Catering to businesses

Isn’t capitalism great! As a consumer, you are encouraged to spend & spend & spend. On the other hand for businesses, especially small businesses, you are encouraged to grow & grow & grow.

Okay, no insight or revelation above. But experience reinforces the above generalizations.

I opened a business account with my credit union in 2006, shortly after obtaining my basic business license (operating a rental property). I opened a checking and a savings account. I am required to open and maintain a minimum of $10 in the savings account and open and maintain (I believe) $100 in the free business checking account.

The activities in these accounts have been minimal. In the business savings account I would deposit the tenant’s security deposit. The interest rate for the business savings account is higher than my personal savings account with the same credit union. For the business checking account, I typically wrote two checks per month: one to pay the monthly condo fee and the other check to myself to deposit the monthly mortgage payment (the mortgage was under my personal account and rules prohibited me from “transferring” money from the business to personal account).

Once I paid off the condo mortgage, I proceeded with my goal of opening a business money market account. I checked the rate for such account on the credit union’s website. 1.00%, not bad. I then visited the credit union.

The employee who assisted me told me the rate is .30%. I said, not according to the website. She told me she would consult a supervisor. Upon her return, she told me I was correct. The rate is 1.00% for a business money market account. She mistakenly cited the rate for an individual account, .30%.

Hmmm, business accounts get a better rate.

Before opening my business money market account about a month ago, I never received any literature in the mail from the credit union. But since opening the account I’ve received two mailings about all the services provided to business account holders. I also received a really nice happy holiday season card from my credit union business account team.

Yes, it’s nice to be catered to. 🙂

But, the credit union had more individual & joint account holders (have offered business accounts for about 5 years). Please hike the savings rates for those personal accounts.

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