund
(615) 532-8722

Local Government Investment Pool
(615) 532-1163

Mailing Address

Please visit the individual funds for mailing addresses per fund:

Bank Collateral Pool

Intermediate Investment Fund

Local Government Investment Pool