Interest On Large Sums of Business Funds

[kahntrutahn]

FACTS:

One has a company.
One is not ready to take any distributions from said company.
One has 6 figures plus rotting away at abysmal interest rates.
One knows of many online savings accounts with 5%+ interest.
One also has learned that many (all?) of these accounts are for personal use, and business accounts get [censored] rates and awful restrictions.

QUESTION 1:

Are there any places where one can deposit large sums of money that meet the following criteria:
1) 5%+ interest rates
2) FDIC
3) Savings/Checking accounts only (no CD, of course MAYABE MM if truely liquid)
4) ACH in/out very much preferred

QUESTION 2:

Is there some type of "work around" where one could have a trustee or some sort of intermediary invest the funds on behalf of the business? i.e. a legal loophole

[DcifrThs]

isn't there a balance sheet line item called "marketable securities" where you can use your business's non-working capital funds to invest in, say 10yrs or some interest bearing risk-free note instead of a savings acct and simply keep re-investing those payments in more of them?

i'm no expert on this though...downside i think is that you'd be taxed on interest you received from the 10yrs/30yrs whatever, but i'm pretty sure you get taxed no matter what.

hope this helps,
Barron

[kahntrutahn]

[ QUOTE ]
isn't there a balance sheet line item called "marketable securities" where you can use your business's non-working capital funds to invest in, say 10yrs or some interest bearing risk-free note instead of a savings acct and simply keep re-investing those payments in more of them?

i'm no expert on this though...downside i think is that you'd be taxed on interest you received from the 10yrs/30yrs whatever, but i'm pretty sure you get taxed no matter what.

hope this helps,
Barron

[/ QUOTE ]


Taxed no matter what.
The difference being taxed on %0.3 or %5.3.
One would likely take the latter to keep in line with inflation rather than the former.


Is there a reputable site for information on your investment suggestion DcifrThs?


Also, here is a regularly updated list of high interest bearing savings/checking accounts:

http://www.fatwallet.com/t/52/437553/

[maxtower]

There should be a MM fund out there that meets your needs. Will Vanguard allow businesses?

[kahntrutahn]

[ QUOTE ]
There should be a MM fund out there that meets your needs. Will Vanguard allow businesses?

[/ QUOTE ]


Perhaps, but MM do not allow ACH push/pull... do they?

Also, while there is liquidity in MM checks, one would certainly prefer the easy 2/3 days that ACH in/out provides.

[DcifrThs]

[ QUOTE ]
[ QUOTE ]
isn't there a balance sheet line item called "marketable securities" where you can use your business's non-working capital funds to invest in, say 10yrs or some interest bearing risk-free note instead of a savings acct and simply keep re-investing those payments in more of them?

i'm no expert on this though...downside i think is that you'd be taxed on interest you received from the 10yrs/30yrs whatever, but i'm pretty sure you get taxed no matter what.

hope this helps,
Barron

[/ QUOTE ]


Taxed no matter what.
The difference being taxed on %0.3 or %5.3.
One would likely take the latter to keep in line with inflation rather than the former.


Is there a reputable site for information on your investment suggestion DcifrThs?


Also, here is a regularly updated list of high interest bearing savings/checking accounts:

http://www.fatwallet.com/t/52/437553/

[/ QUOTE ]

i'd just open an interactive brokers account on behalf of your business and keep the mktable securities in that account. they will reinvest the dividends for you so it makes that easier i believe.

Barron

[Big TR]

I do all activity with Vanguard on my personal MM account through ACH.

As treasurer for my condo association, I will soon be doing the same for the association's funds.

[BradleyT]

All out of ideas for using that 200K to grow the company?

[kahntrutahn]

[ QUOTE ]
All out of ideas for using that 200K to grow the company?

[/ QUOTE ]

No ammount was listed.

And yes.

This company has peaked, but there will be others.

[ilikeaces86_]

HSBC internet savings account.