Here are the top three ways a business money market account can benefit your company:
- Save money while earning a higher interest rate than a traditional savings account.
- Tie your MMA into your business checking account and other business accounts for overdraft protection, automatic deposits, and more.
- 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.
the Money Market Accounts page at Business.com
Earn From 2.00% to 2.30%
With GE Capital Corporation. Not An Offer Of Securities For Sale.
www.geinterestplus.com
With GE Capital Corporation. Not An Offer Of Securities For Sale.
www.geinterestplus.com
Some of Today's Best Money Market Accounts
Search Today's Highest MMA Yields from FDIC Insured Banks. Use Bankrate.com to Shop 100s of Bank Rates! Plus Advice, Calculators, News and Tips.
MMA Rates | $10K MMA Rates | $25K MMA Rates | MMA Jumbo Rates
www.Bankrate.com
Search Today's Highest MMA Yields from FDIC Insured Banks. Use Bankrate.com to Shop 100s of Bank Rates! Plus Advice, Calculators, News and Tips.
MMA Rates | $10K MMA Rates | $25K MMA Rates | MMA Jumbo Rates
www.Bankrate.com
Today's Top 25 Money Market Accounts
Compare Money Market and Savings Account Rates. Sort by APY, Bank Reviews, or Ratings.
Money Market | Savings Accounts | CD Rates
www.Bankaholic.com
Compare Money Market and Savings Account Rates. Sort by APY, Bank Reviews, or Ratings.
Money Market | Savings Accounts | CD Rates
www.Bankaholic.com
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