This is written by Brandon Arvanaghi, founder of Meow. Meow helps businesses manage their idle cash — since we use them to manage our treasury, I figured I’d invite him to be the resident expert on this section.

We also have a special offer if you want to use Meow in the Resources section.

You just raised $10M — what are you going to do with the cash? Let this document be your guide. That’s too much money in the bank to be earning any kind of yield — so what are your options?

Overview

• The easiest thing your startup can do to manage its treasury is finding a bank checking account with an insured cash sweep.
• If you want to step it up and lock in a rate for a defined period of time, buying treasury bills directly can be the way to go.
• Be careful of using other types of investments as they may accidentally make the company ineligible for QSBS.

High Interest Checking Account

Do you want to keep it really simple for your business?

You’re used to thinking of yield being in a “savings account,” a money market fund, or through T-Bills. But, checking accounts also earn interest for banks. So, checking accounts can also pay interest for you!

In fact, if you have your funds in a checking account that offers a high interest rate — close to the federal funds rate — and that bank partners with an insured cash sweep provider, then you might be able to access the yield and diversification you’re seeking from one single account.

Finding a bank that offers a high interest checking account which partners with an insured cash sweep provider could let you access yield, do your payroll, pay contractors, and do everything else you need from one account. Maximum Checking is one example.

Treasury Bills

First off, let's get some terminologies straight. You know what Treasury Bills are, right?