As a business owner, you probably have a business checking account you use to handle payroll or write company checks. A business savings account can come in handy as well, since it provides you with a place to store cash that’s easily accessible, while earning some interest on the funds.
Finding the right business savings account is important whether you’re setting aside money for business goals or want to have funds on hand for unexpected company expenses.
Bankrate’s picks for the top business savings accounts
- Live Oak Bank Business Savings: Best for earning a competitive APY
- Axos Bank Business Premium Savings: Best for free incoming wire transfers
- Chase Business Total Savings account: Best for branch access
- First Internet Bank of Indiana Money Market Savings account: Best for large balances
- NBKC Bank Business Money Market Account: Best for no fees
Note: Annual percentage yields (APYs) shown are as of Jan. 23, and may vary by region for some products. Bankrate includes only Federal Deposit Insurance Corp. (FDIC) banks or National Credit Union Administration (NCUA) credit unions in its listings.
A closer look at the top business savings accounts
Live Oak Bank, Business Savings account: Best for earning a competitive APY
Live Oak Bank is an online-only financial institution that offers high-yield deposit products. Its Business Savings account earns a competitive APY and doesn’t require a set minimum balance or opening deposit amount. You won’t be charged a monthly maintenance fee, and you can manage your accounts either online or through the mobile banking app.
What we like
- Competitive APY
- No monthly maintenance fees
- No required minimum balance
What to watch out for
- Live Oak doesn’t maintain branches, so those who prefer to bank in person should look elsewhere.
- A dormant account fee of $10 or the account balance, whichever is less, will be charged for accounts with no activity for 24 months and balances of less than $10.01.
- Account holders who exceed transaction limits may be subject to fees. If the transaction limit is exceeded three times over 12 months, the account may be closed.
Axos Bank, Business Premium Savings account: Best for free incoming wire transfers
Axos is an online-only bank that offers both consumer and business accounts. In addition to earning a competitive APY, the Business Premium Savings account doesn’t charge monthly maintenance fees or require a minimum opening deposit. What’s more, domestic and international incoming wire transfers are free.
What we like
- Free incoming wire transfers
- Competitive APY
- No minimum opening deposit
- No monthly maintenance fees
What to watch out for
- A per-item processing fee of $0.30 is charged for items that exceed 20 per month (includes debits, credits and deposited items)
- Axos doesn’t maintain an extensive network of branches, so it might not be the best fit for those who prefer in-person banking.
Chase Business Total Savings account: Best for branch access
The Business Total Savings account from Chase could be a good fit for a business owner who prioritizes in-person banking. The bank offers a presence in nearly every state, with more than 4,700 branches nationwide. The $10 monthly service fee is waived with a balance of at least $1,000 or a linked Chase Business Complete Checking account.
The account earns a low APY, however, so business owners who are comfortable either banking online or with a smaller branch network will be able to find significantly higher rates with other banks.
Chase also offers a Business Premier Savings account that earns a slightly higher APY when it’s linked to a qualifying Chase business checking account.
What we like
- Widespread branch availability
What to watch out for
- The yield is significantly lower than what you can find on business savings accounts at some other banks.
- After 15 deposited items occur per month, a fee of $0.40 is charged for each additional deposited item. (Cash deposits per month are included at no charge.)
First Internet Bank of Indiana, Business Money Market Savings account: Best for large balances
The Money Market Savings account from First Internet Bank of Indiana has a tiered interest structure. Daily balances of $5 million or less earn a lower APY than daily balances higher than $5 million.
The account can be opened with as little as $100, and the monthly maintenance fee of $5 is waived for those who maintain an average daily balance of at least $4,000. Business owners who are sole proprietors receive an ATM card with the account.
What we like
- Low minimum opening deposit
- Competitive APYs
What to watch out for
- The account’s higher APY is only attainable for those who have a balance above $5 million.
- Business owners who aren’t sole proprietors do not qualify for the ATM card.
NBKC Bank, Business Money Market Account: Best for no fees
Unlike some other bank accounts, the Business Money Market Account from NBKC Bank doesn’t charge you for things like incoming domestic wire transfers, stop payments, returned items, overdrafts or nonsufficient funds.
The account earns the same APY on all balances, and it requires no minimum opening deposit or balance. It comes with a business debit card.
What we like
- No fees for overdrafts or nonsufficient funds, returned items, stop payments or incoming domestic wire transfers
What to watch out for
- Branches are only located in the Kansas City metro area.
What is a business savings account?
A business savings account is a liquid deposit account in which you can set aside business funds for future use. Like a personal savings account, a business savings account typically earns a modest amount of interest, and its offerings may include an ATM card, a mobile banking app and the ability to transfer money to and from other accounts.
When shopping for a business savings account, factors to consider include the annual percentage yield (APY), minimum deposit and balance requirements, fees that are charged and digital banking features. The best accounts earn some interest and don’t impose fees that would eat away at your savings.
Here we go over some of the best business savings accounts, including some money market options that offer tiered rates and come with debit cards.
What to look for in a business savings account
Rates
Business savings accounts might not always earn as high of a rate as personal savings accounts, yet it still pays to shop around for a competitive APY. Often, the best rates can be found from online-only banks, some of which are included in our list. However, note that some savings accounts have a minimum balance requirement in order to earn their highest yield.
A lot of business savings accounts have a tiered structure, so it’s important to compare rates based on how much money you plan to keep in the account. Fees are also more common with business accounts than personal ones, so make sure you’re looking at what you’ll actually earn after fees. If the fees are high, they can eat into your balance fast, especially if you’re not keeping a lot of money in the account.
— R.J. Weiss, CFP®, CEO of The Ways to Wealth
Fees
When shopping for a business savings or business money market account, be sure to find one that doesn’t have fees that will chisel away at your principal or interest earnings. In addition to monthly maintenance fees, some banks charge for out-of-network ATM use, overdrafts, sending or receiving wire transfers, or closing a new bank account within a certain period of time.
Branch access
Some business owners prefer bank accounts that can be managed entirely online, whereas others prefer being able to visit branches and speak face-to-face with bank representatives. Plenty of brick-and-mortar banks offer business savings accounts — although you might not receive as favorable of a rate there as you would from an online bank.
You may be able to find a credit union with branches near you that pays better rates on a business savings account than the rates offered by big banks.
Level of FDIC insurance
The Federal Deposit Insurance Corporation (FDIC) provides insurance coverage of $250,000 per depositor, per insured bank, for each account ownership category.
Businesses with savings accounts above this limit still have options. One option is the Insured Cash Sweep, which distributes funds across multiple FDIC-insured banks. This method allows for higher insurance coverage, with some ICS accounts offering protection for up to $150 million.
Pros and cons of business savings accounts
Pros
- Provides a financial safety net for unexpected expenses or drops in sales
- Keeps business and personal finances separate
Cons
- Failure to meet minimum deposit requirements could result in account closure or reduced interest rates
- Higher fees compared to personal savings accounts
- Potential maintenance fees if minimum balance requirements aren’t met
Business savings account FAQs
Research methodology
A business savings account can be great for storing funds for future use, while earning some interest on the money.
Things to consider when seeking the best business savings account include the APY (many online banks offer more competitive yields than brick-and-mortar banks), minimum deposit and balance requirements, fees that are charged, and digital banking features. The best accounts earn some interest and don’t impose fees that would eat away at your savings.
A safe way to store your business funds is an account that’s covered by FDIC or NCUA insurance. Just make sure that you’re within the stated guidelines and limits.
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