By investing that amount for as little as 90 days, you may be able to earn extra return. Consider intermediate-term investments with maturities of one to three years. If your business is building cash reserves to implement an expansion, execute an acquisition or replace obsolete machinery, you may be able to temporarily commit these funds to an investment for a year or two. Diversify credit quality. Determine whether the potential for additional yield might warrant assuming some moderate risk.
Some businesses opt only for obligations backed by the U.S. government.
By doing so, they typically accept a lower yield than may be obtained in other obligations that have more risk but can still provide a relatively high degree of safety. High-quality corporate money market investments, for example, usually have higher yields than similar maturity Treasury obligations or CDs. Take a look at the comparative analyses generated by rating services that rank the risk level of various instruments and put this knowledge to use. This bond is likely to yield a higher return than a AAA-rated bond of equal maturity, even though, for the short time the investment is held, you may not be sacrificing much safety. Make more cash available for investment.