Louisiana Corporate offers one of the highest
yields on overnight funds to credit unions who wish to manage
their money. It's called the S-005 account, or Money
Market Maximizer. This account is an overnight account,
so the credit union has total use of their funds.
While there are no restrictions on how many times this account
may be accessed each month, all funds must be locked in by 1:00
p.m. each business day to earn the S-005 rate.
What kind of rate can you earn with the S-005?
Generally, the account mirrors the Fed Fund target rate for
the day, which means the S-005 is among the best-paying overnight
funds available. In 1997, for instance, the S-005
paid an average of several basis points higher than similar
accounts offered by a large corporate credit union and 10 basis
points higher than the "cash management" account of
a large Louisiana bank. Unlike high-yield accounts
offered by other institutions, there is no "tiered"
pricing on the S-005 Money Market Maximizer...every dollar you
invest earns the highest rate available. Period.
The S-005 account is a perfect complement to
the credit union's S-010 or S-015 accounts. Think of those
accounts as "checking" accounts, with the S-005 as
a high-yield "savings" account.
Earning the best yield possible is easy...any
Louisiana Corporate staff member can set up the account.
There is no charge to open a Money Market Maximizer account.
