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March 18, 2019

High Yield Cash, Make More on Your Money

For the last several years, banks have been getting away with paying almost nothing (0.01%) on cash sitting in checking and savings account. As interest rates have started to tick up, we're finally seeing this trend reverse.

Did you know

Some institutions are now paying yields upwards of 2.1% APY on cash deposits in money market accounts. These are liquid accounts that do not require any lock up period.

According to Blackrock Capital Market Assumptions, US cash is expected to pay 2.5% annualized on average over the next 5 years but the national average is still only 0.21%, according to Bankrate.com. If you are being underpaid on your cash, it may be time to look for another high yield cash solution.

Through our partnership with AssetMark Trust Company, South Coast has access to Complete Cash Solutions, including:

  • Competitive yields that are up to 10-times the national average*
  • Safety by providing up to $2.5M in FDIC insurance**
  • Next-business day access to your cash without penalties

How it works

Complete Cash Solutions is designed using a multi-bank deposit approach. Clients’ cash is deposited in FDIC-insured accounts across a network of FDIC-insured program banks. Each program bank provides up to $250,000 of FDIC-insurance coverage per deposit, per account ownership type, per tax ID, with a maximum insurable capacity up to $2.5 million in total FDIC insurance coverage.

To ensure that each clients’ balance (plus accrued interest) receives full FDIC coverage, the principal amount of assets held at any one institution is limited.

We believe cash is a distinct investment category, different and unique from other fixed income strategies. At South Coast we work with several of the largest financial institutions to provide investment personnel, credit research and risk management processes that are dedicated to the liquidity business. We understand the importance of putting safety and liquidity first as a core investment philosophy. The AssetMark High Yield Cash solution can be used as:

  • A short-term solution to earn a competitive yield
  • A way to consolidate cash by minimizing the need to open multiple accounts at various banks
  • An opportunity to safeguard cash by providing up to $2.5M in FDIC insurance

*As of March 18, 2019. The national average is based on the annual percentage yield average for a money market account as reported by Bankrate.com; its accuracy cannot be guaranteed. **The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.

For more information contact the South Coast Office.

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