Smaller to mid- sized businesses work harder, dig deeper to use their hard-earned money wisely—from finding creative ways to control inventory to redeeming membership rewards for business purchases. Most of these same businesses keep funds in an operating account to cover payables, payroll, rent and other monthly expenses. For many, this account is not viewed as a source of income and daily balances lay stagnant doing nothing for their business.
Find an interest-bearing business checking account
There are some interest -bearing products out there, but most operating accounts are non-interest-bearing checking accounts. For those accounts that do offer interest, there are often minimums and conditions that are difficult to sustain through the typical ebb and flow of monthly cash. One solution is to link to a savings or money market account which requires moving money from account to account each month to cover all of the expenses mentioned earlier. Yes, these bear interest, but monthly transactions are limited. It’s time and brain consuming. The transferred amounts must be sufficient to cover all expenses and it must be moved on time. Care must be taken to avoid penalties. Even sweep accounts that move money for you automatically will cost you monthly fees, defeating the principal idea of “earning money on your money”.
More immediate access to money maximizes cash flow and earns money
Immediate access to deposits should not be underrated. Waiting days for these deposits to clear may be costing more than businesses realize. Faster payment is a challenge for all banks. One solution that is currently available but underutilized by small business is remote deposit. A scanner like device which allows businesses to make deposits right from their office providing next-day access to money and saving valuable time by eliminating trips to a branch.
Put lazy money to work
As a valuable banking customer, request that your banker work alongside you to find the best possible rate on your large operating balances. Understand your bank’s processes and the availability of your cash. You should be rewarded for your hard-earned money.
Want to learn more? View details of our High Yield Business Interest Checking Account
Reach out to Savoy Bank today. Savoy Bank’s interest-bearing checking account offers a competitive rate without the transaction restrictions of a money market account.