As a service company, we get high cashflow as the customers pay on
net30. The average daily balance is near 100k, however it goes down to
about 30k at the end of the month as the money goes out for taxes and
payrolls.

I am looking for safe way to put the money that accrues higher
interest/yeild on than money-market on daily/weekly or bi-weekly
basis. The payroll money must be safe and available by the end of the
month.

I am considering Vanguard or short-term CDs that yeild between 2.9 to
3.5%. Please share ideas - funds, CDs, Euro or REIT investment.

---

Request for Question Clarification by pafalafa-ga on 23 Sep 2005 07:58 PDT

Have you seen these guys:


http://home.ingdirect.com/products/products.asp


3.4% on savings accounts, a bit more on CD's.

Is that the sort of thing you're looking for?


pafalafa-ga

---

Request for Question Clarification by pafalafa-ga on 23 Sep 2005 08:00 PDT

Perhaps even better:



http://www.emigrant-direct.com/


at 4% for a savings account.

---

Clarification of Question by tinypatient-ga on 23 Sep 2005 08:17 PDT

Note that I am seeking business account to park payroll money. The
account must have wire transfer (potentially free). I am aware of
e-trade and PNC bank where the rate range is 3.5 to 3.75% in
money-market.

Ok, 4 or 4+ on safe business money market with wire option would be
considered a correct answer for this quest:) I thought foreign
accounts may have higher yeilds, so that was one of the objectives of
this posting.

Emigrant-direct does not qualify because
1. It does not offer business account
2. It does not offer wire transfer at all. Most of the banks and mutual funds
   including Vanguard offer wire transfer for free for transfers north of
   5000.
3. It is only insured upto 100k. My average balance is about 80k but during
   the month end it tops 140k. Since this is payroll money, they all have to
   be FDIC insured.

If you want a risk free place to park your money I would suggest
Emigrant Direct bank.
http://www.emigrantdirect.com/
You can set it up to transfer electronically from your checking
account whenever you need to transfer money in or out of it. They
currently offer a 4% APR which is the highest rate I am aware of that
is still FDIC insured and does not have an early withdrawal penalty
such as CDs. I use them and am very satisfied. You can also go with
ING Direct (3.3 %) or HSBC direct (3.75%). I would stay away from a
REIT because you can lose principal and there are transaction costs,
not to mention they are very risky in this frothy housing market.
If you like this answer and would like to pay me or tip me you can
send me money through paypal at simplicitysells@gmail.com. I am not
yet an official researcher because they are not currently taking new
applicants.