Skip Header

Federal Deposit
Insurance Corporation

Each depositor insured to at least $250,000 per insured bank

Home > Consumer Protection > Consumer News & Information > FDIC Consumer News

FDIC Consumer News

Winter 2011/2012

Audio (MP3 2 mb)

Your Deposits: Options for Small Businesses

FDIC Consumer News Winter 2011/2012 - Your Deposits: Options for Small Businesses

Earn interest on checking accounts. As of July 21, 2011, a federal prohibition against the payment of interest on business checking accounts was repealed. As a result, corporations and partnerships can now have interest-bearing checking accounts that are insured for up to a total of $250,000 combined with any other interest-bearing deposits the business may have at the same bank, including certificates of deposit (CDs), savings accounts and money market deposit accounts. Also remember that the deposits of a sole proprietorship — an unincorporated business owned by one individual using a business name — continue to be insured together with any personal funds the owner may have at the same bank, up to $250,000 in total.

Save for retirement. There are a variety of options for the personal funds of a small business owner — from IRAs and SEPs to 401(k)s — that can be used to save for retirement and save on taxes. The Fall 2011 FDIC Consumer News featured an article on the different ways a small business owner can save for retirement (online at

To learn more about the deposit insurance coverage of business and personal accounts, see More Help for Small Businesses.

Previous Story Table of Contents Next Story

Last Updated 7/3/2014

Skip Footer back to content