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Home >> Accounts >> Business Accounts
About Amount of Funds in Account
I have my business account in Lloyds TSB, with around a 130k balance. Is it good to leave that sort of balance in the account?
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 As a business person, you should manage your funds with a view toward your benefit, not your banker's. If you need a balance that large to operate your business, based on your level of current obligations for suppliers, rent, utilities, and the like, then keeping a balance at that level may be sensible. On the other hand, if your current obligations, those due within a month or less, are at half that level, you might consider moving some of the funds out to earn you whatever meager interest might be obtained in today's economic market.
The long and short of it is that the money doesn't do you any good sitting in the account. Yet you need a modest store of funds to meet current obligations. Knowing the balance point is an acquired talent, but if you have to miss the mark, it's probably better to be a bit conservative and leave a bit more in the bank than you might guess is needed.
Published on BankingQuestions.com 3/05/09
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