Smart Investing: NCSC Members Put Their Cash To Work with CFC

Across the country, NCSC members are finding new ways to make their cash reserves work harder. Their solution? Investing with CFC, NCSC’s affiliate, which offers a suite of products designed for both flexibility and competitive returns. 

NCSC operates under a management agreement with CFC, supporting the financial needs of rural utilities. NCSC members can choose from a range of investment options including Daily Liquidity Fund, CFC Commercial Paper, Select Notes and Medium-Term Notes—each tailored to different liquidity and yield preferences. 

North Dakota-based Dakota Central Telecommunications placed its first investment with CFC over 28 years ago. “We maxed out our local banks’ FDIC-insured capacity, so we were looking for other trusted options within our industry,” Dakota Central CEO and General Manager Holly Utke said. “CFC was a great option for us.” 

Dakota Central is just one of many organizations that turn to CFC for investment solutions. Iowa-based Winnebago Cooperative Telecom Association has been investing with CFC for over 15 years.  

“It’s been a convenient place to park funds, offering better rates than CDs while feeling secured,” Winnebago CEO Mark Thoma said. “Managing these investments is straightforward, with a good rate of return.” 

Member investors consistently cite simplicity as a major benefit of choosing to invest with CFC. As Thoma points out, “You can choose maturity dates that fit your liquidity needs and transferring funds in and out is simple. We time our investments around our billing cycles.” 

Having quick access to funds is another key selling point for most investors. Reliability matters for organizations seeking competitive returns without complexity. 

“We also use it to manage cash flow for self-funded projects,” Utke said. “If we have a certain amount of money we can invest, that we know we might need in six months, it’s a really flexible, liquid investment for us." 

“Our investment with CFC is our liquid account,” Thoma said. “We do have other long-term investment accounts, too. But as a co-op, it’s our members’ money that we need to be able to have liquid to deploy when opportunities come up." 

New York-based Delhi Telephone Company is a new investor with CFC. Delhi General Manager and NCSC Director Jason Miller says that prior to his time on the board, he viewed NCSC solely as a lender. 

"By getting involved in the organization, I’ve learned that the investment side of it is just as important as the borrowing side,” Miller said. “Now that I know the size of the organization, the membership, I feel comfortable that it’s a solid investment. For me, rates and liquidity are key, but I also value the co-op model. I want to support fellow members of both the telecom and electric industry.” 

For other NCSC members considering investing with CFC, Miller offers simple advice: Start small. “If you’re sitting on project funds, this is a great place to park them. Start with the minimum, see how easy it is to use and compare rates,” he said. 

CFC Investment Products at a Glance

NCSC members can choose from several CFC investment options: 

• Daily Liquidity Fund: Flexible, liquid investment account to earn a return on short-term cash surpluses. 

• Commercial Paper: Short-term investment for excess cash, with maturities from one to 270 days. 

• Select Notes: Longer minimum maturity and higher rates, with terms from 30 to 270 days. 

• Medium-Term Notes: Attractive interest rates for funds invested 10 months to 30 years. 

As of the end of the first quarter in fiscal year 2026, CFC and NCSC members had invested approximately $4.7 billion in CFC products. Member Commercial Paper and Select Notes combined accounted for $2.3 billion in investments, reflecting strong member engagement. 

For rates, details or to make an investment, NCSC members can contact the CFC Member Center at 800-424-2955 or membercenter@nrucfc.coop.