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Axos Bank Business CDs review
Withdraw interest before maturity with no penalty, but APYs top out at 1.35%.
Axos Bank’s Business CDs offer the flexibility of multiple term lengths without maintenance fees, but the APYs aren’t competitive compared to those of some other savings products.
0.55%
1-year APY
0.9%
3-year APY
1.35%
5-year APY
Details
| Minimum deposit to open | $1,000 |
|---|---|
| Interest compounding | Daily |
| 3-month APY | 0.15% |
| 6-month APY | 0.25% |
| 1-year APY | 0.55% |
| 2-year APY | 0.7% |
| 3-year APY | 0.9% |
| 4-year APY | 1.05% |
| 5-year APY | 1.35% |
What are the benefits of a business CD with Axos Bank?
At its core, Axos is designed to provide a hassle-free user experience. You can manage a business CD entirely online without stepping foot in a brick-and-mortar bank.
Axos’ Business CDs are backed by the FDIC up to $250,000. Interest accumulates Daily and is paid monthly. Term lengths vary from three months to five years, with yearly increments in between.
At term’s end, there’s a 10-day auto renewal grace period during which you can make changes, additional deposits or withdraw funds without penalty.
Other benefits include:
- Withdraw interest before maturity. You can receive interest disbursements from an Axos business CD before the term length is up, with no penalty.
- No fees. It’s free to set up and maintain a business CD with Axos.
What should I look out for?
A business CD with Axos might be a good fit if you’re looking for a temporary way to grow cash, but you won’t have access to the money until the term is up.
Also consider these other potential pitfalls:
- Low APYs. The APY on a three-month CD is 0.15%. On a 60-month CD, that number only jumps to 1.35%. You could likely beat Axos’ business CD rates with a high-APY savings account.
- Minimum deposit of $1,000. In order to open an account, you’ll have to deposit at least a grand.
Axos Bank charges additional fees if you withdraw any or all of the principal before the CD’s maturity date. Penalties that may be applied vary by term length. Axos will deduct the fee from accrued interest first, then it will take from your principal balance to cover any outstanding charges.
Here’s what to expect:
| Term length | Penalty fee |
|---|---|
| 3-5 months | 45 days loss of interest |
| 6-11 months | 90 days loss of interest |
| 12-23 months | 180 days loss of interest |
| 24-35 months | 12 months loss of interest |
| 36-47 months | 18 months loss of interest |
| 48 months or more | 24 months loss of interest |
Compare with other CD accounts
How do I open a Business CD account?
You can apply to open an Axos business CD account online:
- Click Business in the top right corner.
- Hover over “Small Business Banking” and select Business CDs.
- Choose Open an account.
- Enter personal information such as your name, email and phone number, then fill out the brief form and click Start my application.
- You’ll be taken to the official application page, where you’ll indicate what type of business you’re setting up the account for.
- After submitting an application for a Business CD account, one of Axos Bank’s business banking relationship managers will be in touch with next steps.
Eligibility
- You must be a US-based entity in order to qualify
Required information
Opening a business CD is more involved than setting up a personal account. Have the following ready:
- Copies of owner’s driving license
- Owner’s Social Security numbers
- Funding information for your new account
The other documentation you’ll need varies by business type and includes:
| Business Type | Required documents |
|---|---|
| Sole proprietor |
|
| General partnership |
|
| Limited liability corporation (LLC) |
| Limited partnership (LP)or limited liability partnership (LLC) |
|
| For-profit corporation |
|
| Nonprofit corporation |
|
How do I cash in a CD?
At the end of your term length, you’ll have 10 days to transfer funds electronically to another bank account. If you want access to the money as physical cash, you can move the funds into a checking or savings account. Then, withdraw funds by:
- Using your Axos debit card to make a withdrawal at any ATM in the US, free of charge, or…
- Sending yourself a wire transfer
What other savings products does Axos Bank offer businesses?
Other ways to stash your business’s cash with Axos include:
- Business Savings. Deposit $1,000 to open the account and earn an APY of 0.8% on all balances. Maintain at least $2,500 to waive the $5 monthly maintenance fee.
- Business Premium savings. Earns an APY of 1.06%, but requires an initial deposit of $25,000. There are no daily balance requirements and no monthly maintenance fees.
- Business money market. The APY tops out at 0.8% and you’ll have to deposit at least $1,000 to get started. There’s a $10 monthly maintenance fee unless you maintain a daily balance of $5,000.
- Nonprofit and Association Money Market. An account meant for nonprofits featuring a 0.8% APY and requiring a $1,000 initial deposit.
Bottom line
Axos Bank’s makes its business CD ideal for companies that like to manage finances digitally. But if you’re looking for a higher APY, compare CD rates from other providers.