Savings Account Options for Non-Profit Organization

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delrinson
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Joined: Tue Sep 06, 2016 11:46 am

Savings Account Options for Non-Profit Organization

Post by delrinson » Thu Mar 29, 2018 7:32 am

What are the best savings account choices for a 501(c)3 organization? Apparently Ally, for example, which currently pays 1.45%, won't open accounts for businesses. Best I've been able to find so far is Capital One Spark, which is 1.5% for a year but then goes to 0.4%.

Any other options?

lazyday
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Joined: Wed Mar 14, 2007 10:27 pm

Re: Savings Account Options for Non-Profit Organization

Post by lazyday » Sun Apr 22, 2018 5:54 am

Do Vanguard, Fidelity, or Schwab allow business accounts?

If so, maybe you could open a bank account and link it to the brokerage account. You could then buy and sell Treasury bills in the brokerage, without paying commissions. Vanguard pays good rates on cash if you forget to reinvest when a bill matures.

The 3 month bill is at 1.81 percent.

BlackcatCA
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Joined: Sat Jan 20, 2018 2:55 pm

Re: Savings Account Options for Non-Profit Organization

Post by BlackcatCA » Sun Apr 22, 2018 11:08 am

I second the suggestion to look into brokerages, not only for saving account, but also a brokerage account to accept donations in the future. Thinking long term, having the ability to accept appreciated stock may be an advantage.

Some brokerages may even have special service support for 501(c)3, as part of their corporate responsibility offerings.

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welderwannabe
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Re: Savings Account Options for Non-Profit Organization

Post by welderwannabe » Sun Apr 22, 2018 2:35 pm

Vanguard brokerage account and stick it in the Federal Money Market. Earns over 1.5%.
I am not an investment professional, but I did stay at a Holiday Inn Express last night.

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dm200
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Location: Washington DC area

Re: Savings Account Options for Non-Profit Organization

Post by dm200 » Sun Apr 22, 2018 3:16 pm

welderwannabe wrote:
Sun Apr 22, 2018 2:35 pm
Vanguard brokerage account and stick it in the Federal Money Market. Earns over 1.5%.
Yes. - I manage investments for an organization and we have bond funds, mm fund and brokered CDs at vanguard - no problems. Just make sure the bylaws and policies of the organization allow what you do. Also check with similar organizations to find out what they do. Sometimes there are special accounts at banks for that type of organization.

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