1 / 16

Cash Or Liquid Asset Management

Cash Or Liquid Asset Management. Financial Institutions. Deposit-Type Financial Institutions Commercial Banks Savings and Loan Associations Savings Banks Credit Unions Nondeposit -Type Financial Institutions Mutual Funds Stockbrockerage Firms. Commercial Banks.

kyna
Download Presentation

Cash Or Liquid Asset Management

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Cash Or Liquid Asset Management

  2. Financial Institutions • Deposit-Type Financial Institutions • Commercial Banks • Savings and Loan Associations • Savings Banks • Credit Unions • Nondeposit-Type Financial Institutions • Mutual Funds • Stockbrockerage Firms

  3. Commercial Banks • Offer widest variety of financial services • Checking and savings accounts, credit cards, safety deposit boxes, financial consulting, and lending • Dominate in terms of dollar value of the assets they hold • Have more branch offices or locations than any other type of financial institution • Many offer online banking services

  4. Commercial Banks • Citibank, NationsBank, Regions, Bank of America, US Bank

  5. Community Banks • Are similar to commercial banks but are located in a particular area or region • Less locations and not as many services offered • Many pride themselves on customer service • “Small-town” • CFSB, Heritage, Murray Bank, Citizens Deposit, 1st Kentucky

  6. Credit Union • Not-for-profit cooperatives • Established by churches, univerisities, trade unions, and corporations • Only open to members of that organization • Offer a wide range of competitive financial services • More efficient, smaller scale • Pay higher interest rates and have lower fees and minimum balances

  7. Credit Union • Murray State Credit Union, Navy Federal Credit Union, General Tire Credit Union

  8. Nondeposit-type Financial Institutions • Mutual Fund- An investment fund that raises funds from investors, pools the money, and invests it in stocks, bonds, and other investments. • Investors own shares proportionate to the amount of their investment level.

  9. Cash Management Alternatives • Checking Accounts • Saving Accounts • Money Market Deposit Accounts • Certificates of Deposit • Money Market Mutual Funds • U.S. Treasury Bills, or T-Bills • U.S. Series EE Bonds

  10. Checking Account • Demand Deposit- A type of checking account on which no interest is paid • NOW (Negotiable Order of Withdrawal) Account- A checking account on which you earn interest on your balance • Minimum balance • Monthly Fees

  11. Savings Account • Time deposit • May be required to keep money deposited for a minimum time period • A deposit account that pays interest • Make withdrawals at the bank with a withdrawal slip or with an ATM card

  12. Money Market Deposit Accounts • Alternative to savings account offered by commercial banks • Rate of interest varies with the current market rate of interest • Interest rate is higher that regular savings account • Offers limited check writing service • Requires higher minimum balance than regular savings ($1000 +)

  13. Certificate of Deposit • Pays a fixed rate of interest while keeping your funds on deposit for a set period of time • 30 days to several years • The longer time period funds are deposited, the higher rate of interest • Interest rate stays fixed for the life of the CD • Early withdrawal penalties

  14. Money Market Mutual Funds • Mutual funds that invest in short-term notes of very high denomination • Earn a higher rate of return • Limited check writing privileges

  15. U.S. Treasury Bills (T Bills) • Short term notes of debt issued by the federal government, with maturities ranging from 3 months to 12 months • Minimum denomination is $1000

  16. U.S. Series EE Bonds • A type of security that’s actually a loan on which you receive interest • When bond matures you get back your investment • Low denominations and variable interest rates • When a bond is purchased, its price is ½ its face value (buy a $50 bonds for $25, but it will be worth $50 when it matures)

More Related