Best High-Yield Business Savings Account for December 2024
Elevate your business by using the best high yield savings accounts. Read this list of top business savings accounts with highest yields and low fees.
Business Premium Savings - Up to 4.01% APY
- Unlock a bonus up to $375 with Business Premium Savings. Save more, pay lower fees, and get a limited-time bonus up to $375 with a 4.01% APY* Business Premium Savings account. Use promo code BPS375.†
- Earn 4.01% APY* With Business Premium Savings
- Free domestic and international incoming wires
- No monthly maintenance fee
- No minimum opening deposit
- No average daily balance requirement
- Business deposit accounts FDIC insured up to $250k
Business Savings - 3.70% APY
- Earn 3.70% APY
- No minimum balance requirement
- No monthly service fee
Platinum Business Money Market Account - Up to 3.50%
Receive a bonus interest rate up to 3.50% from the account opening date when you open a new Platinum Business Money Market Account and complete qualifying activities, subject to certain terms and limitations. Member FDIC.
Offer is limited to Business Platinum Money Market account only. Standard variable interest rates are determined at the bank's discretion and are subject to change at any time without notice. Speak to a banker for current deposit rates, disclosures on rates, compounding and crediting and other balance information. The minimum deposit required to open a Platinum Business Money Market account is $100.
Interest and Fee Information: You must maintain the minimum balance needed for each tier to earn the interest rate. Interest will be compounded daily and credited to your account monthly at the end of the statement cycle. Fees could reduce earnings on the account. Other restrictions may apply.
Offer details: Starting September 23, 2024, open a new U.S. Bank Platinum Business Money Market account and receive a bonus interest rate from the account opening date. All Bonus interest rates may change at any time without notices. The following bonus interest rates are accurate as of today:
- The bonus interest rate will be 3.50% when your account balance tier is $25,000 to $2,999,999.99.
For Platinum Business Money Market accounts with $3 million or greater in balances, the bonus interest rate does not apply, and the full account balance will earn the standard variable interest rate in effect at that time until the account balance is $2,999,999.99 or below.
Lili Pro Business Checking
- $15.00 monthly service fee (30 day free trial)
- Track write-offs with a swipe
- Auto-save for taxes
- Savings with 3.65% APY
- Cashback with selected merchants
- Fee-free Overdraft up to $200
No-Fee Business Checking
- $0 monthly service fee
- $0 minimum opening deposit
- Open up to 20 individual business checking accounts
- Earn up to 3% APY with automated savings
- Issue up to 50 Visa® debit cards to your team
Looking for a business savings account to grow your funds?
One downside is that most business savings accounts don't pay as much interest as you can find with personal savings.
But don't worry: there are still some good options. Usually an online business savings account will offer higher-than-average rates.
The SAVER rule helps business owners remember the key aspects to consider when choosing a business savings account:
- Security: Ensure the bank provides strong security measures to protect your funds.
- Accessibility: Look for accounts that offer easy access to your money when needed.
- Value: Consider the overall benefits and features provided by the account.
- Earnings: Check the interest rates and how much you can earn on your savings.
- Requirements: Be aware of any minimum balance requirements or fees.
Whether you're saving for a big purchase or just need to set aside capital, here are the best business savings accounts. Plus, discover some savings account alternatives and what to look for in an account.
- Live Oak Bank - Highest business savings APY with no minimum balance
- Bluevine - Highest APY checking
- Prime Alliance Bank - Best for higher balances
- First Internet Bank - Best for business CDs
- Financial Resources Federal Credit Union - Best credit union
- Capital One - Best customer support
Live Oak Bank - Highest Business Savings APY with No Minimum Balance
Live Oak's Business Savings Account offers a high 3.70% APY on all balances. There are no special requirements to earn this APY. Plus, there are no monthly service fees or minimum balance requirements.
Live Oak is an online only bank that specializes in savings products. Its mission is to be "America's small business bank", helping small business owners reach their goals.
In addition to savings, Live Oak is the number one SBA lender in the U.S. by volume. So it's also a great bank to consider if you may need a small business loan in the future.
Business Savings - 3.70% APY
- Minimum Deposit to Open: $0
- Balance Requirement: $0
- Monthly Fee: $0
- APY: 3.70%
Bluevine - Highest APY Checking
Bluevine is technically a small business checking account. But it offers a higher APY than most business savings accounts. And there's no monthly fee for the basic checking account, so it's great for businesses of all sizes.
Standard tier customers can earn 1.5% APY on balances up to $250,000 with monthly eligibility requirements; 0% APY on balances over $250,000. You get this if you spend $500 per month with your Bluevine debit card OR receive $2,500 per month in customer payments.
Plus tier customers can earn 3% APY without minimum qualifications. By upgrading to this paid plan, you'll enjoy higher interest earnings on your balances and a 20% reduction in most Standard payment fees.
