Can Sole Proprietor use a Money Market Account for business banking?

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Topic Author
BruinBones
Posts: 146
Joined: Sun Apr 22, 2018 5:39 pm

Can Sole Proprietor use a Money Market Account for business banking?

Post by BruinBones » Mon Jun 29, 2020 11:16 pm

I have a side gig that earns 1099 income as a sole proprietor. I currently have a personal High Yield Savings account at Synchrony Bank.
Synchrony also offers a Money Market account from which you can write checks.
Any problems with opening a Synchrony Money Market account exclusively as my business banking account?

Spirit Rider
Posts: 13163
Joined: Fri Mar 02, 2007 2:39 pm

Re: Can Sole Proprietor use a Money Market Account for business banking?

Post by Spirit Rider » Tue Jun 30, 2020 7:13 am

It depends on whether Synchrony has implemented the Federal Reserves' Regulation D change for their Money Market Account or if you write more than six checks/month.

The Federal Reserve released an interim final rule in April removing the six withdrawal/month limit.

However, there is no requirement for a financial institution to remove such a limit or stop charging fees for exceeding the limit. While most have or will do so. If you need to write more than six checks/month. You need to check with Synchrony.

Topic Author
BruinBones
Posts: 146
Joined: Sun Apr 22, 2018 5:39 pm

Re: Can Sole Proprietor use a Money Market Account for business banking?

Post by BruinBones » Tue Jun 30, 2020 8:05 am

Spirit Rider wrote:
Tue Jun 30, 2020 7:13 am
It depends on whether Synchrony has implemented the Federal Reserves' Regulation D change for their Money Market Account or if you write more than six checks/month.
Thank you Spirit Rider. According to Synchrony Bank CS, they are complying with new Regulation D change.

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