Banking & credit
Business accounts for operating cash and reserves
Retained earnings sitting in a low-rate account are a slow leak. A business high-interest account keeps operating cash liquid while it earns, inside the same plan as your corporate insurance and investments.
What it's for
Where corporate cash sits
Operating float
Payroll, supplier payments and taxes, with daily interest on the balance between them.
Retained earnings
Reserves held liquid while decisions about investing or extracting them are made.
Tax instalments
Money set aside for instalments and year-end kept separate and earning until it is due.
Coordinated with the corporate plan
How much cash a corporation should hold depends on the passive income rules, your compensation mix and what the business needs to survive a slow quarter. That is a planning conversation, not a banking one.
We work with your accountant on the amount, then set the accounts up so it is easy to keep the reserve separate from the operating float.
Review your corporate cash
Bring your accountant into the conversation if that's easier.
Banking products are provided by Manulife Bank of Canada. Investco Financial advisors arrange applications and servicing; approval, rates and terms are set by Manulife Bank and are subject to its lending and account criteria.