Investing Excess Business Cash

Business people working with computers and charts – meant to represent a business investing cash reserves

Businesses are growing their cash reserves in response to uncertainty created by the COVID-19 pandemic. For many organizations, these cash reserves represent very large sums and need to remain liquid to cover operations and unexpected expenses.

But maintaining a large cash reserve creates some important risks that need to be addressed. First, the FDIC only insures the first $250,000 in deposits for each company at a given bank. This means companies who need to keep more than this limit in reserve could be at risk of losing those funds in the event of a bank failure. Next, idle cash doesn’t contribute to your bottom line, and it can even hurt you in times of escalating inflation. So, what options do companies have for investing reserve cash?

Don’t Leave Cash Reserves Sitting Idle at Your Bank

Bank deposits can solve liquidity issues, as most bank or money market accounts are highly liquid. And while money market accounts can offer a higher rate of return than regular deposit accounts, those returns are now severely limited due to historically low interest rates that are expected to persist for quite some time.

It would be a mistake for a company to leave their reserve funds sitting idle in their bank accounts. There are safer and more effective strategies available for the organizations who are aware of them.

An AMMA™ Account from ADM Enhances Your Current Bank Account

Our American Money Market Account [AMMA™] utilizes proprietary fintech to ensure your cash is 100% protected. Once funds are deposited into an AMMA™ account, the cash is spread throughout our network of banks and credit unions to provide access to extended FDIC / NCUA protection.

In addition, those banks compete for your deposits, so you also get competitive returns. And the best part is you keep your current bank. An AMMA™ account doesn’t replace your current bank, it enhances it.

An AMMA™ Account Provides Liquidity When Your Business Needs It

Another important feature of an AMMA™ account is your business does not have to sacrifice liquidity for safety and return. This is because an AMMA™ account boasts next-day liquidity while providing a robust solution to optimizing cash reserves.

And if you have scheduled payments or if your liquidity needs are not so stringent, ADM can utilize other strategies such as CD Ladders to further optimize returns. One of the benefits of working with ADM is our flexibility. We have multiple investment and cash protection options available that can help your company get the most from its cash reserves.

Earn more, risk less® with an AMMA™ Account by ADM

When you work with ADM, our team of cash consultants will understand your needs and develop a strategy to optimize your 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 nationally 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 LinkedInTwitter 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.

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