The topic of business savings accounts is increasingly relevant in today’s economic landscape, making it a potential subject for IELTS Writing Task 2. While not a frequent topic, its importance in the business world suggests it could appear in future tests. Let’s examine a related question that could be encountered in an IELTS Writing Task 2 exam:

Some people believe that opening a business savings account is essential for the financial health of a company, while others think it is unnecessary. Discuss both views and give your own opinion.

Analysis of the Question

This question falls under the “discuss both views and give your opinion” category. It requires candidates to:

1. Explain why some people think business savings accounts are essential
2. Discuss why others believe they are unnecessary
3. Provide a personal stance on the issue

Now, let’s look at sample essays for different band scores.

Sample Essay 1 (Band 8-9)

In today’s dynamic business environment, the question of whether to open a business savings account has become a subject of debate. While some argue that such accounts are crucial for a company’s financial stability, others contend that they are superfluous. This essay will examine both perspectives before presenting my own viewpoint.

Proponents of business savings accounts argue that they are indispensable for several reasons. Firstly, these accounts provide a financial buffer against unexpected expenses or economic downturns, ensuring business continuity in challenging times. Additionally, they offer higher interest rates compared to regular checking accounts, allowing companies to earn more on their idle cash. Moreover, separating savings from operational funds can improve financial management and budgeting processes, leading to more informed decision-making.

On the other hand, critics argue that business savings accounts are unnecessary, particularly for small or rapidly growing companies. They contend that tying up capital in savings accounts reduces a firm’s ability to invest in growth opportunities or respond quickly to market changes. Furthermore, with the rise of financial technology, 65. The role of financial technology in modern banking. some argue that there are more flexible and potentially lucrative options for managing excess cash, such as money market funds or short-term investments.

In my opinion, while the necessity of a business savings account may vary depending on a company’s size, industry, and growth stage, the benefits generally outweigh the drawbacks. The financial security and improved cash management offered by these accounts can be crucial for long-term sustainability. However, businesses should strike a balance, ensuring that sufficient funds are available for both savings and operational needs.

In conclusion, although opinions on the essentiality of business savings accounts differ, I believe they play a vital role in promoting financial health and stability for most companies. The key lies in finding the right equilibrium between saving for the future and investing in present growth opportunities.

(Word count: 309)

Benefits of Business Savings Accounts Infographic

Explanation of Band 8-9 Score

This essay demonstrates the characteristics of a high-scoring response:

1. Task Achievement: The essay fully addresses all parts of the task, discussing both viewpoints and clearly stating a personal opinion.

2. Coherence and Cohesion: Ideas are logically organized with clear progression. Paragraphs are well-structured, and cohesive devices are used effectively.

3. Lexical Resource: A wide range of vocabulary is used accurately and appropriately. For example, “indispensable,” “financial buffer,” “idle cash,” and “lucrative options.”

4. Grammatical Range and Accuracy: The essay showcases a variety of complex structures used accurately. For instance, “While some argue that…, others contend that…” and “The key lies in finding the right equilibrium between…”

Sample Essay 2 (Band 6-7)

There is a debate about whether companies should open business savings accounts or not. Some people think it’s very important, while others believe it’s not necessary. This essay will look at both sides and give my opinion.

People who support business savings accounts say they are important for several reasons. First, these accounts help companies save money for emergencies or hard times. This can be useful if there are unexpected problems. Also, savings accounts usually give more interest than normal accounts, so companies can earn more money. Lastly, having a separate account for savings can help businesses manage their money better.

On the other hand, some people think business savings accounts are not needed. They say that keeping money in savings means less money for growing the business. Small companies or new businesses might need all their money for daily operations or to take advantage of new opportunities. With new technology in banking, there might be better ways to use extra money, like investing in short-term options.

In my opinion, I think business savings accounts are generally a good idea. They provide security and can help companies plan for the future. However, each business should decide based on their own situation. Some might need to save more, while others might need to use their money differently.

To conclude, while there are different views on business savings accounts, I believe they are helpful for most companies. The important thing is to find a balance between saving and using money for current needs.

(Word count: 261)

Explanation of Band 6-7 Score

This essay demonstrates characteristics of a mid-range response:

1. Task Achievement: The essay addresses all parts of the task, but the ideas are less fully developed compared to the Band 8-9 essay.

2. Coherence and Cohesion: There is a clear overall progression, but the use of cohesive devices is less sophisticated.

3. Lexical Resource: The vocabulary is adequate for the task, but lacks the precision and sophistication of higher band scores. For example, “normal accounts” instead of “checking accounts” or “current accounts.”

4. Grammatical Range and Accuracy: The essay uses a mix of simple and complex sentences, but with less variety than the higher band essay. There are no significant errors, but the structures are less complex.

Key Vocabulary to Remember

1. Financial buffer (noun) – /faɪˈnænʃəl ˈbʌfər/ – A reserve of money set aside for unexpected expenses or economic downturns.

2. Indispensable (adjective) – /ˌɪndɪˈspensəbl/ – Absolutely necessary or essential.

3. Idle cash (noun phrase) – /ˈaɪdl kæʃ/ – Money that is not being used or invested.

4. Financial management (noun phrase) – /faɪˈnænʃəl ˈmænɪdʒmənt/ – The process of planning, organizing, and controlling financial activities.

5. Economic downturn (noun phrase) – /ˌekəˈnɑːmɪk ˈdaʊntɜːrn/ – A period of reduced economic activity.

6. Operational funds (noun phrase) – /ˌɒpəˈreɪʃənl fʌndz/ – Money used for day-to-day business operations.

7. Money market funds (noun phrase) – /ˈmʌni ˈmɑːrkɪt fʌndz/ – A type of mutual fund that invests in short-term, low-risk securities.

8. Financial stability (noun phrase) – /faɪˈnænʃəl stəˈbɪləti/ – The condition of a financial system that can withstand shocks without disruption.

Business Person Analyzing Financial Charts

Conclusion

The topic of business savings accounts, while not a frequent IELTS Writing Task 2 subject, is relevant to modern business practices and financial management. As you prepare for your IELTS exam, consider practicing with similar topics that blend business and personal finance themes. Some potential related questions might include:

1. Discuss the advantages and disadvantages of businesses maintaining multiple bank accounts.
2. Some people believe that all businesses should be required to keep a certain percentage of their profits in savings. To what extent do you agree or disagree?
3. Compare the importance of saving versus investing for businesses in today’s economic climate.

Remember, the key to success in IELTS Writing Task 2 is not just about knowledge of the topic, but also about how well you can structure your arguments, use appropriate vocabulary, and demonstrate a range of grammatical structures. Practice writing essays on various topics and time yourself to improve your skills.

We encourage you to try writing your own essay on this topic and share it in the comments section below. This is an excellent way to practice and potentially receive feedback from others preparing for the IELTS exam.