04/21/23 – The Vaux Association is in the process of moving our reserve funds from Fidelity Investments to CIT Bank, a division of First Citizens Bank & Trust. This organization has extensive experience with HOAs and handles the funds of some 40,000 owner associations. The Vaux Board is very pleased to acquire their services and expertise.
CIT's concept of best practice for condominiums is, first, to make sure funds are safe; second, that they be available when needed; and only third, how much they yield.
Our treasurer has already transferred $1.2 million that now reside in a series of CDs that are federally insured (as required by Oregon condo law) and do, in fact, pay good interest. The rest of our reserve money will be transferred over time as the CDs still at Fidelity mature and expire.
Our CDs at CIT are "laddered" such that they mature sequentially on a yearly basis – some at 13 weeks, others at 26 weeks, and the remainder at 52 weeks – to yield cash in a timely way so the Association can pay for the maintenance, replacements, and improvements set forth in our reserve study.