Business Money Market vs. Regular Business Checking: Which Is the Right Fit for Your Business?
Managing business finances isn’t just about covering costs—it’s about making informed decisions to support your goals. If your business consistently holds a large balance in a traditional checking account, it may be time to explore options that can help your funds work more efficiently for you.
Let’s take a look at two common business banking tools: a Regular Business Checking Account and a High-Yield Business Money Market Account. Each has its own strengths depending on your business’s needs.
Understanding the Difference
Business Checking
A business checking account is designed for everyday financial activity. It provides easy access to funds and supports frequent transactions such as payroll, vendor payments, and daily expenses. Most checking accounts do not earn interest.
Business Money Market
A business money market account combines transactional flexibility with the opportunity to earn interest. People Driven Credit Union’s High-Yield Business Money Market Account currently offers an 3.75% APY2, which may be higher than standard business accounts, depending on current market conditions and eligibility requirements.
Our money market account requires a minimum balance of $10,000 and is best suited for businesses seeking a short-term savings option that maintains liquidity.
Potential Advantages of a Business Money Market Account
- Earn Dividends – Interest compounds daily and is credited monthly
- Maintain Access – Withdraw funds when needed without early withdrawal penalties
- Federally Insured – Balances are insured up to $250,000 by the NCUA
- No Monthly Maintenance Fee – Keep more of what you earn
When to Use Each Account
Consider a Business Checking Account if your business needs:
- Frequent incoming and outgoing payments
- Flexible access to cash for daily operations
- Tools like debit cards and bill pay for routine transactions
Consider a Business Money Market Account if your business has:
- Excess operating funds or reserves over $10,000
- Short-term savings goals or emergency fund needs
- Infrequent withdrawal needs and a desire to earn interest
Learn More About Business Banking at PDCU
If your business maintains a balance of $10,000 or more, our High-Yield Business Money Market Account may be a strong addition to your financial strategy. It offers the flexibility you need with the potential to earn more than a traditional business checking account.
Have questions or ready to get started? Contact our Business Services team for details and to schedule a consultation.
Making the most of your business funds starts with the right account for your goals.
2APY = Annual Percentage Yield. APY is accurate as of today. Rates are variable and may change at any time without notice. A minimum balance of $10,000 is required to open and maintain a High-Yield Business Money Market Account. To qualify for promotional rates, funds must be new to People Driven Credit Union. Federally insured by the NCUA up to applicable limits. Additional terms and conditions may apply. Please contact a representative for full details.
