Small businesses looking to make passive revenue on reserve funds should consider opening a business savings account. The best business savings accounts should earn a strong interest yield while also allowing you the liquidity to access your funds in an emergency. We have chosen the 10 best business savings accounts for your small business.
Check out our methodology to see how we chose these providers.
The 10 best business savings accounts for November 2024
| Savings account | Top annual percentage yield (APY) | Best for | Learn more |
|---|---|---|---|
| Lili Business Banking Account | 3.65% | All-in-one bank account | View offer at MoneyLion |
| Capital One Business Savings Account | 4.11% | Short-term promotional interest rate | View offer at MoneyLion |
| Prime Alliance Bank Business Savings Account | 4.25% | Tiered interest earnings | View offer at MoneyLion |
| Axos Business Premium Savings | 4.01% | Tiered account opening bonus | View offer at MoneyLion |
| Forbright Bank Bright Business Savings | 4.25% | High balance interest earning | View offer at MoneyLion |
| Live Oak Bank Business Savings Account | 3.90% | Highest account opening bonus | View offer at MoneyLion |
| First Internet Bank Regular Savings Account | 0.91% | Sole proprietors | Read our First Internet Bank review |
| Hope Credit Union Business Savings Account | 0.25% | Businesses that want to give back | View offer at MoneyLion |
| Relay Automated Savings Account | 3.00% | Automated business savings | View offer at MoneyLion |
| First Tech FCU Simple Business Savings | 0.01% | Businesses that want a credit union | Read our First Tech FCU review |
| Lili Business Banking Account | View offer at MoneyLion |
|---|---|
| 3.65% | |
| All-in-one bank account | |
| Capital One Business Savings Account | View offer at MoneyLion |
| 4.11% | |
| Short-term promotional interest rate | |
| Prime Alliance Bank Business Savings Account | View offer at MoneyLion |
| 4.25% | |
| Tiered interest earnings | |
| Axos Business Premium Savings | View offer at MoneyLion |
| 4.01% | |
| Tiered account opening bonus | |
| Forbright Bank Bright Business Savings | View offer at MoneyLion |
| 4.25% | |
| High balance interest earning | |
| Live Oak Bank Business Savings Account | View offer at MoneyLion |
| 3.90% | |
| Highest account opening bonus | |
| First Internet Bank Regular Savings Account | Read our First Internet Bank review |
| 0.91% | |
| Sole proprietors | |
| Hope Credit Union Business Savings Account | View offer at MoneyLion |
| 0.25% | |
| Businesses that want to give back | |
| Relay Automated Savings Account | View offer at MoneyLion |
| 3.00% | |
| Automated business savings | |
| First Tech FCU Simple Business Savings | Read our First Tech FCU review |
| 0.01% | |
| Businesses that want a credit union |
Our picks for the top 10 business savings accounts
When rounding up the best business savings accounts, we chose providers offering high interest rates, limited fees, excellent customer service, and easy online and mobile app access.
Minimum deposit requirements, fees, and other terms and conditions are accurate as of November 7, 2024, and are subject to change.
1. Lili: Best all-in-one bank account
Lili offers all-in-one banking, accounting, and tax preparation software for small businesses. To earn 3.65% APY on Lili’s savings account on balances up to and including $100,000, you must sign up for one of the provider’s paid plans, which starts at $9 a month.
Lili
| Minimum opening deposit: | $0 |
| Top APY: | 3.65% (only available in paid tiers) |
| Minimum to earn APY: | $0 |
| Monthly fee: | $0 for Basic; $9 for Lili Pro to earn interest |
Why we picked it
Lili is an excellent option for businesses looking to consolidate online banking, accounting, and tax preparation software into one platform. You can get started with Lili for free with no monthly balance or minimum deposit requirement. However, the company’s best features are in one of the three paid tiers.
