3 Benefits of Having a Secondary Business Checking Account in 2021
From juggling inventory purchases to employee payments, small business owners face many financial duties on a day-to-day basis. Heavy activity in one’s business checking account can potentially leave business owners vulnerable to errors, especially for those who don’t have professional assistance in managing finances.
Manage taxes, reduce liabilities, and feel more secure
Whether temporary or long-term, opening a secondary business checking account can bring relief to business owners at any stage. Here are just three of the most common benefits:
- You can better manage taxes and reduce liabilities.
Keeping your personal and business finances in separate accounts can help minimize liabilities. From a tax perspective, having a second checking account for your business can allow for easier end-of-year tracking. Allocating specific funds associated with your business to a certain account can make for easy identification and review during tax season.
- You can take advantage of attractive offers and terms.
Simply put, some business checking accounts can give you more. For instance, Kabbage Checking™* lets small business owners earn 1.10% APY¹ on balances up to $100,000 and requires no minimum balance requirements.² If there’s a chance to earn, why not take it?
*The Kabbage Checking Account is provided by Green Dot Bank
- You can feel more secure with funds stored in a backup account.
In the event your primary business checking account becomes compromised, having funds backed up in an alternate checking account can help provide relief. For added protection, Kabbage Checking debit cards use an EMV chip and can be locked and unlocked from your account, which is FDIC-insured up to $250,000.
Kabbage offers online business checking accounts designed for small businesses. Learn how Kabbage Checking™ can support your business.
- The annual percentage yield (“APY”) is accurate as of 5/1/21 and may change at our discretion at any time. The APY is applied on account balances in your primary Kabbage Checking account and each associated Reserve, up to $100,000 in the aggregate. No interest is earned on aggregate balances of over $100,000. The average daily balance method is used to calculate interest.
- Other fees and limits apply. See the Fee Table in the FAQs.
The material made available for you on this website, Kabbage.com, owned by American Express National Bank, is for informational purposes only and is not intended to provide legal, tax or financial advice. If you have questions, please consult your own professional legal, tax and financial advisors.