Business money market accounts are investment tools that give companies easy access to their funds while offering a very reasonable rate of return. But this is not the only benefit of taking this investing route. Let’s look at a few others:
Tiered Account Rates – Many banks offer the benefit of tiered account rates, which means the more cash you place in your account, the higher your interest rate will be. So as you add to your balance, you will be able to take advantage of a higher rate of return.
Liquidity/Check-Writing Privileges – Another benefit of using business money market accounts as one of your company’s investment tools is taking advantage of a liquid account. You will likely always have access to your funds, which would be available through your check-writing privileges.
No Minimum Transaction Amount – As a promotional tool, most financial institutions require no minimum transaction amount for your account. This definitely helps in cutting down your fees, making investing that much easier.
The above benefits are good reasons to take on an account for your company. But before you dive in, be sure to consider the following:
• Possible limitations. There may be some limitations on the number of transactions you can make a month with some business money market accounts. For instance, you may not be able to make over 6 withdrawals without being penalized.
• Fees/Minimum amount required. Some institutions may implement a minimum amount that is required to remain in your account at all times. For many, this amount is $5,000. If you fall below it, you may be accessed a monthly service fee.
With many other investment tools available for companies, business money market accounts are just one of the ways you can gain returns on your funds. But because they are so liquid and offer many of the privileges of a bank account, you can benefit well from making this one of the ways you choose to invest for your company.