The interest yield is solid, with the paid tiers offering 3.65% APY on balances up to and including $100,000. Lili could be a great choice for small businesses looking to earn a decent yield off of smaller reserve balances.
What to consider before opening
To earn interest, you will need to sign up for a paid plan. The plans start with Lili Pro at $9 and increase to $33 monthly for Lili Premium. Those rates are promotional, so they will increase to $15 a month for Pro and $55 a month for Premium after three months.
Also, many of the best accounting and tax preparation features are locked in one of the paid tiers. However, if you can consolidate all of your accounting and tax prep into the Lili app, you may save monthly over having multiple software subscriptions.
More rates and products from Lili
| Additional product | Top APY |
|---|---|
| Business checking | 0% |
| Additional product | |
|---|---|
| Top APY | |
| Business checking | |
| 0% |
Learn more: Read our Lili review
2. Capital One Business Savings Account: Best for short-term promotion interest rate
If you are looking for a traditional bank with a solid introductory business savings rate, Capital One is a solid choice. It offers 4.11% APY for the first three months before settling at its standard variable rate.
Capital One Business Savings Account
| Minimum opening deposit: | $0 |
| Top APY: | 4.11% APY ($10,000 to $10 million) |
| Minimum to earn APY: | $0 |
| Monthly fee: | $3; waivable with $300 collected balance range |
Why we picked it
Capital One is a great option for businesses looking to earn a solid yield for a new account and a consistent long-term yield. The long-term rate is likely low. However, for 92 days after opening the account, you will earn 4.11% APY on balances between $10,000 and $10 million.
It is also a solid choice for people who would rather keep their business banking with a traditional bank instead of an online bank or financial technology (fintech) company. Capital One offers a wide range of business and personal banking products and services.
What to consider before opening
The caveat with opening a Capital One business savings account is that the rate will drop to the standard variable rate after three months. With interest rates likely dropping nationwide in the coming months, this rate may be very low. You may consider moving your funds to an account with a higher yield once the introductory rate period ends.
Also, you are limited to just six free withdrawals per monthly statement cycle. If you need to access your savings funds more often than that, you may want to consider an alternative or an interest-bearing business checking account.
More rates and products from Capital One
| Additional product | Top APY |
|---|---|
| Business checking | 0% |
| Business certificates of deposit (CDs) | Rates not disclosed; you must visit a branch for more information |
| Additional product | |
|---|---|
| Top APY | |
| Business checking | |
| 0% | |
| Business certificates of deposit (CDs) | |
| Rates not disclosed; you must visit a branch for more information |
Learn more: Read our Capital One review
3. Prime Alliance Bank Business Savings Account: Best for tiered interest earnings
Prime Alliance Bank and its business savings account is an ideal option for companies looking to increase interest yield as balances increase. Prime Alliance Bank operates as an online bank for most customers, although it has one physical location in Woods Cross, Utah. Rates range from 3.85% APY to 4.25% APY.
Prime Alliance Bank Business Savings Account
| Minimum opening deposit: | $0 |
| Top APY: | 4.25% ($200,000 or more) |
| Minimum to earn APY: | $1 |
| Monthly fee: | $0 |
Why we picked it
The bank rewards you with higher interest earnings as your savings balance increases. You will earn 3.85% APY on balances between $1 and $99,999.99. For balances between $100,000 and $199,999.99, you will earn 4.05% APY. The highest APY tier is for balances over $200,000, earning you 4.25% APY.
Like Capital One, Prime Alliance Bank is a traditional bank. This will appeal to some businesses that do not want to use a fintech for their business banking. While most customers will use it as an online bank, customer service is handled by the branch location.
What to consider before opening
There is a limit to six transfers and withdrawals per month, with each excess transaction costing $10. If you exceed the limit three times in a rolling 12-month period, the account is converted to a demand deposit account, and you will earn significantly less interest.
To open a business savings account, you must email the bank; it cannot be opened directly on the website. Some personal accounts can be opened online, but most accounts offered by Prime Alliance Bank require an email.
