Corbin City Commission places contingency funds into certificates of deposit at CVNB

The Corbin City Commission voted last Thursday to place $1.082 million in contingency funds into multiple certificates of deposit at Cumberland Valley National Bank.

The money had previously been in two CD’s that had recently come due.

The commission had elected to hold off on placing the funds back into CD in order to take bids from local banks on CD rates.

Cumberland Valley National Bank, Forcht Bank, Hometown Bank and Whitaker Bank, submitted bids.

According to the quotes provided, Cumberland Valley National Bank offered the best interest rate whether the entire amount was placed in a single CD, or it was divided in half or thirds.

For a single CD, the rate was .51 percent for 12 months, and .56 percent for 24 months.

If it was divided in half, the rate on each was .56 percent for 12 months and .61 percent for 24 months.

If it was divided in thirds, the rate on each was .59 percent for 12 months and .66 percent for 24 months.

Forcht Bank offered a rate of .35 percent for 12 months, .50 percent for 18 months and .60 percent for 24 months.

Hometown Bank offered a rate of .27 percent for 12 months, .37 percent for 18 months, and .46 percent for 24 months.

Whitaker Bank offered a rate of .30 percent for 12 months, .35 percent for 18 months, and .40 percent for 24 months.

Commissioner Trent Knuckles noted that, with a new commission coming in in January, it would be better to invest it for 12 months.

“That way the next commission, if they need it for something, they can get hold of it,” Knuckles said.

Commissioner David Hart added that by breaking it up into three CD’s, the commission would have a better rate at a shorter term.

“I like your reasoning behind all of it,” said Mayor Suzie Razmus.

The commission voted 4-0, with Commissioner Andrew Pennington absent, to reinvest the money into three 12-month CD’s at Cumberland Valley National Bank