Best CD Rates & Accounts for Small Businesses
At West Plains Bank and Trust Company, we've been helping small business owners in Arkansas and Missouri turn back-of-a-napkin dreams into profitable success since 1883. Many of the local institutions our community relies on started right here.
That long track record of business banking and entrepreneurial support gives us a deep understanding of the unique financial needs of small businesses, and what it takes to keep them thriving. So whether you're just starting out or working hard to keep a decades-old family company in the black, opening a Business CD Account with West Plains Bank and Trust Company is a very smart move.
Our Commercial CD Accounts offer a secure, stable and reliable way to grow your business' savings, earning competitive interest rates on your money. Saving for a major business purchase or longer term project? Looking to earn a reliable return on extra business funds? A Commercial CD Account from West Plains Bank and Trust Company is the perfect solution.
Wondering how to open a Business CD Account? Read on or visit any of our five convenient locations in Southern Missouri.
How Do CD Accounts Work?
Certificate of Deposit accounts, also called Business or Commercial CD Accounts, are somewhat like a business savings account that earns interest, but usually offer higher rates.
When you open a Commercial CD Account, you agree to deposit a specific amount of money and keep it with West Plains Bank and Trust Company for a set period of time, which is called the CD term. The term of a business CD can vary from one month to five years, with a shorter CD term earning slightly higher interest rates than longer term CDs. That said, longer term CDs usually earn the most interest, because the interest-earning period is much longer.
In exchange for a commitment to keep your money with us until the agreed-upon CD term is reached, you'll earn a fixed interest rate. The business CD rates you earn are locked in for the entire term of the CD, which means no surprises. From the moment you open a Commercial CD Account with us, you'll know exactly how much your money will earn over the term of the CD.
West Plains Bank and Trust Company is a Member FDIC-insured bank, providing our customers with peace of mind and security when making deposits.
What is a CD Maturity Date?
In business banking terms, a CD's maturity date refers to the specific, agreed-upon date at which a business CD account matures. That means the CD term that was agreed to by both you and the bank is fulfilled, and you can now access the principal amount you invested without penalty. Put more simply, the maturity date is the day your business CD account stops earning interest and you can get your funds out without an early-withdrawal penalty or fee.
What Happens to the Interest Earned by a Business CD Account?
That's up to you. When you open a Business CD Account with West Plains Bank and Trust Company, you can specify that the interest should be added back to the CD account to grow your money or deposited to a business checking or savings account.
What About Early-Withdrawal Penalties on CD Accounts?
As with a business savings account, there is a penalty if you withdraw your funds before the CD fully matures. Nobody likes penalties. But smart business owners know this one is a feature, not a drawback.
An early withdrawal penalty provides a financial incentive to keep you or your business partners from dipping into the money you've set aside in a Commercial CD Account for future purchases or company growth. That can keep your savings goals and long-term projects on track, while making sure you earn every dollar of the rate you locked in at the time of opening.
What are the Benefits of Business CD Accounts vs. Money Market Accounts?
A Business CD Account from West Plains Bank and Trust Company offers several distinct advantages when compared to a Money Market Account (MMA), including:
Predictable Returns: Business CD rates are fixed for the entire term of the CD. As long as you don't make an early withdrawal, you'll receive every penny of the agreed-upon rate by the time the CD matures. Money Market Account rates, on the other hand, can fluctuate over time. That means your rate of return isn't guaranteed.
Higher Rates: Business CD rates are usually higher than the rates paid for money market accounts. That makes a commercial CD ideal for parking extra business cash and letting it earn. Money Market Accounts might offer better short-notice access to your funds, but it usually comes at a price: lower, less predictable returns.
Instant Savings Discipline: Think of a Business CD account as a kind of lockbox, helping you resist the forces that might tempt you to spend the money you've wisely put away for longer-term investments and future. Money Market Accounts, on the other hand, allow a limited number of penalty-free withdrawals every month. That's great if you need easier access to your funds. But repeated withdrawals can slowly whittle away the money your business needs to save.
How Do You Go About Purchasing a CD?
Just like opening a business savings account, opening a Business CD Account at West Plains Bank and Trust Company is easy. Just visit one of our five full-service locations in Southern Missouri.
West Plains Bank and Trust Company
Looking for a business banking account or business CD account to help make your American Dream a reality? West Plains Bank and Trust Company has been proudly supplying superior short- and longer-term business banking options in Missouri and Arkansas since 1883.We’re committed to supporting local entrepreneurs, business owners and job creators through personal relationships and innovative banking solutions, helping keep the future of American entrepreneurialism burning bright for the next generation.
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