What is the best business savings account?

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 and hold international transfers, then you can also read about Wise Business - the account for global businesses.

Discover the Wise Business account

📝 Table of contents
What is the best business savings account? Factors to consider when choosing a business account Should I get a business savings account? Save on international transfers with Wise Business

What is the best business savings account?

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	Great for
Axos Business Savings	APY 0.5% $5 monthly fee (waived over $2500)	Businesses with higher balances Receiving incoming domestic wire transfers
Live Oak Business Savings	APY 0.6% No fee	Businesses wanting the highest APY No need for ATM access or cash deposits, and few wire transfers
Capital One Business Advantage	APY 0.2% for first 12 months $3 monthly fee (waived over $300)	Businesses that want a traditional bank Low balance requirements
Bank of America Business Investment with Preferred Rewards for Business	APY 0.01% No fee	Businesses with a Bank of America business checking account Full branch and ATM access
First Internet Bank Business Money Market Savings	APY 0.4% $5 monthly fee (waived over $4000)	Businesses with a high balance that want an ATM card More withdrawals per month
NBKC Business Money Market Savings	APY 0.1% No fee	No fees or minimum balances ATM access Less than 6 withdrawals per month

There are also more details and account features to consider. It's worth looking into each account in more detail.

Axos Business Savings

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

Live Oak Business Savings

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 Business Advantage Savings account

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

Bank of America Business Investment account

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

First Internet Bank Business Money Market Savings

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

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 Business Checking

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.

Types of business savings account

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.

Regular business savings account

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 business savings account

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.

Business certificates of deposit

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.

Factors to consider when choosing a business savings account

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 money compared to your bank! Over 10 million people and businesses are already getting a better deal with Wise.

Should I get a business savings account?

If your business holds a cash balance, then having a savings account may be worth considering. 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 could be 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.

Save on international transfers with Wise Business

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 Business account allows funds to be held, and transferred, in several currencies.

Wise is not a bank, but a smart online alternative to traditional banks. You can save money on international transfers, leaving you more money for your business.

Get a Wise Business account online

Wise uses the mid-market exchange rate (the one you see on Google), and payments can be made via several methods, including ACH transfer or wire.

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Sources:

1. Axos Business Savings
2. Axos fees page 37
3. Live Oak Business Savings
4. Capital One Business Advantage
5. Bank of America fees
6. Bank of America Business Advantage Savings
7. First Internet Banking
8. NBKC
9. BlueVine
10. NerdWallet

All sources checked 17 March 2021.