South Holland District council has almost £43m cash investments – with many north of the border.
The best interest rate is 5.8 per cent and the lowest 3.2 across the board.
The figures (up to September 30) are revealed within a mid-term update report to the council.
“Because the council collects money on behalf of other organisations which are paid out at future dates (eg Council Tax and Business Rates), the value of investments held at any point in time does not represent the value of SHDC’s own resources,” said a report which went before the council at a meeting on November 26.
It has £10m invested with the Church, Charities and Local Authorities which offers 4.04 per cent.
The lowest return will be on £10,095 in the Handelsbanken, Sweden.
But the £1m invested with The Moray Council returns 5.35 per cent and £3m invested with the Highland Council is fixed at 4.35 per cent.
A further £2m is invested with North Lanakshire, Monmouthshire, Gloucester, Harlow and Wrexham councils with a further £2m with Cherwell District Council, Wrexham and Blackpool councils along with a £2m deposit with the Police and Crime Commissioner for Hertfordshire.
East Ayrshire has £2.5m as does Chorley and ANZ (London) while Lloyds holds £2.96m on the lowest rate of 3.9 per cent.
The income achieved from the investments is higher than had been originally thought. Mainly due to higher interest rates and £14.7m additional grant funding received in September.
“Treasury investments achieved an average rate of 4.753 per cent and interest on Welland Homes Loans achieved an average 4.286 per cent.
The combined rate achieved on all investments was 4.671 per cent.”
Welland Homes is a housing company owned by the district council.
The council’s current borrowing stands at £67.45m at a fixed rate of 3.48 per cent.
In 2018, the council had cash investments of £15m, with no return higher than one per cent.
