If your entity has $5 million cash on hand and is not earning at least $40,000 to $60,000 on that amount in interest income (depending on permissible investment options in your state), then you are leaving money on the table.

Catching the Wave

Interest rates are going up and the opportunity to capture the new wave in the direction of short-term rates is now.

The Federal Reserve wants to push short-term interest rates back to a normal level, which would equate to a 2.5 to 3.0% yield.

Each 25 basis point increase in federal fund rates represents an additional $2,500 of income on each million dollars of cash proactively managed and monitored.

The average public entity with an annual budget size of $25 million will see a float of at least $5 million throughout the year, providing there is an opportunity to produce annual income of $40,000 or more, based on an average marketplace rate of 80-120 basis points (.80-1.2%) and on a time horizon of 12 months or less.

At three+one we offer a solution to help public and Higher Ed entities recognize the time value of their cash on hand, while implementing a strategy—through the use of our data—that will recognize the true value of their cash in the marketplace.

The time to capture the wave of rising rates on your operating and non-operating cash is now. If proactively managed, your budget line for 2017/2018 will increase dramatically over previous years.

And that is sure to make everyone happy.


See Us At These Upcoming Events and Conferences:

NYS GFOA Annual – March 29-31 (See Our Presentation March 30th at 2:30 p.m)
GFOA South Carolina – May 1
National GFOA in Denver – May 21
New York State Association of Counties Finance School- May 2-4