Best Business Savings Accounts of 2024
Updated July 26, 2024 at 5:10 pm
While some financial tools help with the everyday tasks of running a business (like managing payroll from a business checking account), others help lay the groundwork for your company’s future. A savings account is one of them. These allow you to store emergency funds, set up overdraft protection, save for large upcoming expenses (like quarterly taxes) and more.
The best business savings accounts help you earn a competitive interest rate and come with minimal fees, reasonable balance requirements, no transaction limits, attractive promotional rates and low upfront deposits. You can even tap into your funds in a pinch should you need to cover a business-related expense or two. Whether you’re a sole proprietor or business veteran with a limited liability corporation, the best business savings accounts help you scale up your business.
Read on to learn how our top picks for the best business savings accounts offer all these features and more to help you protect your company’s future.
Our Methodology Newsweek Vault’s banking experts have done hundreds of hours of research to present you with all the latest information about your banking options. Whether you’re interested in opening a new checking account or savings account, our research spans all the top online banks, credit unions and brick-and-mortar branches.
We assessed the following five key factors to help you choose the best account for your personal finance needs.
- Associated fees
- ATM access
- Balance requirements
- Customer service
- Interest-earning potential
Our Picks - Best for High APY: Live Oak Bank Business Savings Account
- Best for Incoming Wire Transfers: Axos Bank Business Savings Accounts
- Best for Sole Proprietors: First Internet Bank Business Money Market Savings Account
- Best for In-Person Banking: Bank of America Business Advantage Savings Account
- Best for Businesses Scaling Up: Lili
- Best for 6-Month Promotional Rates: Capital One Business Advantage Savings
- Best for No Fees: NBKC Bank Business Money Market Account
- Best for No Transaction Limits: TAB Bank Business Savings Account
- Best for Businesses with Large Balances: Prime Alliance Bank Business Savings Account
9 Best Business Savings Account Rates of 2024
Best for High APY
Live Oak Bank Business Savings Account
Vault Verified
Why We Chose It
The Live Oak Bank Business Savings Account offers one of the highest rates for business savings at 4.00% APY. It also doesn’t charge monthly maintenance fees or set average daily balance requirements. Live Oak Bank even provides up to $10 million in FDIC coverage—far above the standard $250,000—through the IntraFi Network.
Pros
- High 4.00% APY
- No monthly maintenance fees
- No minimum balance requirements
Cons
- Fully digital with no physical branches
- No ATM or debit card access
- No weekend customer support
BEST FOR INCOMING WIRE TRANSFERS
Axos Bank Business Premium Savings
Vault Verified
Limited-time promo offer: Use code BPS375 when you open a new Axos Bank Business Premium Savings account to unlock a limited-time bonus of up to $375. Promotional terms and conditions apply.
Why We Chose It
The Axos Bank Business Premium Savings account doesn’t charge fees when you receive domestic and international wire transfers, helping you save about $10 to $15 for each of these transactions. This savings account also offers a strong 4.01% APY, has no monthly maintenance fees, no average daily balance requirements and no opening deposit requirement.
Pros
- No monthly maintenance fee
- No minimum opening deposit
- Strong APY (4.01%)
Cons
- No physical branches
- No weekend customer support
- Charges per item processing fee ($.30) for debits, credits and deposited items over 20 items per month
Best for Sole Proprietors
First Internet Bank Business Money Market Savings Account
Vault Verified
Why We Chose It
The First Internet Bank Business Money Market Savings Account is ideal for a sole proprietorship because you get access to an ATM card. While First Internet Bank does require a $100 minimum opening deposit to open the account, it also pays a 3.46% APY on balances under $5 million. Keeping more funds in the account will earn you a lucrative 5.48%.
Pros
- ATM card access for sole proprietors
- Competitive APY range (3.46% to 5.48%)
- No minimum balance to earn interest
Cons
- Monthly fee ($5)
- Minimum opening deposit ($100)
- No physical branches
Best for In-Person Banking
Bank of America Business Advantage Savings Account
Vault Verified
Why We Chose It
The Bank of America Business Advantage Savings Account, from the nation’s second-largest bank, boasts more than 3,700 branches and 15,000 ATMs in the U.S., making it a strong option if you prefer having multiple customer service options and want access to these services when you travel. Account requirements include a $100 minimum deposit, but you can get the $10 monthly fee waived if you meet certain conditions, such as maintaining a $2,500 minimum daily balance, including one Business Advantage Savings account as part of your Business Advantage Relationship Banking solution or becoming a member of Preferred Rewards for Business.
