BBBTV12 Serving Anderson, Roane, and Morgan Counties
KNOXVILLE – The University of Tennessee System has launched an innovative new program that will invest $1.4 million in rural communities across Tennessee.
Launched July 18, the UT System 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’s 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 UT System 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’s Extension offices, particularly in the areas of education, outreach and public service.
The program originated after an internal review of the UT System’s banking processes revealed 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.
“I’m very excited about this innovative program our financial team came up with. It’s a win-win-win, benefiting the UT System, our banking partners and Tennessee communities,” said UT System President Randy Boyd.
This new program aligns with the University’s 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.
“The 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,” said Gay Dempsey, chief executive officer for the Bank of Lincoln County. “We 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.”
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 UT System 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.
