Best Business Savings Accounts

As a business owner, it's important to have a plan in place to manage your finances and prepare for the future. One way to do this is by opening a business savings account, which allows you to set aside funds for emergencies, investments and other expenses.

With so many options available, it can feel overwhelming to choose the best business savings accounts for your needs.

We'll provide an overview of what a business savings account is, how they work and the key factors to consider when choosing one. We'll also highlight some of the top business savings accounts of 2023 based on factors such as interest rates, fees and minimum balance requirements.

Our Top Picks for the Best Business Savings Accounts

• Capital One — Best for Accessibility
• nbkc Bank — Best Minimum Deposit
• Chase — Best ATM Access
• Prime Alliance — Best for No Maintenance Fees
• Live Oak Bank — Best High-Yield Account
• Mercury — Best Digital Experience
• First Internet Bank — Best Tiered APY

Best business savings accounts review

Why we chose it: Capital One offers physical branches, online banking and even cafes to make your finances accessible when you need them.

If you’re looking to place your savings in a traditional bank, then a Capital One business savings account can be a great choice. Many online bank competitors may offer higher interest rates, as Capital One’s APYs are on average ten times lower than those of their internet bank competition. However, due to their many years of experience and large number of employees, a traditional bank like Capital One may outperform them when it comes to access to (and quality of) customer service.

The main advantage of Capital One is that, while you can still use online banking to manage your finances, if you have an issue you can visit a local Capital One branch and talk to a customer representative who can help you out right away. For those looking for an even more accessible approach to banking, Capital One has been investing in Capital One Cafes, where you can share a coffee with an associate as you discuss your finances. To date, there are nearly 50 cafes across the country.

Capital One also offers businesses access to certificates of deposit (CDs), which may offer customers higher interest rates, depending on the current offer. For more information and to open a CD account customers should visit a brick-and-mortar location and speak to a Branch Ambassador.

Why we chose it: nbkc Bank can be a good pick for smaller businesses that don’t want to maintain a high minimum balance in their savings accounts. There are no monthly fees, and it requires no minimum balance to open or maintain an account.

APYs from nbkc are currently two to three times lower than some of their online-only competition. However, they still offer a much higher APY than traditional banks.

Like other online banks, nbkc has an advantage over traditional banks because it doesn't shoulder the expenses of maintaining brick-and-mortar locations and paying large numbers of employees. As a result, it can afford to offer better perks to its customers. These perks include no fees for things like incoming wire transfers and overdrafts. While there are no cash deposits, customers can deposit checks through nbkc’s mobile app.

There's no minimum balance required at nbkc to waive monthly fees, and it doesn't have any deposit requirements for companies opening an account. If you have a business with a small amount of savings, monthly fees can quickly eat into your earnings. Opening a business savings account with no fees can be a big help.

Why we chose it: As a traditional bank, Chase has a large network of physical locations and ATMs. Using a Chase ATM card, business owners can withdraw their savings at any of Chase's 16,000 machines.

Chase typically offers APYs that are as much as ten times lower than the online competition. However, the convenience of a traditional bank with physical locations and thousands of customer service employees can make the tradeoff worth it for many business owners.

If your business mostly collects revenue in cash, having access to a wide network of ATMs for deposits can make life a lot easier. However, if you need to regularly withdraw cash from savings to pay expenses or contractors then be aware that Chase charges $5 per withdrawal after the first six transactions every month. This fee is waived if your balance remains over $25,000. Chase offers customers real-time monitoring and alerts, and will reimburse unauthorized debit-card transactions if they are reported promptly.

Unfortunately, Chase savings accounts have monthly maintenance fees ranging from $10 to $20. To waive fees, customers are required to keep a minimum balance of $25,000. If your business does not have a lot of savings, these fees may be more than what you earn in interest annually. If that's true, then it may be a good idea to look for other options.

Why we chose it: Prime Alliance offers a competitive APY with relatively low entry requirements. This makes it a good fit for many small businesses.

While other banks on this list may offer APY tiers for deposits in the millions, Prime Alliance offers tiers of $1 to $99,999, $100,000 to $200,000 and over $200,000. Its APYs are competitive with a range of 2.70% to 3.65%. Most small businesses do not have millions in cash savings, so this tiered approach is much more accessible than the competition. Prime Alliance has no monthly fees and no minimums, making it a great choice for someone with a new small business who wants to open a business savings account.

Prime Alliance only has one physical location in Woods Cross, Utah. This may unfortunately mean less access to customer service, since customers outside of Utah can only contact customer service by phone or email. Cash deposits can only be made at the physical location in Woods Cross.

