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At our non-profit, we are pretty risk-adverse and don’t do investing beyond CDs and savings accounts, and while I know it’s barely bringing in any interest, at this point this is where our comfort level lies.
In order to ensure our cash reserves stay protected under FDIC limits, I encourage folks to consider a “sweep” account. You work with your bank and set a target balance, and anything outside that amount at the end of the day is moved into other banks, so no one balance exceeds FDIC limits, allowing cash to stay protected even if it’s beyond the FDIC limit. As an example, if we had one million in our bank account, we’d set our account to sweep anything beyond 250k. That 750k then goes to various banks overnight (with less than 250k in each account), protecting those extra funds. It allows us to earn interest, but we don’t have to manage having funds in multiple accounts/banks.
It takes a little while to grasp the concept (at least for me), but over time as my understanding has increased and it’s a relatively regular practice.