The Wright City Board of Aldermen approved the renewal of the Wright City Cemetery Endowment Fund's certificate of deposit account.
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The Wright City Board of Aldermen approved the renewal of the Wright City Cemetery Endowment Fund’s certificate of deposit account with American Bank in Wright City during their Nov. 25 meeting.
The roughly $420,000 in the cemetery’s endowment fund will sit in the CD for 18 months at 4.1%, returning roughly $27,000 in interest during the CD’s term.
The board had previously asked City Clerk Abbie Ogborn to shop around for interest rates at other banks when they found out the previous CD was set to expire.
They received two other offers from FMB Bank and First State Community Bank, which both offered slightly higher interest rates but shorter terms.
FMB Bank offered a CD account with an interest rate of 4.26% and a term of seven months and First State Community Bank offered a CD with an interest rate of 4.4% also for seven months.
During the meeting, aldermen discussed whether it would be prudent to wait to move the funds to another account.
“The question is, if the board thinks interest rates will go up or down for the next seven months,” said Hakim.
Board members felt that it made more sense to accept the rate from their existing bank, which they found attractive, rather than relying on an uncertain market and interest rates that could change significantly before July 2025 when the other two account offers would mature.
“I’m more apt to just take the long term CD and lock in instead of taking the chance at seven months,” said Hakim.