Why we chose it: Live Oak Bank offers a single, higher-than-average APY for all deposit amounts. This makes it a great choice for any business looking for a no-nonsense, high-yield business savings account.

Live Oak Bank gives customers free access to Allpoint ATMs, of which there are 55,000 worldwide. As a result, customers receive the benefits of an online bank and the convenience of easy ATM withdrawals. Live Oak Bank allows six free withdrawals per month for its business savings accounts.

Live Oak Bank's high-yield savings accounts give customers competitive APYs up to 3.1% and have no monthly fees or minimums, making it a good option for both small and large businesses.

Like many banks on this list, Live Oak Bank is an online bank. This allows them to offer higher APYs and no fees but may mean decreased access to customer service representatives since customers cannot meet with representatives in person.

Why we chose it: Mercury is a financial technology company offering business savings accounts with online banking and mobile apps. Accounts also offer integrations with business software and merchant services like QuickBooks and Stripe, making it easy to manage your savings and business finances.

For businesses with a large amount of savings, Mercury offers a great deal. Mercury's APYs for deposits over $20 million can be as much as triple those of some of their internet competition and orders of magnitude above rates offered by traditional banks.

Mercury's interface offers customers features like automated recurring payments and granular employee permissions to give businesses more control over their finances. Unfortunately, Mercury does not clearly present what APYs they offer for businesses with smaller savings. You will need to contact a sales representative to find out the APY you can expect to receive.

Why we chose it: First Internet Bank’s tiered APY rates make it a great choice for both large and small businesses. Its APYs for businesses with over $5 million in savings are some of the best on the market, and rates for savings under $5 million are very competitive as well.

While First Internet Bank offers some of the best APYs on the market for customers with over $5 million in savings, it may not be the ideal choice for new business owners who do not have a lot of savings. APYs range from 2.84% to 4.39%. In order to waive monthly fees customers need to maintain a $4,000 monthly balance. If a customer's balances dip below this threshold, then First Internet Bank will charge them a $5 monthly maintenance fee.

The minimum deposit to open a savings account is $100, which is also a point against First Internet Bank. Many online competitors offer savings accounts with no minimum deposit requirements.

Since First Internet Bank is online-only, it comes with the same downsides as many other online savings accounts. There is no option for cash deposits, and customers may experience less access to customer service than they would with a traditional bank. Customers can contact customer service by phone or email.

Other business savings accounts we considered

The following business savings accounts offer some positive features, but their drawbacks may make other banks more competitive.

Bank of America

While we have included two traditional banks in our main list, for now many online banks may have better features and offer larger returns. Bank of America lags behind its traditional bank competition in customer reviews, and has fees for many regular banking features like receiving wire transfers and deposits.

Axos

Axos's lower business savings APYs are on the level of those offered by a traditional bank. However, Axos is an online bank that lacks the convenience of brick-and-mortar branches.

TAB Bank

TAB Bank is also an online bank that offers the APYs of a traditional bank. Not only that, but it also requires a $25 minimum deposit to open an account. Customers rate their mobile banking tools highly, but business owners may prefer to choose either the stability of a true traditional bank or the higher returns provided by other online banks.

Best Business Savings Accounts Guide

Business savings accounts often offer businesses a number of benefits and advantages that business checking accounts do not, such as higher interest rates and access to different investment and money management options. Read on to learn more about when it is a good time to open a business savings account, how these accounts work and how to select the best business savings account for your company.

What is a business savings account?

A business savings account allows businesses to set aside money for future use. It’s similar to a personal savings account, but it is specifically designed for the needs of an organization. These accounts are typically offered by banks and credit unions, and they can be opened online or at a physical branch.

One of the main benefits of having a business savings account is that it allows you to prepare for future expenses or emergencies. This can be particularly useful for small businesses, which may not yet have the financial resources or stability of larger companies. Your savings will earn interest as they sit in the account. By having a dedicated savings account, businesses can access funds when they need them, as opposed to turning first to loans or other forms of debt.

In addition to providing a convenient way to save money, business savings accounts can also be a useful tool for managing cash flow. By separating your business's savings from its operating funds, you can better track and control your expenses and ensure that you have the financial resources you need to meet your short- and long-term goals.
A business savings account is usually the second business account a business owner will open, the first being a business checking account. If you'd like to learn more about business checking accounts, take a look at our best business checking accounts of 2023.

How do business savings accounts work?

Business savings accounts work in much the same way as personal savings accounts. Business savings accounts allow companies to deposit and save their funds in a secure place and earn interest on their balance. Like personal savings accounts, business savings accounts can be used to build up a reserve of funds, manage cash flow and prepare for unexpected expenses.

