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I 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 $
by Guvante 13y ago
I 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.