I am reaching out to see if anyone in the community has any helpful resources that they would share regarding best practices for cash
Resources for best practices in cash management for SMB?
Answers
I'm confused by your question.
You are concerned about protecting that cash in the event of a bank failure?
If that is the case, and you want a) liquidity, and b) FDIC insurance why not buy through your Stockbroker CD's on the open market (they spread the purchase across many CD's, with no one purchase over let's say $95,000 so w/interest you are under the $100K threshold).
For general matters, go to the Association for Financial Professionals--what used to be the
Good luck.
I agree that the Association for Financial Professionals (AFP) can be a good resource. You bring up a few distinct issues. One is counterparty
If you want to find out what other SMBs are doing there are several LinkedIn groups focused on Treasury Management that may also serve as a good resource, the largest one is 'Treasury Management Network'. I would be happy to talk offline if you like. I used to be the Director of Treasury Services for the Association for Financial Professionals and I am still an active CTP.
Where did you hear that the $250k limit had expired?
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Sorry for the lack of clarity on my initial question. The limit for insured deposits is currently $250k. Prior to Jan 1, 2013 the Transaction Account Guarantee Program fully insured all deposits in non-interest bearing tranaction accounts (without limit). That program has since expired, so deposits are only insuranced up to $250k limit.
It has not changed at this point. http://www.fdic.gov/deposit/deposits/dis/
That is correct, the $250K insurance for all deposits by the FDIC, to date, has not changed (former employee of the FDIC).
That's why I was asking; as my research was showing it was still $250k. Thanks guys!
I have used this resource before when shopping banks or had concerns of a bank's rating: http://www.bauerfinancial.com/btc_ratings.asp
Invest the time into researching your bank and understand their position. Know who they are, how long they have been in business, etc.
I was shopping once because we typically see high monthly fees due to the nature of our business. I had a bank come back and tell me there would be no fees. I found this awesome, but it made it leery. After asking more questions they told me they are currently looking for businesses that deposit because that is what they are looking for to enhance their portfolio. Not liking that answer, I looked them up and found they only had a two star rating; whereas the other two banks I was looking at were five star. They've since been sold to another branch. Here's a link to more about star ratings: http://www.bankrate.com/finance/savings/what-you-should-know-about-bank-ratings.aspx
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