Types of Business Accounts for Companies

While accounting and finance are important to a business’ stable work, their definitions are different and their priorities are different. For example, accounting refers to how a company gets its income and how much it distributes to pay costs externally. The word financial means the way a firm takes its finances and strategic decisions in order to ensure the company’s continued existence and growth.

Financial institutions like banks are essential to grow a business. Foreigners look for the best bank in UAE for expats. The accounts of business banks are important instruments for handling cash flow, but the kind of accounts required differ by business. The following are five main forms of corporate accounts.

Business Checking Accounts

A corporate checking account is perhaps the most flexible kind, because it has the least restraint on what your money will do. 

It offers you various means of withdrawing cash, including electronic payments, wire transfers, checks and ATM withdrawals and debit card operations, so you can keep the money you use to pay for your company expenses. 

You will also apply money to your checking account, including automatic check transfer, cell check deposits, wire transfers, and, if permitted, branch or ATM deposits.

Business Saving Account

Accounts for business savings are safer than checking net benefit accounts, which you do not want to use in the immediate future. You can collect your money at a reasonable interest rate, although there is restricted access to the deal. 

You are restricted by federal law to six withdrawals free of charge each month, and most business savings plans will not allow you to sign checks or use an ATM card to withdraw cash directly.

Banks in the UAE not only offer accounts for expats but also provide a convenient savings account for students.

Certificate Deposit Account

The CD Accounts are an addition to your business savings accounts that will further benefit your firm. But they are not a safe place to store money for business expenses.

If you open a CD, you promise not to use the money you put in it, known as the CD word, for a while. It could be anywhere between a few months and more than five years. The rating you get partly depends on the duration of the CD, which normally corresponds to a higher APY in a longer period.

Money Market Account

BMAs are less popular than those mentioned above, but if you are interested in an account that combines certain features of business checks and savings accounts, they can attract you.

Company MMAs are essentially identical to savings accounts that limit you to six weekly, federal law withdrawals free of penalties. MMAs are interest-bearing and give several times greater APYs, but the rates differ considerably according to which bank you choose.

Merchants Accounts

For small enterprises accepting debit and credit card purchases a commercial account is also required. The money is first credited to this account and then immediately transferred to other business bank accounts when a client payments your company with a card, even though it can take up to one day or two.

These accounts have their own expenses, including application and installation fees, monthly and processing costs, so it is important for you to know all the related costs before registering. before you register. Otherwise, you would pay a lot of money for yourself.

Conclusion

If you plan to stick to one bank, try searching for one that has several opportunities for business loans, like credit lines, if you need one in the future. And whatever you want, make sure that you compare those choices to make sure you have the right price before signing up.

James Mason

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