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Cash Management

With a record amount of cash or cash equivalents on balance sheets, many institutions are finding it more and more difficult to find solutions that offer Safety, Liquidity and Yield for their cash that are also easy to track and administer.

Through bank deposit programs, FFEC can help increase the efficiency of a cash portfolio while not sacrificing safety.   

Who:

·         Municipalities and School Districts

·         Public and Private Endowments or Foundations

·         Non-Profit Organizations

·         Public and Private Corporations

·         Litigation and Escrow Trusts

The problem:

·         How do you increase returns and retain safety within the “full faith and credit” sector?

FFEC Solution:

·         Bank Deposit programs- Spreads an institution’s cash funds into carefully screened FDIC insured banks with no more than $250,000 at any one bank to ensure FDIC insurance on the entire balance of funds.

Safety

  • Funds allocated to participating banks under the FDIC limit
  • Funds sent directly to custodian bank
  • Client excludes banks which they hold deposits to avoid redundancy

Liquidity

·         Demand deposit programs – overnight to weekly

·         CD based – specified terms

Yield

·         Competitive yields as compared to

o   Money Market Bank Accounts

o   Money Market Mutual Funds

o   U.S. Treasuries

o   Commercial Paper

In an increasingly difficult yield and regulatory environment, now is the time to review your cash allocation to make sure you are managing it efficiently.