In general, banks and credit unions have not been allowed to pay interest on business checking accounts. There are a few exceptions such as for businesses that are sole proprietorships or non-profits. For all others, regulation has prohibited institutions from paying interest. That will be changing in July. One little-known provision of last year's financial reform regulation (Dodd–Frank Wall Street Reform and Consumer Protection Act) was the repeal of this prohibition. As described in this NYT blog post, this "prohibition had been part of the Glass-Steagall Act and was in force for nearly 70 years."
EverBank Business Interest Checking Account Review
Sole proprietors and non-profits don't have many options if they want an interest-bearing business checking account, at least one that pays a decent rate. One popular internet bank that does offer a business interest checking account is EverBank. It pays tiered rates that are the same as its personal interest checking account. This includes the 3-month bonus rate. Other features are also similar such as a $1,500 initial deposit requirement and no monthly fees (unless you use online bill pay without maintaining a $5,000 balance).
For those who have an LLC, you're also out of luck. According to an EverBank service representative, LLC's are not eligible for this Business Interest Checking. I asked the rep if EverBank is planning to expand the eligibility in July when the regulation change takes effect. The rep said she hasn't heard about any changes. Hopefully, EverBank and others will come out with new interest checking options for businesses in July.
EverBank Business Money Market Account Review
Another option for businesses which want to earn interest on their savings is a business savings or money market account. EverBank has a Business Money Market Account that's similar to its personal MMA. It's a tiered-rate account that requires a minimum balance of $5,000 to avoid a monthly fee. Rates are a little lower than than the personal MMA.
One unique perk with EverBank is its Online Check Deposit service which allows you to deposit checks at home using your PC and scanner. This is a free service for both personal and business accounts. It's limited to 50 checks per month. If you need to deposit more checks than that, they also offer Remote Deposit Capture for businesses. This costs $35 per month.
ING Direct Business Savings Account Review
ING Direct offers a business savings account that's similar to its Orange Savings account for individuals with no monthly service fees or minimum balance requirement. The rate is a little lower than the Orange Savings account.
Capital One Business Money Market Review
The best deal for business money market accounts is currently at Capital One Bank. The Costco Capital One Business MMA has a competitive rate with a minimum balance of only $100. Like Capital One's personal internet MMA, there are no monthly fees, and you can write up to 6 checks a month. The non-Costco version has a lower rate, but it also has no monthly fees and allows 6 checks per month.
Best Rates on Local Business Accounts
Many credit unions and community banks offer business accounts. I don't know any that offer business reward checking accounts. Due to the interest restriction, this might not even exist. If you're looking for local business accounts, we have rate tables where you can find the best business checking accounts, the best business savings accounts and the best business money market accounts.