Had an interesting conversation on the phone today with one of the 'higher ups' at my local Bank branch.
I go there for all our business banking deposits, and had to spend several visits there getting all the necessary accounts opened up, eftpos etc for the Tyre Centre before we commenced trading.
The person who called me wanted to know if I wanted to set up and online saver account to park the business takings in while I was waiting to pay some bills. Earn some nice interest...
I tried to explain that due to the various loans we have now, and the interest rates attached, it is far better for me to pay any excess funds into the loans (which are all LOC's) and minimise the interest on them than to cop a rate of interest paid to me less than what I am paying out. Not to mention the tax I'd pay on that interest earned.
This person struggled to make sense of this.
I go there for all our business banking deposits, and had to spend several visits there getting all the necessary accounts opened up, eftpos etc for the Tyre Centre before we commenced trading.
The person who called me wanted to know if I wanted to set up and online saver account to park the business takings in while I was waiting to pay some bills. Earn some nice interest...
I tried to explain that due to the various loans we have now, and the interest rates attached, it is far better for me to pay any excess funds into the loans (which are all LOC's) and minimise the interest on them than to cop a rate of interest paid to me less than what I am paying out. Not to mention the tax I'd pay on that interest earned.
This person struggled to make sense of this.