Issue 40: What's in Your Wallet ... It Could be More with SCP Cash Management!
February 2023
The conversation dominating the investing world over the last year has been interest rates. Everyone knows the cost of a new mortgage or car payment is materially higher than this time last year. The chart below shows the interest rate for 1- and 2-Year Treasuries going from ~1.00% in March 2022 to ~5.00% in March of 2023.
However, I’m sure you haven’t seen a corresponding increase in the interest rate for your checking, savings, or business account. That ends today!
SCP is launching a cash management product allowing you to take advantage of high interest rates that your bank is keeping for itself! Interested in earning ~5.0% on your cash keep reading to find out more.
What interest rate are some of the big banks offering for your account? I’ll save you clicking each one, it ain’t a lot.
https://www.wellsfargo.com/checking/prime/
https://www.pnc.com/en/rates/savings/19301/NA
https://www.chase.com/personal/savings/savings-account/interest-rates
https://www.bankofamerica.com/deposits/bank-account-interest-rates/
You are probably saying to yourself, I haven’t earned interest on my cash in over a decade. Based on the offers from each of these banks that inertia would be correct. However, there is a way for you to capture this interest for yourself, rather than letting the bank keep it.
The current interest rate for Treasury Bills maturing in less than 12 months ranges from 4.6% to 5.2%, depending on maturity.
You are probably saying to yourself great idea Bill, but how do I take advantage of that? Enter SCP Cash Management.
What is SCP Cash Management?
Let’s say you have $50,000 in your savings account. If you were like me and earning 0.10% at the bank, that meant you would earn $50 per year in interest. SCP Cash Management inverts this relationship allowing you to capture the interest the bank is keeping for itself.
Who is this product for? Anyone with excess cash in their account.
Are you a small business with excess cash from PPP loans? This could be an ideal cash solution!
Looking to buy a home or pay tuition in the future? Earn extra interest as you wait for those milestones to take place!
Just a regular person with some extra cash in their checking account? No reason not to earn a higher interest rate!
Here’s how to take advantage of it. Send me an email bill@springcitypartners.com and I’ll help you through the entire process.
Here are a couple bullet points:
Account is custodied at Charles Schwab.
Invests in Treasury Bills, ETFs, and money market funds that typically mature in less than 12 months.
Fee upto 0.35% paid monthly in arrears, based upon the average daily value of the account.
For example, the fee for an account with $50,000 would be $175.
You could earn $50 and pay the bank $2,450. You could earn $2,325 and pay SCP $175.*
It is not uncommon for inertia to be the biggest financial obstacle for people. Hopefully the idea of potentially earning 50x the interest you are making in the bank incentivizes you to reach out.
Bill
*Both of these examples assume 5.0% interest on $50,000. Actual amounts subject to individual offers and market conditions.