6 Best Business Savings Accounts of April 2024

A business savings account can be a valuable tool to help business owners reach their savings goals and boost their cash reserves.

There are several savings options available for businesses. We’ve identified the best business savings accounts, comparing their APY, fees, and account features to help you choose the right account for your business needs.

6 Best Business Savings Accounts

Here are the top 6 business savings accounts you can open now:

  1. Live Oak Bank: Best for Growing Your Savings
  2. Axos: Best for New Business Owners
  3. First Internet Bank: Best for Established Businesses
  4. Capital One: Best for Face-to-Face Banking
  5. NBKC Bank: Best for Businesses on a Budget
  6. U.S. Bank: Best Account Variety

1. Live Oak Bank Business Savings live oak bank Logo

  • Best for: Growing Your Savings
  • Minimum opening deposit: $0
  • Monthly fee: $0

Live Oak Bank is one of the best banks for businesses. Its business savings account comes with higher APY than many of its competitors, earning 4.00%. Interest on the account is compounded daily, helping you make the most of the rate on offer.

Unlike some of its competitors, the Live Oak Business Savings account doesn’t have any maintenance fees or minimum balance requirements. And with Live Oak’s Insured Cash Sweep, your funds are FDIC-insured up to $10 million.

You can open an account online with your personal, business, and bank account information. The account is easy to fund with an ACH transfer, wire transfer, check mail-in, or mobile check deposit in the Live Oak app.

Pros

  • Competitive APY
  • No monthly fees or account minimums
  • Increased FDIC insurance

Cons

  • No physical branches
  • No ATM card

 

2. Axos Business Savings Axos Bank Logo

  • Best for: New Business Owners
  • Minimum opening deposit: $1,000
  • Monthly fee: $5, waivable

Axos Bank is one of our top online-only banks, offering a wide range of products and services to personal and business consumers.

While you’ll find higher rates with a bank like Live Oak, the Axos account does bear some interest, currently earning 0.20% APY on all account balances up to $5 million.

You’ll need a minimum opening deposit of $1,000 to open the account and an average daily balance of $2,500 to avoid paying the $5 monthly fee.

The account comes with access to online banking and a highly-rated mobile banking app. You can apply online, where the bank lists all of the required documents that you’ll need to open a savings account.

All in all, it’s worth a look for small businesses that don’t want to contend with high minimum requirements and monthly fees.

Pros

  • Waivable monthly fee
  • Highly rated app
  • No minimum requirement to earn interest

Cons

  • No physical branches
  • Mediocre APY

 

3. First Internet Bank Money Market Savings First Internet Bank Logo

  • Best for: Established Businesses
  • Minimum opening deposit: $100
  • Monthly fee: $5, waivable

The Money Market Savings account from First Internet Bank is well worth considering for higher interest rates, especially if you’re an established business with a large account balance.

Accounts with $5 million or less earn an APY of 3.45%, while daily account balances averaging more than $5 million earn an impressive 5.46% APY.

The account comes with a $5 monthly maintenance fee, which can be waived with an average daily balance of $4,000.

Accountholders can make six transfers or withdrawals per month, and sole proprietors get the added perk of an ATM card.

Pros

  • Low opening deposit minimum
  • Competitive APY
  • Increased FDIC insurance for larger accounts

Cons

  • ATM cards are only for sole proprietors
  • A high balance is required to waive the monthly fee

 

4. Capital One Business Savings Capital One Bank Logo

  • Best for: Face-to-Face Banking
  • Minimum opening deposit: $250
  • Monthly fee: $3, waivable

When you open a new Capital One Savings account, you can earn a high 12-month introductory APY. However, once the first 12 months have passed, this APY drops to a standard variable rate.

The minimum deposit amount to open this account is $250, and you’ll need to maintain a balance of at least $300 to avoid the $3 monthly service fees. Fee-free withdrawals are limited to 6 per month. Incoming domestic wire transfers cost $15, while outgoing transfers cost $25.

Capital One provides access to internet banking and a mobile app, but you can also visit one of their branches if you live or operate near one.

Pros

  • Promotional 12-month APY
  • Online and in-person banking
  • The monthly fee is easy to waive

Cons

  • Out-of-network ATM fees
  • Unimpressive ongoing APY

 

5. NBKC Bank Business Money Market Account nbkc bank Logo

  • Best for: Businesses on a Budget
  • Minimum opening deposit: $0
  • Monthly fee: $0

While NBKC Bank doesn’t offer a business savings account, its Money Market Account (MMA) is just as good.

The high-yield business savings account offers a  2.25% APY. Although it’s not the highest, it’s still a respectable rate. This rate applies to all balances, so you’ll always know how much interest your money is earning.

There’s no minimum deposit requirement to open the account, and there are zero monthly fees. Additionally, the bank also doesn’t charge any overdraft or NSF fees.

The online bank also carries solid customer ratings on Trustpilot, the App Store, and the Google Play Store, with a streamlined mobile app and a strong reputation for customer service.

Pros

  • Solid APY
  • No minimum opening deposit
  • Minimal fees

Cons

  • No branches outside Kansas City
  • No extended FDIC insurance for larger accounts

 

6. U.S. Bank Platinum Business MMA us bank Logo

  • Best for: Account Variety
  • Minimum opening deposit: $100
  • Monthly fee: $15

If you’re looking for a bank that offers a high-yield savings option for your business along with a range of other financial products and services, we recommend U.S. Bank.

Business owners can access checking and savings accounts, MMAs, business loans, credit cards, merchant services, cash management, and payroll services.

One of our favorite U.S. Bank business savings accounts is the Platinum Business Money Market account. It comes with a competitive bonus interest rate of up to 4.75% on qualifying account balances.

