There is not a single U.S. public or private entity that is not permitted to invest into United States Treasuries. If, for some reason, your Investment Policy Statement (IPS) does not permit such investments, an updated IPS is in order.
U. S. Treasuries are issued and guaranteed by the full faith of the United States government and are considered to be the world’s safest investment option.
They meet all legal, safety, and liquidity requirements while providing a yield that’s above most bank deposit and CD accounts.
Consider the following yields on current U.S. Treasuries as of July 7, 2017:
1 month .94%
3 month 1.05%
6 month 1.14%
1 year 1.22%
These rates, representing a major jump in short-term rates, clearly make Treasuries a viable option for your operating cash to work.
Though three+one is not a bank or an investment or financial advisor, our goal is to ensure our clients have the necessary liquidity information they need to put all their cash to work.
If your entity is not achieving a yield of at least .90%+ on your bank deposits, it’s time to consider talking with your banker or Registered Investment Advisor (RIA) about purchasing U.S. Treasuries. Each dollar earned will go straight to your bottom line.
Treasuries will make you look good and keep your taxpayers and/or customers happy!