May 23, 2024

Business Money Market Account

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Boost your business savings with a money market account. Explore the highest business money market account rates today.

Top Business Money Market Account Rates:

Looking to do more with your business's extra cash? A money market account might be a good option to earn some interest on any excess funds you have.

Money market accounts are low risk, flexible, and can offer a high APY. Your money grows on its own, but you can still access it whenever you need.

Does this sound like a good investment for your business? Check out the best business money market account offers to get started.

How do you currently manage your business savings?

What is a Business Money Market Account?

A business money market account (MMA) is a type of business savings account. Compared to regular business savings accounts, it may offer a higher APY in exchange for a higher balance.

Some may come with a debit card and check-writing abilities, so you get more ways to access your money.

Typically, money market accounts have withdrawal limits of up to six per month by federal law.[1]

Effective April 24, 2020, the Federal Reserve Board removed the six-per-month limit on transfers or withdrawals on savings deposits, including money market accounts. However, banks and credit unions are still allowed to impose withdrawal limits.[2]

How Much Can a Business Money Market Account Earn?

How much can a business money market account earn?

How much you earn with a business money market account depends on three things: the APY, the deposit balance, and how long you keep the money in the account.

Basically, the higher the APY, the bigger the balance, and the longer you keep the money in the account, the greater your interest earnings will be. Time is also a big factor when you consider the effect of compound interest.

As the interest you earn gets added to your balance, with time, your earnings will grow larger and larger. The longer the time horizon, the more interest gets compounded.

Is a business money market account safe?
Yes, your funds in a business money market account is safe as long as the bank or credit union is FDIC- or NCUA-insured. Your account is federally insured for up to $250,000 in case the institution closes down.

Should a Business Have a Money Market Account?

Generally, businesses with extra cash lying around can make the most out of money market accounts. The reason: they are more likely to maintain their deposit for a long time, enjoy the high APY, and the effects of compound interest.

Plus, your funds are within reach in case it's needed. You maintain flexible access to your funds, even with possible withdrawal limits.

Ultimately, opening a business money market account depends on your financial circumstances and business goals.

Also check out these other business account options:

Money Market Account vs. Savings Account

Money market accounts and savings accounts are very similar. However, some business money market accounts may pay a higher APY and/or offer slightly more features.

Choose a business money market account if…

  • You want higher interest rates
  • You can put in larger deposits
  • You want more options to access your funds

Choose a savings account if…

  • You don't mind some limited access
  • You don't want to maintain a high balance
  • You want to save for a rainy day or specific goals

Compare Business Savings Account Offers

Money Market Account vs. Certificate of Deposit (CD)

If committing to keeping your money parked long-term is not a problem, both money market accounts and CDs are good choices.

Choose a business money market account if…

  • You don't mind a variable APY
  • You want to keep the funds easily accessible

Choose a CD if…

Money Market Account vs. Checking Account

Business checking accounts are used for everyday business transactions. You should have enough in it to cover daily business operations, plus some cushion. Anything extra can go into reserves, like a money market account.

Use a business money market account for…

  • Excess funds you don't need for day-to-day
  • Growing your savings with higher interest rates

Use a business checking account for…

  • Day-to-day business transactions
  • Paying bills, employees, vendors
  • Tracking your income and expenses

Compare Business Checking Account Offers

Pros and Cons of a Business MMA


Potentially higher interest rates
The APY offered on money market accounts might be better than a regular business savings account. But do note that high-yield business savings accounts and checking accounts do exist.

Low risk way to grow capital
Because money market accounts are low risk, you can rest easy that your money is secure while earning some interest. Plus, it's federally insured, so any potential losses can be covered.

Accessibility and convenience
Some business money market accounts may include an ATM card, check writing, and/or online bill pay. So your business funds are not tied up.


Withdrawal and transfer limits
Many banks and credit unions impose a monthly withdrawal limit on savings accounts and money market accounts. So it's best if you don't need the funds regularly.

High opening deposits and minimum balances
Some money market accounts might ask for hefty deposits to open. And some might require you to maintain a large balance to continue earning a high APY or to avoid monthly fees.

APY is variable
Unfortunately, rates on money market accounts are not fixed. So if market conditions are unfavorable, its APY can plummet.

How to Choose the Best Business Money Market Account

Here are some things to consider when choosing the best business MMA for your business.

Minimum balance requirements
Each bank and credit union has its initial deposit requirement. And they may impose minimum balance criteria for you to qualify for higher rates and avoid monthly fees. Make sure you can maintain the necessary balance.

Some banks and credit unions can offer ATM access, checks, or free online transfers with a money market account. But again, that money market account may have a federal limit of 6 withdrawals per month.

Interest rates
Look for the best APY available to make the most of your money. Keep in mind you might need to reach certain balance tiers to earn higher interest.

Banks' other products and services
If you prefer to have your finances with the same bank, choose a bank that also offers other business accounts and services that you might need.

How to open a business money market account?
To open a business money market account, you usually need to provide: information about the owners, information about your business, and business documentation to show that it's legally registered.

What's most important to you when choosing a business money market account?

Bottom Line

For higher interest rates and more flexible access to your business funds, a money market account may be a good option.

But remember that minimum balances might be high, the rate can change anytime, and there may be withdrawal limits.

If these downsides are not an issue for your business, do consider money market accounts. Otherwise, take time to review other banking products that might suit your needs better.


  1. ^ Office of the Federal Register. Regulation D: Reserve Requirements of Depository Institutions, Retrieved 02/17/2024
  2. ^ Federal Reserve Board. Announces interim final rule to delete the six-per-month limit, Retrieved 02/17/2024

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