Each time the Federal Reserve raises interest rates by a quarter of a percent, the higher the value of your cash.

Earlier in the year, I made 10 bold predictions for 2018. My top three predictions were related to increased interest rates. They were:

1.) The Federal Reserve will approve three rate hikes of .25% each to reach a level of 2.00% on Fed fund rates.

2.) The 30-day T-bill rate will break the 2.00% level.

3.) The average bank Earnings Credit Rate (ECR) will break the 1.00% level.

All three predictions have occurred, which means the value of your cash has gone up by .75% or more over the last 10 months. This equates to an additional $7,500 on every $1 million invested or being used to cover banking fees on an annual basis.

It’s anyone’s guess what the Federal Reserve will decide at their next meeting in December. Chairman Powell has indicated that it is his intention to continue on a path of slowly raising short-term interest rates despite mounting political pressure to do otherwise.

At threeplusone we believe very dollar of cash has value in the marketplace. Identifying “all” cash through our proprietary liquidity modeling is what makes our services unique to public entities and higher Ed institutions.

A quarter of a percent rate increase means $2,500 more in earnings per million dollars. That may not sound like much but, as the numbers add up, it could increase your bottom line by tens to hundreds of thousands of dollars per year.

And that can mean a lot to your entity and to those you serve.