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 ★★★★★

Go to site on Axos Bank's secure site

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.

• Pros and cons

  Pros

  • 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.

  Cons

  • High opening deposit. You need at least $1,000 to open this account.
  • Inconvenient cash deposits. You can only deposit cash at specific deposit-taking ATMs or by using the Reload @ the Register service to load cash into your account for a fee of up to $4.95.

• More details

  Interest compounding	Daily
  Monthly transaction limit	6
  Fee per transaction over the limit	$10

APY	0.20%
Fee	$5 per month
Minimum deposit to open	$1,000

Go to site on Axos Bank's secure site

Best for online businesses

Live Oak Bank Business Savings account

Finder rating 4.4 / 5 ★★★★★

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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.

• Pros and cons

  Pros

  • 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.

  Cons

  • 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.

• More details

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

APY	0.50%
Fee	$0
Minimum deposit to open	$0

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Best for high interest rate

First Internet Bank Money Market Savings

Finder rating 3.8 / 5 ★★★★★

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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.

• Pros and cons

  Pros

  • High APY. Earn 0.5% APY on balances $10 million or below and 0.25% for balances above $10 million.
  • 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.

  Cons

  • 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.

• More details

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

APY	0.50%
Fee	$5 per month
Minimum deposit to open	$100

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Best for small businesses

First Internet Bank Regular Savings

Finder rating 3.8 / 5 ★★★★★

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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 0.4% APY as long as you keep less than $10 million in the account.

• Pros and cons

  Pros

  • Competitive rate. You'll earn 0.4% APY as long as your daily balance is $10 million or less. You'll earn 0.25% 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 for sole proprietors.

  Cons

  • 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.

• More details

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

APY	Up to 0.40%
Fee	$2 per month
Minimum deposit to open	$100

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Best for no minimum deposit

NBKC Bank Business Money Market

Finder rating 4.1 / 5 ★★★★★

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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.

• Pros and cons

  Pros

  • 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.
  • ATM reimbursements. Get up to $12 back in ATM fees when you use an out-of-network ATM.

  Cons

  • Low interest rate. Stash away your company's excess cash and earn a modest 0.05% APY.
  • Limited support hours. NBKC customer service is only available during business hours from 8 a.m. to 7 p.m. CT.
  • Could potentially convert to a checking account. While NKBC doesn't charge an excessive withdrawal fee if you exceed your six monthly withdrawals, it may convert your account to a checking account.

• More details

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

APY	0.05%
Fee	$0
Minimum deposit to open	$0

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Best for low opening deposit

TAB Bank Money Market

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.

• Pros and cons

  Pros

  • 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.
  • Decent interest rate. You'll earn a reasonable 0.25% APY on your total account balance.

  Cons

  • 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.
  • No ATM card. Although ATM cards usually come standard with most money market accounts, this one doesn't come with one.
  • Account closure fee. If you ever close your account with Tab Bank, it'll cost you $10.

• More details

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

APY	0.25%
Fee	$0
Minimum deposit to open	$25

What’s changed in 2021?
We added TAB Bank Money Market because it has a $25 initial deposit, no monthly fee and a competitive interest rate.

Summary of the best business savings accounts

Take a look at our top picks for business savings accounts. Compare perks like interest rates and account requirements to find the best fit for your business.

7 factors to consider when comparing savings accounts

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

1. 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.
2. Features. Think about how much flexibility you want over your account. Most business money market accounts come with ATM cards and check-writing privileges, while savings accounts give you less access to your money. And if you have multiple employees that need access to your business savings account, you’d want an account that allows you to designate permissions for specific employees.
3. Transaction limits. Savings and money market accounts are usually limited to six outgoing transactions a month.
4. 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.
5. 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.
6. 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.
7. 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.

4 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 money.

1. 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.
2. Avoid fees. Move your money around with minimal transaction fees.
3. 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.
4. FDIC-insured. The government insures deposits for up to $250,000, so you can rest assured your money is safe.

3 things to look out for

Unlike investment accounts, there’s no risk of losing your balance because of safeguards in place designed to protect your money. But when narrowing down a business account that fits your business’s needs, weigh into your decision:

1. 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.
2. 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.
3. 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.

5 best business savings account interest rates

We’ve identified business savings accounts with the highest APYs available today. Keep in mind, with a higher interest rate, you might see stricter account requirements and higher fees.

Are all business savings accounts high-yield?

No, not all business savings accounts offer competitive interest rates. So if you’re interested in a high APY, you’ll need to look specifically for a high-yield business savings account.

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.

Business savings vs Business money market account: Which is better?

Savings and money market accounts offer similar features, including earning interest. But they come with different caveats. Think of them like siblings — similar DNA but different personalities.

Money market accounts come with higher interest rates and give you easier access to your money with debit card access and check-writing capabilities. On the other hand, while you can’t spend your cash in a savings account as freely, you’ll likely enjoy a lower initial deposit and a lower monthly balance requirement.

• Choose a business savings account if you have a low balance.
• Choose a business money market account if you want easier access to your money, but still want to earn interest.

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.

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 financial padding if you have a few slow weeks or months. It’s always a good idea to put a little away — and earn some interest as a small reward, so the funds are there when you need it.

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.

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

Generally, no. Banks don’t usually run a credit check when you open an account. Instead, they’ll take a look at your banking history by running a ChexSystems report, which shows items like bounced checks, unpaid fees, and overdraft events.

Ultimately, how solid your credit needs to be and how much weight your ChexSystems report has on account approval depends on the bank. Ask how your bank considers your credit history when opening a business account.

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.

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