A business money market account is a popular item these days. As those who have some cash on hand want to optimize it, lots of investors open a site or online money market account to make sure money is earning even when it's "on the bench" or not in play. The money market account offers several benefits for high yields and getting the most out of your buck.

Busy managers and business leaders holding onto money that is not appropriated can find out about different business uses for MMA options by surfing the web. Banks and independent online news sources outline the various things that an money market account for business can provide, including:

1. Providing high interest business money market rates for amounts that are dormant or not in use by a company.

2. Linking up to brokerage accounts for securities trading.

3. Providing easy "sweep" service to collect amounts that are eligible for high interest earnings.

Action Steps
The best contacts and resources to help you get it done

Find money market account options for getting competitive interest rates

If your business has a lot of backup cash sitting in a conventional savings or checking account, you're missing out on some additional revenues! Big business and government agencies leverage their funding for high interest earnings, and you can too. Check out online resources to find high interest rates for your surpluses.

I recommend: Search for business money market accounts with good interest rates at Bankaholic. For more in ratings for "MMA Jumbo" options, check out BankRate.com: "Comprehensive. Objective. Free."

Find business money market accounts that link to brokerage accounts

Another popular type of account system today is a money market account that is basically a holding account for money that can be thrown into stocks and securities. For business leaders who can afford to 'play the numbers,' an MMA linked to a brokerage account provides easy access to online trading to scoop up bargain stocks and turn them around for profit.

I recommend: Find a range of money market account options with brokerage capabilities at American Century Investments online. Find more brokerage accounts linked up to Money Market Accounts at Saturna Capital.

Get business money market 'sweep' accounts to automatically 'draft' surplus into an MMA

For getting the biggest high interest earnings, some banks now provide 'sweep' accounts that take care of making sure your day-to-day fluctuations end up putting the maximum reserve amount into high interest. Find details from the websites of banks and agencies offering this modern service.

I recommend: Find money market business account options with "sweep" features at the impressive sounding Silicon Valley Bank. Wachovia Bank has long been a leader in offering "sweep" account options to give cash surpluses a high interest rate conveniently. Check out the options available on the website.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  One thing to keep in mind is that a business money market account, especially one linked to a brokerage account, is subject to specific risks not included in conventional savings and checking accounts. Check out your accounts access to FDIC insurance and the risks of stock trading before making big decisions.

Business money market accounts (MMAs) are interest-bearing bank accounts that are invested in short-term securities through banks or credit unions. The benefits of a business MMA are many: they're convenient, earn you money, and are easy to access when necessary. Like a traditional savings account, an MMA allows you to make deposits and withdrawals, and transfer money. Unlike a savings account, an MMA allows you to earn a higher interest rate than a savings account does.

Here are the top three ways a business money market account can benefit your company:

1. Save money while earning a higher interest rate than a traditional savings account.
2. Tie your MMA into your business checking account and other business accounts for overdraft protection, automatic deposits, and more.
3. Withdraw money or close accounts easily without paying penalties.

Action Steps
The best contacts and resources to help you get it done

Compare interest rates for the best overall earnings

Look for the best regular – not introductory – interest rate. An introductory interest rate is usually not the same as the regular rate, which kicks in a couple of months later, and you'll be earning at the regular rate for a much longer time.

I recommend: Bankrate.com is a great place to find the best rates at specific banks. Enter your state, city, and type of MMA, and violá – you have a side-by-side comparison of local bank MMA offerings with introductory and regular interest rates, and more. At Interest.com, input your info, choose "MMA", and compare rates near you.

Check out minimum requirements

MMAs usually require higher minimum balances and/or higher minimum initial deposits than savings accounts do. Find the right account with requirements your business can meet to avoid penalties. .

I recommend: Capital One's Business Money Markethas no fees or minimum balance requirements – in fact, you don't even have to visit a bank to open your account! At Netbank, you can open a small business MMA with $1,000, with no minimum balance requirements after the initial deposit.

Choose special features

The features of an MMA vary, so find out specifics before applying for your account. Many business MMAs allow checking account overdraft protection using the MMA funds, special 'deposit only' cards, and the ability to tie your line of credit to the MMA.

I recommend: Visit Bank of America to learn about their Business Investment Account (MMA), which was designed to complement your business checking account. This MMA offers a business deposit card so your employees can make deposits (but not withdrawals, as with an ATM card).

Find FDIC-insured institutions

Regardless of the interest rate offered, if a bank's accounts are not insured by the Federal Department Insurance Corporation (FDIC) - which guarantees checking/savings accounts in member banks up to $100,000 per depositor – then your money isn't safe.

