The spread is free money
Moving idle cash from a legacy account to a competitive one is the highest hourly rate most people will ever earn on financial admin.
Research desk
Banking & Cash
Cash is the most neglected line on most balance sheets. It is also the easiest to fix: the spread between a legacy savings account and a competitive one is frequently worth more per year than any fund selection decision, and it requires one afternoon rather than ongoing judgement. This desk covers where short-term money belongs, how to ladder it, and how to keep it insured.
8In-depth guides
7Embedded models
~95 minFull desk reading time
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How to use this desk
Sort cash by when you need it
Every cash decision reduces to one question: what is the earliest date you might need this money? Match the instrument to that date and the rest follows.
- Zero to thirty daysChecking and high-yield savings. Instant access is worth more than the last twenty basis points of yield.
- One to twelve monthsMoney market funds and Treasury bills. Predictable maturity, state-tax exemption on the Treasury side.
- One to five yearsCD and bond ladders. You are paid for giving up liquidity, so only commit money that is genuinely idle.
- Beyond five yearsThis is no longer cash. Inflation compounds against you, and the money belongs in the investing desk.
Insurance has structure
The $250,000 limit applies per depositor, per bank, per ownership category. Those categories multiply your coverage legally.
Fees compound too
Maintenance charges, overdraft fees and a below-market rate are one combined leak. Audit them together, not separately.
Run the numbers
Models for this desk
Sequenced reading