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Business money market accounts are interest-bearing bank accounts that are invested in short-term securities through banks or credit unions. The benefits of a business money market account are: convenience, they earn you money, and are easy to access when necessary. Like a traditional business savings account, a business money market account allows you to make deposits and withdrawals, and transfer money. Unlike a savings account, a money market allows you to earn a higher interest rate than a savings account does.

Here are the top three ways a business money market account can benefit your company:

1. Save money while earning a higher interest rate than a traditional savings account.
2. Tie your MMA into your business checking account and other business accounts for overdraft protection, automatic deposits, and more.
3. Withdraw money or close accounts easily without paying penalties.

Action Steps

Start with bankpig.com’s Top 50 Best Business Money Market Rates list to compare the best business money market rates at leading institutions like Bank of America, Citibank, Chase, WaMu, Wells Fargo, etc. After comparing rates on bankpig, confirm rates with the bank.

Be aware that there are usually two rates, regular and promotional. A promotional interest rate is higher than the regular rate, which kicks in 30 to 180 days later. The best way to beat the system is to have two or more banking relationships and rotate funds periodically. That way your funds are always considered “new” money and eligible for the better promotional rates.

Check out minimum requirements

Business money market accounts usually require higher minimum balances and/or higher minimum initial deposits than savings accounts do. Find the right account with requirements your business can meet to avoid penalties. .

Use FDIC-insured institutions

Regardless of the interest rate offered, if a bank’s accounts are not insured by the Federal Department Insurance Corporation (FDIC) - which guarantees checking/savings accounts in member banks up to $100,000 per depositor – then your money isn’t safe.

Tips & Tactics

Federal regulations limit all money market accounts to a maximum of six pre-authorized withdrawals per month. A monthly fee can be charged if a minimum balance is not met, or if you exceed withdrawal or other limitations.