When you open a business savings account, you will be required to deposit a minimum amount of money, which will become the account's starting balance. You can then add to the account by depositing additional funds, either through cash or check deposits or by transferring money from another account. The bank or credit union will hold onto the funds and pay you interest on the balance, which is typically calculated on a monthly or annual basis.

While interest rates for a business savings account can vary depending on the bank or credit union, they are generally higher than the rates offered on regular business checking accounts. This can help businesses earn more on their savings over time and make it easier to achieve their financial goals.

One of the main differences between a business savings account and a personal savings account is the minimum balance requirement. Many business savings accounts require a higher minimum balance than personal savings accounts, which can make them less accessible to small businesses or startups with limited funds. When looking for the best business savings account, remember that some banks and credit unions offer business savings accounts with no minimum balance requirements.

Online banks vs. traditional banks

When you decide where to open a business savings account, you'll have two main types of financial institutions to consider: online banks and traditional banks. Each has its own set of advantages and disadvantages, and the right choice for your business will depend on your specific needs and financial goals.

If you are looking for a high-yield account with convenient online access and no or low fees, an online bank may be the best choice. If you value the convenience of physical branches and personal account management, a traditional bank may be the better option. By considering the pros and cons of each type of institution, you can find the business savings account that best meets your needs.

How to pick a business savings account

When it comes to selecting a business savings account, there are a few key factors to consider in order to find the best account for your business. Here are some things to keep in mind as you compare different business savings accounts.

Features

Business savings accounts may offer a range of features to help businesses save and grow their money.

Some common features include online banking, mobile banking and the ability to set up automatic transfers or savings plans. Online banking allows businesses to access their accounts and manage their money through a website, while mobile banking allows businesses to access their accounts and make transactions using a dedicated app. Automatic transfers or savings plans let a business set up regular, automatic transfers from a checking account to a savings account to help save money consistently.

Some business savings accounts may come with additional financial services, such as merchant services, business loans or credit or debit cards. If business loans are an important feature for you, make sure to also take a look at our picks for the best small business loans.

Other business savings accounts offer customized account management, which can be especially useful for larger businesses with complex financial needs. Dedicated account managers can help businesses with everything from setting up automatic savings plans to tracking expenses.

Accessibility

Figure out how you plan to access your business savings account and whether you need an account that is easily accessible online or through a mobile app.

If you frequently need to make transactions or check your account balance on the go, a business savings account with strong mobile banking capabilities may be a good choice.

Alternatively, if you prefer to manage your money in person or over the phone, you may want to look for a business savings account from a traditional bank with multiple physical locations and strong customer service.

Consider the location of the financial institution that is offering the account, as you may need to visit a branch in person at some point. If the institution has branches near your business, it may be a more convenient choice.

Costs and rates

When comparing business savings accounts, it is important to keep both the costs and the interest rates in mind.

Some accounts may have higher fees, such as monthly maintenance fees or fees for making withdrawals or transfers. Other accounts may have no fees but may have a lower interest rate.

Higher interest rates may not always be the best choice, as some accounts may have higher fees or restrictions on withdrawals.

Requirements

Some business savings accounts may have specific requirements that businesses must meet in order to qualify for or maintain their account in good standing. These requirements may include a minimum balance, a minimum number of transactions per month or a minimum deposit when opening the account.

Make sure you are aware of any requirements before you open an account, as failure to meet them may result in additional fees or loss of interest. Some accounts may also have requirements related to the type of business or the size of the business, so be sure to check that the account is a good fit for your business before you open it.

How we chose the best business savings accounts

When it comes to choosing the best savings accounts for your business, there are a number of factors to consider. Here's a closer look at how we selected the top business savings accounts:

• Fees: We looked at maintenance fees as well as charges for ATM usage or account maintenance to see whether the fees were competitive with other business savings accounts on the market.

• APYs: We compared APYs between different business savings accounts providers to find the ones that offered the best potential return on investment.

• Deposit requirements: We considered minimum and maximum deposit requirements for each business savings account.

• Accessibility: We also considered the convenience and accessibility of each business savings account, including things like online and mobile banking options, as well as the availability of ATMs and physical branches.

• Customer service: We looked at reviews from customers and industry experts to get a sense of the level of service and support that businesses can expect from each institution.

Summary of Money's Best Business Savings Accounts of 2023

• Capital One — Best for Accessibility
• nbkc Bank — Best Minimum Deposit
• Chase — Best ATM Access
• Prime Alliance — Best for No Maintenance Fees
• Live Oak Bank — Best High-Yield Account
• Mercury — Best Digital Experience
• First Internet Bank — Best Tiered APY