DavidW5 (North Carolina)
Posts: 565
Posts: 565
Posted:
I am the chairman of the finance committee of our HOA. We have approx. $2.5M in our replacement reserves. Most is in laddered CD's and some is in one of three bank money market accounts. We are running out of banks with decent CD rates to place our money. I recently found a bank offering a jumbo 5 yr. CD with 1.91% interest. I also found another bank offering a 5 yr with 1.71% interest. We are in the process of opening a $225,000 CD at the first bank. I do not want to place another 5 yr CD right now. I would like to wait 3 to 6 months so the maturities are spread out. In the meantime I need to place that $225,000 in the best savings/money market account I can find.
I am puzzled by the fact that every bank I have found with an attractive high yield savings account rate (e.g. .85 to .90%) only offers those as personal accounts. They do offer corporate money market accounts but the rates are lower (e.g .55%). Does anyone know why the banks do not allow HOA's to open high yield savings accounts? Why do they care where the $ is coming from?
I am puzzled by the fact that every bank I have found with an attractive high yield savings account rate (e.g. .85 to .90%) only offers those as personal accounts. They do offer corporate money market accounts but the rates are lower (e.g .55%). Does anyone know why the banks do not allow HOA's to open high yield savings accounts? Why do they care where the $ is coming from?