Business savings accounts allow you to make the most of your organization’s money, while allowing access when you need it. Choose from fixed term accounts with high rates or business savings accounts that allow access in as little as seven days. If you are a small business owner, consider opening a savings account for your business. Similar to the financial challenges you face as a consumer, as the owner of the business you may facing higher challenges when issues arise. Having a business savings account can help you cushion the financial blow that emergency business operations can bring.
A business savings account not only helps to build an emergency fund, but it allows you to earn a little bit of interest on the money, so it works for your business while sitting in the savings account. If you regularly have credit balances on your bank account then you will need to choose the best business savings account to make your money work harder rather than simply leaving it in your current account.
Put these funds to work by investing them in a business high-interest account. A business deposit account works in the same general ways a private deposit account does, but with one or two differences. Business deposit accounts incorporate a multitude of investment options including money market accounts or regular savings account that are designed for the business purchaser.
There are that many other advantages to consider with opening up a business saving account. Your present funds which have been sitting and earning you nothing can start to make you a pleasant rate of return. It is very important to recollect that they're also FDIC insured, thus giving you confidence where safety is concerned. You'll find that many, if not most, of your larger banks will be offering a saving account tied along with a business checking account.
How a business savings account works
Logically, a business savings account works the same way a personal savings account does.
The primary difference is that business savings accounts tend to offer some additional options in how your cash is invested while it sits in the savings account, such as in a money market fund.
Also some banks offer features or options that benefit to businesses. For example, investing the cash in a money market account tends to earn a higher interest rate than a traditional savings account.
One of the primary benefits of a savings account is that you can earn money on extra funds rather than have the money sit in a non-interest bearing business checking account.
The bank where you have a business checking account may also allow you to link your checking and savings account for your business together.
Linking the two accounts can serve as overdraft protection or a simplified way of transferring funds back and forth between the two accounts. Generally,savings accounts have ATM access.
A business savings account can help play a role in growing your business byearning money on the excess money you have in your business. A savings account also provides liquidity to the business. Rather than invest business
money or access in investments that may tie up the money and restrict the use for the money or access to the money, a savings account grow while simultaneously being readily available.Opening a Savings Account
The best place to start in finding a savings account is with the bank where you already have a business checking account. You may also want to shop and compare the interest rates, features of other banks.
Most savings accounts require a minimum deposit of about $100 to start the account. Some other terms and conditions of the savings account for your business may require that you should maintain a minimum balance and limit the number of withdrawals you can make from the account each month.
Most business current accounts only pay 0.10% so it’s wise to set up some form of savings account to at least double this amount.