Pros
- 3,800 retail financial centers and 15,000 ATMs
- Balance Connect™ for overdraft protection
- Higher APY available with Preferred Rewards for Business
Cons
- Monthly maintenance fee ($10)
- Minimum opening deposit ($100)
- Low APY of 0.01%
Best for Businesses Scaling Up
Lili
Vault Verified
Why We Chose It
Lili is a digital platform that helps business owners manage their finances in one place. Depending on the plan you choose, you can access accounting software, invoicing options, bill pay, tax preparation software and more. Each of the three paid plans comes with a savings account that pays a 4.15% APY and monthly service fees of $15, $35 or $55, depending on the plan you choose.
Pros
- Strong APY (4.15%)
- 90,000 retail locations to deposit cash
- Few fees, including no foreign transaction fees
Cons
- Basic plan doesn’t earn interest
- Choice Financial Group or Sunrise Banks provide banking services, not Lili
- Balances above $100,000 don’t earn interest
Best for 6-month Promotional Rate
Capital One Business Advantage Savings Account
Vault Verified
Why We Chose It
The Capital One Business Advantage Savings Account offers a six-month promotional APY of 1.01% for balances up to $10,000. The promotional rate rises to 4.18% when you keep between $10,000 and $5 million in the account. While the rate may fall after the introductory period, you’re sure to get great customer service over the long term. In J.D. Power’s 2023 U.S. Small Business Banking Satisfaction Study℠, Capital One ranks first.
Pros
- Strong promo APY (up to 4.18%) for balances above $10,000
- Low minimum balance required to waive monthly service fee
- Deposit up to $10,000 in cash each statement cycle for free
Cons
- Promotional interest rate only lasts the first six months after account opening
- Only balances above $10,000 earn the competitive promo APY
Best for No Fees
NBKC Bank Business Money Market Account
Vault Verified
Why We Chose It
The NBKC Bank Business Money Market Account earns a competitive 2.75% APY without charging fees that can deplete your earnings. That means you won’t pay monthly service fees or any costs associated with overdrafts, insufficient funds, stop-payment requests or incoming domestic wires. And because this money market account also comes with a debit card, you can access your funds easily when needed.
Pros
- No monthly fees
- Access to a debit card
- Competitive APY (2.75%)
Cons
- Limited branch locations (only in Kansas City)
- No weekend or after-hours customer support
- High fee ($45) for international wire transfers
Best for No Transaction Limits
TAB Bank Business Savings Account
Vault Verified
Why We Chose It
The TAB Bank Business Savings Account is our choice for the best business savings account for no transaction limits because limiting transactions—such as withdrawals, deposits, and electronic debits and credits—impacts your ability to run your business. But the TAB Bank Business Savings account doesn’t impose these limits (or charge monthly fees), making it a good option if your business runs more than a few dozen transactions each month.
Pros
- No transaction limit
- No monthly fees
- Online account access
Cons
- Low APY (0.25%)
- No physical branches
- Minimum opening deposit requirement ($25)
Best for Businesses with Large Balances
Prime Alliance Bank Business Savings Account
Vault Verified
Why We Chose It
The Prime Alliance Bank Business Savings Account offers a strong 3.85% APY on any balance under $100,000. Prime Alliance Bank boosts that rate to 4.05% APY when you have up to $200,000 and 4.25% APY for higher balances. There are no monthly maintenance fees, and you can deposit checks for free anytime.
Pros
- Competitive APY on all balances
- No monthly service fees
- No minimum deposit required
Cons
- Highest rate only available with $200,000+ balance
- Many fees, including return ACH and return check fees
- Only one physical location
What Is a Business Savings Account?
A business savings account is a necessity for any company, whether you’re a sole proprietor or you run a growing limited liability corporation. Beyond keeping your business and personal funds separate, you can use business savings accounts to:
- Store funds for upcoming tax payments.
- Protect against overdrafts when connected to business checking.
- Create an emergency fund.
- Save for large expenses.
You can typically make unlimited deposits and withdraw from the account anytime, though you may need to follow transaction limits, which can vary by bank and account. Under these limits, you can usually make six or fewer withdrawals or transfers per month. Learning about these limits and when they apply can help keep your account in good standing.
It’s also possible to open a business savings account at many banks and credit unions. Business owners often start with the financial institution where they have a checking account. This can be a convenient way to handle your finances and transfer money quickly.
But you don’t have to keep all your accounts in one place. If you’re looking for the best interest rates and lowest fees, it’s a good idea to shop around and compare options.
How Do Business Savings Accounts Work?
A business savings account works similarly to a personal savings account, except a business savings account is specifically for business use. Business savings accounts may have deposit or balance minimum requirements, depending on the bank or account. Some banks or credit unions may charge a monthly service fee or may have transaction limits for the account.
The funds in your business savings account usually earn interest, which varies with each institution and account.
What Is the Best Business Savings Account for Me?
