Business savings accounts are one of the most important segments of business banking services. A large number of businesses are availing business savings accounts to save their money. The facility of business savings accounts are offered by a number of credit unions, commercial banks, savings and loan associations, as well as mutual savings banks.
The business savings accounts function as important tools especially for the owners of small businesses because with the help of business savings accounts, they can save a lot of money. In case of business savings accounts, the money is only available for a business.
If there is no immediate requirement for money by the entrepreneur, he can deposit a certain amount of money so that he can use it for future requirements. In this way, businesses can grow their unutilized funds. The business savings accounts are basically a combination of money market accounts and regular savings accounts.
Business savings accounts are regarded as an excellent banking solution in money markets where a higher AP yield or return can be earned in comparison to a regular savings account for a particular period of time.
Through a business savings account, the owners are able to receive a considerable amount of return without having to face any risk associated with cash flow liquidity. This is a very significant aspect for the business entrepreneurs.
The business savings accounts provide innumerable advantages to the business owners.
Some of the most important advantages are the following:
Idle funds can cumulate interest and this interest can be added together and kept secure under the FDIC (Federal Deposit Insurance Corporation) regulation policies.
A number of lenders offer the option of combining a business savings account to a business checking account, in which the owner of the business receives overdraft protection for the whole amount of cash of the business. In this method, the money can be transferred from the business savings account to the business checking account more quickly.
Initial investments start from an amount as low as $100
Cheap or no fee minimum average account balance
Fixed number of monthly transactions
Holders of business savings accounts can also avail the facilities of personal banking, for example online banking, debit cards, and a fixed number of zero fee withdrawals done each month.
Thus, it can be concluded that business savings accounts are top-notch add-ons to the financial devices of the business owners.
Last Updated on : 29th July 2013