What are some of the best business savings accounts?

Here are our picks for the best business savings accounts, ranked according to annual percentage yield (APY):

Summary of the 5 best business savings accounts

Here’s a closer look at our picks for the best business savings accounts you can open.

First Internet Bank Business Money Market Savings

Best business bank account for high-earning accountholders

APY: 3.46% to 4.69%

Account features: First Internet Bank’s Business Money Market Savings account offers a staggering 4.69% APY for those with balances of over $5 million, making it our pick for high-earning accountholders. If your balance is below that threshold, you’ll earn 3.46% APY instead. But even at the lower rate, this account provides some nice perks, including a waiver available for the monthly service fee and a free debit card for sole proprietors.

Axos Bank Business Premium Savings

Best business savings account with QuickBooks integration

APY: 4.01%

Account features: Axos Bank’s Business Premium Savings Account earns an APY of 4.01% and a sign-up bonus of $375. However, you’ll have to maintain an average daily balance of $75,000 for the first four statement cycles to qualify for the full bonus as well as meet eligibility criteria. This account also integrates with QuickBooks to make doing your business accounting easier.

Capital One Business Savings

Best business savings account with promotional rates

APY: 4.00% promotional rate

Account features: At 4.00%, the APY on this Capital One account is one of the highest on the list. However, it only lasts six months and applies exclusively to balances of more than $10,000 and up to $10 million. After that, the rate is variable and subject to change. You can access service at in-person branches and make six free withdrawals per statement cycle. Make sure you maintain a minimum balance of $300 to waive the $3 monthly service fee.

Live Oak Bank Business Savings

Best business savings account from an online-only bank

APY: 3.80%

Account features: Live Oak Bank’s business savings account offers a particularly attractive APY at 3.80% — especially when you consider that no monthly fees are associated with the account. Plus, no minimum deposit is required to open the account, and your savings will start earning interest at just 1 cent.

NBKC Bank Business Money Market Account

Best business savings account with limited fees

APY: 2.75%

Account features: The standout feature of NBKC Bank’s Business Money Market account is its limited fees. The bank has no opening deposit, minimum balance or monthly maintenance fees and does not charge for overdrafts or incoming domestic wire transfers. Because it’s a business money market account, you’ll have more flexibility with your funds than you would with a standard savings account. For example, this account comes with a free debit card.

What is a high-yield business savings account?

A business savings account is a deposit account where you can keep business funds that you don’t intend to use that often. (If you need regular access to cash, a business checking account may be a better option.) Typically, these accounts act as a cash reserve for covering large expenses, building an emergency fund or saving for taxes.

In particular, a high-yield business savings account is one that helps your money earn a decent amount of interest. While any account that earns more than the national average — currently 0.45%, according to the FDIC —is technically considered high-yield, many banks offer APYs that are well over that.

Types of business savings accounts

Most business savings accounts are one of the following two types:

• Business money market account: A business money market account combines some features of both savings and checking accounts. This account type will generally give you greater access to your money than a traditional savings account, typically including a debit card. However, it may still have monthly transaction limits.
• Standard business savings account: If the account doesn’t offer debit card access or have transaction limits, it’s likely a standard savings account. A business savings account works similarly to a personal savings account, except it’s intended for business use.

Pros and cons of business savings accounts

There are advantages and disadvantages of business savings accounts to keep in mind as you decide whether opening one is right for you.

How to choose a business savings account

Now that you understand more about what business savings accounts are and how they’re used, here are some factors to consider when selecting an account:

Deposit insurance: Most banks provide FDIC insurance on deposits up to $250,000 per person across all accounts. This insurance protects your funds in the event of bank failure. If you need higher coverage limits, investigate cash sweep accounts instead.

APY: This is the rate at which your money will earn interest while it’s in the account. Ideally, this will be as high as possible and last over the long term.

Opening deposit requirements: Some banks require you to deposit a set amount to open your account. If your bank requires one, make sure you can set enough money aside to properly fund the account before you apply.

Minimum balance requirements: Some banks will ask you to keep a minimum balance in the account. Sometimes, it’s required to earn the highest-possible APY, and other times it’s necessary to avoid paying a monthly maintenance fee. If the bank imposes this limit, think carefully about how much you intend to keep in the account on a regular basis before applying.

Fees: Banks may charge monthly maintenance or service fees. You can save money by choosing an account that has low fees — if any at all.

Transaction limits: The Federal Reserve previously imposed a six-per-month maximum on the number of withdrawals that banks could allow. Although the limit was removed in 2020, some banks still restrict monthly withdrawals. Be sure to look out for any limitations on your account activity.

Debit card availability: Sometimes business savings accounts will offer a debit card, which opens up the possibility of ATM access. Consider whether that access is important to you and, if so, the reach of the bank’s ATM network.

Ease of account opening: In addition, weigh how easy it is to open the account. Some accounts can be opened online in a matter of minutes. But, in other cases, you may have to apply over the phone or at a branch.

Business savings account rate history – Average APY rate trend over time

How we chose the best business savings accounts

To compile our list of the best business savings accounts, we considered the APY offered and the fees attached to the account. We analyzed nearly 22 bank accounts at different banks, credit unions and financial technology companies.

Accounts that made the list needed to have these features:

• Offer a competitive APY
• Require only a small minimum deposit and a low minimum balance
• Charge few, if any, monthly service fees
• Provide many free ways to make deposits and withdrawals
• Function as a business savings account
• Come with federal insurance