A business savings account allows businesses to earn interest on their money.
Checking accounts are perfect for day-to-day business costs and expenses - but they are not designed to reward savings. Adding a savings account is an excellent way for businesses to earn interest on their money long-term.
In this article, you can find some of the best business savings accounts, to make it easier for you to choose.
If you’re looking for a way to manage your money as a business, then try Wise Business - the account for global businesses.
|📝 Table of contents|
There are several top business savings accounts on the market. Each offers different advantages – the choice comes down to what works best for your business.
Most accounts place restrictions on withdrawals and may have a fee. But in return, you can earn much higher returns than from standard checking accounts.
Fees and APY (annual percentage yield) are the biggest differentiators.
|Account||APY and fees||Best for|
|Axos Business Savings|
|Live Oak Business Savings|
|Capital One Business Advantage|
|Bank of America Business Investment with Preferred Rewards for Business|
|First Internet Bank Business Money Market Savings|
|NBKC Business Money Market Savings|
There are also more details and account features to consider. It's worth looking into each account in more detail.
Axos is a long-established online bank. Its Business Savings account offers a high rate of 0.5%. But it requires a higher balance than some accounts.
The minimum deposit is $1,000, and you must maintain an average daily balance of $2,500 to waive the monthly fee.¹ Withdrawals exceeding the six per month limit cost $10.
Incoming domestic wire transfers are free, but outgoing wires have a charge of $35.²
The high 0.6% APY is the major benefit of this account - and could be a deciding factor for businesses, especially with high savings. There is also no fee or minimum balance requirement.
It is an online account, with no ability to use ATMs. Withdrawals are limited to six per month, with a $10 fee to exceed this.
The account does not take cash deposits, which can be a limitation for cash-intensive businesses. It also has higher wire transfer fees than some other banks ($15 for an incoming wire and $19 for outgoing).³
Capital One offers a standard business savings account. As a traditional bank, this features branch access and includes Capital One ATM use. It limits withdrawals to six per month.
The APY is 0.2% as a promotion for the first year; it will lower after that. There is a minimum opening balance of $250, but a slightly higher minimum balance requirement of $300 to avoid a monthly fee.⁴
A Bank of America savings account also offers branch and ATM access. It can also be used alongside a Business Fundamentals Checking Account - the combined balance counts towards waiving the fee.
There is a monthly fee of $5 but this is waived if you register for Preferred Rewards for Business, or maintain a minimum $2,500 daily balance.⁵
If your business has a higher balance, the alternative Bank of America Business Advantage Savings Account is a good option. Its APY is up to 0.05% when combined with Preferred Rewards for Business.⁶
This online account has an APY of 0.4%. It can be opened with a minimum of $100. To avoid paying a monthly fee, you need an average daily balance of $4,000.
It is one of the few online accounts to offer an ATM card - but these are only for sole proprietorship. Like most high APY accounts, it limits withdrawals to six per month. It offers a fee of $5 for each withdrawal over this limit.⁷
NBKC Business Money Market Savings is an online account offering an APY of only 0.1%. But it has no minimum deposit, minimum balance, or monthly fees.⁸
There are also no fees for incoming domestic wire transfers ($5 fee for outgoing domestic wires). It also offers a business debit card with access to MoneyPass ATMs.
Like most accounts, withdrawals are limited to six per month. If you exceed this twice, the account will be switched to a standard checking account.
BlueVine is a new online bank (it started business accounts in 2019). It offers a checking account, not a business savings account. But with an APY of 1%, it could work out better for some businesses. Interest is only paid on balances up to $100,000.⁹
There are no account fees or minimum balances. There are also no fees for incoming domestic wire transfers ($15 for outgoing wires).
The account provides ATM access through MoneyPass ATMs. Cash deposits are not accepted, limiting use for cash-intensive businesses.
These top savings accounts vary by APY and account features. Understanding the different types of business saving accounts helps to decide on the best for your business.
A regular business savings account offers the lowest APY but more flexible operation. There are likely to be lower (or no) minimum balance requirements, or fees.
Several traditional banks offer accounts, providing standard branch access and ATM use.
High-yield accounts offer a higher APY, but this comes with additional restrictions.
The average annual rate for savings accounts is 0.05% - many high-yield accounts offer much more than this.¹⁰
There is often a fee (although this may be waived), and requirements to hold a minimum balance. They may also be online-only and will place more restrictions on transfers and withdrawals.
Certificates of deposit are the final option for business savings. These offer the highest APY rates. But in return, you must deposit savings for a fixed period of time. If you need to withdraw funds early, there is a fee.
Each account offers a different APY. While this is a significant consideration, it is not the only one. Several other factors make accounts suitable for different businesses.
Account fees. Some high-yield accounts have a monthly fee. Banks often waive these in certain circumstances – so make sure you meet these.
Minimum and ongoing balances. Minimum balances are also common restrictions of high-yield accounts. Make sure these suit your business – especially if savings are likely to fluctuate.
Monthly withdrawal limits. Most business savings accounts limit withdrawals (often to six per month). The rules and fees for exceeding this differ between accounts.
ATM access or debit card. Traditional banks may offer this, but it is less common with online banks.
Online only or branch access. Traditional banks usually offer accounts that allow branch access. Check though if this means you have to open the account in a branch.
Ability to deposit cash. For some businesses, the ability to deposit cash remains important. Some accounts allow this, others will not.
Costs for wire transfers. All accounts allow free domestic ACH transfers. But the charges for wire transfers vary – with some allowing free incoming domestic wires. Most accounts have high fees for international wire transfers.
|💡 For low-cost international transfers, try Wise. You can save a lot of money compared to your bank! Over 10 million people and businesses are already getting a better deal with Wise.|
If your business holds a cash balance, then having a savings account makes sense. Keeping funds in a checking account will earn a lower return (if any).
Businesses need to plan ahead and transfer funds out as appropriate. The limit on withdrawals is restrictive - but worth it for businesses able to manage this.
The choice of which account is best is really up to each business. Higher APYs are attractive if you can accept the limitations that go along with this. The choice is up to you!
Not sure if a business savings account is right for you? Check out our comparison of the best business checking accounts and see how they match up.
These top business savings accounts share one thing in common – they only work well for domestic savings in US dollars. Wire transfers to or from international accounts are expensive.
If you need a low-cost and easy way to manage international currencies then consider Wise. A Wise account allows funds to be held, and transferred, in several currencies.
You can save up to 19x compared to PayPal, leaving you more money for your business.
You won’t earn any interest, but you will save a lot of money when making international transfers.
Wise uses the real, mid-market exchange rate (the one you see on Google), and payments can be made via several methods, including ACH transfer or wire.Sources:
- Axos Business Savings
- Axos fees page 37
- Live Oak Business Savings
- Capital One Business Advantage
- Bank of America fees
- Bank of America Business Advantage Savings
- First Internet Banking
All sources checked 17 March 2021.
This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.
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