

Where do startups store millions of dollars of capital? - kirkouimet

Where's the smartest place to store operating capital in excess of one million dollars? Surely not in one regular checking account, right?
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johnrgrace
Just about everywhere you can store money without much risk today has very low
yields. In general, if getting an entra 0.5% yield on your cash is really
meaningful, you should have millions of dollars laying around.

I know of a regional credit union offers 1% interest on business checking
accounts with over $1mm which is pretty good compared to rolling T-Bills.

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xf
Not the smartest but a safe way: Rolling 3 month T-bills at your friendly
banker (in book entry form, i.e., in your name). You can get more clever (and
more return on your capital) if you are willing to take some risk. Just
remember that risk works both ways.

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jsmartonly
Nothing wrong with checking account.

When you think about "return on capital", do not forget "return of capital".

