Boost Returns on Your Cash With Higher Yields

  • Impacts of financial decisions
  • 7/8/2024
Lawyer and couple discussing different options

Key insights

  • Interest rates above 5% are back to their long-term averages.
  • Review your excess cash to determine if it is earning market rates — and make necessary adjustments to avoid leaving money on the table.

Is your money earning the yields it should?

Consult an Advisor

If you haven’t been paying attention, interest rates are back to their long-term averages, with short-term Treasuries now yielding over 5%. This is a far cry from December 2021 where these same yields were only 0.05%. Source: Morningstar

Given this significant and rapid rise, you should review your excess cash to determine if it’s earning market rates. The answer might surprise you. Analyzing investment opportunities can be complex, so consider working with an advisor to help navigate your cash management needs.

Earning attractive yields on excess cash

The Federal Reserve raised the federal funds rate by 5.25% over 15 months, which is the most aggressive tightening cycle in the last 40 years, as we noted in our 2024 CLA Outlook. However, while higher rates have created economic headlines, many business owners and individuals are missing a potentially bigger opportunity to earn attractive yields on their excess cash.

Exploring how you may earn higher yields

Earning higher yields a relatively easy proposition.

Using a brokerage account, money market mutual funds or separately managed accounts holding individual Treasuries or municipal bonds are strong options. Both taxable and tax-exempt alternatives are also available, which may be helpful depending on your state jurisdiction.

The chart below showcases representative yields across both taxable and tax-exempt alternatives. Higher yields also come with liquidity, allowing you to access your cash within days, rather than being locked up for years.

Manage your cash effectively

CLA is offering new corporate and individual CLA Wealth Advisory clients a cash management platform with zero wealth advisory fees for the remainder of 2024.1

See what your cash could yield

Our robust cash management platform offers options by Assets under Management (AUM).

How we can help

You have many cash management options, but it can be challenging to understand which are most effective. Please reach out to us to determine which CLA cash management platform fits your needs, whether for business or individual needs. CLA’s wealth advisors are here to help.

Contact us

Is your money earning the yields it should? Complete the form below to connect with CLA about putting your cash to work.

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