Did you know your bank can now pay interest on your business checking account? Perhaps the better question is, did you know your bank could NOT pay interest on your business checking account, until today, July 21 that is. Or did you, like many, just assume your bank chose not to do so in order to entice you to have a business savings or money market account at their institution?
Well, here’s the 411. I quote from the Inc.com article on the subject, “Banks Can Pay Interest on Business Accounts” (creative title, eh?), “Starting today, your bank will be able to pay you interest on your corporate checking account for the first time since the Great Depression.
That’s thanks to a provision in Dodd-Frank that repealed Regulation Q. (Note: I am familiar with Dodd-Frank but admittedly didn’t know anything about Regulation Q. Is that any relation to John Q? Probably not.)
Among the banks that say they’ll offer interest-bearing accounts: BBVA Compass, Wells Fargo, BB&T, and Regions, according to the Birmingham Business Journal.”
Okay. Just because the banks CAN by law – I mean legally are able to – offer interest on business checking accounts, doesn’t mean they will. But since some of the big boys will offer it, I highly recommend you ask your bank for it. Even if you can only get 0.25% interest, hey, that’s better than nothing!