Premier tier customers can earn 4.00% APY without minimum qualifications. This paid plan offers additional advantages, such as access to priority customer support and a 50% discount on the majority of standard payment fees.
Every user get 5 free subaccounts with their own unique account numbers. They can be used like savings accounts for upcoming expenses, emergencies, taxes, etc. All 6 accounts earn interest (on up to $250k combined for Standard tier, up to $250k for Plus tier, and up to $3M for Premier tier).
It's kind of the best of both worlds - a checking account with high interest, plus sub-accounts for your savings goals. Plus, you can order multiple debit cards for your team, adding flexibility when making business purchases.
Bluevine accepts cash deposits at over 90,000 Green Dot locations and over 1,500 Allpoint+ ATMs (though there's a fee).[1] That also makes it ideal for businesses that receive cash.
Free Business Checking - Up to 1.5% APY
- Minimum Deposit to Open: $0
- Balance Requirement: $0
- Monthly Fee: $0
- APY: 1.5% APY on balances up to $250,000 with monthly eligibility requirements; 0% APY on balances over $250,000
- ATMs: Approximately 40,000 MoneyPass ATMs
- Perks: 2 free checkbooks per year; No non-sufficient funds fee
Free Business Checking - Earn $300 Bonus
To earn the $300 bonus, customers must apply for a Bluevine Business Checking account anytime between now and 12/31/2024 using the referral code CD300.
After opening the account, customers must add funds within 30 days, then meet at least one of the following eligibility requirements every 30 days for the next 90 days from account funding:
- Deposit at least $5,000 from eligible merchant services to your Bluevine account OR
- Make at least $5,000 of outbound payroll payments from your Bluevine account using eligible payroll providers OR
- Spend at least $2,000 with your Bluevine Business Debit Mastercard® and/or Bluevine Business Cashback Mastercard®
Banking services provided by Coastal Community Bank, Member FDIC
Premier Business Checking - Up to 4.0% APY
- 4.0% APY on balances up to $3,000,000
- $0 minimum opening deposit
- 50% off most Standard payment fees
- Priority customer support
- Waive the $95 monthly service fee with $100k average daily balance and $5k debit card spend
Plus Business Checking - Up to 3.0% APY
- 3.0% APY on balances up to $250,000
- $0 minimum opening deposit
- 20% off most Standard payment fees
- Waive the $30 monthly service fee with $20k average daily balance and $2k debit card spend
Prime Alliance Bank - Best for higher balances
Prime Alliance Bank offers a basic business savings account with tiered rates. You'll get more competitive rates once you have at least $100k saved.
There is no monthly maintenance fee or minimum balance requirements.
The only downside is that you have to email them to open a business banking account. You can't do it yourself online.
Business Savings
- Minimum Deposit to Open: $0
- Monthly Fee: $0
- APY:
- 3.85% APY for $1 - $99,999.99
- 4.05% APY for $100,000 - $199,999.99
- 4.25% APY for $200k+
First Internet Bank - Best for business CDs
First Internet Bank offers a business savings account and business money market account with a decent APY.
You get an ATM card for easy withdrawals. But the ATM card is only available for sole proprietors. There is no fee for ATM withdrawals.
But where First Interest Bank really shines is their business CD rates. They're some of the highest APYs for business CDs that we've found. It's a good option if you don't mind tying up your funds for longer.
Business Savings
- Minimum Deposit to Open: $100
- Monthly Fee: $2 (waived with $1,000 average daily balance)
- APY: 0.91% with a daily balance of $250,000 or less; 0.25% with a daily balance above $250,000
Financial Resources Federal Credit Union - Best credit union
Financial Resources Federal Credit Union has an over 100-year history and is insured by the NCUA. You may consider a credit union if you like a more community-focused institution.
It offers tiered interest rates on their Purple Business Savings account. The more you deposit, the higher interest rate you earn.
Anyone can become a member by joining the American Consumer Council (ACC). There is no membership fee. You can join right from the Financial Resources Federal Credit Union website.
Business Purple Savings
- Minimum Deposit to Open: $25
- Monthly Fee: $10 (waived with $250 average balance)
- APY:
- 1.00% APY for balances under $9,999.99
- 1.51% APY for balances $10,000 - $99,999.99
- 2.27% APY for balances $100k and over
Capital One - Best customer service
Capital One doesn't offer the highest APY for their business savings. And the promotional rate is only for the first 12 months.
But it made our list because it's consistently top-ranked for customer satisfaction. It may appeal to you especially if you live near one of its 300+ physical branches and prefer in-person banking.
In addition to savings, it also has an attractive business checking account and business credit cards. Overall, Capital One is a well-rounded bank with excellent products.
Business Savings
Business Savings Accounts 101
- What is the Benefit of a Business Savings Account?
