by Mark Jones
This survey makes clear that a mixed economic outlook is still impacting investment decisions. Perhaps most telling is that 51% percent of these organizations feel bank deposits are their safest choice for short-term investments. This is up from 23% in 2006, which is not surprising given the fragility of the stock market. And this number may continue to rise, according to survey respondents, if pending regulations by the SEC on money market mutual funds (MMF) make it less attractive to hold cash in MMF accounts.
Is this true for your ministry? Is protecting donor gifts your highest investment priority? It should be.
Preservation of your principal investment is always the most important goal, whatever the economic or rate environment. With MMF and treasury rates at historical lows for the foreseeable short-term future, bank deposits continue to offer safety and provide some of the best yields.
(You know we aren’t going to leave you wondering. ECCU offers some excellent account options to help keep your ministry’s money safe while it earns a competitive return.)