Compare business savings accounts

The 6 best business savings accounts

The best business savings account offers high interest rates without making you jump through hoops and no monthly fees. We researched and scrutinized multiple savings accounts to select the six best based on monthly fees, opening deposit requirements and unique features.

Best for low fees

Axos Bank Business Savings

Finder Rating: 3.7 / 5

★★★★★

Apply nowat Axos Bank's secure site

0.2%
APY

$5
Fees

$1,000
Min. opening deposit

• Info
• Pros & cons
• Details

This account is designed for businesses that don't make a lot of cash deposits. It comes with low fees and an APY that's respectable but not great.

• Solid APY. While 0.2% APY isn't the highest we've seen, it's well above the current national average.
• Avoidable fees. The $5 monthly fee is waived with a $2,500 minimum daily balance.
• 60 remote deposits a month. Use the Axos mobile app to electronically deposit up to 60 checks for free each month.

• High opening deposit. You need at least $1,000 to open this account.
• Inconvenient cash deposits. The only way to deposit cash is to send a wire transfer to your account.

Interest compounding	Daily

Best for online businesses

Live Oak Bank Business Savings account

Finder Rating: 4.4 / 5

★★★★★

Read review

0.5%
APY

None
Fees

None
Min. opening deposit

• Info
• Pros & cons
• Details

This account is best suited for businesses that don't need to make cash deposits or visit branches for their banking needs. Sign up online and start saving within minutes or explore Live Oak's other products like competitive-rate CDs.

• No monthly fees. With this account, you don't have to worry about maintenance fees eating into your savings.
• No minimum deposit. Open this account with as little as $0.
• 0.5% APY. Earn interest on your savings at a rate higher than the current national average.

• No cash deposits. Although this bank has one location in Wilmington, North Carolina, it doesn't accept cash deposits of any kind.
• $10 excessive transaction fee. Live Oak charges a $10 fee each time you make more than six outgoing transactions a month.

Interest compounding	Daily
Minimum to earn interest	$0.01
Monthly transaction limit	6
Fee per transaction over limit	$10

Best for high interest rate.

First Internet Bank Money Market Savings

0.5%
APY

$5
Fees

$100
Min. opening deposit

• Info
• Pros & cons
• Details

While this is technically a money market account, this option pays one of the best interest rates available for business savings accounts. It can easily be opened online and there's an optional ATM card if you're a sole proprietor.

• Avoidable fees. Avoid the $5 monthly maintenance fee by maintaining a daily balance of at least $4,000.
• Low opening deposit. Start saving with as little as $100.

• ATM card restrictions. Your account only comes with an ATM card if you're a sole proprietor.
• Excessive transaction fee. If you make more than six outgoing transactions a month, you'll pay a $5 fee for each one.

Interest compounding	Daily
Minimum to earn interest	$0
Monthly transaction limit	6
Fee per transaction over limit	$5

Best for small businesses

First Internet Bank Regular Savings

Up to 0.7%
APY

$2 monthly
Fees

$100
Min. opening deposit

• Info
• Pros & cons
• Details

First Internet Bank's Regular Savings account for businesses is online-only and available nationwide. You'll only need $100 to get started and you'll earn 0.7% APY as long as you keep less than $10 million in the account.

• Competitive rate. You'll earn 0.7% APY as long as your daily balance is $10 million or less. You'll earn 0.4% APY if your balance is above this.
• Low monthly fee. You'll pay $2 a month, but you can easily avoid it if you keep an average daily balance of $1,000.
• ATM card. Most savings accounts don't come with an ATM card, but this one does. Plus, First Internet Bank refunds you $10 a month on ATM fees.

• Online-only. First Internet Bank has no branches, so you'll have to do all your banking online.
• Excessive withdrawal fee. Like all savings accounts, you're limited to six monthly transactions. With First Internet Bank, you'll pay $5 for every transaction that you go over that limit.

Interest compounding	Daily
Minimum to earn interest	$0
Monthly transaction limit	6
Fee per transaction over limit	$5

Best for no minimum deposit

NBKC Bank Business Money Market

0.8%
APY

None
Fees

None
Min. opening deposit

• Info
• Pros & cons
• Details

The NBKC Bank Business Money Market Account is a breath of fresh air with its simple fee structure and low opening deposit. You won't pay any fees for monthly maintenance, and NBKC reimburses up to $12 for third-party ATM fees.

• No minimum deposit. Open this account with as little as $0, unlike other money market accounts that require you to have $1,000 or more.
• Minimal fees. NBKC prides itself on low fees. It doesn't charge for overdrafts, transactions, ATM usage mobile deposits, bill pay or monthly maintenance.
• Competitive interest rates. Stash away your company's excess cash and watch it grow with a competitive 0.8% APY.

• Limited support hours. NBKC customer service is only available during business hours from 8 a.m. to 5 p.m. CT.
• Not 100% fee-free. Expect to pay $10 for excessive withdrawals, paper statements and non-sufficient funds, as well as $25 for overnight delivery.