- Business Savings Account vs. Business Checking Account
- Business Savings Account vs. Money Market Account
- Business Savings Accounts Alternatives
- What to Look for in a Business Savings Accounts
- How We Came up with the Best Business Savings Accounts
- How to Open a Business Savings Account
There's a lot to consider when choosing a savings account for your business. Below, review the must-know tips and savings account alternatives to find the best option for you.
What is the Benefit of a Business Savings Account?
A business savings account is a place to keep money for future business use. Ideally, the business savings account should pay interest so your money can grow instead of just idly sitting there.
The money in your business savings account is to prepare you for things like:
- Upcoming large expenses
- Taxes
- Emergencies
- Safety net for slow times
- Future business goals
Extra funds in your business savings can help out when cash flow is tight or when something unexpected comes up. Or you can just keep a healthy reserve for when you're ready to grow.
Business Savings Account vs. Business Checking Account
So, what's the difference between a business checking and savings account? Do you need both?
- A business checking account is for your everyday business activities and transactions. You should have enough cashflow in your checking for business operating costs.
You can freely access your money anytime you want. It'll come with a debit card and check writing.
- A business savings account is for extra capital you don't immediately need. They'll usually pay more interest to help your money grow.
The trade-off is that you don't get unlimited access. Most savings accounts allow 6 free transactions per month.
It's a good idea to keep a separate business savings account if you can earn a higher APY and you don't want to accidentally spend the money. But there are some other options you may consider (more on this below).
Business Savings Account vs Money Market Account
Business money market accounts are another type of savings account.
Both business savings and business money market accounts limit you to 6 monthly withdrawals / transfers. But a money market account may offer more access via a business debit card, online bill pay, and/or check writing.
In the past, money market accounts usually offered higher interest rates in exchange for a larger minimum opening deposit and balance. But nowadays, rates are similar.
Business Savings Accounts Alternatives
Unfortunately, business savings accounts don't pay very high interest rates. Some alternatives to consider include:
- High-yield business checking account:
You can just keep your savings in a checking account if you know that you won't accidentally spend it. Bluevine and Kabbage are actually checking accounts, but they offer a higher APY than most business savings accounts on the market. - Business CD:
If you're saving for something specific and know you won't need the money anytime soon, you can consider putting the funds in a CD.Your money will be locked-in during the term. But in exchange, you can get a higher guaranteed interest rate for the entire term.
- Business brokerage account:
These are business accounts with brokerage firms (such as Schwab or Fidelity). Your money is invested in money funds, where you get a return on your cash. But it may not be as high as a high-yield business savings account.
For LLCs, check out the best business bank account for LLC for your options. While most are checking accounts, they offer different benefits and interest rates compared to savings accounts.
What to Look for in a Business Savings Accounts
Annual percentage yield (APY)
This may be the most important factor to you. After all, that'll earn you more money. Note that some accounts only offer a higher APY up to a certain balance. See how much you can save and decide which account makes most sense for you.
Monthly service fee
Some savings accounts have a monthly maintenance fee unless you keep a minimum balance. This doesn't have to be a deal breaker. Just make sure the requirement is something you can meet.
Access to funds
Some accounts may give you an ATM card so you can withdraw money easily. If you solely need a place to park extra business cash, you'll probably be okay with bank transfer only. Decide what level of access you need.
If you may want more flexibility, consider bank accounts like Bluevine and Kabbage. You get unlimited transactions with the higher interest rates.
Other fees
Make sure you understand other fees associated with the account, such as excess withdrawal fees and ATM fees.
How We Chose the Best Business Savings Accounts
To come up with our list of the best business savings accounts, we researched dozens of savings accounts from both national banks, online banks, and credit unions.
We looked for:
- Higher than average interest rates
- Monthly maintenance fees (if any)
- Low minimum opening deposit
- Available for everyone to open
- Easy access to your funds
- FDIC or NCUA insurance
You shouldn't have to pay to save your own money. So we primarily picked accounts with no monthly fees. And if there is one, then we made sure it has reasonable minimum balance requirements to waive.
We made sure that the banks on our list were not limited to a certain geographical area or have restrictive membership requirements. After that, we looked for banks offering the best balance of APYs, low fees, and fair requirements.
What You Need to Open a Business Account
The requirements needed to open a business account depend on your business structure. Here are the common documents banks ask for:
- Employer Identification Number or Social Security Number (for sole proprietors)
- Partnership Agreement (for partnerships)
- Articles of Organization (for LLCs)
- Articles of Incorporation (for corporations)
- Business license
- Business address
- Name(s) of business owners
Your bank may also ask for additional documents such as the DBA, LLC Operating Agreement, Annual Report, and others.
