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I work primarily with very small organizations (up to $2M budget) who are mostly taking baby steps toward building reserves – once we establish what that word means to them (another thank you for the last webinar!). These boards are squeamish about going beyond traditional interest-bearing deposit accounts and it has been quite a sell to even move toward laddering CDs. In all cases, they are holding fast to the need to remain within FDIC limits. Fortunately (for this situation), interest rates are on the rise.
I appreciate the earlier responses regarding strategies to go beyond liquidity and to begin considering placing funds in the markets, albeit conservatively. It really does boil down to understanding the different layers of capital and which may be appropriate for long-term growth.