Business checking accounts are commonly used by business owners who want to keep their business funds separate from their personal funds. While checking accounts can be useful, they are not the only option to consider. A business savings account can be a superior option for business owners who want to reap the key benefits of both a checking and savings account. Learn more about business savings accounts, how they differ from business checking accounts, and how FVCbank can help you open a new savings account for your business.
What Is a Business Savings Account?
Savings accounts are generally used by businesses who wish to save their earnings for future business use. Similar to a checking account, you can easily deposit or withdraw funds as you need them. Most banks do not require that you deposit a large amount of money into the account, allowing you to gradually grow your savings as your business continues to grow.
While a business savings account is not mandatory for companies, most businesses find them to be highly beneficial. Whether you own a small business, a nonprofit organization, or are involved in a public or government agency, a business savings account can help you earn interest while providing a flexible way to manage your extra cash.
How Do Business Checking and Savings Account Differ?
While business checking and savings accounts have many similarities, there are some distinct differences to consider. Business checking accounts can be useful for managing everyday transactions, such as ATM withdrawals, purchases, and bills. However, most checking accounts earn little to no interest.
Savings accounts are better for earning interest and building money. As the bank wants you to keep your money in the account where it can build interest, there are often monthly limits on how much you are able to withdraw. You can find business savings accounts offering different rates, allowing you to earn money without any effort. How much interest your savings could earn depends on the balance and the current APY.
Why Open a Business Savings Account?
Opening a business savings account comes with countless benefits. First, having funds stashed away in an interest-bearing account can be invaluable in the event of an emergency. As a business owner, you need to be prepared for unexpected events. Any funds placed in a savings account are considered liquid assets, they can be quickly accessed to pay various expenses.
One of the biggest advantages of opening a business savings account is the ability to earn interest. Unlike most business checking accounts, savings accounts allow you to earn money by simply storing your funds in an account. While interest rates can range, most fall under 1 percent. Having a business savings account is also a great way to help you plan for retirement. While you might already have an established retirement account, such as an IRA, any excess funds you may have from your business can build over time, giving you extra security for the future. You can also feel good knowing your money is protected. All savings accounts are insured by the Federal Deposit Insurance Corporation (FDIC).
What Perks Does a FVCbank First Business Savings Account Offer?
A FVCbank First Business Savings Account offers a number of key benefits that can be tailored to your business’ unique needs and preferences. Some of these perks include:
- No monthly service charges
- Interest that is compounded daily and credited quarterly
- Access to a free debit card
- Six free automatic, preauthorized, telephone or online banking transfers per statement cycle
- Automatic transfer between FVCbank checking accounts and/or automatic savings for Overdraft Protection
How Can I Acquire a Business Savings Account?
A business savings account is an excellent way to help manage your company’s money while taking advantage of interest earned on any balance. Having a business savings account also provides business owners with an extra cushion to confidently handle any unexpected expenses that may arise. Prepare for your business’s future by creating a business savings account today!
For more information or to acquire a business savings account, speak to the bankers at FVCbank.