If your cash account at your investment firm has a current yield around 2 percent, you’re getting only $2,000 a year on $100,000. Push that up to 3 percent and you’ll pocket an extra $1,000. Here are some strategies for cashing in:
* Get the pick of the pack. Many mutual fund companies have several money-market accounts. Go for the one with the highest yield.
* Mass your money You may discover that the sum of your accounts meets the higher minimums that entitle you to a higher yield at many financial institutions. Consolidating accounts with one broker or fund company also will make it easier to manage the paperwork.
* Think about tax-exempts Depending on your tax bracket, you might wind up with more cash, after tax, by investing in municipal money-market accounts.
* Ratchet up your risk An ultra-short bond fund, for example, might boost your return by about one percentage point, versus a pure cash holding. Ultra-short funds have some principal risk but they tend to be fairly stable.