This week the Federal Reserve will likely begin lowering interest rates. How far they will cut over time is unknown, however, their dual mandate is low unemployment and low inflation. Interest rate policy is geared towards accomplishing both goals.
Current short-term rates still hover around 5% and are likely to fall. It is rare that short term rates are higher than long term rates, so an opportunity exists to take advantage of it.
We have been using institutional money market funds with current yields above 5% for some time for our investment management clients. Business owners can also take advantage of these accounts too, investing excess business cash to take advantage of this window of opportunity.
Setting your account up is easy, our staff can set it up and assist in the funds being electronically deposited. Additionally, funds can be electronically sent back to your operating account on an as needed basis. One last benefit, we do not charge a fee for this account…so you will keep all the interest!
Remember, rates on these accounts will go up or down based on the Fed’s decisions on interest rates. And while we use the top-rated investment firms in the nation (Fidelity Investments is our top choice), money market rates are not government guaranteed.
We suggest that you consider taking advantage of this opportunity today and take non interest-bearing excess cash from your business account and make it work for you. You could earn thousands of dollars in interest!
Call or email me personally (charles@cfparks.com) with any questions.
