Best Small Business Savings Account

Best Small Business Savings Account

Best Small Business Savings Account

Congratulations! Your small business is thriving, and you’re generating enough revenue to set some cash aside. But where to put it? A standard business checking account might not be cutting it if you’re looking to grow your savings.

This blog post unveils the best small business savings accounts to make your hard-earned cash work for you. We’ll explore high-yield options, accounts with checking functionalities, and picks tailored to your specific needs.

Why a High-Yield Savings Account Makes Sense

Small business savings accounts offer several advantages over traditional business checking accounts:

  • Superior Interest Rates: Earn significantly more interest on your savings compared to a standard checking account. Interest rates are constantly fluctuating, but these accounts typically offer Annual Percentage Yields (APYs) well above what you’d find in a checking account.
  • Checking Account Perks: Some accounts offer features like check-writing and debit card access, allowing you to manage your finances efficiently. This can be particularly useful for occasional business purchases or unexpected expenses that can’t be covered by a credit card.

Top Picks to Maximize Your Savings

We’ve combed through the options to present the best small business savings accounts across various categories:

  • Best for Online Banking: Live Oak Business Savings takes the cake with a stellar 4.00% APY, no minimum deposit requirement, and zero monthly service fees. This is a fantastic option for business owners who are comfortable managing their finances entirely online. Keep in mind that there are no physical branches to visit in person.
  • Best for In-Person Banking: Prefer the convenience of a physical branch? Capital One Business Advantage Savings offers a promotional introductory APY (check your local branch for details on current rates). There are some fees involved, including a $3 monthly maintenance fee that can be waived by maintaining a $300 minimum balance. Additionally, Capital One offers in-person banking at physical branches for those who value that interaction.
  • Best for Money Market Account: Money market accounts typically offer higher interest rates than standard savings accounts, and often come with check-writing privileges. TAB Bank Business Money Market Account boasts a 3.50% APY on balances up to $1 million, then a 0.25% APY on any remaining balance. There’s a low $25 minimum deposit to open the account and only a $1 minimum balance required to start earning interest. Plus, it comes with checking account privileges and ATM card access.
  • Best for Large Deposits: Sitting on a larger sum you want to put to work? Axos Bank Business Premium Savings might be your answer. It offers a competitive 4.01% APY with no monthly fees, but keep in mind there’s a higher $5,000 minimum opening deposit requirement. Axos Bank is also offering a special bonus until March 8th, 2024: Choose smarter business banking and enjoy up to 4.01% APY* and a bonus of up to $375 when you maintain a minimum average daily balance of $75,000.† Just use promo code BPS375 on your application.
  • Best for Sole Proprietors: First Internet Bank Business Money Market Savings stands out for offering a tiered APY reaching up to 5.46% on balances over $5 million. Sole proprietors will also appreciate the ATM card access This account does have a $100 minimum deposit to open and a $5 monthly fee applies unless you maintain a $4,000 daily balance.

Beyond the Top Picks

The best account for you depends on your specific needs. Here are some additional factors to consider:

  • Minimum Deposit Requirements: How much can you comfortably set aside initially? Some accounts, like Live Oak, have no minimums, while others require an initial deposit to open the account.
  • Monthly Maintenance Fees: Can you maintain a minimum balance to avoid them? Some accounts, like Capital One, have monthly maintenance fees that can be waived by maintaining a certain balance.
  • Transaction Limits: How many withdrawals or transfers will you typically make per month? Exceeding these limits can incur fees. Most accounts allow for a standard six free withdrawals or transfers per statement cycle, with additional withdrawals subject to fees.
  • ATM Access: Do you need the ability to withdraw cash using a debit card? Not all business savings accounts offer ATM cards. Notably, First Internet Bank offers ATM access specifically for sole proprietors with this savings account, while Axos Bank offers ATM access only if you also have an Axos business checking account.

Make an Informed Decision

Choosing the right small business savings account can significantly impact your bottom line. By considering your specific needs and reviewing the options we’ve provided, you’ll be well on your way to selecting the perfect fit to maximize your business savings!

Best Small Business Savings Account

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