I’m curious how other small business owners handle their revenue. We have a significant amount (100K+) in a business checking account that gains minimal interest. But should we be keeping it in a high interest savings account or even some of it in a CD account instead? I’m concerned about our ability to keep up with inflation, but also need to keep a certain percentage liquid as well in case of emergency. Any advice?
The FDIC insures up to 250K per depositor but my accountant told me not to have more than 100K in any one account so I have my money separated between different banks and accounts. After I make sure all my taxes are paid I put any excess amount in my portfolio and some of that (not much) is kept in CDs right now because the rates are good. You can get 6-month CDs at some pretty good rates (compared to historically) now.