For the first time since 1933, your business can earn interest on a checking account.
Regulation Q, which prohibited banks from offering interest checking accounts for businesses, was repealed on July 21 with the Dodd-Frank Wall Street Reform and Consumer Protection Act. As a result, corporate customers can earn interest on their checking accounts for the first time since the Great Depression.
Formed as part of the Glass-Stegall Act, Regulation Q encouraged the emergence of money market accounts and the growth of substitutes for and alternatives to banks. Deregulation efforts in the 1980s removed the ceiling on interest rates for corporate savings accounts, but Regulation Q provisions on checking account interest rates remained in effect.
Most businesses can gain by switching to an account that earns interest. However, note that businesses that keep six-figure balances in checking may wish to retain unlimited deposit insurance coverage through the end of 2012. Funds in a “noninterest bearing transaction account” are insured in full by the FDIC through December 31, 2012. If you convert to an interest-bearing account, your funds will be insured up to at least $250,000.
In response to the repeal of this regulation, Washington Federal has introduced a new checking option for businesses: Stellar Business Interest Checking.
You’ll earn a competitive interest rate, and Stellar Business Interest Checking accounts are easy to open. All you’ll need to start is the $500 minimum initial balance, and we’ll help you with a plan to convert your automatic payments and deposits. Stellar Business Accounts are affordable – it’s free if you maintain a $2,000 balance, and only $10/month otherwise – and convenient, too. We’re ready to serve your day-to-day needs from 160 neighborhood branches across eight western states.
The Stellar Business account comes with a few added perks. We’re offering coupons for $100 off a small business loan and $500 off a personal mortgage. We offer free online banking and a free business debit card, and both online payment and merchant services are available.
Are you interested in setting up a business interest checking account with us? Contact your local Washington Federal representative today.