Having the right combination of business accounts<\/a> can help you improve cash flow management. Generating long-term cash flow is any business’s top priority. As a business owner, you must think differently about using your funds and resources.<\/p>\n\n\n\n
A business savings account is a bank account used to safely store funds for the future stability of the business. These accounts act as a financial cushion for a company, ready to use for emergency costs or supply purchases. You can easily withdraw money from your business savings account whenever needed.<\/p>\n\n\n\n
A business savings account is an excellent add-on to your business account<\/a> holdings because it is specifically created for businesses and is built according to your short and long-term business needs. It is not necessary to deposit large sums of money into a savings account. Rather, you can save as your company grows. Depositing a small amount of money might seem like a little at first, but the account will slowly add up as you keep saving. <\/p>\n\n\n\n
Related Read:- <\/strong>What is a Business Account: A Comprehensive Guide<\/strong><\/a><\/p>\n\n\n\n
Like in life, a business can have unexpected turns at any time; you never know what’s coming. Savings can help you manage financial emergencies better and strengthen your balance sheet to help your business grow. Here are the benefits a business savings account can provide to your business.<\/p>\n\n\n\n
Running out of cash in unexpected events is one of the primary causes of business failure. Equipment breakdowns, natural disasters, last-minute travel plans, and similar surprise expenses are inevitable. A business savings account prepares you to handle these out-of-blue expenses and keep your business moving forward without any hindrance. You can use savings to pay expenses quickly. Experts advise businesses to have six months’ worth of operating expenses saved up.<\/p>\n\n\n\n
Funds in business savings accounts are more protected against fraud. Technology is booming, and fraudsters and hackers are trying advanced ways to get their hands on others’ money. When you access an account more and use it significantly for daily transactions, there is a high chance that someone can access it. However, transaction volume is much lower for savings accounts than checking accounts.<\/p>\n\n\n\n
Transactions from a current account are quick and efficient. With all the transactions coming in and out, it can be challenging to monitor the business expenses, which result in uncontrollably high expenses. Putting money away in a savings account will help you monitor your daily spending, better control spending, and curb unnecessary expenses.<\/p>\n\n\n\n
You’re too busy and focused on running your business to worry about paying yearly taxes. If you forget to budget for paying taxes, it will cost you both mentally and financially. Saving a percentage of your income in a business savings account for tax payments could help you keep money for tax payments and avoid stress.<\/p>\n\n\n\n
One of the greatest benefits of opening a business savings account is that you will earn extra money<\/a> in the form of interest simply by keeping cash in the account. Earnings will vary depending on the financial institution or specific account. You should ask your bank about the available interest rates.<\/p>\n\n\n\n
Banks, credit unions, and financial institutions want to see a full financial picture of a person or company before deciding whether to approve their loan request. They consider credit scores, payment histories, account balances, and similar information. A business savings account keeps a visible savings record that can help your lender consider your company a safer investment. Of course, you might not need to borrow any money if you accumulate enough savings and take advantage of compound interest.<\/p>\n\n\n\n
The account opening process entirely depends on the financial institution you choose. Banks and neobanks like Fazz Business<\/a> allow entrepreneurs to open a business savings account online on their website, but some institutions may require you to apply in person at a branch. <\/p>\n\n\n\n
Once your documents are verified and the application is approved, you can fund your savings account by linking it to another bank account and transferring funds into it. <\/p>\n\n\n\n
When choosing the best business savings account<\/a>, it is crucial to take your time and conduct thorough research. Compare multiple banks and financial institutions to find the best business account that meets your needs. Here are the essential factors you should consider:<\/p>\n\n\n\n
Interest Rates:<\/strong> Compare the interest rates and make sure to choose the one with the highest APY<\/a> to increase your savings.<\/p>\n\n\n\n
Online Banking Features: <\/strong>Many banks provide online account access via mobile apps and web-based platforms, which makes it super convenient to manage your finances from anywhere. When choosing the best business savings account<\/a>, check the online banking features offered with the account by the financial institution you chose.<\/p>\n\n\n\n
Fazz Business<\/a> is an MPI-licensed neobank in Singapore, offering the best financial solutions to fast-growing startups and web3 companies across Southeast Asia. Fazz Business Savings Account offers a flexible and secure way to grow your funds. Your funds are safeguarded by an undertaking from a top-tier and fully licensed bank in Singapore. Business owners choose Fazz Business Account to store cash reserve, earn superior yield<\/a> with peace of mind, and streamline financial management due to:<\/p>\n\n\n\n
If you’re looking for the best business savings account in Singapore to secure your savings and earn a high yield, Fazz Business is a solid choice.<\/p>\n\n\n\n