Higher interest rates continue to make cash management an important part of financial planning. Money market fund assets reached approximately $7.9 trillion in 2026, the highest level on record, while 3-month Treasury bills yielded more than 3.7% and 6-month Treasury bills more than 3.9%. As clients continue holding larger cash balances, RIAs are expected to place greater emphasis on cash management strategies that balance yield, liquidity, and safety.
How Can RIAs Improve Cash Yield?
Cash often remains in low-interest sweep accounts even though higher-yield alternatives are available. RIAs should regularly compare Treasury bills, money market funds, high-yield cash programs, and bank deposit solutions to improve after-tax returns without reducing liquidity.
Government money market funds offered average 7-day yields of approximately 3.5% in 2026, while prime money market funds generally provided slightly higher yields. As interest rates remain above pre-2022 levels, yield optimization is expected to remain an important client service.
How Can RIAs Protect Large Cash Balances?
Many affluent clients hold cash balances above the standard FDIC insurance limit of $250,000 per depositor, per bank, per ownership category.
RIAs should review deposit placement solutions that distribute cash across multiple banks while maintaining liquidity and expanding FDIC coverage. As client cash balances remain elevated, demand for insured cash management solutions is expected to continue increasing.
How Should RIAs Choose Money Market Funds?
Money market funds continue to provide a combination of liquidity and competitive yields. RIAs should compare government, Treasury, and prime money market funds based on yield, credit quality and tax considerations.
With money market assets approaching $8 trillion, these funds remain one of the largest cash management vehicles available to investors.
What Overlooked Areas Can Improve Cash Management?
Managing cash is not only about optimizing existing balances but also about identifying additional sources of liquidity. Securities class action settlements reached approximately $8 billion in 2025, yet many eligible recoveries went unclaimed. AI-powered platforms such as 11th.com automate recoveries across class actions, SEC Fair Funds, shareholder compensation, digital assets, and other recovery programs. With integrations covering more than 85% of the market, these recoveries can provide clients with additional cash without requiring new investments.
What Should RIAs Prioritize in 2026?
With money market assets at record levels and short-term interest rates remaining above historical averages, cash management is expected to remain a larger part of client conversations. Firms that regularly review cash allocations, yields, liquidity needs, and uninsured deposits are expected to deliver more value while improving overall portfolio efficiency.
FAQ
Why should RIAs review client cash positions in 2026?
Higher interest rates have increased the value of cash management, making yield, liquidity, and safety more important for client portfolios.
How can RIAs improve returns on client cash?
RIAs can compare Treasury bills, money market funds, bank deposit programs, and other cash solutions to help clients earn higher yields while maintaining liquidity.
How can RIAs protect clients with large cash balances?
RIAs can use deposit placement programs that spread cash across multiple banks to expand FDIC coverage beyond the standard $250,000 limit.
How should RIAs choose money market funds for clients?
Fund selection should be based on yield, credit quality, liquidity needs, and tax considerations rather than yield alone.
What overlooked opportunity can improve client liquidity?
Recovering proceeds from securities class actions, SEC Fair Funds, and other recovery programs can provide clients with additional cash without requiring new investments.
