Title Page - The School District of Palm Beach County

Request for Proposal for Banking Services
Solicitation No. 12C-009C
The School District of Palm Beach County
Should interest rates improve during the course of this contract; the District will expect the balances to
earn interest on a daily basis. Proposers should indicate the interest rate, based on an index, which will
be available. Proposers shall include in their proposal, minimum and incremental investable balance
amounts.
J.P. Morgan recommends a sweep mechanism to invest “excess” cash that is not required to stay in
an operating account to cover known and unexpected disbursements. We are proposing that the
District use our Repo sweep product for overnight investments. The current rate offering for our
internally managed Repo sweep is 0.10%. There are no minimal or maximum investments with our
Repo investment option.
Additional Investment Option- Stable Balance High Yield Savings
For qualifying balances that have no known disbursement need over the next 18 to 24 months, Chase
offers a Stable Balance High Yield Savings Account that earns a premium rate over other overnight
deposit alternatives. Many of our clients have reserve cash that has a long-term characteristic but
must be invested in an overnight instrument either due to investment policy or in order to effectively
manage maximum weighted average maturity (WAM) requirements of their overall cash portfolio.
The Chase Stable Balance High Yield Savings Account is a short term deposit obligation of
JPMorgan Chase Bank, N.A., which enjoys a current credit rating of A-1 (Standard & Poor), P-1
(Moody’s), F-1+ (Fitch). This savings account provides a unique solution that minimizes the
opportunity cost of holding funds in a traditional overnight instrument that would earn significantly
lower yields. Funds held in this stable balance account are fully available on a same day basis
without prepayment penalty should an unforeseen need arise. However, if the remaining balance
falls below (or ever goes above) the initial target balance amount by more than 10% (+/- 10%), the
bank reserves the right to drop the rate down to a more appropriate overnight rate for volatile
balances.
Beginning on the date of your first deposit, and for an average minimum balance of $10 million, JP
Morgan Chase Bank N.A. agrees to pay a premium rate for funds expected to remain stable for a
minimum of fifteen to twenty-four months (see the program details outlined below). This currently
represents a 0.10% - 0.25% yield enhancement over other comparable overnight investment
accounts commonly used for more volatile cash. The current rate offering for our Stable Balance
High Yield Savings Account is 0.20%.
Stable balance account parameters: Stable balances are often found in the reserve or “low water
mark” portion of cash assets and have no anticipated disbursements during the next 18 to 24
months. When balances in the stable balance account remain within a range between 90 percent
and 110 percent of a mutually agreed upon target balance, Chase agrees to pay a yield enhancement
over the standard published account rates. If, however, balances fall outside of the 90 to 110 percent
threshold, the bank reserves the right to adjust the rate for future periods to a more appropriate level
associated with volatile or overnight funds without regard to a set interest rate floor.
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