by Pamela Palmer

#100, 30 July 2007

How to Earn Interest
on Your Bookselling Income

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Bookselling Business Series

When cash flows into your bookselling business, leaving it in PayPal or your bank account isn't the only option. Instead check out the ING Business Savings Account and Fidelity Account (For Businesses).

In the fall, money flows in more easily but even in flush times, it helps to pay attention to the details. For the occasional seller on Alibris, now is the time to take a closer look at the options to maximize your profits on that venue.

ING's Business Savings Account

Recently ING Direct began offering the ING Business Savings Account, offering 5.00% APY. ING is FDIC insured, has no fees or service charges, and does not set a minimum to open the account.

If your bookselling business is a sole proprietorship, partnership, LLC, or corporation, this account may fit your needs. Up to three people in your business (including you) can have access via an individual PIN and customer number.

The initial deposit is subject to a 10-business-day hold, and later deposits have a 5-business-day hold. Funds move to and from ING Direct via your business checking account.

For details, go to ING DIRECT. Click on Learn More; then click on Business Savings Account. ING's Business CD, currently a 9-month CD with a 5.25% APY, also is available.

Want to productively park funds from your personal checking account? ING Direct has a personal savings account, currently paying 4.50% APY with no fee or minimum. But wait, maybe you can do better. Use Bankrate's savings rate search to see the best money market account (MMA) available in your area. Some work via your checking account while others offer separate checking. Be sure to read the fine print on the bank's site and verify it is FDIC insured.

Fidelity Account (For Businesses)

If your bookselling business is bringing in the big bucks and is a legal corporation, you may be interested in a business brokerage account. Fidelity Account (For Businesses) has a $2,500 minimum and, according to Fidelity's web site, offers "a broad range of investment choices, including ... Fidelity and non-Fidelity mutual funds, index, and exchange traded funds."

For more information, go to Fidelity Accounts Setup. Click "More " under The Fidelity Account (For Businesses).

Alibris Basic or Gold: Which Saves You Money?

Alibris sellers now can opt for the new Basic program as an alternative to the traditional Gold program. If your sales on the venue are skimpy, the Basic program offers significant saving over the Gold program's $9.95 a month minimum fee (for 0-500 listings). With the Basic Program, you pay $19.95 a year plus $1 a book sold plus commissions.

Do the math to see which works better for you. Details of fees in the Basic and Gold programs are online when you sign in to your Alibris seller account, click on Help at the top right, and click on the entry under "Fee structure."

To change from one program to the other, select "Seller Programs" under "Preferences" in the menu.

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