If your organization is currently storing reserve funds in a standard savings account, you are likely earning a mere 1/10 of 1% interest. For this reason, many associations are benefiting from the use of one-year U.S. Treasury Bills that can earn 4% - a whole 40 times the average bank interest rate!
A Treasury Bill is a short-term financial instrument that is issued by the US Treasury with maturity periods ranging from a few days up to 52 weeks. Bills are sold to the public or businesses at a discounted or face value, then when the bill reaches maturity, its face value is paid to the owner usually with an interest rate of around 4%. Associations have been finding significant confidence in the safety of these investment instruments because they are backed by the credit of the U.S. Government.
You can learn more about this opportunity to determine if it is right for your organization at https://treasurydirect.gov/marketable-securities/treasury-bills/ and https://home.treasury.gov/ or by discussing with your banker or securities dealer.
Disclaimer: This information is for educational purposes only and should not be construed as official investment advice. As we are not financial advisors, AMC Source encourages readers to conduct independent research and consult with a licensed financial advisor for any financial decisions based on this information or otherwise. AMC Source cannot be held liable for any investment decisions made on the basis of the information in this post.