More rates and products from Prime Alliance Bank
| Additional product | Top APY |
|---|---|
| Business interest checking | 0.20% APY |
| Business money market account | 4.25% APY ($200,000 or more) |
| Business CDs | 4.90% APY (6 months) |
| Additional product | |
|---|---|
| Top APY | |
| Business interest checking | |
| 0.20% APY | |
| Business money market account | |
| 4.25% APY ($200,000 or more) | |
| Business CDs | |
| 4.90% APY (6 months) |
Learn more: Read our Prime Alliance Bank review
4. Axos Bank Business Premium Savings Account: Best for tiered account opening bonus
Businesses that want to earn solid interest yield with the potential of earning a new account bonus of up to $375 should consider Axos Bank and its premium business savings. All balances up to $5 million earn 4.01% APY.
Axos Bank Business Premium Savings Account
| Minimum opening deposit: | $0 |
| Top APY: | 4.01% |
| Minimum to earn APY: | $0 |
| Monthly fee: | $0 |
Why we picked it
If you want to earn up to $375 in a cash back bonus for opening a new account, Axos could be a great option. The bonus is earned by keeping a specific average daily balance for three months out of a four-month period. You earn $75 per cycle with an average daily balance between $30,000 and $74,999.99 and $125 per cycle for a balance over $75,000.
The account also offers a very solid interest rate. While the website lists balance tiers for interest earning, all tiers below $5 million earn 4.01% APY. This rate is subject to change, so be sure to check the latest rates before opening an account.
What to consider before opening
Axos offers a lot of other perks in addition to a new account sign-up bonus and a high interest rate. You get free incoming wires with Axos Bank and QuickBooks integration. As with some of the other banks on this list, Axos offers extended Federal Deposit Insurance Corp. (FDIC) insurance through insured cash sweeps (ICS) through IntraFi Network Deposits. This coverage can be extended up to $250 million.
In addition, while Axos Bank doesn’t offer branch locations, it is another FDIC-insured bank and not a fintech. So, businesses comfortable with online banking and the security of a traditional bank can find one here.
More rates and products from Axos
| Additional product | Top APY |
|---|---|
| Basic business checking | 0% APY |
| Business interest checking | 1.01% APY |
| Business money market | 0.20% APY |
| Business savings | 0.20% APY |
| Nonprofit money market | 0.20% APY |
| Business CDs | 0.20% APY |
| Additional product | |
|---|---|
| Top APY | |
| Basic business checking | |
| 0% APY | |
| Business interest checking | |
| 1.01% APY | |
| Business money market | |
| 0.20% APY | |
| Business savings | |
| 0.20% APY | |
| Nonprofit money market | |
| 0.20% APY | |
| Business CDs | |
| 0.20% APY |
Learn more: Read our Axos Bank review
5. Forbright Bank Bright Business Savings: Best for high balance interest earning
Forbright Bank is another traditional financial institution that operates mainly as an online bank outside of three locations in Virginia and Maryland. It offers a strong interest yield of up to 4.25% APY, with that rate available with a balance of $250,000 or more.
Forbright Bank Bright Business Savings Account
| Minimum opening deposit: | $250 |
| Top APY: | 4.25% APY |
| Minimum to earn APY: | 1 cent |
| Monthly fee: | $0 |
Why we picked it
We chose this bank because it offers a solid interest yield with a 1-cent balance required to earn interest. Balances below $250,000 will earn 3.35% APY, and balances of $250,000 and above will earn 4.25% APY, among the top rates on this list.
Forbright also reverses any out-of-network ATM fees within one business day. There is no monthly maintenance fee for the account, and the minimum opening deposit is only $250. The only other potential fees you might run into are standard fees like wire transfers, overdraft fees, and more.
What to consider before opening
This account requires a $500 opening deposit, which is higher than many competitors on this list. It is also primarily an online-only bank with only three physical locations in Maryland and Virginia.
