If your business has a lot of money saved up for future expenses, leaving the cash in your business checking account may not be the best way to maximize it. The good news is that there are several solid high-yield business savings accounts that are worth considering.
|Best Small Business Savings Accounts|
|Live Oak Business Savings|
Monthly Fee: $0
Minimum Deposit: $0
APY: 1.40% APY
|Axos Bank Business Savings|
Monthly Fee: $5, waived if your daily balance is $2,500 or more
Minimum Deposit: $1,000
APY: 0.20% APY
|Presidential Bank Commercial Premier Savings|
Monthly Fee: $0
Minimum Deposit: $5,000
APY: Up to 0.50% APY
|First Internet Bank Business Money Market Savings|
Monthly Fee: $5, waived if your daily balance is $4,000 or more
Minimum Deposit: $100
APY: 0.70% APY
|BlueVine Business Checking*|
Monthly Fee: $0
Minimum Deposit: $0
APY: Up to 1.50% APY
|Axos Bank Business Interest Checking*|
Monthly Fee: $10, waived if your daily balance is $5,000 or more
Minimum Deposit: $100
APY: Up to 1.01% APY
*Technically a checking account, but see why it made our list of best business savings accounts below.
If you’re thinking about getting a business savings account, here are some of the top choices to help you narrow down your list of options.
Live Oak Business Savings
The Live Oak Business Savings account offers a cool 1.40% APY on deposits. The only requirement is that you have at least $0.01 in the business account. Beyond that, there’s no minimum balance requirement and no monthly fees.
That said, if you have $10 or less in your savings account and don’t use it for 24 consecutive months, the bank will charge a dormant fee, which will be the amount of your balance, up to $10.
It also charges other common bank fees, including a stop payment fee, a non-sufficient funds fee, a returned item fee, legal action fees and wire fees (though many banks don’t charge a fee for outgoing wires, this one charges $19).
Axos Bank Business Savings
Axos offers a long list of excellent products, both for small business owners and for consumers. The Axos Business Savings account offers a solid interest rate with 0.20% APY on all balances. Although, if you have $5 million or more, you’ll need to contact the bank to get current rates.
The bank charges a monthly maintenance fee of $5, but you can get it waived if you maintain an average daily balance of $2,500 or more. There’s also a $1,000 minimum deposit requirement to open the account, which can be a barrier for newer businesses.
That said, Axos will give you a cash bonus of up to $200 depending on when you incorporated your business. Here’s how to qualify for the full amount.
- If you incorporated your business after June 1, 2020, include promo code NEWBIZ200 on your application to earn $200.
- If you incorporated before June 1, 2020, use promo code NEWAXOSBIZ to earn a $100 bonus.
In both cases, you must maintain an average daily balance of at least $2,500 over the first 60 days to earn your bonus.
One potential issue with Axos is that the bank doesn’t have any brick-and-mortar branches — it’s an online-only institution. So if your business works with cash deposits, this one might not be for you. Of course, that also goes with some of these other business savings accounts, especially if the bank doesn’t have branches where you live. Read our full review of Axos Business Savings.
Presidential Bank Commercial Premier Savings
The Presidential Bank Commercial Premier Savings account offers up to 0.50% APY on small business balances.
You’ll get that interest rate on balances up to $35,000, but balances above that threshold will earn just 0.25% APY.
This bank has the highest minimum deposit requirement of any accounts on our list at $5,000. Once you open the account, though, the minimum balance is $0. There’s also no monthly service fee.
You can get your savings account linked to a debit card so you can access your funds at an ATM, but you’ll need one of the bank’s business checking accounts to make that happen.
First Internet Bank Business Money Market Savings
If you’d like a business savings account that gives you a little more flexibility, First Internet Bank Business Money Market Savings account might be a good option.
It offers a 0.70% APY, and the minimum to open an account is $100. However, you’ll need to have an average daily balance of $4,000 or more if you want to avoid the account’s $5 monthly service fee.
But while money market accounts typically have a hybrid set of features that straddle the line between checking and savings accounts, it’s important to note that you can only make six fee-free withdrawals from the account every month.
If you like what First Internet Bank offers but don’t want the high minimum balance requirement, consider the bank’s Regular Business Savings Account. It has a $2 monthly maintenance fee but waives it if your average daily balance stays above $1,000.
BlueVine Business Checking
Before we continue, note that this is a small business checking account and not a business savings account. But because the account offers a much higher interest rate than the top savings accounts we’ve found, it deserves a spot on our list.
The BlueVine Business Checking account offers 1.50% APY on the first $100,000 you have in your account — that’s tough to beat with any high-yield savings account, business or personal.
In addition to a high interest rate, you’ll enjoy no monthly service fee, no NSF fee, no ATM fees at ATMs in the MoneyPass network and no minimum opening deposit or balance.
You’ll also get unlimited free monthly transactions, whereas many business checking accounts will charge you a per-transaction fee once you reach your monthly limit — this can range from a few dozen to several hundred.
If you want a checking and savings account but don’t care for the limitations of a money market account, this one can be a solid choice.
