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?
Figure what are your routine weekly expenses, figure a bit more for unforeseen stuff and with the extra cash open an brokerage account (I use Schwab) to purchase Treasuries with very short maturities. APR’s are 5%, no fees and very safe.
That’s where I park money for a week until I see the next stock to pick.