In addition, if you are considering opening personal accounts with Forbright, you may need to visit a branch location. The only personal accounts that can be opened online are a high-yield savings account and a CD.
More rates and products from Forbright Bank
| Additional product | Top APY |
|---|---|
| Commercial checking | 0% APY |
| Commercial NOW | 0.10% APY |
| Commercial money market | 3.50% APY |
| Commercial platinum money market | 4.25% APY |
| Commercial statement savings | 3.00% APY |
| Interest on Lawyers’ Trust Accounts (IOLTA) | 4.25% APY |
| Maryland Affordable Housing Trust (MAHT) | 0.10% APY |
| Additional product | |
|---|---|
| Top APY | |
| Commercial checking | |
| 0% APY | |
| Commercial NOW | |
| 0.10% APY | |
| Commercial money market | |
| 3.50% APY | |
| Commercial platinum money market | |
| 4.25% APY | |
| Commercial statement savings | |
| 3.00% APY | |
| Interest on Lawyers’ Trust Accounts (IOLTA) | |
| 4.25% APY | |
| Maryland Affordable Housing Trust (MAHT) | |
| 0.10% APY |
6. Live Oak Bank Business Savings Account: Best for highest account opening bonus
Live Oak Bank offers an excellent business savings account that earns 3.90% APY. In addition, you can earn a $400 cash back bonus by opening a new account and meeting certain balance requirements.
Live Oak Bank Business Savings Account
| Minimum opening deposit: | $0 |
| Top APY: | 3.90% APY |
| Minimum to earn APY: | 1 cent |
| Monthly fee: | $0 |
Why we picked it
Live Oak is another traditional bank operating as an online-only financial institution. It has an interest rate that is competitive with other providers on this list. You can earn 3.90% APY on all balances above a penny. You can also earn a $400 cash back bonus by opening a new account, depositing at least $30,000 into it, and maintaining that balance for 90 days.
This account has no monthly fees or minimum opening deposit requirements. The bank extends your FDIC Insurance through IntraFi Network to up to $10 million. Also, it offers several ways to
fund your account, including automated clearing house (ACH) and wire transfers, mobile check deposits, and mailing a check directly to the bank.
What to consider before opening
Unlike other options on this list, you cannot deposit cash into a Live Oak Bank account. The cash back bonus is a limited-time offer, so check with Live Oak to ensure it is still active before opening an account.
Live Oak Bank is another FDIC-insured bank without branch locations. However, the lack of branches allows Live Oak to offer higher interest rates than brick-and-mortar banks. Be sure to regularly perform transactions or keep the balance higher than $10.01 in the account. Accounts with a lower balance than $10.01 and no transactions for 24 consecutive months are subject to a dormancy fee.
More rates and products from Live Oak Bank
| Additional product | Top APY |
|---|---|
| Business Essential | 0% APY |
| Business Plus | 0% APY |
| Business Plus Analysis | 0% APY |
| CDs | 4.30% APY (12 months) |
| Additional product | |
|---|---|
| Top APY | |
| Business Essential | |
| 0% APY | |
| Business Plus | |
| 0% APY | |
| Business Plus Analysis | |
| 0% APY | |
| CDs | |
| 4.30% APY (12 months) |
Learn more: Read our Live Oak Bank review
7. First Internet Bank Regular Savings Account: Best for sole proprietors
If you are a sole proprietor, First Internet Bank’s business savings account could be a great option. It doesn’t have the highest interest earnings, with an APY of 0.91%, but it has an easily waivable monthly fee. The bank also offers a high-yield money market that may be worth upgrading to as your balance grows.
First Internet Bank Regular Savings Account
| Minimum opening deposit: | $100 |
| Top APY: | 0.91% APY |
| Minimum to earn APY: | $0 |
| Monthly fee: | $2, waived with an average daily balance of $1,000 or greater |
Why we picked it
First Internet Bank is another traditional bank operating primarily online. While many business types can open a savings account, only a sole proprietor can get an ATM card with a savings account. While it has a lower interest yield than other online-only banks, the 0.91% APY beats many traditional banks.
