Bussiness Savings Accounts

Stoney83 · Jul 14, 2017

I walked into the bank today to deposit a check for a decent sized job we did and the bank teller told me I qualified for some money market savings account for business. I guess its kinda like a savings account for business. So I talk to one of the higher ups at the place for a few minutes.

APR was 1.25% for the first 90 days and then .1% afterwords.

.1% what a joke.... Basically I'd get $100 a year IF i kept 100K in there.

Any time I have ever needed a loan the interest rate has been way higher than any of the percents mentioned here. 1/10th of a penny on the dollar... NO THANKS! I tend to agree with the banker that I should be getting paid for the money I keep there. We just happened to disagreed on the amount.

Rant Over/

Do you guys do anything with excess capital?

guest · Jul 14, 2017

I used to get a decent return on my money market account, then the Fed decided to give free money to the banks.

They keep trying to get me to borrow money- I tell them when they start paying interest again we'll talk.

Monarchist · Jul 14, 2017

Stoney83 said:
I walked into the bank today to deposit a check for a decent sized job we did and the bank teller told me I qualified for some money market savings account for business. I guess its kinda like a savings account for business. So I talk to one of the higher ups at the place for a few minutes.

APR was 1.25% for the first 90 days and then .1% afterwords.

.1% what a joke.... Basically I'd get $100 a year IF i kept 100K in there.

Any time I have ever needed a loan the interest rate has been way higher than any of the percents mentioned here. 1/10th of a penny on the dollar... NO THANKS! I tend to agree with the banker that I should be getting paid for the money I keep there. We just happened to disagreed on the amount.

Rant Over/

Do you guys do anything with excess capital?

Surely. Invest it in improving your means of production, R&D, management and decision-support systems, logistics, better and faster metrology for faster turns and improved incoming and outgoing QA/QC.

EG: Grow a good biz. Change a lesser biz INTO a better biz. Do it again. Better and faster. Stop only AFTER you die.

Read-up on "internal rate of return". You don't often have to even DO the simple-enough math if you understand your business well-enough...

'Coz if it ain't making more than the Bankster-Pranksters pay? You need to do something else with the whole collection, if not also your own LIFE.

That still holds when or where the buggers pay ten and more times what they are, here, now, BTW.

DMF_TomB · Jul 14, 2017

Stoney83 said:
I walked into the bank today to deposit a check for a decent sized job we did and the bank teller told me I qualified for some money market savings account for business. I guess its kinda like a savings account for business. So I talk to one of the higher ups at the place for a few minutes.

APR was 1.25% for the first 90 days and then .1% afterwords.

.1% what a joke.... Basically I'd get $100 a year IF i kept 100K in there.

Any time I have ever needed a loan the interest rate has been way higher than any of the percents mentioned here. 1/10th of a penny on the dollar... NO THANKS! I tend to agree with the banker that I should be getting paid for the money I keep there. We just happened to disagreed on the amount.

Rant Over/

Do you guys do anything with excess capital?

.
.
basic math wife wants $200,000 house
.
if pay all at once i loose 7% interest from keeping money in retirement account
.
if i take a 4.1% fixed loan at 30 years then 7-4.1= 2.9% ahead taking loan out even when i got money to buy it all at once
.
inflation and stock market when inflation goes higher stock market does about 6% + inflation rate so at 3% inflation stock market might return 9% a year, but house mortgage at 4.1% if fixed cant go higher so 9-4.1= 4.9% profit
.
bank rates are low. basically could borrow from bank and put in stock market providing it is a mutual fund where risk spread out over many stocks so even with a few stock doing badly it averages over 30 years 6% over inflation rate. retirement account is mix of mutual funds and bonds as long as not in a hurry to take it all out at once it makes money. it makes more money when inflation goes higher

Wild West · Jul 14, 2017

I admit that .1% isn't much but how much do you get on your business checking account?

moonlight machine · Jul 14, 2017

Stoney83 said:
I walked into the bank today to deposit a check for a decent sized job we did and the bank teller told me I qualified for some money market savings account for business. I guess its kinda like a savings account for business. So I talk to one of the higher ups at the place for a few minutes.

APR was 1.25% for the first 90 days and then .1% afterwords.

.1% what a joke.... Basically I'd get $100 a year IF i kept 100K in there.

