Short-Term Taxable Investment Vehicles
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Keep Your Money Working

Short-term cash idle for between 30 days and one year can be invested in a range of vehicles. Your Merrill Lynch Financial Advisor will work with you to identify investment objectives, assess your risk tolerance, determine the liquidity you need, and review opportunities to invest.

  • Put your money to work by investing short-term idle cash to generate business income
  • Choose from a range of vehicles that complement your company’s investing objectives
  • Create a diversified, high-quality portfolio based on targeted liquidity and yield

Compare Short-Term Taxable Investment Vehicles

Investment Vehicle Income/ Tax Status Credit Quality Maturities/ Liquidity Denominations
Banker’s Acceptances Rates track money market instruments. Taxable. Investment-quality ratings from major rating agencies. Maximum maturity of 270 days. Liquidity subject to current market conditions. Multiples of $1,000 with minimum investment of $10,000.
Certificates of Deposit Zero-coupon or interest-bearing. Varying interest rates. Taxable. FDIC-insured up to $100,000 for domestic banks. Wide range of maturities. Moderate liquidity. General minimums:

Insured CDs $1,000.

Jumbo CDs $100,000.

Institutional CDs $1,000,000.
Commercial Paper Rates track money market instruments. Taxable. Investment-quality ratings from major rating agencies. Maximum maturity of 270 days. Liquidity subject to current market conditions. Multiples of $1,000 with minimum investment of $10,000.
Federal Agency Securities Yields track Treasury Bills but generally offer slightly higher returns. May be exempt from state and local taxes. Very high credit quality. Flexible maturities. Highly liquid. Various.
Money Market Deposit Accounts Short-term interest rates. Taxable. FDIC-insured up to $100,000 for domestic banks. On demand. Highly liquid. Various.
Repurchase Agreements Short-term interest rates. Taxable. Varies depending on collateral and counter party. Usually overnight. Term repurchase agreement available. Various.
Taxable Money Market Funds Short-term interest rates. Taxable. High credit quality. Excellent record for preservation of capital. No set maturity. Highly liquid. Generally unit denominations of $1. Institutional funds may have minimum investments of $25,000 or more.
Treasury Bills Generally lower yields than other debt instruments. Exempt from state and local taxes. Highest credit quality. Least credit risk. Maturities of 3 months, 6 months and 1 year. Highly liquid. Multiples of $1,000 with minimum investment of $10,000.

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Merrill Lynch does not provide tax, accounting or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used for the purpose of avoiding U.S., federal, state or local tax penalties. Please consult your tax advisor as to any tax, accounting or legal statements made herein.

Neither Merrill Lynch nor its Financial Advisors offers tax advice. Please consult a tax professional to determine the impact of your choices on your tax obligations.