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Coop Banks / Interest RatesMar 27, 2023

Given everything going on with banking and interest rates, curious where other coops are holding their cash? And what are the interest rates you are getting? Has anyone ever done a portfolio of different duration CDs or other fairly liquid investments?

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Coop Banks / Interest Rates - Steven424 Mar 28, 2023

Before moving any of your co-op's cash around, I suggest you have a chat with your co-op's attorney about the rules regarding investing co-op assets. Remember that as a board member, you are a fiduciary and required to act in the co-op's best interests.

One of these interests is the full preservation of co-op assets ahead of a desire to produce income via dividends or asset appreciation. Cash is of course acceptable as are T-Bills. But mutual funds and ETFs get more squishy the more they expose the assets to investment risk. Targeted mutual funds, index mutual funds, and even bond funds should be evaluated for the risk of loss of principal.

This being said a CD ladder up to $250k is acceptable. Anything above $250k is uninsured and subject to the risk of loss. For example, Silicon Valley Bank. Check with your attorney for the finer points of the regulations.

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Banking Providers - Alexis Mar 29, 2023

Where do you hold your cash - which bank? We are at Webster and Apple. Wondering if others have recommendations and if its generally in money market accounts. Thank you

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