Best business savings accounts of July 2024
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BLUEPRINT
Updated 10:47 a.m. UTC July 3, 2024
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The best business savings account should offer convenience, low fees and competitive perks, but finding the right one for your business can be daunting. We’ve combed through dozens of options and picked the top five accounts so you can put your business savings to work.
Annual percentage yields (APYs) and account details are accurate as of July 3, 2024, for the zip code 07030.
Why trust our banking experts
Our team of experts evaluates hundreds of banking products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 250+ accounts from 135 financial institutions reviewed.
- 4 levels of fact checking.
- 70+ data points analyzed.
Axos Bank Business Premium Savings
Best for low fees
nbkc Bank Business Money Market Account
Best for ATM access
Capital One Business Savings
Best for branches
Wells Fargo Business Market Rate Savings
Best for high yields for high balances
Santander Business Money Market Savings Account
Compare the best business savings accounts
| INSTITUTION | ACCOUNT | APY | MONTHLY FEES | MIN. DEPOSIT |
|---|---|---|---|---|
nbkc Bank
| Business Money Market Account
| 2.75%
| $0
| $0
|
Capital One
| Business Savings
| 0.10% (standard)
| $3 (waivable)
| $0
|
Wells Fargo
| Business Market Rate Savings
| 0.01%
| $5 (waivable)
| $25
|
Live Oak Bank
| Business Savings Account
| 4.00%
| $0
| $0
|
Santander
| Business Money Market Savings Account
| 0.05% to 4.50%
| $10 (waivable)
| $50
|
National average for business savings accounts
The Federal Deposit Insurance Corporation (FDIC) doesn’t track average interest rates for business-specific savings accounts. However, it does track rates for general savings accounts. The national average deposit rate was 0.45% as of June 17, 2024, per the FDIC.
However, you can find better conditions if you shop around, especially in this high-rate environment.
Methodology
We looked at more than 50 data points for over 80 business saving accounts available from banks and credit unions across the country. To determine the best, we rated each based on six categories and awarded points.
A (nearly) perfect score of 80 to 100 points meant the account earned a five-star rating. A score of 50 to 70 garnered a four-star rating and so on.
Here’s how we weighed each category.
- Access: 40%. Being able to access your savings when and how you want is vital. We considered whether you could link your account to a business checking account, whether it comes with a debit card or checks, and the branch and ATM network size.
- Yield: 20%. As the main point of a savings account is to act as a cash reservoir, you don’t want it to lose value over time. Earning interest fights off the effects of inflation.
- Fees: 16%. No one likes to pay fees. A lack of banking fees means your account is free to grow unencumbered.
- Digital experience: 9%. We awarded points here based on ratings from the Apple App Store, the Google Play Store and whether you can do online banking through a web browser.
- Customer experience: 9%. Ratings from the Better Business Bureau and Trustpilot played a part here, as well as the availability of live chat customer support.
- Minimum deposit requirement: 6%. The lower the minimum deposit requirement to open an account or waive any fee(s), the better.
What is a business savings account?
A business savings account operates just like a personal savings account, except the funds are used solely for the business’ purposes. It’s a deposit account that holds funds a apart from the daily transactions of a checking account, allowing you to have a cash reserve and better track your finances.
Major benefits of separating your personal and business savings include potentially limiting your personal liability. And, with some savings in its back pocket, your business may be better able to qualify for loans and lines of credit.
Keep in mind that a savings account typically can’t replace a checking account. Depending on your bank or credit union, “excessive” transactions in a savings account may be subject to fees — if they’re allowed to happen at all.
Regulation D, which limited savings accounts to six transactions per month, was suspended indefinitely in 2020; however, individual financial institutions can decide whether to allow a free flow or keep the old rules in practice.
How to apply for a business savings account
It isn’t difficult to get started with a savings account for your company.
“Opening a business savings account is really no different than opening one for your personal needs,” said Lauren Sparks, director of Agility Bank.
Each bank has its own application process for opening a business savings account. Many allow you to complete the process entirely online, while others may require an in-person visit to a branch.
Requirements to apply
Be prepared to submit some details and documentation to verify your business. While the exact requirements vary by bank, the Small Business Administration recommends having the following documents on hand when you apply:
- Employer identification number, also known as a federal tax identification number, or Social Security number (for sole proprietors).
- Business formation documents.
- Ownership agreements.
- Business license.
You should also have your first savings deposit on hand.
“Most banks will require a set minimum balance and then, to qualify for high interest payments from the bank, there is usually some type of activity that needs to occur,” said Caitlynn Eldridge, a certified public accountant based in Omaha.
You don’t need to have a treasure chest worth of funds, but you do need to meet any opening deposit requirements and, depending on your business needs, it could be good to have enough to meet any threshold requirements for fee waivers, advanced yields or other perks.
How to open a business savings account
Once you apply for a business savings account and submit your documentation, you’ll wait to find out if you’ve been approved. Banks with a substantial online presence will likely make an automated decision so you can move forward quickly.
Then you’ll need to make an initial deposit in order to finalize the process. Some banks may have minimum requirements, either for the initial opening deposit or an ongoing minimum balance — and sometimes both.
After you’ve funded your account, consider making ongoing contributions of any size. Not only will this build your company’s financial buffer, it also helps strengthen your banking relationship.
“I like to see regular, consistent savings,” Sparks said. “This is one thing a banker may look at if the business owner needs a loan — consistency in savings could imply consistency in making loan payments.”
Choosing the best business savings account
Do some research to find the best online savings account for your business. There are several variables to compare during your search.
“What we really look for is no fee, no minimum balance and no required activity,” said Eldridge. “You also want to be able to easily access the funds, not have to wait three to five days to withdraw money.”
Having your money work for you and earn a yield is also a consideration.
And don’t underestimate the value of simply liking the bank and having a good relationship with your contact there.
“There is a lot of rate chasing now,” Sparks said. “Sometimes, it is better to look at the long-term relationship with your banker. Having a stable relationship can frequently outweigh the value of the interest rate.”
Consider what’s important to your company and how you conduct business. You may value branch access and no fees on cash deposits. Or, you may be perfectly comfortable with digital banking and prioritize earning a high yield.
Keep in mind that it’s possible to have multiple business savings accounts. Perhaps you want a money market account that allows convenient withdrawals with a debit card, but you put half of your funds in a high-yield account elsewhere.
In general, an LLC should have a savings account just like any other type of business. Savings can act as a financial buffer for rainy days —- financial emergencies or unexpected drops in revenue.
Even a one-person business should have more than one savings account so that their personal and professional finances are divided. The separation can make it easier to track cash flow, make preparing taxes simpler and could help protect your personal assets in case of a lawsuit.
You should keep enough money in your business savings account to cover dips in revenue as well as your taxes, typically around three months’ worth or enough to cover your quarterly tax bill.
Yes, many banks offer online applications for business savings accounts. Even if they have physical branches, you can typically submit a digital application and get a near-instant decision. But not all banks allow this. Some require that you apply in person. Check the application process on the financial institution’s website before getting started, especially if an online-only application is important to you.
The best business savings account for small businesses varies depending on your needs. Always check for any monthly service fees, minimum balance requirements and avoid them when possible. Also confirm the APY you’ll earn on your account balance, since the higher rate helps you earn more. Finally, review any transaction limits to make sure the account is flexible enough to handle your business’s needs.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
