Best Business Savings Accounts of February 2021

The best business savings accounts are high-yield accounts that allow you to earn more money over time.

Randa KrissJanuary 27, 2021
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A business savings account is a type of business bank account that allows you to earn interest on your funds. Compared with business checking accounts, savings accounts typically limit your monthly withdrawals, making them best for long-term savings — like emergency funds — as opposed to everyday use.

The best business savings accounts are high-yield accounts — those with above-average interest rates — that allow you to earn more money over time. According to the Federal Deposit Insurance Corp., the national average annual percentage yield, or APY, on a savings account is currently 0.05%.

Although interest rates are subject to change, you’ll find that online business savings accounts can generally offer higher rates compared with accounts from brick-and-mortar banks.

Here are some of the top business savings accounts for high-yield savings:

Summary of the best business savings accounts

Account

APY

Minimum opening deposit

Monthly fee

Live Oak Business Savings

0.60%

$0

$0

TAB Bank Business Money Market

0.50%

$25

$0

Axos Business Savings

0.50%

$1,000

$5, waived with average daily balance of $2,500

First Internet Bank Business Money Market Savings

0.40%

$100

$5, waived with average daily balance of $4,000

NBKC Business Money Market

0.10%

$0

$0

Live Oak Business Savings

The Live Oak Business Savings account is an online-based account with no monthly maintenance fees and no minimum balance requirements. This account starts earning interest — 0.60% APY — with a balance of 1 cent.

This business savings account also includes free online banking, access to the Live Oak Bank mobile app and six fee-free withdrawals per month ($10 for each after that). You can transfer funds to your Live Oak Business Savings account by ACH payment, mobile check deposit, mailed check or wire deposit. Live Oak does not accept cash deposits or offer ATM access with this account.

TAB Bank Business Money Market

Although TAB Bank is well-known in the trucking industry, its business money market account — offering a 0.50% APY — is available to all small-business owners. This online business savings account has a minimum opening deposit requirement of $25 and starts earning interest with a balance of $1.

The account has no monthly fees and includes online, mobile and text banking; online bill pay; account alerts; and automated telephone banking. In addition, you’ll receive six fee-free withdrawals every month; after that, however, you’ll incur a $20 fee for each withdrawal.

The TAB Bank Business Money Market account also includes checks and an ATM card. Without any in-network ATMs, though, you will have to pay associated fees for withdrawing cash at a third-party ATM.

Axos Business Savings

The Axos Business Savings account earns 0.50% APY, requiring a $1,000 minimum opening deposit. This account has a $5 monthly maintenance fee, which can be waived with an average daily balance of $2,500.

You receive 20 fee-free items per month with the Axos Business Savings account, including debits, credits and deposited items; after that, each item will cost 30 cents. In addition, this account limits you to six fee-free withdrawals/transfers per month; each excess withdrawal/transfer will cost $10.

The Axos Business Savings account does not include a business debit card. To withdraw money, you can either use a wire transfer or an ACH transfer to an eligible business checking account with bill pay.

Like all Axos bank accounts, this business savings account can be opened and managed completely online. The account also includes free online and mobile banking with remote deposit anywhere, free image statement and free bill pay.

Plus, for small businesses incorporated after June 1, 2020, Axos offers a $100 welcome bonus for opening a new account. To earn this bonus, you must maintain an average daily balance of $2,500 for the first two months after opening your account. Applications must be submitted before March 31, 2021, to qualify.

First Internet Bank Business Money Market Savings

The Business Money Market Savings account from First Internet Bank can be opened with as little as $100 and earns an APY of 0.40%. This online business savings account has a $5 monthly maintenance fee, which can be waived with an average daily balance of $4,000 or more.

You can make up to six monthly transactions with this account; any additional transactions incur a $5 fee. This business savings account also includes free online and mobile banking with remote and scanned deposit options, as well as electronic statements.

ATM cards, however, are available only to sole proprietorships and not other entity types.

NBKC Business Money Market

NBKC’s Business Money Market account is a free business savings account with no monthly fees and no minimum opening deposit. This account earns 0.10% APY and requires a minimum balance of 1 cent to earn interest.

Like the NBKC business checking account, this business savings account includes no transaction fees, no overdraft or nonsufficient funds fees, no stop payment or returned item fees and no fees for incoming domestic wires.

The only fees you’ll face with this online business savings account are for sending domestic wires ($5 each) and sending or receiving international wires ($45 each).

In addition, the NBKC Business Money Market account offers free online and mobile banking, which includes bill pay and mobile check deposit. You also have the option to request a business debit card, which can be used fee-free at over 34,000 MoneyPass ATMs across the U.S.

You are, however, limited to six account withdrawals per month. There are no fees for excessive withdrawals, but after the first time, you’ll receive a warning from NBKC. And after the second, your savings account will be turned into a checking account.

Business savings accounts vs. business money market accounts

Business savings accounts and business money market accounts are both FDIC-insured business bank accounts that allow you to earn interest on your funds. Like savings accounts, money market accounts are usually held to the six-per-month withdrawal limit.

Traditionally, money market accounts have offered higher interest rates compared with savings accounts, but that’s not always the case anymore. However, business money market accounts may be more likely to include a debit or ATM card, as well as checks.

What to look for when comparing business savings accounts

Depending on your business’s financial needs, here are some factors that you may want to consider — on top of the interest rate — to help you choose a business savings account:

  • Minimum opening deposit: How much does it cost to open the account? These requirements can range, but you’ll want to make sure that you have enough money set aside to open the account.

  • Monthly fees: Is there a monthly fee associated with maintaining the account? Ideally, your business savings account will have low or no fees.

  • Minimum balance requirement: Is there a minimum account balance required to earn the APY? This term might also be used in reference to monthly fees: Is there a minimum account balance required to waive any monthly maintenance fees associated with the account? Make sure that you can sustain minimum balance requirements on an ongoing basis to avoid losing out on interest or, conversely, incurring monthly fees.

  • Monthly withdrawals or transfers: Although the Federal Reserve has removed the requirement that imposes a six-per-month maximum on withdrawals from savings accounts as of April 2020, many banks and credit unions continue to enforce these limits. In some cases, excessive withdrawals may result in your business savings account being transferred to a business checking account.

  • ATM access: Is a business debit card or ATM card included with your savings account, and if so, where can you use it? If you’re looking for these features in particular, brick-and-mortar banks may be more likely to offer them compared with online competitors.

  • How to open: Can you open the account online or do you have to visit a branch? Does the bank allow you to choose between the two options in order to open your account?

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