What short- and long-term investment options are available for businesses?
Years ago, banks didn’t provide the broad selection of investment options that are available today. Now, many financial institutions have investment groups under their umbrellas. Most banks can offer the same products that investment companies provide. Which products make the most sense for your business investment needs? The first step is to discuss investment goals with your banker and find out what vehicles can help you reach those objectives. Aside from certificates of deposit (CDs) and money market accounts, there are ‘low-maintenance’ products, such as an automated investment account. With this product, a business checking account is tied to an investment vehicle, whether eurodollar or mutual fund investments. Essentially, these investments work for you overnight they manage themselves. You never have to move money from a business checking account to an investment account, or vice versa. Also, investment dollars are available immediately in the checking account and updated daily.
