Our reserve fund is invested entirely in Treasuries and government agency bonds. Preservation of capital is absolutely critical, and in this financial market it is much more important that trying to get higher returns elsewhere.

My Coop was investing in Treasuries until rates hit the floor. We did find some banks that actually gave us (business account) a decent rate. Some included Countrywide and GMAC. Yes Countrywide; we kept the amount invested under the $100K FDIC mark. It's usually the banks that are on hard times that give you the best rates. Again keep it under $100K and your monies are protected/safe.

Since we all know how time consuming (and personal)it is to open individual accounts in each bank I'd suggest you look at some of the discount brokerage house (i.e Siebert, Waterhouse or Schwab) as they constantly offer a number of CD options to their clients. With this type of account you open it "ONCE" and have the option of investing in a number of banks/financial institutions; depending on current rates and your time horizon.

Again keep in mind the limits for each institution and you'll protect the monies as well as get competitve rates.

Good Luck,
Dominick

Interest income or growth are not viable objectives if one wishes to be a responsible fiduciary.

There are no other options.

Based on our capital improvement needs, the investments in government securities are laddered.