There are several steps to increase your small business’s money market yields. Many consumers recognize the advantages of opening a money market account for personal savings. However, some investors have not yet realized the benefits of money market accounts for small businesses. Yet, these accounts typically carry significantly higher interest rates than savings accounts. They also keep risk relatively low. As a small business investor, you can even use money market accounts to hold your operating revenue. In this way, your operating cash continues to generate profits without the risk of unstable investment. Read on to discover how to increase your small business’s money market yields.
Seek Out Online Banks & Credit Unions
Seeking out online banks and credit unions is critical to multiplying your money market account yields. Online banks and business credit union accounts are widely available for many company owners. Many banks’ savings and money market accounts are still offering lower average interest rates. On the other hand, online banks and credit unions can afford to pay more. This is because they have lower overhead than traditional banks. Although many of these accounts do not have branch offices, you can still access your money online and through thousands of ATMs without a surcharge. It is important to note that some of these accounts do not offer check writing. Therefore, you should choose the money market account that best meets the needs of your company. Overall, seeking out online banks and credit unions is a lucrative step to improve your bond equivalent yields.
Choose A High Interest Rate Account
Selecting a high-interest rate account is essential to increase your small business’s money market yields. The best money market accounts have an interest rate of 1.00% or higher. With a higher interest rate, your money can grow faster than it would with average savings rates. For example, a balance of $10,000 would earn about $10 after one year in an account with 0.10% annual percentage yield (APY). On the other hand, the same balance in a money market account with a 1.00% APY would earn about $100. Choosing a high-interest rate account is crucial to increasing your company’s CD-equivalent yield.
Meet Insurance Guidelines
Moreover, it is crucial to meet your company’s insurance guidelines to magnify your money market account revenue. An FDIC-insured account is safe as long as you are within your insurance limits. According to FDIC history, no consumer has ever lost a penny in an insured market account. The FDIC and NCUA credit unions are fully backed by the U.S. Government credit. The FDIC can draw on a line of credit with the U.S. Treasury if necessary. To maximize your small business’s money market yields, it is best to consult with your potential account holders to guarantee that your company is within insurance guidelines.
Consider Minimum Balance Amounts
It is also essential to consider minimum balance amounts when looking to maximize your returns on your money market account. Some banks require a minimum deposit amount, which can range anywhere from $0 to $10,000 to earn the best rates. Knowing how much your business can afford to put into your money market account is key. With that being said, for many accounts you do not need to meet any minimum balance to maintain the account. However, some accounts stipulate that you maintain a minimum balance to earn the top rate. It’s important to analyze your money market account options. Considering minimum balance amounts is another essential to maximizing returns on your money market account.
Weigh Monthly Maintenance Fees
In addition, you should weigh monthly maintenance fees to maximize money market yields. Some accounts do charge small monthly fees to maintain your account. However, some banks and credit unions will wave your fee if your meet a specified minimum balance. Furthermore, several well-known account holders do not charge a maintenance fee. Still, to maximize your benefits, you need to make sure that monthly fees do not cancel out your interest rate yields. Weighing monthly maintenance fees is another critical step to improve your small business’s money market returns.
There are several essential steps to increase your small business’s money market yields. First, you should seek out online business banks and credit unions for their higher paybacks. Next, it is vital to choose an account with a high interest rate, typically over 1.00%. You should also be sure that you are meeting insurance guidelines for account safety. Consider minimum balance amounts to make sure that your business can continue to reap the highest interest rates possible. Finally, weigh monthly maintenance fees against interest returns to make sure that you are truly improving your returns. Consider these steps to increase your small business’s money market yields.