From the top down, the times, they are a-changing. The old comfortable rules that protected banks simply will no longer apply. They're hurriedly developing and aggressively marketing highly attractive new packages for small businesses that offer higher returns, lower fees and greater flexibility. For you, it means choices. For the banks, it spells trouble.
Bankers know they've got a good thing going.
Nearly 70 percent of their small business depositors have their funds parked in either no interest or low interest checking accounts. But increasingly, small businesses are coming to realize that they're losing money on such deposits. Unrest is growing as rumors of more lucrative alternatives spread. The net result is likely to be a flood of sweep offers from competing banks and other entities. That means small business owners can reasonably expect that their deposits will earn market rates, or something close to it.