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> short term treasury bonds Hold on. If those are worse than even savings accounts.. why would said companies not put their money in a normal savings account?
by Filligree 13y ago
> short term treasury bonds
Hold on. If those are worse than even savings accounts.. why would said companies not put their money in a normal savings account?
- Guvante 13y agoI do not run the fiscal policy of a huge company, so I am speculating, but here goes: Savings accounts are considered perfectly safe due to FDIC. If you have $10 million for six months you can't do anything with but don't want to invest, Treasury Bonds are zero risk and have some kind of return. In contrast there is a minor risk that a bank could go under. Especially when you consider that you have several accounts with a bank, and you have say $20 million in your accounts total, why add to that?
- jonknee 13y agoWell and the FDIC doesn't really apply here since it only covers $250k. You're right on why the treasuries are appealing though, it's basically a bank account for large amounts.