Whatever goals you have for your business, a high interest business savings account can help achieve them.
Just like a personal savings account, a high interest business savings account can be used for a variety of purposes. It’s wise to take some time to clarify what your business goals are and how a high interest business savings account will help achieve them. Broadly speaking, this kind of account can make running your business more straightforward, earn you income and provide a pool of money to draw from.
A classic mistake new business owners (and even some more experienced ones) make is failing to keep their personal and business finances separate, which can lead to all sorts of accounting, tax and even legal headaches down the track. You may need a number of different business accounts (all rigorously separated from your personal accounts) and at least one of them should be a high interest business savings account to park any spare funds in.
The top high interest savings accounts in Australia currently pay between 5.3 per cent and 5.75 per cent interest. That may not be a spectacular return, but it’s a very decent one in a country where the property market has been deflating for several years and the stock market is still yet to fully recover from the GFC. As far as safe and liquid investment options go, you can’t do much better than a high interest business savings account in the present circumstances.
Money for a rainy or sunny day
At different times, your business may either struggle or grow at a rate far faster than what you had expected and budgeted for. Either way, it’s deeply reassuring to know you have something stashed away to either stay afloat until business picks up again or to help fund expansion expenses such as new equipment, bigger premises and more staff.
There’s a wide array of high interest business savings accounts available, so ensure you select the one that best aligns with your business and the ambitions you have for it.