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Business savings accounts provide an excellent opportunity for small businesses and sole proprietors to set aside their quarterly tax fees while earning interest at the same time.
Many banks provide increased savings account interest rates or waive minimum balance fees when business savings accounts are connected to the business’s checking account.
Savings account interest rates vary from bank to bank and it is important for businesses to research their options prior to opening an account. It is often believed that business savings accounts must be maintained with the same bank as their checking account, however by exploring other options, businesses can find the best savings account interest rates which will earn the business additional money in the long run.
Business savings accounts are perfect holding tanks for quarterly or yearly taxes. When the money remains in the business’s checking account, it is all too easy to forget about taxes and fees that must be paid and the business falls short at tax time.
Setting aside money each month in business savings accounts ensures the money will be there when it is time to pay the taxes and, depending on the savings account interest rates, the business earns a profit each quarter simply by setting aside money for taxes and fees.