In addition, you have the option of upgrading to the bank’s money market account, which has an APY of 3.46% on balances below $5 million and 4.95% APY on balances above that threshold. Otherwise, the savings account is a solid choice with a $2 monthly fee that is waivable with an average daily balance of $1,000 or greater.
What to consider before opening
If you aren’t interested in upgrading to the higher-rate money market account, you should probably consider one of the many savings accounts on this list with a higher APY.
You can fund your account via wire or ACH, or you can mail checks to the bank directly. You cannot mail cash to the bank to be deposited into your account. The bank does not charge for ATM transactions, but you may pay third-party ATM fees.
More rates and products from First Internet Bank
| Additional product | Top APY |
|---|---|
| Do More Business Checking | 0.50% APY |
| Money Market Savings | 4.95% APY |
| CDs | 4.42% APY (12 months) |
| Additional product | |
|---|---|
| Top APY | |
| Do More Business Checking | |
| 0.50% APY | |
| Money Market Savings | |
| 4.95% APY | |
| CDs | |
| 4.42% APY (12 months) |
Learn more: Read our First Internet Bank review
8. Hope Credit Union Business Savings Account: Best for businesses that want to give back
Hope Credit Union could be a good option for businesses who want to use a credit union for their business savings account. It costs $10 to join, and $5 goes to Hope Enterprise Corporation, a nonprofit that provides financial services and advocacy for under-resourced Deep South communities.
Hope Credit Union Business Savings Account
| Minimum opening deposit: | $15 |
| Top APY: | 0.25% APY |
| Minimum to earn APY: | $100 |
| Monthly fee: | $0 |
Why we picked it
While the interest yield on this account is lower than that of other providers on this list, joining Hope Credit Union is more than about earning interest yield. Hope Enterprise Corporation has helped millions of people in Alabama, Arkansas, Louisiana, Mississippi, and Tennessee directly, as well as others in underresourced communities nationwide.
When you join Hope Credit Union to open an account, $5 of the $10 fee goes to helping people in those states overcome difficult financial conditions.
What to consider before opening
You must maintain a $15 minimum balance, and a balance of $100 is required to earn interest. Hope CU limits you to four free withdrawals per month. Excess withdrawals may incur a fee.
The savings account has no monthly fee. To open an account, you must visit a branch or call the bank. You can also fill out a contact form on the website.
More rates and products from Hope FCU
| Additional product | Top APY |
|---|---|
| Business Choice Checking | 0% APY |
| Business Checking | 0% APY |
| Business Checking Plus | 0% APY |
| Additional product | |
|---|---|
| Top APY | |
| Business Choice Checking | |
| 0% APY | |
| Business Checking | |
| 0% APY | |
| Business Checking Plus | |
| 0% APY |
Learn more: Read our Hope Credit Union review
9. Relay Automated Savings Account: Best for automated business savings
If you want a business savings account that can be automated to deduct funds from your checking account and move it to savings, Relay could be a great option. A fintech backed by Thread Bank, Relay allows you to earn up to 3.00% APY in a tiered earnings structure.
Relay Automated Savings Account
| Minimum opening deposit: | $0 |
| Top APY: | 3.00% APY ($1 million or more) |
| Minimum to earn APY: | $1 |
| Monthly fee: | $0 |
Why we picked it
Relay offers a great automated savings feature that can help you put money aside for future business expenses. Balances between $1 and $50,000 earn 1.00% APY. As your balance increases between $50,000 and $250,000, the APY increases to 1.50%. It increases to 2.00% APY between $250,000 and $1 million, then maxes out at 3.00% APY for balances above $1 million.
