Why use a Business Money Market Account?

Most businesses have money that will be needed eventually, but not today. Maybe you’re planning a remodel, replacing equipment or setting money aside for future growth. Whatever your goal, there’s always the question: where should you keep your funds while you’re working toward it? That’s where a Business Money Market account comes in.

What is a Business Money Market account?

This account is for businesses that want to earn more on their money while keeping their funds accessible.

Think of it as a middle ground between a traditional business savings account and locking money away in a long-term investment.* Your business can continue earning on its savings while maintaining access to funds when it’s time to put them to use.

For many businesses, it’s a simple way to make money that would otherwise sit idle work a little harder.

Checking vs. money market accounts

Both accounts serve an important purpose, but they’re designed for different jobs.

A business checking account is built for everyday transactions like paying bills, making purchases and managing operating expenses.

A money market account is designed for money you don’t need immediately. If you’re saving for a future purchase, maintaining a reserve fund or setting money aside for a project, a money market account can help those dollars earn more while you work toward your goal.

Many businesses use both accounts together: checking for day-to-day operations and a money market account for funds they’re setting aside for the future.

When does a money market account make sense?

Money market accounts are highly versatile. Here are some common ways that businesses use them:

• Saving for equipment upgrades
• Purchasing vehicles
• Building improvements or renovations
• Expansion projects
• Seasonal operating reserves
• Emergency savings
• Future tax obligations
• Large, planned purchases

In each case, the goal is the same: keep funds available while giving them an opportunity to earn along the way.

Benefits of a Business Money Market account

Every business has different needs, but a money market account can offer several advantages.

Earn more on business savings

If you’re setting money aside for a future purchase or project, earning dividends can help you make the most of those funds while they wait.

Keep funds accessible

Unlike some long-term savings options, a money market account is designed to give businesses flexibility when they need access to their money.

Create separation between spending and saving

Keeping project money separate from operating funds can make it easier to stay organized and focused on long-term goals.

Horizon business member success story

One nonprofit recently used a Business Money Market account while working toward an exciting goal.

Big Brothers Big Sisters of Idaho was raising money for a mobile mentor van that would bring mentoring resources directly to the community. Like any nonprofit working toward a major purchase, they had to save up. 

Rather than letting their savings sit idle, they put about $120k into a Horizon Business Money Market account, earning 2.28% APY. (In a generic savings or checking account, they might have earned only a fraction of a percent). Once they were ready to buy, they were easily able to withdraw their funds and make the purchase.

Today, the nonprofit’s mobile mentor van—known as the “Mentor Machine”—is helping expand access to mentoring resources and support in the Boise area. We love seeing our business partners achieve their goals!

Is a Business Money Market account right for your business?

A Business Money Market account may be worth considering if your business:

• Keeps a cash reserve
• Has money set aside for future purchases
• Wants to earn more on idle funds
• Is planning a large project
• Needs flexibility while saving toward a goal

Open a Business Money Market account today

If you want to put your savings to work, give us a call at 800.852.5316 or visit a branch. We’ll walk you through opening an account and help you make the most of your money.(Membership/eligibility requirements apply. Accounts are subject to approval.)

*Money market accounts are deposit accounts and are not investment products.