Many people have a checking and a savings account, but if you are a business owner, you probably have a business savings account too. The advantage of a business savings account is that the bank will pay you interest on your balance whereas there is generally no interest paid on a business checking account. So if your business has a large cash surplus that you’d like to be earning some interest on to either act as a reserve or to save for some specific purpose, it may be worth your while to open a business savings account to benefit from the interest.

Be prepared to see some very small interest rates though, as a business savings account is certainly not an ‘investment opportunity’, but rather, it can be a better place to store any surplus cash that the company may have while still having quick access to it. If you don’t need immediate access to the funds in the account, a business fixed rate bond will offer a slightly higher return but be prepared to tie up the cash for a longer period of time.

Like regular savings accounts, banks generally charge account fees and transaction fees for business savings accounts. Additionally, the interest earned may be tiered and may require a minimum balance. Be careful that the fees charged do not wipe out any interest that might be earned. As the interest rates offered are fairly low, you can’t expect to earn a great deal from the account but it’s still better to have your money earning a little for you rather than nothing. In these tough economic times, every little bit helps.

Most banks and financial institutions will offer a business savings account, so make sure that you shop around to find the best combination of interest, fees and liquidity to suit your business’s needs.