FOR CORPORATE TREASURY · THE CASH POSITION CALCULATOR

How much in the fund, how much in term —
and what does everything else net?

Enter your cash position as three buckets. The tool prices the whole thing against 100% in the fund, judges any term deposit against its breakeven, and puts a dollar figure on what moving more of your cash into the fund is worth — live, as you type.

The cash position, priced
every figure recomputes as you type · effective annual yields · fund credited monthly, term rolled at its tenor
load:
Money market fundAFP avg: 20.4%
Term depositsa slice of the 46% bank bucket
Everything elseoperating, IB deposits, bills…
most treasuries can't quote this number offhand — the NY Fed's average says interest-bearing bank deposits pass through ~40% of the market rate; operating accounts ≈ 0
FOR THIS MIX TO BEAT 100% IN THE FUND, THE TERM DEPOSIT MUST QUOTE
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blended yield of this position (effective)
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what 100% in the fund earns
The pinpoint grid — the term rate your book needs
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On its own dollar a term only ever needs the fund's quote +1–3bp — the compounding floor. The bar rises because the term is being asked to make the whole book tie 100% in the fund: every notch "everything else" earns below the fund, the term's slice has to carry that gap too. Read your row (fund rate) and your column ("everything else" net): green means a market quote plausibly clears it; red means no bank will quote it — the fix isn't the term, it's the else-bucket.

How to use it: start from the AFP average, then replace each number with your own. The "everything else" yield is the number most treasuries have never computed — work it out once, and let the tool do the rest. Verdicts update live; nothing here requires a rate view.

02

The evidence behind the defaults

Where corporate cash actually sits — AFP 2025 Liquidity Survey
254 U.S. treasury professionals · average share of short-term investment balances
$1 : $2+
for every $1 in a money fund, $2+ sit in bank deposits (AFP 2025: 20.4% vs 46%)
~40%
of rate rises passed through to interest-bearing bank deposits last cycle — fed funds 3.7% vs 1.4% paid (NY Fed)
55→47%
bank deposit share in one year (AFP 2023) as money funds repriced with the hikes and deposits didn't
61/35/5
% ranking safety / liquidity / yield first (AFP 2025) — the fund is the instrument the first two describe
The AFP 2025 allocation, in full
average share of short-term investment balances · 2025 survey, 254 U.S. treasury professionals
VehicleAvg share
Bank deposits — demand, sweeps, time & CDs combined46%
Government / Treasury money market funds20.4%
  · at publicly-held companies26.1%
Treasury securities held directly8.7%
Prime / diversified money funds4.0%
All other vehicles20.9%
80% of balances sit in the three safety-first vehicles (deposits, government funds, treasuries); the average organization uses 2.57 vehicles. Investment objectives: safety 61%, liquidity 35%, yield 5%.
What the last cycle did to each bucket
why the "everything else" yield is usually well below the fund
FactNumber
Pass-through of Fed hikes to interest-bearing bank deposits (deposit beta, NY Fed)~40%
2022 Q4: fed funds vs avg rate paid on interest-bearing deposits3.7% vs 1.4%
The fund's net yield across 2022, repricing with every hike0.03% → 4.13%
Bank-deposit share of corporate cash in one year of hikes (AFP 2023)55% → 47%
Money-fund share over the same year (AFP 2023)+4pts
Easing cycle: months the 6M market rate sat below the fund (2024–26)16 of 25
6M lock-in windows the lock actually won, same period9 of 18
AFP 2023, verbatim: bank deposit rates "did not move in step with Fed Funds rate increases… as did money funds." And falling rates don't rescue the lock: quotes pre-price the cuts (e.g. 2024-09: fund 4.85% vs 6M at 4.38%) — locking won 9 of 18 windows, a coin flip.
The AFP-average book, repriced — the calculator's default, derived
each bucket priced honestly in a 3.50% market; the only move is letting movable deposits earn the market rate
BucketShareHonest rateIn the move
Operating cash - non-interest accounts & ECR16.0%0.00%stays
Interest-bearing bank deposits (beta ~0.4)20.0%1.40%reprices to market
Time deposits / CDs (market-like quotes)10.0%3.50%already at market
Money market funds20.4%3.50%already at market
Treasury bills held directly8.7%3.47%already at market
Other market instruments (CP, agencies)24.9%3.48%already at market
Blended yield 2.55% → 2.98% (+43bp ≈ $429,535/yr per $100M) from that one conservative step. Netted differently: outside the fund this book blends 2.29% on 80% of cash against a 3.56% fund — a 126bp gap. Those are the defaults the calculator loads; your own numbers replace them in seconds.
03

What the gap costs

bp/yr per dollar outside the fund
fund yield ↓ × what the outside cash nets → · 100bp = $100k per $10M per year
fund \ outside nets0.50%1.00%1.50%2.00%2.50%3.00%3.50%4.00%
3.00%+254+204+154+104+54+4-46-96
3.25%+280+230+180+130+80+30-20-70
3.50%+306+256+206+156+106+56+6-44
3.75%+332+282+232+182+132+82+32-18
4.00%+357+307+257+207+157+107+57+7
4.50%+409+359+309+259+209+159+109+59
the calculator above already nets any term deposit against its breakeven (the fund's quote +1–3bp for monthly crediting) — this table is the ask: find the row, find the column, read the cost of every dollar parked below the fund
04

Sources & method

Every number on this page traces to one of these
  1. AFP 2025 Liquidity Survey — Association for Financial Professionals, 2025; 254 U.S. corporate treasury professionals. Allocation averages (bank deposits 46%, government money funds 20.4% — 26.1% at public companies, treasuries 8.7%, prime funds 4.0%), objectives ranking (safety 61 / liquidity 35 / yield 5), and the 2.57-vehicles average.
  2. AFP 2023 Liquidity Survey — the hike-cycle reallocation: bank deposit share 55%→47% in one year, money funds +4pts, and the survey's own explanation that deposit rates "did not move in step with Fed Funds rate increases… as did money funds."
  3. Federal Reserve Bank of New York, Liberty Street Economics — deposit-beta research: roughly 40% of policy-rate rises passed through to interest-bearing deposit rates last cycle; 2022 Q4 fed funds 3.7% vs 1.4% average paid.
  4. SEC Form N-MFP filings of an institutional government money market fund, 2016–2026 — monthly net yields, including the 2022 repricing from 0.03% to 4.13%.
  5. U.S. Treasury constant-maturity rates (H.15 release; FRED series DGS1MO / DGS3MO / DGS6MO) and the effective federal funds rate (FRED DFF), 2016–2026 — the market term rates behind the easing-cycle counts.
Method. Effective annual yields throughout: the fund accrues daily and credits monthly (a 3.50% quote earns 3.557%); term deposits pay simple interest at maturity, assumed rolled at a constant quote at their tenor; the "everything else" input is taken as an achieved effective net yield. Every closed-form figure is cross-checked by a daily ACT/365 simulation — the build fails if they disagree.