accounting

by sneha rathor
(mysore)

If I have capital is it better to deposit in bank or to carry on with business? And why?



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I'm assuming you're asking if you should leave your business funds in a business checking account, or if you should invest in a savings or investment account.

It depends on whether or not you need the money at hand, or if you can set it aside for awhile.

If you set up a savings account, then you can earn a little extra money until you need the funds to pay bills or buy inventory.

If you have funds you won't be needing for several months, then by all means go ahead and invest in a money market or some other kind of investment.

I'm not sure where you're located, but here in the U.S. there's a company called Lending Club, where you can sign up as an investor and invest some funds - people ask for loans, and investors choose who and how much to invest in, and earn 5% or more in interest. Look for something like that, maybe.

There is no right or wrong, here. It's up to you, and what your goals are and what you business can risk by setting aside some funds for investment.

If you need the funds and they're tied up in an investment account, you may have to borrow yourself, or take an early withdrawal and lose your interest earned up to that point.

It's up to you.

Hope that helps.

Kathy

Check out Lending Club here:




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