Author Topic: Best place to park $50k in my business account?  (Read 1617 times)


  • 5 O'Clock Shadow
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  • Posts: 3
Best place to park $50k in my business account?
« on: February 28, 2018, 02:57:47 PM »
I've built up approx. $50,000 in my business checking account and would like to make a little interest on it as well as get it out of the account that I write checks from in case of fraud.
Most of the great savings accounts I find that pay 1.5% give or take are for personal accounts only.  For ease of accounting I don't want to borrow it personally and pay it back to get that rate.
Vanguard prime money market couldn't help me either.
I found a local bank that is 1.05%, but every 6 months I have to sign back up to keep that rate
A 7 month cd at that same bank is 1.55% so I could possibly do that I guess, but money market or savings would be preferred.

Am I missing and great ideas?  Better rates out there?



  • Bristles
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  • Posts: 421
Re: Best place to park $50k in my business account?
« Reply #1 on: March 01, 2018, 08:10:18 PM »
I would avoid little privately owned banks. You don't want your CD to turn out to be some guy's Ponzi scheme like Stanford Financial Group, which actually had 50 offices.
If you want higher returns then you're just going to have to take more risk. The lowest risk bond/stock allocation from 1970 to 2010 was 28% stocks / 72% bonds. Here's the historical annual returns...
« Last Edit: March 01, 2018, 08:12:25 PM by Mighty-Dollar »


  • Stubble
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  • Posts: 203
Re: Best place to park $50k in my business account?
« Reply #2 on: March 01, 2018, 08:21:58 PM »
Banks like Wells Fargo and Chase offer $200-$300 for opening up a business account with them. I believe the minimum is about $15k and you would need to keep the balance for 6 months. You can do much better than a high interest savings or CD if you open multiple accounts depositing just the minimum into each.


  • 5 O'Clock Shadow
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  • Posts: 3
Re: Best place to park $50k in my business account?
« Reply #3 on: March 05, 2018, 10:15:13 AM »
Great info Mighty.... I'll look into that as a possibility.
Thanks to you both


  • Magnum Stache
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  • Posts: 3757
  • Age: 39
  • Location: South Carolina
Re: Best place to park $50k in my business account?
« Reply #4 on: March 05, 2018, 06:38:56 PM »
Is your business a C-Corp or an S-Corp?

What is the realistic need for the money in the next 6-12 months?

If it's an S-Corp/LLC, personally I would just withdraw the money, put it in a Fidelity Brokerage Account, then request check writing access and a margin line.  What you invest in is up to you, anywhere from their version of a savings account, to brokered CDs, or stock/bond funds.

You can get to half of the account balance immediately through writing a check and depositing it in your business account as a contribution to your company.  Sell the stocks/bonds/mutual funds and you can get to all the funds within a week.

There's no real impacts to taking the distribution unless you have to show net worth in the company to borrow money, but that's a different discussion I can help with.

Just some advice from the soon to be retired commercial banker..


  • Handlebar Stache
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  • Posts: 1109
Re: Best place to park $50k in my business account?
« Reply #5 on: March 06, 2018, 10:54:41 AM »
I have $40K parked in two checking accounts drawing 3% interest.

$15K at Lake Michigan Credit Union:

Here are the criteria to qualify for the 3% rate in an LMCU Max Checking account:
  • Sign up for e-statements.
  • Minimum of 4 logins to online banking per month.
  • Minimum of 10 debit card purchases per month.
  • Direct deposit in your account at least once per month.
I have my LMCU account linked to, which handles the minimal required logins.

On the first Monday of each month, I reload my Amazon gift balance
with ten purchases of $0.50 each for a total of $5.00 to satisfy my debit
card requirement.

I also transfer $5 each month from my primary checking account into LMCU via
an automated ACH transfer which counts as a direct deposit.

The entire process takes less than 10 minutes each month after you've
got your account set up.  LMCU has a nice link on your account page to
confirm you've met all the requirements to qualify for the 3% rate.

I also have an account at Old Missouri Bank, which has similar terms to
LMCU, but pays 3% interest up to $25K with 12 debit charges per month.