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Use this table to compare business savings accounts by APY, fees and minimum opening deposits. Once you’ve narrowed down your list, click the “Compare” box next to your top picks to dive into even more details.
To get the most out of a business savings account, compare similar factors across each of your options, including:
No. Your bank’s system can support transfers of $2,000 to $200,000 without extra lag. Keep in mind that your bank may limit the amount you’re able to transfer in one transaction or to a specific recipient, though you can often make the case to increase your limit as your business grows.
Maddy works a full-time government job and has two children under the age of 12. As a single working mother, Maddy started an out-of-home baking business selling custom macaroons to friends and family. Now into the second year of her home business, her client base has grown and her services have expanded to include baking special occasion cakes. Maddy knows she will need to upgrade her oven to accommodate the growth of clients and order sizes. About six months into her business, she opened a Capital One Spark Business Savings account.
Because Spark Business Savings offers a competitive introductory interest rate of 1.75%, she hopes this will help her afford a bigger oven and other industrial-sized kitchen appliances she needs to accommodate her growing business. In addition, the account charges no monthly service fees and offers online and mobile banking services, which means she is able to manage her funds anytime, anywhere.
Business savings accounts and money market accounts are designed to separate your capital from everyday transactions, helping you to manage and grow your savings. Many banks offer introductory interest rates that can boost your savings for up to six months or more, and most accounts are protected by the FDIC for up to $250,000.
Unlike investment accounts, there’s no risk of losing your balance with a high-interest business savings account or money market account unless your balance exceeds $250,000. Even then, banks put in place safeguards to protect your money.
To narrow down a business account that fits your business’s needs, weigh into your decision:
The table lists a few business savings accounts with the highest APYs available today.
Product name | Maximum interest rate |
---|---|
Capital One Spark Business Savings | 1.25% |
Live Oak Bank Business Savings | 1% |
Axos Bank Business Savings | 0.8% |
Prime Alliance Business Savings | 1% – 1.71% |
First Internet Bank of Indiana | 1% – 1.26% |
The interest you earn on a business savings account is considered taxable income. If you earn more than $10 in interest on your account, you’ll receive IRS Form 1099-INT to file with your annual taxes.
A business savings account is just like a personal savings account, allowing you to store your money and earn interest over time. When you’ve saved up enough working capital that you no longer need constant access to, you can safely grow it with reliable interest until a large purchase comes up.
To entice your business, many banks offer higher interest rates on larger deposits and balances in these accounts. The bigger your business’s savings, the more you earn.
While this is technically possible, it’s not recommended. Keeping your personal and professional savings separate makes it easier to file your taxes and identify what deductions and credits you qualify for. Plus, it protects your personal assets from any potential lawsuits you may encounter as your business grows.
Your business may be ready to set aside some of its hard-earned cash into a savings account that offers high interest to keep it growing. Reliable rates mean steady passive income, and most accounts offer the protection of the FDIC for up to $250,000.
As always, compare your business banking options until you find an account that meets your company’s needs today and in the future.
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