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Business savings accounts allow entrepreneurs to earn interest on their money as they build a rainy-day fund, store funds for a major purchase or prepare for eventual expansion.
High-yield business savings accounts offer the best return for small-business owners. These accounts offer an annual percentage yield above the national average, which is currently 0.06%, according to the Federal Deposit Insurance Corp.
Brick-and-mortar banks typically offer below-average interest rates. As of this writing, Chase, Bank of America and Wells Fargo offer an APY of just 0.01% on their respective business savings accounts. Online banks, on the other hand, tend to offer higher interest and lower fees.
NerdWallet’s picks for best business savings accounts offer an APY of 0.20% or higher.
Summary of the best business savings accounts
Minimum opening deposit
$5, waived with average daily balance of $4,000.
$5, waived with average daily balance of $2,500.
$3, waived with minimum balance of $300.
Best business savings accounts
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 — 0.80% 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.
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 are available only to sole proprietors.
TAB Bank Business Money Market
Although TAB Bank is well-known in the trucking industry, its business money market account — offering a 0.25% 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, you’ll incur a $20 fee for each withdrawal.
Axos Business Savings
The Axos Business Savings account earns 0.20% 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.
This account allows six fee-free withdrawals/transfers per month; each excess withdrawal/transfer is $10. Axos also caps debits, credits and deposited items at 20 per month; each additional item is 30 cents.
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 $200 welcome bonus for opening a new account. Other businesses are eligible for a $100 welcome bonus. To earn either bonus, you must maintain an average daily balance of $2,500 for the first two months after opening your account.
Capital One Business Advantage Savings
Capital One’s business savings account earns a guaranteed 0.20% for balances up to $5 million for the first 12 months. Balances beyond that threshold earn between 0.10% and 0.20% during that time. When the promotional period expires, you’ll earn a standard variable annual percentage rate.
The Business Advantage Savings account carries a $3 monthly fee, which is waived with a minimum balance of $300, and requires a $250 opening deposit. You can withdraw funds from your savings account at a branch, from an ATM (no fee at Capital One ATMs), online or via ACH transfer. Withdrawals and transfers are limited to six per billing cycle, but the bank does not publish its excessive transaction fee.
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?