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It seems wasteful to have millions of dollars in a checking account, not fully covered by FDIC (I think it only goes up to $250K). Where do startups keep their unused cash? Pros and cons?

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of course you know but it really depends on how soon you will need it. it could be worthwhile to invest it in some index funds or low risk mutual funds if you don't need it for some time – clifgray Nov 6 '12 at 17:36

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Liquid investments and short term bonds. Also, FDIC is insuring per bank per owner, if you spread your cash across institutions you can have millions insured without a problem.

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