Our primary function in Cash
Management is to receive deposits
and invest state funds. We receive an average of $50
million in daily deposits from various state agencies and our staff invests about $2.6 billion in state dollars each day.
Cash Management Forms
Bank Deposit Requests
Express Deposit (RED) Procedures
RED Consent Form
Approved State Depository Any bank or savings
association that conducts the business of making loans
and taking deposits in the State of Alabama and is an
active member of the SAFE Program may file a written
application with the Treasurer to be designated as a state
depository. A bank must be designated as an approved state
depository to hold any State of Alabama Treasury
To apply, a bank completes the
Application for Designation of State Depository,
attaches a copy of the bank’s Certificate of Qualified
Public Depository to confirm membership in the SAFE Program and mails the documents to the Treasurer.
After the bank files the
application, the Treasurer certifies it to
the Governor and the Governor may designate the bank as a
state depository. Once designated, the Treasurer will
provide a written order to the bank declaring it a state
depository until its authority is revoked.
Demand Deposit Accounts The Treasury has limited demand deposit accounts
with minimal balances. Demand deposit accounts are necessary
for the payment of the warrant cash letter. They also provide depository locations across the state for
various state agencies. Minimum balances are maintained in
these accounts. These accounts are selected by location and
cash concentration services.
Time Deposit Open Accounts (TDOA) Time deposit
open accounts are essentially certificates of deposit. The
terms and rate of TDOA are set by Code.
The maturity terms may be 91 days, six months, or one year.
Any TDOA with a maturity of 91 days is subject to early
withdrawal without penalty with a seven-day notice from the
Treasurer. The rate of interest to be paid on TDOA
corresponds to the rate borne by United States Treasury
obligations of comparable maturity. With maturities of 91
days and six months, the rate shall be the average auction
rate of the four most recent auctions held prior to deposit.
The one-year maturity TDOA rate is the weekly average one
year constant maturity yield published by the Federal
Reserve System for the week preceding the deposit date.
Interest is calculated on a 30/360 day basis and is paid
monthly. The Treasury initiates receipt of interest through
ACH the last business day of the month.
To request TDOA monies, the bank should complete and fax the
TDOA Request Form.
The Treasurer or designee will contact the bank within two
business days to discuss the request.