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A business savings and checking account form the two most important pillars in any business. Opting for certain types of savings accounts can help give your business a leg up, however.
If you choose a savings account that offers a high interest rate, for example, you’ll speed your business toward your goals, such as investing in new equipment or just maximizing your business income. Here are the best high-yield business savings accounts that can help you get there, featuring the highest rates, lowest fees, and least amount of red tape.
Best High-Yield Business Savings Account of 2023
- First Internet Bank: Money Market Savings - 5.20% APY
- Live Oak Bank: Business Savings Account - 4.00% APY
- Prime Alliance Bank: Business Money Market - 4.00% APY
- Prime Alliance Bank: Business Savings - 4.00% APY
- nbkc bank: Business Money Market Account - 2.00% APY
The APYs listed below are up to date as of the date of publication on this article.
First Internet Bank : Money Market Savings - 5.20% APY
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- Minimum Opening Balance: $100
- Minimum Balance to Earn Stated APY: $5,000,000
- Monthly Maintenance Fee: $5
Low minimum opening deposit
High rates for a money market account
Extra insurance for large deposit amounts
Debit card only offered for sole proprietors
High minimum balance required to waive fee
Very high balance needed to earn highest rates
First Internet Bank has a lot to offer if you’re an established business. It only takes $100 to get started, but it’s a good idea to avoid this account until you’re able to keep at least $4,000 in it, after which point the monthly $5 fee is waived. You’ll earn a very good interest rate regardless of your balance amount, although you won’t earn the highest rates until you reach a balance of $5,000,000—a tough feat for most small businesses.
Normally, FDIC insurance only covers you up to $250,000 total per bank and it’s not wise to go above this amount, but First Internet Bank partners with other banks to offer an expanded level of coverage above that amount. This account also comes with an ATM card you can use at any Allpoint or MoneyPass machine, although it’s only available for sole proprietors.
- Monthly maintenance: $5, unless you keep at least $4,000 in your account
- Wire transfer: $15 for incoming wires, $20 to send domestic wires, and $25 to send international wires
- Dormant account: $5 per account, per month
Consider carefully whether you want a business bank account that charges monthly fees. Even if it’s possible to have them waived, it just adds yet another thing you need to keep tabs on each month.
Live Oak Bank : Business Savings Account - 4.00% APY
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Live Oak Bank
- Minimum Opening Balance: $0
- Minimum Balance to Earn Stated APY: $10,000
- Monthly Maintenance Fee: $0
Extremely competitive interest rates
Offers higher amounts of FDIC coverage
No monthly fees or minimum balance requirements
No ATM access
No in-person branches
Doesn’t accept cash deposits
Live Oak Bank offers many good small business bank accounts, and its savings account is no exception. It features exceptionally high rates and comes with very few fees or strings attached, especially if your business operates online just as Live Oak Bank itself does. You won’t be able to deposit cash, for example, which can be a big sticking point for many retailers.
While Live Oak Bank doesn’t penalize small businesses in any way by charging higher fees or offering lower rates, it does have some special advantages for large businesses. Like First Internet Bank, Live Oak Bank partners up with other financial institutions to offer expanded FDIC coverage for businesses with large bank account balances.
- Monthly maintenance: $0
- Wire transfer: $19 for outgoing wires
- Dormant account: $10 or remaining account balance, charged for accounts with no activity in 24 months and balances of $10 or less
Prime Alliance Bank : Business Money Market - 4.00% APY
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Prime Alliance Bank
- Minimum Opening Balance: $1
- Minimum Balance to Earn Stated APY: $200,000
- Monthly Maintenance Fee: $0
Very high rates
No monthly fees
No minimum balance requirements
High overdraft fee
Can’t open an account online
Offers check access, but no ATM access
Prime Alliance Bank is a Utah-based business institution that specializes in business banking. It offers many different types of business loans and bank accounts with excellent rates; however, as a smaller regional bank, it does suffer in terms of customer service. You can’t open a bank account directly through the site, for example—instead, the website directs you to “Email Us to Open Account,” which isn’t exactly convenient.
