Best High-Yield Business Savings Account for December 2024

By Anna G
Read more about Small Business Banks
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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.

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.

CreditDonkey SAVER Rule: Security, Accessibility, Value, Earnings, Requirements

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.

Which savings account is best for business?
  1. Live Oak Bank - Highest business savings APY with no minimum balance
  2. Bluevine - Highest APY checking
  3. Prime Alliance Bank - Best for higher balances
  4. First Internet Bank - Best for business CDs
  5. Financial Resources Federal Credit Union - Best credit union
  6. Capital One - Best customer support

What matters most to you in a high-yield savings account?

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.

How do cash deposits work for online banks? Discover multiple ways to deposit cash into an online bank account in our guide.

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.

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.

What portion of your earnings usually goes into your business savings account?

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.

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.

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 Accounts 101

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.

What's your main goal for considering a high-yield business savings account?

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.

Wondering how long your business's cashflow will last? Use our burn rate calculator to see your business burn rate, plus tips for turning it around.

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:

  1. 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.

  2. 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.

  3. 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.

How many business bank accounts should I have?
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.

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

  1. ^ Bluevine. Easy cash deposits and withdrawals., Retrieved 02/25/2024
  2. ^ IRS. Topic no. 403, Interest received, Retrieved 06/28/2024

Write to Anna G at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

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