Operating companies accumulate cash between payroll cycles, tax filings, and seasonal inventory builds. This reference explains how Exchange Bank business savings and money market accounts segregate those reserves, earn yield, and feed automated sweep structures when the operating account runs hot.
Operating checking is for the rhythm of inbound deposits and outbound bills. Business savings is for the cash that should not sit in the middle of that flow: the quarterly estimated tax accrual, the payroll reserve for a slow season, the proceeds of a one-time asset sale that the owner wants to earmark. Splitting reserves into a separate account changes behavior. It is psychologically easier to leave money alone when it is not showing up on the same dashboard as the operating balance.
Exchange Bank supports two flavors of reserve account. The business savings account is the simpler product, optimized for parking cash with minimal activity. The business money market account adds tiered yield and limited check-writing, which suits balances that need occasional access without forfeiting earning potential. Most growing businesses end up with both over time: savings for a small and stable reserve, money market for the variable cushion that moves with seasonality.
A sweep account is an automation rather than a separate product. The customer picks a target balance for the operating checking account. Each night the system moves anything above that target into an interest-bearing sidecar, and each morning it can pull funds back if the operating balance would otherwise run short. For businesses with lumpy deposits — a contractor who bills monthly, a distributor whose receivables cluster at quarter-end — the sweep captures yield on balances that would otherwise sit idle for days.
Before choosing between a simple savings tier and a money market tier, the bank asks how the reserve will be funded. Recurring deposits from operating cash flow look different from a one-time lump sum. A business that sweeps excess cash nightly produces a different average balance than one that moves money at month-end. The answer to that question shapes whether the money market tier earns its balance requirement or whether a plain savings account is the cleaner home.
| Product | Balance framing | Access cadence | Good fit |
|---|---|---|---|
| Business savings | Low opening minimum | On-demand, modest monthly activity | Tax reserves, rainy-day funds, earmarked proceeds |
| Business money market | Tiered, minimum to earn yield | On-demand with limited check writing | Variable cushion, seasonal reserves |
| Sweep account | Linked to operating checking target | Automatic nightly sweep | Companies with lumpy deposit patterns |
| ICS extended coverage | Large balances across network banks | Managed through one statement | Balances above FDIC single-bank limits |
Standard FDIC insurance covers deposits per depositor per ownership category up to the legal limit, and the framework is explained at fdic.gov deposit insurance. Operating businesses that carry balances above the single-bank limit usually layer ownership categories across entity structures or use a reciprocal deposit service such as the ICS program, which distributes balances across a network of banks while presenting a single statement. Exchange Bank supports that approach for customers who prefer to keep the relationship local while extending coverage on the excess.
Reserve accounts are the companion to the operating account at business checking. Treasury automation and payment acceptance sit at treasury management and merchant services. Lending relationships appear on SBA loans and commercial real estate. For owners managing their own finances, see personal checking, personal savings, money market accounts, home mortgages, auto loans, and personal credit cards. Digital channels run through online banking, the mobile banking app, wire transfers, and bill pay. Reference pages include about Exchange Bank, leadership, the security center, the Exchange Bank login guide, and the help resources hub.
"Setting up the overnight sweep made our quarter-end balances productive for the first time. The business money market is the right home for the tax reserve we carry between filings."
Marcus Ohara Plumber, Ohara Pipeworks · Forestville, CA
Business savings accounts emphasize simplicity and are typically opened to set aside tax reserves or rainy-day funds. Business money market accounts add tiered yield and check-writing privileges, which suits balances that still need occasional access without giving up earning potential.
Yes. Business deposits at Exchange Bank receive standard FDIC insurance per depositor per ownership category up to the legal limit. Companies with balances exceeding the limit often layer multiple ownership categories or use the ICS reciprocal deposit network to extend coverage.
A sweep account automatically moves balances above a set target from an operating checking account into an interest-bearing sidecar. The mechanism earns yield on idle cash without requiring a manual transfer each day, which helps companies with lumpy deposit patterns or large receivables batches.
Business money market accounts at Exchange Bank allow withdrawals on demand. Historically federal rules limited some transaction types to six per month, and although Regulation D limits were relaxed, many banks still monitor withdrawal cadence. The reference page lists the current policy.