All About Business savings account
Money is the heart and soul of any kind of business. The sole purpose of any kind of business is to make profits and to provide services in exchange. This makes money management top priority for any business firm or any person carrying out any business individually. The money involved is always accounted and is required to check on regular basis to make sure the inflow is greater than the outflow and the business is making profits. It is impossible to keep the track of every transaction if there is not a proper way to carry out the process. This is where banks and other financial institutions come in. The most striking feature of any bank is the type of accounts it provides for its customers. There is a long list of bank account types, all suiting different type of needs of banking needs by the person.
Business savings account
One of the most popular savings accounts is the business savings account with unmatched features and all time access to the money. Business persons generally have large number of transactions every day and the account is responsible for keeping track of each and every penny debited and credited from the account. There is a moderate interest after a particular time period on the average balance maintained for that period of time in the savings account. The money is liquid in the account and is accessible every time through automated teller machines or during the banking hours. One can pay amount online, through checks and many other sources which makes the life very easy.
How safe is your money
The money deposited is protected under Financial Services Compensation Scheme where every penny is secured with the compensation for every false transaction. The account is little bit difficult to open as it is specially designed for business purposes. The account differs with normal savings amount in variety of ways of which few are mentioned below:-
- The withdraw limit and the amount credit limit is much higher than the normal savings amount.
- There is generally one and joint operators which have the authority for making any new transactions or allowing any new money to be transferred from the account.
- The account has a minimum balance limit that is the customer has to keep a minimum balance in the account as stated at the time of the account opening.
- The account also enjoys privileges which helps is guiding the business to whole new level.
- The account is exempted up to a very high limit of transaction every month under the Income tax department with no extra penalties for much higher value transactions.
How to Operate
There are certain rules to be followed particularly for avoiding extra costs incurred by the bank which particularly includes the day transaction limit to be checked carefully and trying to avoid over transaction in a particular day. The person has to make all the legit transactions only in the bank accounts for which he has the proof for which the money was either withdrawn or deposited any wrong dealings are easily get caught and leads to termination of the account.