There are several techniques available to local governments for maximizing interest earnings. These include switching non-interest-bearing checking accounts to interest-bearing accounts, using compensating balances more effectively, reducing or combining checking and savings accounts, using a controlled disbursement account, wisely considering long-term and short-term investment options, using a bank's automated systems, and requesting proposals for banking services. Using combinations of these techniques increases the control you have over your cash investments, leading to more effective and efficient ways of optimizing your interest earnings.
To help you to discover whether your local government or school district can increase your interest earnings, a self-assessment questionnaire, which can be taken at any time, is provided for this topic. The results will allow you to focus on the practices that will provide the best opportunities for improvement. There are also links to an overall discussion and the most important concepts and ideas pertaining to this topic.