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When it comes to company finances, leaving money idle in non-interest-bearing accounts can be a missed opportunity. Investing available balances wisely can be the key to maximizing profits while maintaining the necessary flexibility to meet business demands.
In this article, we will explore the concept of corporate investing, showing how you can turn your company's idle balance into a source of revenue, as well as presenting high-yield and low-risk alternatives. Discover how to generate significant returns through the use of business accounts, and how this type of investment can drive your business growth.
Corporate investing is simply investing your company's profits or excess cash, rather than keeping it in simple bank accounts that generate no returns, using idle resources efficiently and beneficially.
In some situations, reinvesting extra money in the business itself or distributing it to shareholders may not be appropriate, making corporate investing an attractive option. Moreover, it can be a way to generate returns on working capital without tying it up in long-term investments that make withdrawals difficult when needed.
Learn about some of the benefits corporate investing can bring to your business:
Today, it's possible to generate higher returns than those typically offered in the market. While traditional accounts offer around 0.42% Annual Percentage Yield (APY), high-yield accounts, typically offered by fintechs and digital banks, such as Jeeves, can offer more than 10x that amount.
Currently, some of these high-yield accounts can offer up to 5% APY. Not long ago, such high rates were exclusive to certificates of deposit (CDs), which lock in funds for a certain period of time in exchange for the interest. While CDs are still a good option, high-yield savings accounts are better options for companies that need access to liquidity and more flexible terms.
Jeeves offers a platform that not only optimizes financial management with its agile and user-friendly experience but also generates direct financial gains. With the Jeeves account, you can earn 5% APY on your account balance, regardless of the amount, with no restrictions or minimums, providing liquidity for businesses without any fees and with complete flexibility for withdrawals without penalties.
The impact of a 5% APY can make a difference in your financial planning and generate interesting increments for your business. Below, we show examples of how much you can earn with this rate.
With an initial balance of $500,000 in a high-yield account earning 5% APY, and without making new deposits throughout the year, your balance would increase to $525,000 just from interest accumulation.
If you start with $500,000 and add $20,000 per month, after one year with a 5% compound interest rate, the balance would be approximately $770,000. This amount includes $240,000 in monthly contributions and more than $30,000 in interest.
Keeping an initial balance of $1,000,000 for two years, without making new contributions, and assuming the 5% rate remains, the total balance would be about $1,102,500, representing a $102,500 increase in interest.
Jeeves' solutions are designed to optimize your company's financial management. Through the Jeeves digital account, you have a complete accounts payable solution and can efficiently control expenses, monitoring your company's spending in real time. You also have access to competitive FX transactions, ensuring savings on international operations.
In addition to optimizing your financial management and saving time and costs, you can maximize your returns with the Jeeves digital account, which offers up to 5% APY on any available balance, with no minimum amounts and no annual or monthly fees. Ensure greater liquidity for your business with complete freedom to use your funds whenever you need them.
Turn your company’s balance into a source of revenue and enjoy flexibility, security, and exclusive benefits, such as competitive yields and comprehensive financial solutions, without fees or subscriptions. Discover how Jeeves can help your business grow — learn more about our solutions.
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