Put a Money Market to Work For Your Small Business
running-a-business | Read Time: 3 minutes
By Shelly Kavanagh | Published: November 2023
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.
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.
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