Discover the benefits of smart financial management for businesses, where your money grows and helps you reach your financial goals! If you're a military veteran starting a small business, an entrepreneur, or a military spouse with big dreams, understanding how business money market accounts work could be a game-changer. Keep reading to learn about business money markets, guiding you to make smart choices and boost your savings efficiently.
Definition of Business Money Market Account:
A business money market account is a unique savings account created for businesses. Unlike standard business savings accounts, business money markets typically offer higher interest rates in exchange for higher minimum balance requirements.
The benefits go beyond just good rates. Business money market accounts typically come with check-writing abilities and debit card access, giving you a mix of savings and accessibility. This helps businesses efficiently manage their cash flow while still growing their savings, making it a good option for smart business owners.
How Business Money Market Accounts Work:
Business money market accounts are intended to offer companies a secure space to store funds while their money accumulates interest. Here’s a brief explanation of how they work:
1. Accumulate Interest
The biggest advantage of a business money market account is the interest your money earns. The interest rates are usually tiered, which means the larger your deposit, the higher your interest rate. It’s like your money stands guard while also gaining ground over time.
2. Access
Unlike other high-yield savings options, money market accounts permit a limited number of transactions each month. At the same time, account holders like yourself still have the convenience of writing checks and using debit cards, which simplifies managing business expenses without depleting your main business account.
3. Required Balance
In order to benefit from higher interest rates, it’s necessary to maintain a higher minimum balance. Keeping your balance above a certain limit gives you a strategic advantage, unlocking financial value that can maximize the earning potential of your savings.
How to Open a Business Money Market Account:
Opening a money market account for your business is fairly straightforward, but understanding the steps can expedite the process. Here’s how to open an account:
- Organize Your Documents — Gather essential documents like your business license, Employer Identification Number (EIN), and any other relevant legal documents. Having these ready will accelerate the application process.
- Find the Right Bank — All banks are not the same. Find a military bank that has competitive interest rates, low fees, and superior customer service. For example, Armed Forces Bank provides a leading money market account with great rates and dedicated business banking assistance.
- Complete the Application — Fill out the application form, which can be done online or in-person. Provide all the needed information and guarantee everything is correct. Many banks, including Armed Forces Bank, offer online business banking applications that can be completed in just a few minutes.
- Deposit into Your Account — After your application is accepted, you need to fund your account. Be sure to meet the minimum deposit requirements so you can start earning interest as soon as possible. At Armed Forces Bank, the minimum balance is $1,000 to avoid a $10 monthly service charge, and you can fund your account with up to $100,000 ACH funding when initiating online.1
- Start Earning Interest — Bravo! You are now the owner of a money market account for your business. Regularly monitor your account to make sure you consistently meet the balance requirements so you can maximize your earnings.
Do Business Money Market Accounts Have FDIC Insurance?
Yes, most business money market accounts are insured by Federal Deposit Insurance Corporation (FDIC), meaning your hard-earned dollars are safeguarded. The FDIC insures deposits up to $250,000 per depositor, per insured bank, for each account ownership category.2
This means that your funds would be secure up to the insured limit in the rare case of bank failure. It's like having a financial bunker for your business savings, offering you peace of mind for the future.
Getting the Best Money Market Account for Your Business:
Business money markets provide an excellent method to increase your business savings while still offering easy access to your funds. They come with higher interest rates, FDIC insurance, and the versatility to manage your money efficiently.
As a military bank, we understand that your business needs a reliable, high-yielding account to grow your savings. The Armed Forces Bank business money market account offers:
- Unlimited Teller and ATM Withdrawals — Enjoy unrestricted access to your funds any time at our banking centers or using ATMs in the MoneyPass Network.3
- Easy Transactions — Make up to 6 external transactions per statement cycle with no trouble.4
- Tiered Interest Rates — The more you save, the more you benefit. Our tiered rates ensure you will receive the best return on your investment (ROI).
- No Monthly Service Charge — Keep a minimum balance of $1,000 per monthly statement cycle to avoid service charge fees.5
Take command of your finances! Apply for a business money market account with Armed Forces Bank today and see your savings grow! Still looking for the perfect fit? Compare our different types of business savings accounts so you can make the best decision.
Remember, your money should hustle just as hard as you do!
Member FDIC
Closing your account within 90 days will result in a $20 early closure fee.
1 A $100,000 limit is in place for ACH transactions when funding a Money Market account. No international transfers. $25 minimum opening deposit required.
2 FDIC-insured up to the maximum allowed by law.
3 No fees for withdrawals, transfers balance inquiries or denied ATM transactions at ATMs in the MoneyPass® Network if you have a MoneyPass® logo on the back of your card. MoneyPass® Network ATMs are within the U.S. only.
4 Excessive withdrawal fee of $10 per item over 6 withdrawals per statement cycle not to exceed $60 per statement cycle.
5 A monthly service charge of $10 will be imposed every month or statement period if the balance in the account falls below $1,000 on any day of the month or statement period.
