Treasurer: Illinois investment funds remain safe

SPRINGFIELD — Illinois State Treasurer Dan Rutherford says rising interest rates are helping the state earn more than expected in investments.

Rutherford said Monday the state earned $22,000 in interest — more than typical for such a trading day.

The Republican says interest rates have been increasing since early last week amid concerns about the debt-ceiling debate in Washington. President Barack Obama and Congress reached a tentative deal Sunday.

Rutherford says if the government defaults on its bills he will transfer about $7 billion from the state's investment portfolio into federally insured accounts even if they don't earn any interest.

Rutherford's staff had about $3 billion that was liquid and available for investment Monday — including $1 billion from the state's portfolio.

He joined his investment staff for trading Monday morning.