JACKSON - Cape Girardeau County begins another two-year depository agreement with Capital Bank today, but with a considerably lower interest rate.

Capital has been the county's depository for a number of years by providing the best bid every two years.

But the bid for six-month certificates of deposits, with a minimum of $100,000, will earn just 4.17 percent interest the next two years. That figure is considerably less than the 9.14 percent earned on a two-year bid that took effect July 1, 1989.

In 1991, the interest rate for the large CDs was 6.51 percent.

Auditor H. Weldon Macke said the rates have been steadily declining and that is costing the county considerable interest income it enjoyed several years ago. On the other hand, Macke said that is offset a bit by the fact the county has been able to set aside additional funds in recent years to draw interest.

Cape Girardeau County's funds are contained in two basic accounts: a capital trust account and a general fund.

The capital account, which is earmarked for capital improvements and as an emergency fund, has about $3.35 million in it now.

The general fund has a balance of about $2 million, which includes funds that are used to pay operating expenses of the county and for roads and bridges.

Cape County's road and bridge fund has been one of the areas hardest hit by the decline in interest rates since state law requires that interest earned on the county's general fund be earmarked for roads and bridges.

At one time, Macke said interest was giving the road fund a boost of about $300,000 a year. Last year, the fund received $133,000 in interest and $100,000 is budgeted for this year.