investing in government money market funds earning ~5% rather than 0% interest checking accounts
It’s easier than that—there are high-interest-rate free FDIC-eligible checking accounts. MaxMyInterest.com has a good list, although you might need to be a member to view it. As of this moment (2023-07-20), the top of their leaderboard is: Customers Bank (5.20% APY), BankProv (5.15%), BrioDirect (5.06%), UFB Direct (5.06%).
Thanks, that’s a good link. In our case our assets significantly exceed the FDIC $250k insurance limit and there are operational costs to splitting assets across a large number of banks. But a high-interest checking account could be a good option for many small orgs.
our assets significantly exceed the FDIC $250k insurance limit and there are operational costs to splitting assets across a large number of banks
This isn’t strictly true: Some “banks” partner with many (real) banks to get greater FDIC coverage. E.g.: Wealthfront has up to $5M FDIC (so I imagine they partner with up to 20 accredited banks).
It’s easier than that—there are high-interest-rate free FDIC-eligible checking accounts. MaxMyInterest.com has a good list, although you might need to be a member to view it. As of this moment (2023-07-20), the top of their leaderboard is: Customers Bank (5.20% APY), BankProv (5.15%), BrioDirect (5.06%), UFB Direct (5.06%).
Thanks, that’s a good link. In our case our assets significantly exceed the FDIC $250k insurance limit and there are operational costs to splitting assets across a large number of banks. But a high-interest checking account could be a good option for many small orgs.
This isn’t strictly true: Some “banks” partner with many (real) banks to get greater FDIC coverage. E.g.: Wealthfront has up to $5M FDIC (so I imagine they partner with up to 20 accredited banks).