However, if you’re persistent, there’s a lot to like. There aren’t any monthly fees to worry about and the minimum balance is only $1, so you’ll earn a good rate regardless of how much you have in your business savings account. The highest rates aren’t offered until you have a balance of at least $200,000, however.
- Monthly maintenance: $0
- Overdraft: $20
- Wire transfers: $10 for incoming wires, $15 to send domestic wires, $40 to send international wires
- Excess withdrawals: $25 for each withdrawal past your sixth in one month
Prime Alliance Bank : Business Savings - 4.00% APY
Prime Alliance Bank
- Minimum Opening Balance: $1
- Minimum Balance to Earn Stated APY: $200,000
- Monthly Maintenance Fee: $0
Excellent rates
No monthly fees
No minimum deposit requirements
No ATM or check access
Can’t open an account online
Not much different from Prime Alliance’s money market account
Functionally speaking, Prime Alliance Bank’s business savings account is mostly the same as its business money market account. They both offer the same high interest rates with the same tier levels (as of publication), and are easily accessible to all with a small minimum balance requirements to open the account.
The only difference is that Prime Alliance Bank’s savings account doesn’t come with the ability to write checks. That may be a point in favor of this account if you want to restrict access for yourself and others, but it can be inconvenient if you prefer to pay for regular business expenses via check.
- Monthly maintenance: $0
- Overdraft: $20
- Wire transfers: $10 for incoming wires, $15 to send domestic wires, $40 to send international wires
- Excess withdrawals: $25 for each withdrawal past your sixth in one month
nbkc bank : Business Money Market Account - 2.00% APY
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nbkc Bank
- Minimum Opening Balance: $0
- Minimum Balance to Earn Stated APY: $0.01
- Monthly Maintenance Fee: $0
Very few fees
No limit on number of transfers
Reimburses up to $12/month in ATM charges
Doesn’t offer higher FDIC coverage
Only offers branches in Kansas City, Missouri
Matching checking account doesn’t earn interest
nbkc isn’t a good choice for very large businesses since it doesn’t offer the expanded FDIC coverage for balances over $250,000 that some other business banks offer. However, that’s not a huge concern for most small business owners, who will appreciate the high rate this money market account offers and the fact that it’s easy to use for ATM withdrawals on the go.
This account comes with a debit card and no limits on the number of deposits or withdrawals you can make, Plus, nbkc will even reimburse you up to $12 per month for ATM fees charged if you visit out-of-network ATMs. That means this account isn’t too different from a checking account, which makes it a good alternative since nbkc’s actual checking account doesn’t offer any interest.
- Monthly maintenance: $0
- ATM fees: No nbkc bank fee for using any ATMs; up to $12 in monthly reimbursements for out-of-network ATM charges
- Wire transfers: No fee for incoming domestic wires; $5 to send domestic wires; $45 to send and receive international wires
Final Verdict
If you’re not able to maintain the high savings balances needed by some business banks to earn good rates and waive any potential fees, then we recommend nbkc bank, Live Oak Bank, or Prime Alliance Bank.
Live Oak Bank also features excellent online support if you’re able to bank entirely online. First Internet Bank is the best choice if earning the maximum rate on a business bank account is important to you, as long as you have enough money in the account to waive the monthly fee and earn the maximum stated APY.
Compare High-Yield Business Savings Accounts
| Account | Maximum APY | Min. Opening Balance | Min. Balance to Earn Stated APY | Monthly Maintenance Fee |
|---|---|---|---|---|
| First Internet Bank - Money Market Savings | 5.20% | $100 | $5,000,000 | $5 |
| Live Oak Bank - Business Savings Account | 4.00% | $0 | $10,000 | $0 |
| Prime Alliance Bank - Business Money Market | 4.00% | $1 | $200,000 | $0 |
| Prime Alliance Bank - Business Savings | 4.00% | $1 | $200,000 | $0 |
| nbkc bank - Business Money Market | 2.00% | $0 | $0.01 | $0 |
Guide to Choosing Business Savings Accounts
What Is a Business Savings Account?
A business savings account, much like a personal savings account, serves as a safe place to store your money away from dangers like fires and thieves (the in-person kind, at least). If you’re running any type of business at all, a business savings account is one of the basic money-management necessities, along with a business checking account and possibly a merchant account, if your business allows customers to pay by credit card.