Axos Bank Business Interest Checking
Here’s another bank that offers an incredible interest rate on a checking account. This interest-bearing account offers up to 1.01% APY based on your deposits — the rate decreases to 0.20% once you reach $50,000 and then 0.10% when you hit $250,000.
Another reason to consider Axos Business Interest Checking is that the bank will reimburse all of your ATM fees. It actually doesn’t even have its own ATM network like most banks, preferring instead to cover your third-party ATM fees every time you make a withdrawal at a machine.
There are a few things to keep in mind with this account, though. To begin with, the Business Interest Checking account charges a $10 monthly service fee. The good news is that you can get it waived by maintaining an average daily balance of at least $5,000.
Another potential drawback is that the account only allows 50 free transactions every month, with a $0.50 fee per item after that. If your business makes a lot of expenses or receives a lot of payments, this account could get expensive fast.
Similar to the bank’s business savings account, this one offers a $200 bonus to new accountholders who complete qualifying activities. Read our full review of Business Interest Checking.
How to Choose the Best Small Business Savings Account
Finding the right small business savings account can depend on a variety of factors. For starters, you may want to get an account from a bank that also has a solid business checking account, so you don’t have to constantly move money back and forth between financial institutions.
You may also be willing to get an account with a monthly fee as long as it’s waivable or the cost is negligible.
Finally, you may notice that some of our best small business savings accounts are actually checking accounts. We’ve included them, though, because these interest-bearing accounts offer higher annual percentage yields (APY) than any of the savings options we could find.
As you search for the right business savings account for you, here are some of the best business accounts to help you find the best fit.
How to Pick the Right Business Savings Account
Business banking can be stressful because, as an entrepreneur, you want to maximize both profits and efficiency. But no two businesses are exactly alike, and different business owners will have varying preferences and goals.
For example, if you take cash payments, using a bank that offers online banking only will cause some problems. On the flip side, if your business is based online, getting an online-only bank account can meet your needs and provide convenience.
You’ll also want to consider each account’s interest rate, along with the tiers and eligibility requirements. If your business can’t maintain a big enough savings account balance to avoid a monthly fee, it’s not worth it, no matter high the APY is.
You may also want to consider the bank’s other financial products, such as checking accounts, loans, credit cards, investment options and more. As you do your research, you’ll be able to weed out the accounts that won’t do you any good and apply for the one that remains.
Frequently Asked Questions
As we researched the best business savings accounts, we came across several questions from other small business owners about the banking process and experience. Here are some of those questions, along with their answers.
Most banks offer insurance through the FDIC, which means that your balance up to a certain amount is protected in the event that the bank fails. In general, you’ll get $250,000 in FDIC insurance per bank, per depositor, per ownership category.
In other words, if you have $250,000 at one bank and $250,000 at another, you’re insured for up to $500,000. The same goes if you have two accounts with the same bank, one of which you own by yourself and the other you own with your business partners.
If you have a business bank account with a credit union, you’ll get the same benefit, but it’s provided through the NCUA instead of the FDIC. The NCUA stands for National Credit Union Association.
As you search for business bank accounts, make sure they’re either FDIC-insured or NCUA-insured.
While banks typically don’t offer the same features on savings accounts as they do checking accounts, we’ve covered just about all the features you need to know about above.
That said, if you’re also looking at getting a small business checking account, you’ll also want to look at the various fees, especially fees for overdrafts or monthly maintenance. You’ll also want to check to see how good the online banking experience is based on other customer reviews, whether you’ll get perks with your debit card, the number of free transactions you have and more.
Also, take a look at the ATM situation — does it have a huge network through Allpoint or MoneyPass, or does it restrict you to certain ATMs in a local area?
You might also want to get an account with a bank that can also give you a credit card, loans and other financial products, so you don’t have to have multiple accounts with different financial institutions.
As you can see, most of the best business savings accounts aren’t coming from national banks like Bank of America, Capital One and Wells Fargo. While those banks certainly have decent options, you may get more interest and other benefits with one of these banks.
In other words, do take your time to compare our top choices with what you might get from a big bank. But don’t necessarily choose one of these banks just because you manage your personal banking through them.
Some banks that offer high-yield savings accounts for small businesses also offer business credit cards. Business credit cards offer several benefits, including:
– Separating your personal and business expenses.
– Getting some additional time to pay your vendors — in fact, some options offer an introductory 0% APR, so you could theoretically take months to pay off a balance interest-free.
– Potentially earning rewards and taking advantage of other perks.
– Get relatively affordable financing when you’re just starting out and don’t qualify for traditional business loans.
That said, using a credit card regularly can get you in trouble if you start using it to buy things your company can’t afford to pay back.
And keep in mind that you must agree to a personal guarantee with most of these cards. This means that if your business can’t repay the debt, you’ve agreed to do it using your personal assets. If not, it could wreck your credit.
If you’re considering a business credit card, most of the best options come from major banks like American Express, Chase, Bank of America and Citi. Chase’s suite of Ink Business cards are particularly popular with small business owners and include Ink Business Preferred®, Ink Business Unlimited® and Ink Business Cash®.
Take your time and compare multiple options to find the one that works best for you and your business.