Friday, 8 December 2023
You’ve poured your heart and soul into the small business you founded, but when it comes to financing day-to-day operations, you’ll need to strictly separate your personal wealth from your business funds. A business money market account can help provide a safe place for your company’s cash, allowing it to earn relatively high interest while still remaining liquid enough to take care of business expenses.
Scouring our database for the business money market accounts that earn the highest APY and are available nationwide, we’ve come up with the best places for you to keep the money that funds your business.
To earn this list-topping APY, you’ll need to keep a balance of $10,000 in your money market account with Workers. But if you have less to spend — even far less — you’ll still earn at a rate that makes our list. With as little as $50 you’ll get a great rate, but you do need to open your account with a minimum of $1,000. There’s also a $5 monthly maintenance charge tacked on, but that fee is waived for daily balances of $500 and over.
Massachusetts-based Workers Credit Union offers personal membership to anyone through a charitable contribution to United Way of North Central MA, and they’ll even make that donation for you. To become a business member, however, in addition to having a personal membership, your business must be located in Worcester, Mass., or you must know another member.
For a minimum investment of $25,000, your money will earn at this APY. If you need to scale that back, you’ll still get a rate that still makes our top 10 for any amount of $2,500 and over. This is just one business savings product offered by Service Credit Union. You can also get savings, secondary savings, or CD for your business funds.
Membership is open to active duty military, veterans and their families, as well as employees and former employees of the Department of Defense and their families. You’re also eligible for membership if you join the American Consumer Council; if you use the promo code “Service,” membership is free.
The more you can contribute to this tiered money market account, the higher APY you’ll earn. To get this APY, you’ll need to invest between $25,000 and $100,000. Anything less (but still above $2,500) will still get you an APY that would make this list.
Premier America has been around since 1957 and can easily be joined outside California through membership to the Thousand Oaks Alliance for the Arts.
This online-only bank has a real knack for offering customers competitive rates with its money market accounts, and its business product doesn’t stray from the pattern. Account-holders can expect this competitive 0.40% APY as long as they make the minimum deposit of $100 to open the account. There’s no minimum balance needed to earn the APY, but the bank will charge a $5 monthly fee if the average daily balance for that month falls below $4,000.
Based in Bethpage, N.Y., the most accessible and easiest way to join this credit union for everyone in the country is to simply open a special $5 savings account that makes you a member. This will allow you to open the product you really came here for — the Business Organisation Money Market Account.
With a minimum deposit of $500, customers opening this account earn the full APY on the entire balance. While the minimum balance required for this APY is only $500, customers will be charged a $20 monthly fee for not having an average daily balance of at least $2,500.
You need at least $2,500 to open and earn the APY on Affinity Federal Credit Union’s Business Money Manager account, and you’ll get hit with a $10 monthly fee if your average daily balance falls under that amount. Also, if your balance dips below $2,500, you’ll only earn the Business Savings Account APY until your account reaches that threshold again.
As a credit union, Affinity requires you to become a member before you can open an account, including the Business Money Manager Account. One way to join is by making a $5 donation to the New Jersey Coalition for Financial Education or the Connecticut Jump$tart Coalition.
The minimum deposit to open a business sector money market account with Pacific National is $5,000. You’ll also need to maintain that amount in the account to avoid a $25 monthly maintenance charge, and it will set you back $7.50 a month if you request paper statements. (This is included in the monthly charge, so you won’t be double-billed if you go under $5,000 and get paper statements.) You’re allowed six free debit transactions per month; additional transactions cost $5 per item.
Pacific National Bank has a history dating back to 1982, taking its current name in 1985. They are based in Miami.
Wings Financial Credit Union offers this attractive APY on balances of $25,000 to $100,000. As the amounts climb above that, so does the APY. To open this account at Wings, your business must be located in an eligible county or school district or 50% of all owners must qualify for a Wings membership.
Wings Financial Credit Union opens its membership to people who are also members of the Wings Financial Foundation.
You’ll need to invest anywhere between $25,000 and $100,000 to earn this APY. Amounts under that figure but higher than $2,500 will still get you an OK APY, but once you fall below that, you won’t earn interest on your money.
Becoming a member is easy. You need to live, work, worship or attend school in certain California counties; work for a partner company; or be a member of a partner organization, which includes a few nonprofits. You’ll also need to open and maintain a minimum of $35 in a membership savings account, which earns you your share in Tech Credit Union. What’s more, there are no monthly fees on this account, and it will earn a modest APY. Tech was founded in Silicon Valley and its headquarters is in San Jose, Calif.
Among its array of products, Northpointe Bank offers a tiered business money marketplace account. Currently, the rates for that account are as follows:
There is a $1,000 minimum required to open a business concern money market account at Northpointe. This account offers unlimited in-person transactions.
Since both business money market accounts and business savings accounts earn a comparatively high-interest rate and give you a place to deposit your business funds separate from your personal money, how should you go about choosing between the two products? While nothing is wrong with a business savings account, money market accounts hold two distinct advantages over them:
While a business money market account earns a high APY and — if it comes with perks such as online banking, checks, and/or a debit card — allows easy access to funds, it can’t have the same liquidity as a checking account. For regular business expenses you need to pay with any sort of frequency, you’ll need a checking account from which you’ll pay vendors, staff, etc. However, as with personal checking accounts, don’t expect to earn a high APY.
Certificates of deposit (CDs) are the most restrictive product in terms of liquidity — unless you’re dealing with the relatively rare CD that incurs no penalty for early withdrawals, the money you’ve deposited is untouchable until the certificate matures. However, CDs do have the advantage of locking in your money at fixed interest rates (whereas the bank can change how much interest the money in a money market or savings account earns whenever it wants) and earning the highest APY.
There’s nothing explicitly stopping you legally from funding your business with your personal money, but doing so is generally frowned upon for the following reasons:
While the exact materials and information needed to open one of these accounts vary by institution, you should probably have on hand the following information when you’re ready to open an account:
You may need additional information depending on how your company is structured (if you aren’t the sole proprietor, for example, you’ll probably need to provide ownership papers to the bank), but the above is a good place to start when gathering the materials you’ll need to open one of these accounts.
Source: https://www.magnifymoney.com/blog/best-of/business-money-market-accounts/
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