In a high interest rate environment, it’s critical for small businesses to
optimize cash flow, operations, sales
and profits. Sometimes, balancing cash needs with investing in the business
can be a challenge, but there are ways for small businesses to do both
simultaneously with a money market account.
Easy Access to Your Cash
Money markets for small businesses keep your cash secure and assets
liquid, while typically yielding higher interest rates than traditional
savings accounts. They also provide quick, easy access to your cash when you
need it. Just make sure you are aware of any withdrawal limitations that may
apply to your account.
Meanwhile, the cash you have in your money market when you don’t need it
will continue to earn interest and provide a higher return on your
investments, especially during high interest rate environments like we are
currently experiencing.
FDIC Insured
While all investments carry some risk, money markets (for both
personal and small business accounts) are insured by the Federal Deposit
Insurance Corporation (FDIC). Use the FDIC’s
online tool
to determine coverage limits.
The Flexibility Your Business Needs
While a small business money market gives you the flexibility to
withdraw funds and have a debit card and/or checks, a
CD, or Certificate of Deposit, is a savings tool that has a pre-determined duration with a guaranteed
rate. During this time, you cannot access the funds but the tradeoff for
this commitment is typically higher interest rates.
While you won’t likely get the rate of return on a money market account that
you would on a CD, you have more flexibility to add money to the account,
essentially building on your small business’ savings while also earning
interest.
Start Earning Now
Speak with your banker to understand the rates associated with how
much money you have invested in your money market.
Learn more about
WSFS Bank Small Business Money Markets’
account features, benefits and options.
About the Author – Shelly Kavanagh
Shelly Kavanagh is Senior
Vice President, Director of Retail Delivery for WSFS Bank. Prior to her
current role, Kavanagh served WSFS as Director of Retail Strategy, Regional
Manager, Retail Program Manager, and Small Business Relationship Manager.
She brings more than 16 years of experience in banking.
