Finding the right deposit account for your needs will keep your money working for you. Typically banks offer three main types of deposit accounts;
- Transaction accounts where your funds are immediately available and liquid. These accounts typically offer low interest rates
- Savings accounts may have certain restrictions or fees for multiple withdrawals but offer a slightly higher interest rate
- A money market account usually requires a higher minimum balance than a savings account and offers a higher interest rate in line with the money markets. The account typically offers the same benefits as savings accounts and cheque writing ability
- Term deposits restrict withdrawals for a certain time period which can vary from 30 days to 5 years. There are penalty fees for early withdrawals before the time period has expired. These accounts will offer the highest interest rate
To learn more about how deposits can help your business, contact a BusinessFinance.com.au consultant today.