Your Reserves Are Working for Someone. It Should Be You.
The Short Version
Most management companies keep your association's reserves at one bank they have a relationship with. That bank pays the management company to keep your money there, and your association sees lower rates because of it.
We do it the other way around. We don't take bank service income, we shop your deposits so your cash sits where it earns the most, and every dollar of interest stays with your association.
How the Old Model Works
Here’s what most boards never see:
Your management company picks the bank.
Usually a specialty “association bank” they have a partnership with.
The bank pays the management company, while you see lower rates.
The yield would never go to the manager, always the management company, and it's tied to how much of your money sits at that bank.
Your management company is disincentivized to move your cash.
Better investments are out there, but keeping your bank balances locked up is what keeps that income flowing.
Everyone in that chain gets paid except the homeowners.
What That Looks Like in Real Numbers
These are what typical reserve rates look like at a management company's partner bank:
| Balance | Rate |
|---|---|
| Under $50,000 | 0.30% |
| $50,000 – $99,999 | 0.60% |
| $100,000 – $249,999 | 0.70% |
| $250,000+ | 0.80% |
| Typical competitive accounts | 2.75% – 3.75% |
The Difference for a $500,000 Reserve Fund
| Typical partner-bank money market (~0.70%) | Competitive yield (~3.5%) | |
|---|---|---|
| Interest in year one | $3,500 | $17,500 |
| Balance after 10 years* | ~$536,000 | ~$705,000 |
That's about $14,000 more every year, and roughly $169,000 more over a decade, without raising dues by a single dollar.
*Illustration only. Assumes a flat $500,000 balance with interest reinvested and no deposits or withdrawals. Actual rates change and aren't guaranteed.
What Pimmit Run Does Differently
No partner banks.
We don't get paid for where your money sits, so we have no reason to park it somewhere that pays you less.
We shop your deposits.
We bid your association's banking out to multiple banks, including regular commercial banks, instead of defaulting to one.
Custom-built software.
We made our own software so that we can use any bank, not just the HOA banks.
Your yield stays with you.
The interest your reserves earn goes back to your association, never to the management company.
Full transparency.
Boards get dated rate sheets and see exactly what their money earns and why.
Safety first.
We use FDIC-insured accounts and programs that extend coverage on balances over $250,000, so higher yield doesn’t mean higher risk.
Why It Matters Long Term
Extra interest isn't just a nice bonus. It changes where your community is headed.
Healthier reserves.
More interest means you get closer to fully funded, faster.
Fewer special assessments.
When the roof, elevator, or parking lot comes due, the money is more likely to be there.
Smaller dues increases.
Interest does some of the saving so homeowners don’t have to.
Stronger property values.
Buyers and lenders look at reserve health. Well-funded associations sell better.
Want to learn more? Fill out the form below and tell us who your association is banking with.
Phone
(312) 964-8257Location
Chicago, Illinois