Looking for high-yield bank or CU savings account for a non-profit

[prudent_one]

I handle finances for a non-profit. Their checking account pays 0.01% APR and the savings account (if we wanted one) pays 0.05% APR. Bank says that's because our account is a business account, not personal.

I'm just looking for a way to stretch their funds. Any suggestion how I could find a business bank/credit union savings account (or even a short-term CD) that pays more like the 4%+ personal accounts? Don't want any brokerage stuff as the board of directors would think it's too risky and I don't want to argue with them about it.

Don't know how to search for only business account offers.

 

[bloom2708]

Forbes has a list here:

https://www.forbes.com/advisor/banking/savings/best-business-savings-accounts/

We have a SoFi and Apple Savings, but I do not think either has a business version.

 

[DuluthGA]

My church uses Wesleyan Investment Foundation. You don’t have to be Methodist/ Wesleyan to invest.
Currently paying 5.5% on savings. NOT FDIC covered so they keep a huge cash on hand balance. If interested read their prospectus.
We’ve move money in/out for years with no issues. I also use them for my personal savings.

 

[pb4uski]

What about US Treasuries? A small nonprofit that I am the Treasurer of has a Treasury Direct account and I ladder 17 week Treasury bills and get over 5%. Might be easier to just set up a brokerage account and buy Treasuries there.

 

[OldShooter]

One caution: DW's hobby is serving on nonprofit boards, often as chair or treasurer. She has run into situations where it is a major hassle to change signers on accounts, such as where new officers are named. "Hassle" includes requiring both the former signers and the new signers to physically visit the bank in order to change signature authority.

So I would suggest that you ask about procedures in addition to rates.

 

[Sunset]

Ally bank, it's online.

Ally.com

Savings account pays 4.35%
Checking pays less but easy and immediate to transfer from savings to checking

• 0.10% Less than $15,000 minimum daily balance
• 0.25% $15,000 minimum daily balance

CDs are easily seen here: https://www.ally.com/bank/cd-rates/

It's FDIC insured and easy to use.

 

[pb4uski]

One caution: DW's hobby is serving on nonprofit boards, often as chair or treasurer. She has run into situations where it is a major hassle to change signers on accounts, such as where new officers are named. "Hassle" includes requiring both the former signers and the new signers to physically visit the bank in order to change signature authority.

So I would suggest that you ask about procedures in addition to rates.

That is not unusual. For one nonprofit that I serve on we each need to go to the bank, for another we each sign the document at home and then give it to the bank.

 

[Surewhitey]

We also have a MM at Vanguard VFMXX that pays 5.28% currently.

 

[isisdave]

I've used Everbank and Ally for savings accounts for a corporation (not non-profit).

I hear you about the hassle of changing signatories when officers change. Once I found it much easier just to close the first account and open one at another bank, both of which could be done remotely in a day.

 

[Gotadimple]

For a non-profit you have to approach this with a 2-bank solution.

Bank #1 with low interest rates maintains your checking account and other short term savings account you feel you need for quick cash flow. You generally have minimum balances you need to keep on deposit but it does provide a Brick & Morter place for making deposits or cash withdrawals from an ATM.

Bank #2 is ready to work with small business and is your go-to for longer-term (think 6+ months or more) savings and CD purchases. Best rates will be found at internet banks. Some of the banks mentioned here, just don't cater to small business that might have higher deposits and don't need corporate financial 'services.'

This is the strategy I used as the treasurer of a Homeowners Association, which was not a non-profit (not 501(c)(3)) but a not for profit association per IRS definition.

Bank #2 for us was and is Live Oak Bank which is mostly internet only. You connect the accounts through ACH and move money between them. Very easy to work with and for business accounts currently pays 4% on business savings (no minimum) and 5.3% on a 1 year CD ($2000 minimum, I think).