Money in the Bank
Possible changes coming in small business checking accounts.
Tired of getting a better return on the money under your mattress than the cash in your business checking account? The long wait for interest might be over if a bill introduced by Nydia Velázquez, chairwoman of the House Small Business Committee, finds its legs.
Currently, small businesses are prohibited from earning interest on their checking accounts, which puts them at a financial disadvantage. "Big businesses can afford cash management systems and expertise to effectively get interest rates on checking," says Giovanni Coratolo, director of small-business policy for the U.S. Chamber of Commerce. "Small businesses don't have the overhead or dedicated expertise to do it, and when they [use] sweep accounts and things like that, it becomes very costly. So it's really a fairness issue."
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