I recommend: Check out FDIC-insured Wachovia, which offers a Money Market "Sweeps" account. Each day, excess balances in $1,000 increments, above a target amount, are "swept" from your business checking account into your business MMA.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Federal regulations limit all money market accounts to a maximum of six pre-authorized withdrawals per month.
• •  A monthly fee can be charged if a minimum balance is not met, or if you exceed withdrawal or other limitations.
• •  Make sure you understand your MMA's regulations, penalties, and fees, so your business isn't nickel-and-dimed to death.
• •  Often the best rates require bigger minimum balances.

Businesses can use business money market accounts to get a higher interest rate on surplus cash, or to effectively manage revenues, but there's some debate on the various aspects of risk that a business money market account may entail. Overall, many businesses decide to bank on the probability that high interest money market account for business options will pay off.

Readers who want to know more about the ins and outs of a bank site or an online money market account can find a lot of resources online for getting the news about how business may use money market accounts in the future. Readers can find:

1. News sources on the various pros and cons of a business money market account as opposed to a Certificate of Deposit or conventional savings account.

2. Info on specific business money market rates and products.

3. More on how the future might affect business money market accounts held by businesses or individuals due to economic events.

Action Steps
The best contacts and resources to help you get it done

Learn about the business money market account pros and cons

Business money market accounts let businesses earn interest on surplus cash. Most accounts limit the number of transactions that account holders can make per month, but they still provide more flexibility and are more reliable than stocks. Get the news on MMA specifics from informative financial websites.

I recommend: Investopedia's primer on the money market provides an overview of its features and discusses its drawbacks and benefits. Get more at financial site DocStoc.

Get more facts and details on business money market account options

Other news sources give more detailed information on what is generally included in a money market account for the purposes of letting a manager or business leader 'see what's out there.' Use these kinds of resources for getting some more of the nuts and bolts of what goes into planning a money market account.

I recommend: Find facts about money market accounts to direct your investment strategies at the Investment Company Institute. Get more details on money market business account structures to evaluate offers from tech-business site WiseGeek.

Find more on the future of business money market account options

Other news sources offer some views of how money market accounts can be affected by 'outside' influences. These can be very valuable to a manager looking to find out all about these kinds of investments before allocating or depositing money.

I recommend: This kind of New York Times article raises questions about the long term solvency of some types of money market accounts. The forums at the City-Data website provide more independent news on the future of these kinds of business and individual accounts.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  As mentioned in some news sources, the previous stability of money market accounts is being called into question. Do some thorough reading on money market accounts news and trends to come to your own conclusions about the risk involved in these account options.

Money market accounts offer individuals and businesses a way to save money, beat inflation and earn higher-than-average interest on their investments. Unlike traditional savings accounts, money market accounts often have required minimum balances and limited monthly withdrawals. Despite these drawbacks, these accounts usually produce better returns on large sums of money than regular savings accounts. Before signing up with a bank, it's good to know a few basic money market accounts key terms.

Action Steps
The best contacts and resources to help you get it done

Annual percentage yield

Similar to the annual percentage rate (APR), annual percentage yield (APY) tells investors what kind of interest they will earn on a money market account, considering the effects of compound interest. APY also allows people the ability to compare interest rates for accounts with different period lengths.

I recommend: Investopedia is the place to go for readable explanations of investment terms like APY.

Service fee

If a money market account's balance falls below the minimum required balance, the bank will charge the user a service fee. Many large banks do not have service fees, but smaller ones might.

I recommend: Fulton Financial Corporation explains the service fee, as well as other fees, associated with its money market accounts.

Minimum deposit

The minimum deposit is the amount required to open a money market account. Some accounts have minimum deposits as low as $1, while others may require deposits of $5,000 or more.

I recommend: Bankaholic maintains a list of the nation's top 50 money markets and specifies the minimum deposit and APY for each.

Interest rate

Interest rates on money market accounts usually vary according to the account balance. Accounts with extremely large balances, such as those over $100,000, earn much better interest than those with low balances. This also means the accounts have much higher APYs.

I recommend: MoneyRates.com provides information on money market accounts and provides the interest rates for the accounts.

Compounding method

Banks use different methods to compound interest on their money market accounts. Some use daily compounding, while others may use monthly or annual compounding. Because the interest rates are generally very low, the compounding method does not have a large effect on APY.

I recommend: Like Bankaholic, Bankrate.com also ranks the top 50 money market accounts in the country. As a plus, it also publishes the compounding methods for each bank.

FDIC-insured

In general, the Federal Deposit Insurance Corporation (FDIC) insures money market accounts. If the accounts lose all their value, investors can still get their initial investment back.

I recommend: The website for the FDIC outlines which types of accounts and investments it insures.