Business savings accounts help companies manage idle earnings. When business funds are not promptly required, interest can be earned in business savings accounts and be available for use when needed. Every bank has a different solution for business savings accounts. Most business savings accounts combine regular savings accounts and money market accounts together to allow business owner to earn slightly more than a regular savings account for a specified period of time. Returns gained from business savings accounts can help entrepreneurs remain liquid during start-up phase.
Each bank has a different interest rate and approach to helping business owners grow idle funds. Review each bank to ensure it is FDIC insured and meets the basic requirements of a business savings account. Three leading banks will be explored to highlight the differences entrepreneurs may encounter when searching for business savings accounts.
Bank of America
Bank of America offers its customers no monthly maintenance fees for the first two months. Business debit cards are available for business owners and their employees. Business owners may provide pre-set limits to control employee spending. Total Security Protection is also available.
Business savings accounts allow access to money at a number of banks and ATMs. Online bill pay, mobile banking and transfers are all available with ING Direct accounts. Email and text alerts will be sent to clients as friendly reminders to avoid penalties and late fees.
Business savings accounts with ING Direct have a better interest rate than Bank of America. Currently, business funds will earn 0.50 percent. With ING Direct, customers will enjoy no fees, service charges or minimums. Business savings accounts will support sole proprietorships, limited liability companies (LLCs), corporations, partnerships and not-for-profits.
Account access for up to three people is offered. For added security and accountability, each person will have a separate PIN and Customer Number. ING Direct is FDIC Insured up to $250,000. Insurance protects businesses from losing savings if an unfortunate event occurs in the bank. The initial deposit required is typically $1,500.
Everbank is one of the most generous business savings accounts when compared to Bank of America and ING Direct. Currently, interest rates are some of the highest in the industry at 0.71 percent. This rate is only available to business clients with deposits between $10,000 and $99,000. An initial opening balance of $1500 is required. Free online banking and mobile banking are also available. Deposits may also be made from home.
Monthly fees are assessed if the average daily balance falls below $5,000 or there are more than six electronic transfers in a month. The fees are typically $15 or less if either of these two events occurs. Credit monitoring is also offered to business clients as a convenience.
Consider Business Savings Accounts
Research will reveal the best business savings account for small businesses. Some banks have as little as $100 in initial investments and a low no fee average account balance minimums. As an entrepreneur, it pays to shop around. Banks are prepared to offer deals to business owners who have good business credit and business model. Business savings accounts can keep your business out of financial debt and avoid expensive loans.