A business savings account can be used for many of the same things you use your personal savings account for. But when it comes to your business, these accounts have other handy advantages too:
- Safe place to store extra business funds
- Helps make your business more professional
- Keeps your business and personal finances separate
- Lets you save for emergencies, tax payments, future purchases, and business investments
- Serves as a funds source for overdraft protection on your business checking account
- Helps you access business financing products such as commercial real estate loans
Types of Business Savings Accounts
Most banks offer plain ol’ “business savings accounts,” but there are actually a few different types of business accounts that you can use to store your excess business funds. It’s good to be familiar with these different types of business savings accounts so you can make sure you’ve got the right one for your needs. These generally work the same as for your personal finances:
- Business savings accounts: A basic-level savings account allows you to make as many deposits as you want and up to six withdrawals per month. You may earn interest, but the APY offered is typically very low.
- High-yield business savings accounts: A high-yield savings account offers a much higher interest rate, but may come with additional strings attached such as a higher minimum deposit amount. See the best high-yield personal savings accounts here.
- Business money market accounts: A money market account is a savings account that may offer higher rates than a basic business savings account, and may come with its own checkbook that you can use to write checks directly as needed.
- Business certificate of deposit (CD) accounts: A CD is a “timed” savings account that requires you to deposit the full amount up front and then wait several months or years until the account matures and your money becomes available for withdrawal again. CDs usually offer the highest rates, but you may pay expensive early withdrawal penalties too.
How to Compare Business Savings Accounts
Although business savings accounts generally work the same way as personal bank accounts, there are a few key differences and things to watch out for as you shop around.
- APY: This is the interest rate offered on savings accounts. The higher the rate, the more you’ll earn for your savings. Higher rates may be reserved for businesses with larger account balances.
- Fees: Business bank accounts generally have higher fees than personal accounts. You may be charged even higher fees in certain cases, such as if you aren’t able to keep a certain balance in your account.
- Online banking: Some banks offer better online services than others. Online banks usually offer good experiences, but consider if in-person banking is important to you too, especially if you need a place to deposit cash after business hours.
- FDIC or NCUA insurance: If your bank fails but is insured by one of these two organizations, you’ll be able to get your money back for up to $250,000 worth of total deposits at any one bank. Some banks offer higher insurance coverage by partnering with other banks.
- Minimum deposit requirements: Some banks require that you open an account with a certain amount of money or face high fees. The rate you earn on your business savings account may also depend on how much you have in your account.
- Customer service and support: Some banks are more known for their good customer service than others. Research each bank fully so you know what you’re getting into, and consult resources such as J.D. Power’s Small Business Banking survey rankings.
Make sure to check whether the bank’s other business accounts will work for you too, since it’s easiest to keep all your accounts with the same institution. See our list of the best business bank accounts to narrow down your options.
Frequently Asked Questions
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What Are Business Savings Accounts For?
Business savings accounts serve as a safe place to store liquid capital. You can save up to invest in your business or to pay taxes, as well as keep extra money on hand for emergencies just like you do with your personal savings account.
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How Do You Open a Business Savings Account?
Opening a business savings account isn’t hard. Shop around for banks offering the features you’re looking for with the highest rates and lowest fees. Make sure you can meet the qualifications to open the account, and then complete an application online or in person. If approved, you can transfer over funds from your existing business bank accounts.
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How Do You Qualify for a Business Savings Account?
Requirements vary by bank, but you’ll generally need to provide your business license and your Employer Identification Number (EIN), or your Social Security number if you don’t have an EIN. If your business has a formal organization such as an LLC, you’ll also need to provide your business formation documents and any ownership agreements, if applicable.
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What’s the Difference Between Business Checking and Business Savings Accounts?
Your business checking account serves as your home base for daily money management, such as accepting customer payments and making business purchases of your own. A business savings account, on the other hand, serves as a handy place to store liquid capital until you need it, such as to pay quarterly taxes or for emergencies.
Methodology
Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews. To rate business savings accounts we collected over 200 data points for over a dozen accounts, including APYs, minimum balance requirements, account features, and fees, to ensure that our reviews help users make informed decisions about their banking needs.
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