Why companies still stash cash in bank accounts

06/21/2013 | CFO.com

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The 2013 Liquidity Survey by the Association for Financial Professionals shows that most companies continue to place short-term cash in bank accounts, despite the end of an unlimited guarantee by the Federal Deposit Insurance Corp. However, this is not necessarily a show of confidence in the financial system. Rather, companies still find it profitable to place cash in bank accounts as earnings credit offered by large deposits still has a higher return than what is delivered by short-term cash investment.

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