How you manage your cash-flow and how you optimize liquidity returns can have a fundamental impact on your bottom lines. By taking advantage of various products in the market, you can substantively increase the yeild of your idle money even in short periods.
There are various products that can enable your organization get the best returns for your cash holdings;
| PRODUCT | GENERAL DESCRIPTION |
| Wealth management Fund | ►High Net worth fixed income offering by Fund Management companies and banks
►Investment in a blend of short term fixed income instruments such as high yielding deposits, treasury bills, commercial papers ►Operates like a fixed deposit fund with 3, 6 and 12 month periods ►Attracts a withholding tax of15% on interest |
| Money Market Fund | ►Short term fixed income offering by Fund Managers
►Investment in a blend of short term fixed income instruments including bank deposits, and treasury bills ►Management fee usually between 1%-2.5% ►Attracts a withholding tax of15% on interest |
| Treasury Bills | ►Short term borrowing by the government (91, 182 and 365 days periods)
►Classified as almost risk free investment – being a borrowing by the government. ►Attracts a withholding tax of15% on interest |
| Commercial Paper | ►Equivalent to treasury bill but on corporate side
►Attracts a withholding tax of15% on interest |
| Treasury Bonds | ►Long term government borrowing (above 1 year)
►Interest paid semiannually |