The business money market account is an account offered from the banks to the company to make use of the excess funds that generate due to the company activities.
The company might have several accounts like saving account, deposit account or the money market account. The business money market account gives the company some advantages the other types of account cannot give as:
1- The business money market account usually gives higher interest rate than the business savings account. In some cases the rate of the interest increases as the amount in the account increase, which is called tiered interest. The longer the money is left in the account, the more interest is gained.
2- There are no monthly fees to be paid on the money market account as in some other accounts.
3- There is no maximum limit for the amount that you can invest in the business money market account, while the minimum limit is considered low for a business organization or a company as it is mostly 5000 $ and sometimes it can even get lower till 2500 $.
4- If the company needed to liquid an amount of its funds that are in the form of stocks or real estate that would need from weeks to months. While you only have to fill the appropriate form in the bank and you get the money needed, if you are using the business money market account. Some banks give facilities to use checks and some banks even allow the use of ATMs.
5- The money deposited in the money market account is secured by Federal Deposit Insurance Corporation FDIC, so that account is considered more safe than the stocks.
6- Easy access to the account as much as you require, there is no limit for the amount you withdraw and no limits to the number of withdrawals.
7- There is no monthly fees on the account to be cut down from the account, this of course will allow your account to grow only by the interest.
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