Customer Deposit Interest Rate Set for 2018

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Customer Deposit Interest Rate Set for 2018

December 14, 2017

The Minnesota Department of Commerce has announced that the interest rate to be paid on customer deposits has been set at 1.6 percent for 2018.  

Minnesota law (Minn. Stat. 325E.02 (b) requires that, privately or publicly owned water, gas, telephone, cable television, electric light, heat, or power companies shall pay a specific interest rate on customer deposits.

By December 15 of each year, the Commissioner of the Minnesota Department of Commerce is required to announce the interest rate for the next year.

The rate for 2018 is 1.6%

View the language of the statute

The rates are calculated using these steps:

The last full week in November 2017 was November 13-17.

The yields on one-year United States Treasury securities adjusted for constant maturity for this week are:

  • Monday, November 14: 1.55%
  • Tuesday, November 15: 1.55%
  • Wednesday, November 16: 1.55%
  • Thursday, November 17: 1.59%
  • Friday, November 18: 1.60%

These yield rates come from the U.S Department of the Treasury's Interest Rate Statistics, specifically the one-year Daily Treasury Yield Curve Rates from the Treasury's web site.

The average of these five yields is 1.57%. The required interest rate, rounded to the nearest tenth of a percent, is 1.6%. 

For more on this requirement the Minnesota Department of Commerce website.

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