How to Open a Business Savings Account
Opening a business savings account might seem challenging, but with enough research, it can be easy. Here's how the process usually goes:
- Choose a bank and review their account opening process:
Some institutions let you open an account both online and in person, while others offer only one of these options. - Gather the necessary documents:
You'll need to provide personal identification, such as your SSN and a government-issued ID. For business identification, requirements vary by bank and depend on your business structure, so check what specific documents you'll need. - Fill out and submit the application form:
Again, you can do this either online or in person depending on your chosen bank. After it's approved, just fund your account and you're all set.
There is no restriction on the number of business bank accounts you can have, so it's entirely up to you how many you choose to open. But, it's a good idea to have at least one business checking account for daily operations and another for savings. This way, you can manage unexpected costs and plan for future growth.
FAQ
Can you open a business savings account online?
Most banks let you open a business savings account online. You'll need to provide your SSN or EIN, basic business info, and articles of incorporation (if required).
How much should I have in a business savings account?
It's smart to keep 3-6 months of operating expenses in savings. This should include overhead, inventory costs, marketing, and employee wages. If you're just starting out, try to save 10% of profits until you get to 6 month's worth of expenses.
Is a business savings account taxed?
Yes, business savings accounts are subject to tax. The IRS sees it as taxable income, whether you leave it in your account or take it out. If you earn more than $10 in interest, you'll need to fill out a tax form and report it.[2]
How much of my business savings is protected?
Deposit accounts are FDIC insured up to $250,000 per depositor, per financial institution. This includes your deposits in both checking and savings accounts. If you have more to save, you can split them between different banks.
Is it worth it to have a business savings account?
Yes, having a business savings account is worth it. It helps you prepare for emergencies and unexpected changes. Additionally, it gives you the financial flexibility to explore new opportunities and drive business growth.
What the Experts Say
CreditDonkey asked a panel of industry experts to answer readers' most pressing questions. Here's what they said:
Bottom Line
There are some good options for business savings accounts to grow your money. If you're open-minded, you don't need to stick to a traditional savings account. Look to online banks for better rates.
Business Premium Savings - Up to 4.01% APY
- Unlock a bonus up to $375 with Business Premium Savings. Save more, pay lower fees, and get a limited-time bonus up to $375 with a 4.01% APY* Business Premium Savings account. Use promo code BPS375.†
- Earn 4.01% APY* With Business Premium Savings
- Free domestic and international incoming wires
- No monthly maintenance fee
- No minimum opening deposit
- No average daily balance requirement
- Business deposit accounts FDIC insured up to $250k
Premier Business Checking - Up to 4.0% APY
- 4.0% APY on balances up to $3,000,000
- $0 minimum opening deposit
- 50% off most Standard payment fees
- Priority customer support
- Waive the $95 monthly service fee with $100k average daily balance and $5k debit card spend
Business Savings - 3.70% APY
- Earn 3.70% APY
- No minimum balance requirement
- No monthly service fee
Platinum Business Money Market Account - Up to 3.50%
Receive a bonus interest rate up to 3.50% from the account opening date when you open a new Platinum Business Money Market Account and complete qualifying activities, subject to certain terms and limitations. Member FDIC.
Offer is limited to Business Platinum Money Market account only. Standard variable interest rates are determined at the bank's discretion and are subject to change at any time without notice. Speak to a banker for current deposit rates, disclosures on rates, compounding and crediting and other balance information. The minimum deposit required to open a Platinum Business Money Market account is $100.
Interest and Fee Information: You must maintain the minimum balance needed for each tier to earn the interest rate. Interest will be compounded daily and credited to your account monthly at the end of the statement cycle. Fees could reduce earnings on the account. Other restrictions may apply.
Offer details: Starting September 23, 2024, open a new U.S. Bank Platinum Business Money Market account and receive a bonus interest rate from the account opening date. All Bonus interest rates may change at any time without notices. The following bonus interest rates are accurate as of today:
- The bonus interest rate will be 3.50% when your account balance tier is $25,000 to $2,999,999.99.
For Platinum Business Money Market accounts with $3 million or greater in balances, the bonus interest rate does not apply, and the full account balance will earn the standard variable interest rate in effect at that time until the account balance is $2,999,999.99 or below.
Lili Pro Business Checking
- $15.00 monthly service fee (30 day free trial)
- Track write-offs with a swipe
- Auto-save for taxes
- Savings with 3.65% APY
- Cashback with selected merchants
- Fee-free Overdraft up to $200
No-Fee Business Checking
- $0 monthly service fee
- $0 minimum opening deposit
- Open up to 20 individual business checking accounts
- Earn up to 3% APY with automated savings
- Issue up to 50 Visa® debit cards to your team
Don't just purely look at the APY. It's important to weigh the interest rate against the features and requirements to see what works best for your business.
References
- ^ Bluevine. Easy cash deposits and withdrawals., Retrieved 02/25/2024
- ^ IRS. Topic no. 403, Interest received, Retrieved 06/28/2024
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