You can open up to two savings accounts with Relay. In addition, Relay works closely with the Profit First method, allowing you to save for future profit and tax reserves. The auto transfer feature can make the two monthly allocations automatically.
What to consider before opening
Relay is a fintech and not a bank. It is backed by Thread Bank, which offers extended FDIC insurance up to $3 million. If you also use Relay for your checking, you can open up to 20 individual checking accounts and assign up to 50 physical or virtual debit cards, allowing you to have spending controls among a large team.
The company does not charge monthly or overdraft fees. It also doesn’t have minimum balance requirements. If you need additional features, including auto-importing bills from QuickBooks or Xero, approval rules for bill payments, or faster ACH payments, you can upgrade to Relay Pro for $30 per month. But unlike other fintechs, Relay doesn’t lock all its best features behind the paywall.
More rates and products from Relay
| Additional product | Top APY |
|---|---|
| Business Checking | 0% APY |
| Additional product | |
|---|---|
| Top APY | |
| Business Checking | |
| 0% APY |
Learn more: Read our Relay review
10. First Tech FCU Simple Business Savings: Best for businesses wanting a credit union
While First Tech FCU offers the lowest interest rate of any business savings account on this list, it can still be a good choice for companies who want the benefits of credit union membership. These include lower loan rates, business insurance products, and other benefits.
First Tech FCU Simple Business Savings
| Minimum opening deposit: | $25 |
| Top APY: | 0.01% APY |
| Minimum to earn APY: | $0 |
| Monthly fee: | $0 |
Why we picked it
If you choose the First Tech FCU savings account, it is because you already belong to the credit union or are interested in joining. The account only earns 0.01% APY, the lowest APY on our list. It is a free account with no monthly fees.
It could be a good option for those who want the full benefits of being a member of First Tech FCU. The credit union offers several deposit accounts, business loan products, business insurance services, and dozens of personal banking products and services.
What to consider before opening
To open this account, you will need to join the credit union. To become a member, you must work for one of the credit union’s partner companies, be a family member of a current member, work in the state of Oregon, live or work in Lane County, Oregon, belong to the Computer History Museum, or belong to the Financial Fitness Association.
If you don’t meet any of those criteria, you may still be able to join by contacting the credit union directly. While the business savings account has a very low interest rate, the credit union offers a solid personal savings option that earns up to 4.00% APY.
More rates and products from First Tech FCU
| Additional product | Top APY |
|---|---|
| Business Checking | 0% APY |
| Business Membership Savings | 0.01% APY |
| Additional product | |
|---|---|
| Top APY | |
| Business Checking | |
| 0% APY | |
| Business Membership Savings | |
| 0.01% APY |
Learn more: Read our First Tech FCU review
What is a business savings account?
A business savings account is a deposit account that generally earns an interest yield on your business reserve funds. While some savings accounts may limit the number of transfers and withdrawals each month, others allow unlimited free withdrawals and transfers.
Why should my business have a savings account?
While earning interest is a primary reason for a business savings account, it’s not the only one. Kevin Miller, CEO of Travis Credit Union, notes that finances are easier to manage when you can set aside reserves for specific future use.
“We do really well with bucketing our money,” Miller said. “For a small business owner, cash flow is the number one issue, especially if they’re paying quarterly estimated taxes. Instead of leaving it in their operating account, if they’re putting that money away a chunk at a time, they’ll get to that date, and the money will be there.”
Miller notes that because the minimum balance to open a savings account is generally low, it makes sense for a business to have one. He believes that, especially when a company is starting out, it’s more about having access to reserve funds than earning high-interest yields.
“The dollar threshold to open a savings account is so low, you’re not going to be harmed by opening a savings account,” Miller said. “The goal is to have some money set aside, and the objective of that money is to earn a return, but that’s not the number one priority. It’s about having money to have access to when you need to do something.”
