Business Money Market Accounts and How They Work

Welcome to the world of smart money management, where your funds don’t just sit idle—they work for you! If you are a small business owner, entrepreneur, or aspiring mogul, understanding how a business money market account works can be a game-changer. Keep reading to learn about money markets for business, helping you make informed decisions and grow your savings efficiently.

What is a Business Money Market Account?

A business money market account is a type of savings account designed specifically for businesses. Unlike standard savings accounts, money markets often have higher interest rates in exchange for higher minimum balance requirements. It’s like putting your money in a nice, high-yield resting place where it earns interest. And all you have to do is focus on growing your business while your money works for you!

But there's more to it than just good rates. Money markets for businesses typically come with check-writing privileges and debit card access, offering a blend of savings and accessibility. This means that businesses can easily manage their cash flow needs while still growing their savings, making it an attractive option for savvy business owners.

How Does a Business Money Market Account Work?

Business money markets are meant to provide companies with a secure place to store funds while earning interest. Here’s a quick rundown:

1. Earning Interest

As mentioned, one of the biggest perks is the interest you earn. The interest rates are generally tiered, meaning the more you deposit, the higher your interest rate. In other words, your money grows consistently with minimal effort on your part.

2. Accessibility

Unlike other high-yield savings options, money market accounts allow a limited number of transactions per month. You have the convenience of writing checks and using a debit card, which makes it easier to manage your work expenses without dipping into your main business account.

3. Balance Requirements

To enjoy the higher interest rates, you need to maintain a higher minimum balance. Think of it as your VIP pass to exclusive financial benefits. Keeping your balance above a certain limit can unlock better earning potential for the extra money you have sitting around.

How do I Open a Business Money Market Account?

Opening a business money market account is fairly simple, but knowing the steps can make the process quicker and smoother. Here’s what you need to do:

1. Gather Documents — Prepare your essential documents such as your business license, Employer Identification Number (EIN), and any other relevant legal documents. Having these on hand will speed up the application process.
2. Choose the Right Bank — Not all banks are created equal. Look for a bank that offers competitive interest rates, low fees, and excellent customer service. Academy Bank, for instance, offers a premier money market account with attractive rates and dedicated business banking support.
3. Fill Out the Application — Complete the application form, either online or in-person. Provide all necessary information and ensure that everything is accurate. Most banks, including Academy Bank, offer online money market applications that can be completed in minutes.
4. Fund Your Account — Once your application is approved, the next step is to fund your account. Make sure you meet the minimum deposit requirements to start earning interest right away. At Academy 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 opening online.¹
5. Start Earning Interest — Congratulations! You are now the proud owner of a business money market account. Monitor your account regularly to ensure you are meeting balance requirements and maximizing your earnings.

Are Business Money Market Accounts FDIC Insured?

Yes, most business money market accounts are FDIC insured, offering peace of mind that your hard-earned dollars are protected. The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 per depositor, per insured bank, for each account ownership category.²

Therefore, in the unlikely event of your bank facing severe issues, your funds would still be protected up to the insured limit. It’s like having a financial safety net for your business savings, giving you one less thing to worry about.

Finding the Best Business Money Market Account at Academy Bank

Business money markets are a fantastic way to grow your business savings while maintaining easy access to your funds. They offer higher interest rates, FDIC insurance, and the flexibility to manage your finances efficiently.

At Academy Bank, we understand that your business needs a reliable, high-yield place to grow its savings. Our business money market account offers:

• Competitive Interest Rates: Enjoy a 4.25% Annual Percentage Yield (APY) for three months with a minimum deposit of $25,000.³
• No Monthly Service Charge — Maintain a minimum balance of $1,000 per monthly statement cycle to avoid service charges.⁴
• Tiered Interest Rates — The more you save, the more you earn. Our tiered rates ensure you get the best return on your investment.
• Easy Access — Make up to 6 transactions per statement cycle without any hassle.⁵

Take your business to the next level!  Sign up for a business money market account with Academy Bank today and watch your savings grow! Or, compare different business savings accounts before you decide.

Looking for expert advice? Visit our local banking branch and speak to a pro, or you can reach out to our team of business bankers directly. We’re here to assist you every step of the way!

Remember, your money should work as hard as you do! Let’s get started.

 

 

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 Premier Money Market account. No international transfers.

² FDIC-insured up to the maximum allowed by law.

³ Annual Percentage Yield (APY) is accurate as of 7/3/2024. Promotional rate is effective for 3 months from the opening date of a new Premier Money Market account. To receive the introductory rate, account must be opened with a minimum of $25,000 or for existing Money Market accounts, a minimum additional deposit of $25,000 is required that cannot be transferred from an existing account. Maximum deposit eligible for promotional rate is $3,000,000. The rate may change after the account is opened. Fees charged to the account could reduce the earnings on the account. If the account is closed prior to the interest payment date, no interest will be paid.

⁴ 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.

⁵ Excessive withdrawal fee of $10 per item over 6 withdrawals per statement cycle not to exceed $60 per statement cycle.