Making Your Public Entity's Money Do MoreOctober 2018 / Share
While public entities don't exactly have shareholders and earnings calls, they are just as focused on money as any for-profit business. Public organizations — whether government, municipalities, charities or nonprofits — need to emulate the cash flow management and financial planning of their for-profit counterparts to help ensure successful operations.
Tight budgets, accountability and oversight are all standards that public entities have to operate by, and guaranteeing each dollar is well-spent or properly saved is of the highest importance. When there's little margin for error, public entities have to look for solutions to help ensure their money performs as best as possible.
Fortunately, there are a number of banking services and products built specifically for public entities that they can take advantage of. Checking and savings accounts of are particular concern for public entities, and they should look for options that offer them a personalized and value-add experience. Options like:
Public funds checking
Having a checking account designed for public entities is the ideal solution for governmental, municipal and charitable banking customers. With a public funds checking account, these entities can more effectively and efficiently manage their money, and even cut the costs of doing so. These accounts typically require a low minimum deposit, which provides flexibility, and have a high threshold for activity before fees are charged. Mobile and paperless banking further trim the costs of money management, which returns more usable resources to coffers.
For nonprofits, finding a tailored banking solution can provide a host of benefits. Community checking accounts are attractive to such organizations because they are structured in a way to help nonprofits better manage the complexities of 501(c)(3) and 501(c)(4) operations, while still providing perks like access to treasury management and fee-free ATM networks.
Public funds interest checking
Public entities can put their money to work with a public funds interest checking account that allows their deposits to accrue interest. The continued economic recovery has encouraged central bankers to raise domestic federal rates, which means money that was previously earning zero interest is now in position to benefit. This type of account makes for a competitive advantage public entities can leverage to grow their money.
Public funds money market
Beyond checking account needs, public entities also have to find a savings account that meets their expectations. One option worth investigating is a public funds money market savings account, which provides public entities with an interest-bearing vehicle for putting their money aside.
For government, municipalities and other public entities, a quality banking experience is highly important. Managing money is as vital a responsibility in public organizations as it is in for-profit enterprises, but finding the right banking solution can be difficult.
Vectra Bank has a number of products and services designed specifically for public entities to leverage in operations to positive impact. Contact us for more information today.
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The information provided is presented for general informational purposes only and does not constitute tax, legal, business or investment advice.