As banks and credit unions continue to innovate and develop new products and services, several hybrid products continue to flood the market, such as business money market accounts.
These give consumers a more comprehensive selection than what has traditionally been available.
The good news here is that you are more likely to find a solution that fits your requirements with so many options available.
In this article, we’ll be looking at the best business money market accounts on offer in 2022, along with some of the best rates that can help you grow your savings faster than ever before.
7 Best Business Money Market Accounts and Rates for December 2022
Here are the 7 best business money market accounts offering the best rates:
- Navy Federal Credit Union
- Workers Credit Union
- Service Credit Union
- Premier America Credit Union
- First Internet Bank
- Wings Financial Credit Union
- Hyperion Bank
1. Navy Federal Credit Union
Maximum APY Rate: 0.50%
Navy Federal Credit Union offers business owners two MMAs to choose from – Regular and Jumbo.
Regular MMAs need to maintain a balance of $2,500 to earn dividends, shooting up to $100,000 for Jumbo MMAs.
One thing to note about Navy Federal’s MMAs is that they compound and pay out the interest monthly.
Membership is open to active duty, retired, and veteran personnel of all branches of the armed forces. Furthermore, family members and DoD (Department of Defense) civilians are also eligible.
2. Workers Credit Union
Maximum APY Rate: 0.60%
Workers Credit Union is a credit union based in Massachusetts. You can join this credit union in several ways:
- By having an immediate family member who is an existing member
- Being a roommate of an existing member
- Forming part of the community in Lowell or Worcester
- Being employed with a participating employer.
Alternatively, the credit union can donate on your behalf to a charity.
Workers Credit Union Business Money Market Savings Account start with an APY of 0.40%. To get this rate, you need to have a minimum of $50, making it very accessible.
To get the next rate up to 0.50%, you’ll need a balance between $10,000 and $49,999.99.
To get the full APY rate of 0.60%, you’ll need a balance of $50,000 or more.
To open a Business Money Market account, you need to deposit at least $1,000. There’s a $5 monthly maintenance fee, which you can avoid by keeping a daily balance of at least $500.
3. Service Credit Union
Maximum APY Rate: 0.60%
Service Credit Union offers business owners a money market account with APYs that range from 0.35% to 0.60%.
The rate you earn will depend on the minimum average daily balance you keep in your account over a single month. The minimum is $2,500, which will earn you an APY of 0.35%.
One step up is an APY of 0.45%, which requires a minimum daily balance of $25,000. To earn the maximum APY rate of 0.60%, you need to maintain a minimum average daily balance of $100,000.
Membership is open to active-duty military personnel as well as veterans and their families.
You are also eligible if:
- you work or have worked at the DoD (Department of Defense)
- have a family member who works or has worked there
- you’re a member of a Select Employer Group or the ACC (American Consumer Council).
4. Premier America Credit Union
Top APY Rate: 0.50%
Premier America Credit Union offers tiered Money Market Accounts with APY rates ranging between 0.30% and 0.50%. Balances under $2,500 earn an APY of 0.30% while balances between $2,500 and $99,999.99 earn 0.40%.
Anything above that earns the maximum APY rate of 0.50%
Membership is open to those who live, study, work, or worship in the counties of Los Angeles, Ventura, or Harris and family members of existing account holders.
Alternatively, you can join the credit union by joining the Thousand Oaks Alliance for the Arts.
5. First Internet Bank
Maximum APY rate: 0.40%
First Internet Bank is an online-only bank that’s been around since 1999. They offer a Business Money Market Savings account that requires a minimum deposit of just $100 to open.
Balances under $10,000 earn an APY of 0.40%, while anything above makes a slightly lower rate of 0.25%.
There is a monthly maintenance fee of $5.00, which you can avoid by keeping an average daily balance of $4,000.
The account allows for six transactions per month, and ATM cards are only issued to sole proprietors.
6. Wings Financial Credit Union
Maximum APY rate: 0.80%
Wings Financial Credit Union offers business owners some of the most advantageous MMAs around, with APY rates that go as high as 0.80%.
However, before you start counting the interest, do be aware that to get the maximum rate of 0.80%, you’ll need to maintain a balance of $250,000 or more.
Lower balances earn more modest rates, which start at 0.10% for balances less than $10,000 before inching their way up.
7. Hyperion Bank
Maximum APY rate: 0.35%
Hyperion Bank offers a range of Business Money Market Accounts. You need to deposit a minimum of $1,000 to open the account.