Interest compounding	Daily
Minimum to earn interest	$0.01
Monthly transaction limit	6
Fee per transaction over limit	$10

Best for low opening deposit

TAB Bank Money Market

0.5%
APY

None
Fees

$25
Min. opening deposit

• Info
• Pros & cons
• Details

While most money market accounts have monthly fees and minimum deposits of $1,000 or more, TAB Bank Money Market ditches all of these requirements. Plus, you'll get an ATM card and checks for easier access to your money.

• No monthly fees. You won't have to worry about meeting certain deposit or balance requirements to waive the monthly fee because there isn't one.
• Low opening deposit. All you need is $25 to open a TAB Bank Money Market account — a stark contrast from competitors that require initial deposits of $1,000 or more.
• Competitive interest rate. You'll earn a competitive 0.5% APY on your total account balance.

• Expensive excessive withdrawals. Almost all savings accounts restrict you from making more than six outgoing withdrawals a month. With TAB Bank, you'll pay a $20 fee each time you go over this limit, which is more expensive than competing banks.
• Potential fee for customer service. You get three free calls with customer service each month. After that, you may pay $5 for each additional call. We don't know of any other banks that charge this fee.

Interest compounding	Daily
Minimum to earn interest	$1
Monthly transaction limit	6
Fee per transaction over limit	$20

How do I compare the best business savings accounts?

To get the most out of a business savings account, compare similar factors across each of your options, including:

• Fees. If you’re a smaller business, you may be on the hook for monthly maintenance fees, though many banks waive these fees if you pick up other accounts or products.
• Features. Think about whether you’ll need regular access to your funds. Most business money market accounts come with ATM cards and check-writing privileges, while savings accounts give you less access to your money.
• Transaction limits. Savings and money market accounts are usually limited to six outgoing transactions a month.
• Interest rates. Look at advertised interest rates both around the corner and online, further analyzing fees and limitations that can eat into your bottom line. By shopping around, you can find the best business account available today.
• Accessibility. Many online banks offer higher interest rates than you’ll find at your local bank. You won’t have the convenience of a neighborhood branch, but an extensive ATM network and linked account with your local bank could be worth it.
• Minimum deposit requirements. Money market accounts typically have higher opening deposits than savings accounts, but you may snag a higher APY and easier access to your money.
• Minimum balance requirements. How much you’ll need to keep in your account can range from a few bucks to tens of thousands of dollars, with higher rates applying to higher balances.

What are the benefits of a business savings account?

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.

• Build your savings. Keep your money safe and earn passive income when it’s not needed for everyday business, helping you achieve both short- and long-term goals.
• Avoid fees. Move your money around with minimal transaction fees.
• Boost your business’s credit. A business savings account becomes a part of your overall financial portfolio, demonstrating that you’re able to successfully manage your savings and providing the support for future business loans.
• FDIC-insured. The government insures deposits for up to $250,000, so you can rest assured your money is safe.

What should I look out for?

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:

• Account fees. Many high-interest accounts waive fees for high balances, but ask about monthly maintenance, deposit or penalty fees for exceeding transactions or dipping below minimums.
• Transaction limits. All savings and money market accounts limit your withdrawals to six monthly, though you can transfer money to a linked checking account for broader access.
• Potentially high minimums. To take full advantage of business perks, you may need to maintain a balance of $10,000 or more in your savings or money market account.

Some of the top business savings accounts

The table lists a few business savings accounts with the highest APYs available today.

How am I taxed on my business savings account?

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.

What is a business savings account?

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. A business savings account safely stores the funds you might need for equipment or taxes later and boosts your business’s overall credibility — critical for landing solid rates and terms on future loans when business booms.

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.

Can I use my personal savings account for my business?

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.

Bottom line

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.

Common questions about business savings accounts

Why does a business need a savings account?

A savings account can help your business save up for big purchases or a future expansion. It can also be used as a financial padding if you have a few slow weeks or months.

Are all business savings accounts high-yield?

No, not all business savings accounts offer high yields. Different business savings accounts meet the needs of different businesses, but paying a high interest rate certainly makes a business account more competitive. Making sure the account you choose will help grow your capital and accommodate your specific needs is an important consideration.

I have multiple employees who need to access my business savings. Is this possible with a high-interest business savings account?

Yes. Look for a business account allows you to designate access for specific employees. Note that you’re responsible for the account and your employee’s actions, however.

Do I need good credit to apply for a business savings account?

Generally, yes — but how solid your credit needs to be depends on the bank. Ask how your bank considers your credit history when opening a business account.

Can I use a high-interest business savings account for personal savings?

No. Because they’re designed specifically for businesses, these accounts are subject to tax rates that aren’t relevant to your personal savings.

Do I get instant access to funds with my business savings account?

Generally, yes. Whether for personal or business use, savings accounts are very liquid and accessible, though watch out for limits on the number of times you can withdraw funds from your account in any given month.

Picture: Shutterstock