Hi, I'm kind of new to this so i would appreciate some info. Lets say im receieving real large sums of money monthly or sometimes yearly (on somewhat of a iregular basis) Where is the best place to have it sent and kept before dividing it up into investments, bills, expenses etc...? As of right now i only have my basic savings and checking account but those hardly seem the right place to be putting large amounts of money coming in from business sales. Sometimes i deal with companies who have highly paid accounting departments unlike myself so id like to look proffesional with where my funds are going.
Tue Jun 27, 2006 9:11 pm
coaster Senior Advisor
Cash: $ 1626.30
Joined: 11 Oct 2005
Set up an electronic transfer to a bank account -- savings, checking, money-market fund, whatever you want. You may want to open another account just to received these funds. Then you can disperse them from there. I'd suggest an account that pays interest on the balance so you aren't in a time crunch to do something with funds laying around not working for you.
Of course, you can always send the money to me and I'll "manage" it for you.
Tue Jun 27, 2006 9:49 pm
Cash: $ 0.70
Joined: 08 Jul 2006
I suggest that you open up a receiving account for your business deposits, an account that will won't penalize you for constant activity. Then from there move it to the account of your choice. As you know your money is only insured up to a certain dollar amount in each account, be sure not to put more funds in, that's not secured by the FDIC.
Sat Jul 08, 2006 6:45 am
onthebusmall New Member
Cash: $ 1.60
Joined: 21 Mar 2006
Thanks for the reply. I made a business interest checking account in my business name and it seems to look more proffesional and be more secure then my regular checking. Why not put more funds in then are secured by the FDIC? Theres penalties on all accounts where they will take out a certain % if the balance is above what they say so how would someone avoid that and how do really wealthy people manage their money? It dosnt seem too feasible that you have to have several different accounts at different banks just because your balance is larger then what its insured for. Perhaps at some point your money just has to cycle into investments? Even if you can afford to have someone else manage your money and accounts i still dont understand how this works.
Wed Sep 13, 2006 6:50 pm
Personal Finance Daily Member
Cash: $ 2.00
Joined: 25 Sep 2006
Location: Boston, MA
What to do with large sums of money
quote:Originally posted by Dominique I suggest that you open up a receiving account for your business deposits, an account that will won't penalize you for constant activity. Then from there move it to the account of your choice. As you know your money is only insured up to a certain dollar amount in each account, be sure not to put more funds in, that's not secured by the FDIC.
I agree. Unless you want a potential audit nightmare on your hands, don't mix business funds with your personal accounts. If you started the business this way, keep all your bank statements for as long as you have had the business, or 7yrs, whichever is less.