Any time I have ever needed a loan the interest rate has been way higher than any of the percents mentioned here. 1/10th of a penny on the dollar... NO THANKS! I tend to agree with the banker that I should be getting paid for the money I keep there. We just happened to disagreed on the amount.

Rant Over/

Do you guys do anything with excess capital?

Excess capital????? An issue I have never had to deal with!

Stoney83 · Jul 14, 2017

Monarchist said:
Surely. Invest it in improving your means of production, R&D, management and decision-support systems, logistics, better and faster metrology for faster turns and improved incoming and outgoing QA/QC.

EG: Grow a good biz. Change a lesser biz INTO a better biz. Do it again. Better and faster. Stop only AFTER you die.

Read-up on "internal rate of return". You don't often have to even DO the simple-enough math if you understand your business well-enough...

'Coz if it ain't making more than the Bankster-Pranksters pay? You need to do something else with the whole collection, if not also your own LIFE.

That still holds when or where the buggers pay ten and more times what they are, here, now, BTW.

That's what we try to do.... I like to keep a cushion to weather a storm and buy machine tools with cash.

I will read up on "internal rate of return" probably some good stuff there

Stoney83 · Jul 14, 2017

Wild West said:
I admit that .1% isn't much but how much do you get on your business checking account?

To the best of my knowledge nothing. This would be a seperate account though.

Kinda of ironic we get 1% cash back on the company credit card when we spend money but when you save money you get less.

Monarchist · Jul 14, 2017

Stoney83 said:
To the best of my knowledge nothing. This would be a seperate account though.

Kinda of ironic we get 1% cash back on the company credit card when we spend money but when you save money you get less.

You get the SAME points when you keep a credit-balance on that plastic and have zero annual fees and zero interest.

DAMHIKT, but everything that CAN be run through "the best" plastic here IS run across it, and for that very sort of reason.

Just last month converted over 78,000 points back to a cash-credit on the card. Not a "great" rate, but a "freebie" and better than many other rates.

And then there are card-related discounts, a few worth it, many more NOT. Outright quicksand, some are.

All one needs to be able to consistently "game" the gamers is to become solvent and stay that way rather than living as a debt-slave.

Upward progress proceeds at around one-twenty-fifth the speed of a down-spiral.

That is still a serious positive, not a negative.

DMF_TomB · Jul 14, 2017

worse thing say you buy a building or machines. many places want to tax you 4%.
.
i have seen companies demolish buildings and sell used old machines for junk prices just cause they couldnt afford the taxes
.
nobody owns land. you merely own the right to pay taxes on it.
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pretty sad when company has 2 machines and shuts the newer machine down and sells it for scrap prices cause the newer machine has a bigger tax write off

Mr. PishPosh · Jul 14, 2017

I've never looked into a business account, but have a personal savings account with Ally ( an online bank) that pays 1.15 APR compounded daily. Only downside is if you need the money RIGHT NOW, you can't get it for 2-3 business days...

Josh

Sent from my XT1093 using Tapatalk

DMF_TomB · Jul 14, 2017

Mr. PishPosh said:
I've never looked into a business account, but have a personal savings account with Ally ( an online bank) that pays 1.15 APR compounded daily. Only downside is if you need the money RIGHT NOW, you can't get it for 2-3 business days...

Josh

Sent from my XT1093 using Tapatalk

not a bad thing to need days to get large sums of money. gives you time to think about if its a good decision
.
if you got over $300,000 in 401K and Roth IRA it would be bad to be able to spend it too quickly. you could borrow at 4% using it as collateral while it makes over 6% on average over the long term

Wild West · Jul 15, 2017

DMF_TomB said:
.
pretty sad when company has 2 machines and shuts the newer machine down and sells it for scrap prices cause the newer machine has a bigger tax write off

Well, like many other things, there are many details that are never known to an outsider and that includes employees working at the company. JMHO YMMV

cosmos_275 · Jul 16, 2017

DMF_TomB said:
.
.
if i take a 4.1% fixed loan at 30 years then 7-4.1= 2.9% ahead taking loan out even when i got money to buy it all at once
.

4.1% is hardly what that mortgage will cost. 30yr. mortgage at 4.1% will cost you in the end 374k!. link

Having said that, real estate has been the best thing my money has done.

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