Choosing the best business savings account will depend on your business’s needs. Consider the following factors when choosing the right business savings account for you.
Fees
Some banks charge monthly maintenance fees to keep your account open. But you may be able to get the fee waived by meeting certain criteria, such as keeping a minimum balance. Other fees may include wire transfer fees, out-of-network ATM fees and stop-payment fees. Before opening a business savings account, check the bank’s fee schedule for any costs you might incur.
Interest Rates
Interest rates can vary depending on the financial institution and the business savings account you choose. You’re more likely to find a strong APY at online banks and credit unions because these institutions don’t need to maintain brick-and-mortar branches, have lower overhead costs and can pass on their savings to customers. Before opening a business savings account, shop around for a competitive APY to earn more on your savings.
Features
Every bank and credit union offers different tools and features, such as mobile apps, online account access and business support services. Check these features among several institutions to figure out what your business needs. If the savings account comes with a monthly fee, it could be worthwhile if the institution offers strong customer service—in person or online—and the tools you’ll use frequently.
Minimum Balance
Banks and credit unions may require you to make a minimum initial deposit—usually around $25 to $100—to open a business savings account. You may also need to keep a minimum balance to earn the advertised interest rate. If your average daily balance falls below that threshold, your rate may fall as well. But it’s possible to find accounts with no minimum deposit or balance requirements, so shop around and compare your options if you’re looking for simplicity.
ATM Access
If your business needs to deposit cash or withdraw funds from its business savings account, you’ll want to investigate a bank’s ATM options. Learn how many in-network ATMs are in your area and what the bank allows. Some online business savings accounts offer limited ATM networks or don’t allow cash deposits. If the network size is limited, determine whether the bank reimburses for out-of-network ATM use.
How To Open a Business Savings Account
Opening a business savings account is a fairly straightforward process. Once you’ve identified the business savings account that you want, apply with that financial institution.
The process may vary with each bank or credit union, but here are the basics:
- Gather your documents. What you need will depend on your business structure. You’ll most likely need to provide your Social Security number, your employer identification number or EIN (if applicable), your government-issued photo ID, your business name, your business address and an email address. Some applications will require additional information or documents.
- Apply for the business savings account. Many financial institutions allow business owners to open business savings accounts online, but some require an in-person visit to a bank branch to apply.
- Fund your account. Once the bank approves your application, you can usually link it to a business checking account and transfer funds from there.
Pros and Cons of Business Savings Accounts
Business savings accounts are a good place to keep your cash reserves, but may come with limitations. Before opening one of these accounts, weigh the pros and cons to make sure it’s the right decision for you and your business.
Pros
- Separates your business and personal funds
- Stores your business cash reserves
- Earns interest on your balance
Cons
- Requires a minimum balance and opening deposit
- Requires monthly service fees and other fees
- Has transaction limits
Alternatives to Business Savings Accounts
Alternatives to traditional business savings accounts include the following options.
Business Money Market Accounts
Money market accounts (MMAs) tend to offer higher interest rates than savings accounts. They also usually come with check-writing capabilities and ATM cards, giving you multiple ways to access your money. But be mindful of any transaction limits, which will likely be similar to those of a savings account.
Business Certificates of Deposit (CDs)
A certificate of deposit or CD makes your funds inaccessible for a specified amount of time, such as a few months or years. In exchange, you typically earn a higher interest rate compared to MMAs or traditional savings accounts. Some banks and credit unions even offer CDs designed for businesses, so check out your options and compare accounts.
Frequently Asked Questions
What Are Some Alternatives to Business Savings Accounts?
Some alternatives to business savings accounts include investment accounts, business CDs and business MMAs. Investment accounts are usually for personal use, but some brokerage firms offer investment accounts for businesses, including options for stocks, bonds, mutual funds and exchange-traded funds.
Business CDs are good for cash that the business won’t need to use immediately because the cash must remain in the bank for a certain period, but the interest rates are often better. Additionally, business MMAs offer higher interest rates and can come with benefits to withdraw cash easily, like debit cards or checkbooks.
How Much Money Should a Business Keep in Savings?
This depends on your monthly expenses, individual needs, business structure, goals and length of time the business has been open. Experts generally recommend keeping at least three to six months’ worth of operating expenses on reserve in savings. But startups may not have as much money to save and may need to reinvest profits to grow, while established businesses with consistent profits can afford to leave funds untouched in a business savings account to earn steady returns.
Is a Business Savings Account Taxed?
As with any other savings account, the interest earned from a business savings account is taxable income, and you must report it to the IRS.
Newsweek writer Lora Shinn contributed to this post.
Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post. We may earn a commission from partner links on Newsweek, but commissions do not affect our editors’ opinions or evaluations.
