Structured,Deposits,for,Busine business, insurance Structured Deposits for Business Savings Accounts Explained
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TheStructured Deposit AccountA structured deposit account is a long term account, usually with a 3 to 6 yearterm. During this term, the investor has no access to any of the funds.However, a structured deposit account guarantees the return of capital to theinvestor upon the maturity date, and has the potential to earn considerablymore interest than a normal savings account because of its investmentcomponent.There are many types of structured deposit accounts, with the main differencebetween them being what the investment component has as its underlyinginvestment. There are index based structured deposit accounts in which theinvestment arm is tied to an index, such as the FTSE 100. There are alsocommodity based structured deposit accounts, in which the investment arm istied to a particular commodity, such as silver or gold.The Business Savings AccountA savings business account is simply a savings account for a business. They aresimilar to normal accounts except that they are owned by the business itselfand not any of the individuals within the business personally. Many times businessaccounts will offer a slightly higher interest rate than personal savings,although this is not necessarily true on all accounts.Structured Deposit Business Savings AccountsCombining the two ideas of deposit and all the business savings gives you astructured business saving account. This type of saving account holds manyadvantages for a business, while one or the other may not necessarily.Savings which pay around 1% interest (an average on the going market rate atthe time of this writing), are hardly worth it to the successful businessowner, who would much rather reinvest his or her funds back into the businessfor returns far outstripping many saving accounts. Most business accounts areheld solely for the purpose of emergency funds, and rarely tapped.However, if the idea of the structured deposit is combined with the business account,now the business owner has a much better chance of seeing a good return onmoney that he or she would not have used anyway. And with the guaranteed returnof capital, this tends to be a good investment for the business owner withexpendable income. The downside is that funds cannot be accessed by the business owner during theterm of the structured deposit. However, as most business owners are fundingthis account with money that they do not need in the short term, this is a mootpoint. Business owners must be very careful to make sure that the funds that gointo it one is truly expendable, and always to have emergency cash available.
Structured,Deposits,for,Busine