Treasurer Rutherford: Illinois benefitting from debt ceiling debate

State Treasurer Dan Rutherford says he’ll put billions into non-interest bearing, federally insured accounts if the markets prove volatile over the next few weeks. (Photo courtesy of Treasurer Dan Rutherford's office)

Washington’s debt ceiling debate actually proved fruitful for Illinois finances, for a day, at least.

Treasurer Dan Rutherford says the state’s investment portfolios made about $22,000 in interest on Monday.

“We actually received more interest that had been typical the week or two before,” he said. “Part of this was the fact, I think, because of the concern over what would happen.”

Rutherford says interest rates have been going up as uncertainty continues to swirl around debt negotiations. He says Monday’s interest rate sat at 27 basis points, or three tenths of 1 percent interest. Ordinarily, it’s a small percentage of one basis point.

Rutherford says he’ll place several billion in investments into non-interest bearing, FDIC-insured accounts should the market become volatile. He equates that to putting cash under a mattress.