In the wake of pandemic related challenges, business leaders are reevaluating their cash reserve strategies. This new environment, exemplified by a recent string of corporate bankruptcies, has shined a spotlight on the need for organizations to maintain sufficient cash to support operations during a crisis.
As cash reserve needs grow, it can become difficult for a business to keep the entirety of its cash at a single bank without sacrificing FDIC insurance coverage. And with historically low rates, finding a productive investment for reserve cash can be quite a challenge.
Our company, the American Deposit Management Co. [ADM], has developed a solution to these problems through our proprietary fintech. Our American Money Market Account™ [AMMA™] offers extended FDIC / NCUA coverage, easy reconciliation, next-day liquidity, and competitive rates for business cash. This is a concept we call Marketplace Banking™, and the best part is, you keep your current bank.
Enhanced Business Banking Provides Access to Extended Deposit Coverage
Deposit insurance through the FDIC or NCUA is the most robust protection available for business cash. However, due to the limitations of this coverage, cash balances exceeding $250,000 at any one bank may be left unprotected. This is important in the event the bank collapses, because those excess funds could be lost.
Our fintech has delivered an advanced solution to this problem. With an AMMA™ account, business deposits are distributed across a network of financial institutions to provide access to extended deposit insurance beyond traditional limits without the additional hassle. This means businesses get additional protection for their cash without leaving their current bank.
Enhanced Business Banking Equals Next-Day Liquidity
Other services that extend FDIC coverage on business cash come with very important limitations. For example, CDARS can allow businesses to extend FDIC protection beyond the traditional limits, but the cash is locked away in CDs until maturity. Significant penalties and fees can apply if the cash is withdrawn before the CD has matured.
With AMMA™, the days of sacrificing safety for liquidity are over. That’s because AMMA™ allows businesses to access various investment vehicles with the appropriate level of liquidity for their situation – as soon as the next business day.
Enhanced Business Banking Equals Competitive Returns
Since the Fed’s actions in March 2020, interest rates have remained near zero. With little indication that the Fed will raise rates significantly in the near future, negligible interest rates may be the new norm. Despite these historically low rates, businesses shouldn’t be limited to the rates available at their local bank.
Our network of financial institutions is not limited by geography. With an account at ADM, hundreds of banks and credit unions across the nation compete for business deposits. This means businesses with AMMA™ can access returns across the U.S. That’s how AMMA™ provides our clients with nationally competitive returns.
Enhanced Business Banking Equals Stronger Local Banking Relationships
A relationship with ADM is not designed to be exclusive, but we understand more banking relationships equals more work. We also know that the relationship with your local banker is invaluable, which is why we do not want you to leave your current bank. We are not a bank, and we are not here to replace your bank – we are here to enhance it.
Businesses need a strong relationship with their primary bank for a multitude of reasons, but in many cases their funds are spread across several institutions. However, maintaining accounts with multiple banks can use valuable time and resources that could be better spent elsewhere. AMMA™ allows businesses to consolidate their banking relationships without sacrificing safety or return. That’s why we always say, we aren’t here to replace your current bank, we are here to enhance it.
Enhanced Business Banking Equals Easy Account Reconciliations
AMMA™ is one account, with one consolidated statement, that allows businesses access to nationally competitive returns and the ultimate in cash protection without the hassle. By combining ADM’s suite of cash management services and a strong relationship with a preferred bank, organizations can streamline their cash flow management program.
In addition, our intuitive online portal allows businesses to easily move funds between their bank account and AMMA™. This helps businesses achieve safety and competitive returns, on demand.
Earn more, risk less® and Save Time with AMMA™ by ADM
When you work with ADM, our team of cash consultants will understand your needs and develop a strategy to optimize your reserve cash. Our team is our secret sauce, and you will understand that once you give us a call.
At ADM, we take the work of cash management off your plate. If your business maintains a large reserve of cash, or if you are looking to reduce the work required to manage your cash, don’t hesitate to contact us. We look forward to the opportunity to provide your business with safety and competitive returns.
If you’re looking for even more valuable insights on banking, interest rates, and effectively managing your business cash, be sure to check out our Insights page and follow us on LinkedIn, Twitter and Facebook.
*American Deposit Management Co. is not an FDIC/NCUA-insured institution. FDIC/NCUA deposit coverage only protects against the failure of an FDIC/NCUA-insured depository institution.