Thursday, November 11, 2010

Interest Paid Could Be New Norm for Corporate Bank Accounts

In November's Payments AFP (Association for Financial Professionals) newsletter the question was raised on whether corporations should choose non-interest bearing but 100% FDIC coverage accounts or whether utilize interest bearing but not 100% coverage bank accounts. The new mandated Dodd-Frank Act has pushed aside the Regulation Q standpoint to consider whether higher interest returns justify risk-free non-interest bearing accounts.