Subscribe to Entrepreneur for $5

Money Buzz 07/04

Interest-bearing checking accounts, credit card debt and more

This story appears in the July 2004 issue of Entrepreneur. Subscribe »

Your Best Interest

Thanks to a federal law dating back to the Great Depression, have long suffered an interest inequity-one that the Checking Freedom Act, recently passed by the , may soon change.

A 70-year-old law currently bans banks from paying interest on business checking accounts and forces business owners to choose between non-interest-bearing accounts and more costly "sweep" accounts that move checking account funds into an interest-bearing market account at the end of each business day. "Most small businesses do not have the resources necessary to maintain sweep accounts," asserts U.S. Rep. Sue Kelly (R-NY). She explains that sweep accounts typically require a minimum balance and generate time-consuming paperwork.

Continue reading this article - and everything on Entrepreneur!

We make some of our best content available to Entrepreneur subscribers only. Become a subscriber for just $5 to get an ad-free experience, exclusive access to premium content like this, and unlock special discounts.

Entrepreneur Editors' Picks