Cash Management Strategies

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Our cash management strategy updates regularly as interest rates move. Today interest rates are volatile, and we expect rate cuts later this year; meaning the highest yielding strategy may not be the same three months from now or even three weeks from now.

Below are pros and cons of different cash management strategies.

Money Market Funds


  • Daily liquid-easily accessible
  • Very low risk to principal-potentially zero depending on amount
  • Many options
  • Easily executed
  • In a rising rate environment, yields will increase quickly


  • Daily liquidity limits yields
  • In a falling rate environment, yields will adjust downward quickly.
  • Risk varies among product – government, muni, and prime retail



  • Safety – FDIC insured
  • Potentially higher yields because of lock up period
  • Return is guaranteed by bank or offering institution
  • Can offer a short-term hedge against falling rates


  • Subject to federal income tax, interest is taxable
  • Challenging to execute with large amounts
  • Limited or potentially no liquidity

Short-term Treasuries


  • Safety
  • Easy to purchase and execute
  • Multiple maturities
  • Free from local and state tax
  • Liquidity (some interest rate risk if sold before maturity)


  • Subject to federal income tax
  • Interest rate risk-primarily if liquidated early

Short-term Municipal Bonds


  • Free from federal income tax and potentially state income tax
  • High credit quality-minimal if any principal risk
  • Multiple maturities


  • More credit risk than U.S. Treasuries
  • Not as liquid as U.S. Treasuries if you need to sell before maturity
  • You could have interest rate risk if you need to sell before maturity

Today, we are targeting a diversified approach to cash management, balancing the need for liquidity with higher rates at the front end of the yield-curve while hedging against the risk of rate cuts later this year.

Our approach is customized to each client’s needs. If you would like to discuss further, do not hesitate to contact us directly at 614-929-2880.


This material is provided by Gryphon Financial Partners, LLC (“Gryphon”) for informational purposes only.  It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product.  Facts presented have been obtained from sources believed to be reliable.  Gryphon, however, cannot guarantee the accuracy or completeness of such information.  Gryphon does not provide tax, accounting or legal advice, and nothing contained in these materials should be taken as tax, accounting or legal advice.  Individuals should seek such advice based on their own particular circumstances from a qualified tax, accounting or legal advisor.

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