The account has a $100 opening deposit requirement and a $15 monthly maintenance fee that can be waived with a $10,000 daily balance.

Pros

  • Competitive bonus APY
  • Low minimum opening deposit
  • Extensive ATM access

Cons

  • High monthly fee
  • High minimum to earn bonus interest

 

What Is A Business Savings Account?

Business savings accounts are specialized business bank accounts generally made available to sole proprietorships, partnerships, LLCs (Limited Liability Companies), and corporations (both for-profit and non-profit).

They operate similarly to personal savings accounts but may have specialized features for businesses.

Depending on the type of business you want to open a savings account for, you’ll need to present a different set of documents. These can include agreements, articles of incorporation, IRS letters, and more.

Pros and Cons of Business Savings Accounts

Business savings accounts have advantages and disadvantages to consider. Compare the pros and cons below:

Pros

  • High-interest rates: Some business savings accounts, particularly ones offered by online banks and credit unions, provide competitive savings rates that beat traditional savings accounts.
  • Security: Online savings accounts from reputable financial institutions provide FDIC insurance for up to $250,000 of deposits. Some banks participate in an Insurance Cash Sweep that increases coverage beyond that offered by the Federal Reserve for larger accounts.
  • Liquidity: Savings accounts provide quick access to your funds. Whether you’re saving for an emergency fund for a rainy day or funding projects and expansions, you can store your cash in a savings account for easy access.
  • Overdraft protection: You can often link your business savings account to a checking account to provide overdraft protection for transactions that exceed your checking account balance.

Cons

  • Account minimums: Many business savings accounts come with opening deposit requirements or ongoing account balance minimums to earn interest or avoid monthly fees.
  • Maintenance fees: Similarly, a lot of accounts charge monthly maintenance fees that sometimes require high account balances to be waived.
  • Transaction limits: Some accounts limit monthly transactions, charging a fee if you exceed a certain number of transactions (usually six).

How to Choose a Business Savings Account

Savings accounts for businesses come in all shapes and sizes. Before choosing a savings account for your business, take the time to understand your financial situation and what you hope to achieve by opening this savings account.

Here are some of the key factors to consider as you choose a business savings account:

Fees

Fees are one of the ways banks make money but avoiding them isn’t impossible.

Most accounts come with monthly maintenance fees that can be avoided by meeting minimum balance requirements or making frequent direct deposits.

Other fees such as overdraft fees and ATM fees might not necessarily apply to a savings account. Still, checking applicable fees can give you a better idea of what you can expect to have to pay.

APY Rate

Since savings are meant to sit tight in your bank account for an extended time period, banks offer an interest rate on the money in the account.

Usually, banks offer this through an APY (Annual Percentage Yield) rate. It earns compounded interest on your money so that the interest you accrue also earns interest with higher rates, offering more bang for your buck.

Accessibility

Whether you prefer to bank at a physical branch or online, it’s important to choose a bank that makes it easy to manage your account and get assistance when you need it.

Regardless of whether you employ a team of accountants or do everything yourself, time is money, so you’ll want to make sure that the bank is there to serve you.

Transaction Limits

Most savings accounts come with a limit on the number of transactions. This limit comes from a federal regulation called Regulation D, and it limits the number of withdrawals you can make, whether it’s by bank transfer or debit card.

Although the regulation has since been deleted, several banks chose to keep the limit with extra fees for any transactions above the limit.

Alternatives to Business Savings Accounts

Business savings accounts aren’t the only accounts that can help businesses reach their savings goals.

Other financial products and services such as a business checking account or a business money market savings account can provide you with all of the financial tools you need to keep your business running and growing as smoothly as possible.

While they offer less liquidity than savings accounts and MMAs, certificates of deposits (CDs) can offer competitive APY and are a solid alternative if you don’t need access to your funds.

Business Savings Accounts FAQs

Can I open a savings account for a business?

Yes. A savings account can be a great tool to alleviate cash flow problems by ensuring access to funds. Savings accounts also tend to earn interest so your money isn’t sitting idly by. A savings account can also act as collateral if you require a business loan without affecting your credit score.

How do you qualify for a business savings account?

Each bank has its own requirements for business savings accounts. Typically, you’ll be required to share your business license and a Social Security Number or Employer Identification Number (EIN).

Should my LLC have a savings account?

LLCs can open a savings account just like any other business. If you have an LLC, it’s wise to open a separate savings account for your business that can protect you from liability and help you reach your savings goals.

What’s the difference between a business checking and a business savings account?

Business checking accounts provide more flexibility and features than business savings accounts. They’re designed to help small business owners manage their daily personal finances, allowing them to make purchases and accept payments. Meanwhile, business savings accounts are a place to store your funds for short-term savings goals or emergencies.

How do you open a business savings account?

Here are a few simple steps to open a business savings account:

  1. Compare bank account features and fees
  2. Select a bank that fits your needs
  3. Gather documentation required by the bank
  4. Visit a branch or apply online
  5. Transfer funds to your new account

Our Methodology

To provide our readers with unbiased, accurate recommendations for the best business savings accounts, we compared more than a dozen accounts using the metrics below:

  • APY: Above all, we analyzed each account based on its interest rates, requirements, and compounding schedule.
  • Account minimums: We also looked at each account’s opening deposit requirements and ongoing account balance
  • Account fees: Similarly, we compared each account’s fees, noting monthly maintenance fees, overdraft fees, and transaction fees.
  • Customer experience: We vetted each company’s reputation with customers, reading third-party reviews and evaluating each bank’s website and mobile app
  • Account features: Last, we compared each bank account’s features, such as FDIC insurance, mobile tools, and deposit options.

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