Business “Savings Account”
If you own a small business, you may have searched for a way to earn an interest on your small cash balance. Most banks offer business savings accounts, but the minimum to open an account is typically in the thousands or your business is required to pay a maintenance fee that completely negates the pennies in interest you would earn.
Additionally, most of the high-yield accounts offered by banks like ING Direct are personal accounts only. For some reason banks seem to avoid offering the same great rates to businesses that they offer to individuals.
I’ve found a solution to this problem with my Paypal Business Account. All I had to do was click on a few links to convert my Paypal Cash Balance to a Money Market account. The best part is that the average yield is in line with ING Direct and HSBC. For example, the current 7 day average yield on the Paypal Money Market Fund as of 1/3/2007 was 5.02%.
It’s important to remember that monies invested in the Paypal Money Market Fund are not FDIC insured and while unlikely for this type of investment vehicle you could lose money. I’ve never been a huge fan of Paypal, but this type product is a huge satisfier for my business.
Jan.31.2007.
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