top of page
  • Writer's picture Treavor Dodsworth CFP®, CPA, CKA®

#175 - Return on Cash

Return on Cash

In this interest rate environment, it is very easy to find FDIC-insured savings accounts paying more than 4%.

I have written about this multiple times before but I wanted to highlight it again. This week I spoke to an individual regarding a prospective client with several hundred thousand dollars in checking/savings that were earning next to nothing.

The first negative is I don't believe the individual needed this much in short-term funds so she has missed out on the great year the stock market has had so far. The second negative is even if she did want to keep that much in cash it is very easy to find FDIC-insured savings accounts paying more than 4%. Simply using a different savings account would be worth $10K+ to this client.

Return on Cash

It may not seem like a dramatic difference but when the risk is so low (assuming you are staying within FDIC insurance limits) and time required to make the change is so low, it seems prudent to make the change to a savings account that is at least paying 4%.

Whether you are a client or not, I am happy to walk you through this. Feel free to reach out if you have any questions!


Eternal Perspective Ministries - Do We Understand Stewardship 101?

  • God owns it all.

  • The stock market has done well YTD. That said, in good times and bad, we need to invest according to principles as volatility even in positive years is not uncommon.

  • IRAs (and other retirement accounts) have many nuances. Andy highlights three of the strange nuances that exist.


Thank you for reading!

Images from Pexels: photographer Pixabay


Thanks! Message sent.

All written content on this website is for information purposes only. Opinions expressed herein are solely those of Sycomore Financial, unless otherwise specifically cited.  Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. The owner of this website takes great care to thoroughly research the information provided to ensure that it is accurate and current. Nonetheless, the content on this website is not intended to provide tax, legal, accounting, financial, or professional advice, and readers are advised to seek out qualified professionals that provide advice on these issues. All information or ideas provided should be discussed in detail with an advisor, accountant, legal counsel, and/or other pertinent professionals prior to implementation. In addition, the owner cannot guarantee that the information on this website has not been outdated or otherwise rendered incorrect by subsequent new research, legislation, or other changes in law or binding guidance. Neither Sycomore Financial or it's owner shall have any liability or responsibility to any individual or entity with respect to losses or damages caused or alleged to be caused, directly or indirectly, by the information contained on this website. In addition, any advice, articles, or commentary included on this website do not constitute a tax opinion and are not intended or written to be used, nor can they be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. Any mention of an investment product or solution is not a recommendation to buy or sell. ETFs that are mentioned may not accurately reflect the market segment mentioned. Past performance is not a guarantee of future results. Any mention of rates or return should not be seen as a guarantee those rates or return will be received.

bottom of page