There is also a monthly service charge of $10, which you can avoid by maintaining a daily balance of at least $1,000.
You’ll earn an APY interest rate of 0.35% on any balance that exceeds $0.01. The APY rate will lower itself to 0.08% should your balance reach $3,000,000, but it will go up to 0.25% if your balance exceeds the $10,000,000 mark.
What is a Money Market Account?
A Money Market Account (commonly referred to as MMA) is a type of savings account that borrows some of the features of checking accounts.
Typically, you’ll find that MMAs have reasonable interest rates with some withdrawal restrictions.
They also tend to include a debit card and, in some cases, the ability to write checks.
While MMA accounts are typically associated with personal banking, several banks and credit unions have realized that businesses can also derive a lot of value from them.
This need is why financial institutions have started offering Business Money Market Accounts, giving business owners another financial tool to grow their business.
Why do Businesses get a Money Market Account?
There are several reasons why a business owner might want to consider getting a Business Money Market Account.
It can make perfect sense as a backup account.
It earns healthy interest while allowing you to write checks, pay using an ATM/debit card, and automatically transfer to another account to avoid overdraft fees.
Of course, perks and features vary from one financial institution to the next. It is always best for you to do your homework beforehand, understand your business needs, and then get the account that best fulfills those criteria.
In many cases, Business Money Market Accounts are used to manage cash flows better and possibly use them as collateral for business loans or lines of credit.
What to Look Out For When Getting a Business MMA
When you’re looking to get a business MMA, there are a few things that you need to look out for as MMAs tend to cover a particular need.
Not every feature will be critical or even necessary to you and your business. Nevertheless, it pays to know what you can expect and what sets some MMAs apart.
The APY (Annual Percentage Yield) rate is one of the biggest reasons a business owner would consider an MMA account.
Higher APY rate percentages mean you’ll earn more money. Keep in mind that many financial institutions offer a tiered system.
Be sure to compare the rates for the account balance you are most likely to keep in your account.
You might also want to consider the compounding time frame – how frequently the bank or credit union works out interest.
Shorter compounding periods, such as daily, tend to earn you more money than more extended compounding periods.
Keep in mind that listed APYs are variable. The variable rate may change when you open your account since these can change daily.
Both member FDIC and member NCUA account holders get insurance of up to $250,000.
This insurance gives you peace of mind that you’ll still get your money if the financial institution you’re banking with goes bust.
Most MMAs follow the same Regulation D rule that you’ll find on other savings out. This rule was enacted by the Federal Reserve Board – an independent government agency.
While it was repealed some time ago, it was still kept by a proportion of banks and credit unions.
That’s why you’ll still come across a limit on withdrawals from savings accounts to 6 per month or statement cycle. Additional withdrawals may incur a charge.
Deposit and Balance Requirements
The money must be deposited on account opening or soon after. Similarly, you might need to maintain a minimum balance to earn interest.
These requirements are why you should always do your homework first and work out how much money you are likely to keep in the account.
Doing so will help you ensure you can earn the most money for what you save.
Checks and Cards
While MMAs are very similar to savings accounts, one of their perks is easier access to money, including checks and free ATM or debit cards.
If this is important to you, make sure you check if the bank or credit union offers them. Be sure to compare how many checks you get for free and how widespread the ATM network is.
Several MMAs come with monthly service fees. Unless you can avoid these fees, they can make a severe dent in your APY earnings.
Remember to check if the account comes with any fees and how you can avoid them.
Mobile App and Internet Banking
Although most financial institutions offer mobile banking apps and internet banking access, it’s always wise to check.
Good mobile banking apps allow you to check balances and transfer funds securely, at the very least.
Mobile check deposits and mobile bill pay are always nice to have, especially if this is a preferred form of payment among your customers.
Such features and perks can significantly improve the accessibility of your account and money, allowing you to do more in less time.
An MMA is an Excellent Account for Business Owners
Whether you’re a small business, a freelancer, or have a growing business, an MMA can offer a lot.
Whether you use the MMA for overdraft protection, general business banking, or competitive interest rates, this type of account can give you an advantage if you use it wisely.
Ensure you check both requirements (such as minimum balance requirements) and features (like online banking and mobile deposit) before you sign up.
By making sure the account comes packed with the features you need, you’ll get the most value out of it.