Pros and cons of business savings accounts
There are benefits and drawbacks to having a business savings account. Here are the pros and cons of these accounts:
Pros
- You can earn interest on reserve business funds
- It can allow you to save for large business expenses
- It can help you set aside money for tax purposes
- Allows you to separate reserve funds from your operational funds in checking
Cons
- The threshold to earn the best interest rates can be high
- You may be limited to the number of transfers and withdrawals per month
- You may find higher rate returns with money market and CD products
- Some savings accounts, especially at traditional banks, can earn very low rates
How much money should my business have in a savings account?
While some small businesses may not initially have large amounts of reserve funds to put into savings, it’s important to calculate precisely how much you should set aside for potential emergencies.
Michael Sims, Market Executive at Georgia’s Own Credit Union, says a savings account is part of ensuring the business has surplus operating funds.
“You need to calculate your expense run rate, or the amount of expenses you have while waiting to get paid,” Sims said. “Whatever that run rate is, you should have six to eight times that in surplus funds. It gives you time to restructure yourself if your income stream isn’t coming in like it should.”
Alternatives to business savings accounts
Once you have built up your savings account, you may find it’s time to consider other business savings products, such as money market accounts (MMAs), CDs, and even investments.
Sims monitors his customers’ savings balances compared to the amount they should have saved for an emergency, and when they have excess funds, he has them consider other options.
“I know what their expense burn looks like and how much they should have saved,” Sims said. “Once it’s above that balance, I tell them maybe they should consider some CD ladders. We get that rolling for six months to a year. If you haven’t touched that money at that point, it might be time to invest it in the market.”
Sims encourages his customers to run a cash forecast to determine whether it’s time to move money from a savings account to one of those other savings products.
“It’s always a good practice to do a quarterly or semiannual cash forecast,” Sims said. “It helps lead you into how much money you can put aside and what your cash needs might be.”
Miller also has his customers begin forecasting to determine whether their excess funds should be moved to other deposit or investment products.
“The smaller businesses may want to use a CD,” Miller said. “As you get bigger, if they have treasury management services, they could look at the overnight market, swaps, the repo market where it sweeps in and sweeps out. Those clients require someone to really manage it for them, like a part-time CFO [chief financial officer] or a bookkeeper.”
Our methodology
To narrow down our top picks for the best business savings accounts, the Fortune Recommends team evaluated more than 20 accounts from a variety of traditional brick-and-mortar banks, online banks, fintechs, and credit unions.
All the accounts on our list are available to customers in the U.S. no matter where you’re located, subject to the terms of each account.
We ranked each business savings account in these core categories:
- APY (40%): Earning interest is one of the main reasons to open a savings account versus keeping all your funds in checking.
- Minimum to earn APY (15%): Many business savings accounts have tiered rates, so lower minimums for earning high APYs scored better on our list.
- Monthly fees (10%): The point of a savings account is to grow your money, not have it stripped away by fees.
- Minimum opening deposit (10%): Savings accounts should be accessible. Lower minimums to open an account earned a higher rating on our list.
- Security features (10%): You shouldn’t have to worry about keeping your money safe, so banks with multiple security features did better.
- Customer support (5%): We rated phone support as the most valuable but also considered email and chat options.
- Mobile app rating (5%): Real-life users’ opinions matter to us; institutions with higher-rated apps were taken into account.
- Physical ATM or debit card (5%): The more ways to access your money, the better.
Frequently asked questions
Is a business savings account taxed?
The IRS does require you to pay taxes on any interest earned for a business savings account. However, if you have a tax-deferred savings account, such as an individual retirement account (IRA), you won’t have to pay taxes right away.
What bank offers free business savings accounts?
Almost all banks offer either a free business savings account or one with a waivable monthly fee. All 10 financial institutions in our buyer’s guide, including Lili, Capital One, and Prime Alliance Bank, have either a free business savings account or one with a waivable monthly fee.
Is it worth having a business savings account?
It is worth having a savings account for three primary reasons. First, it allows you to separate reserve funds from operational funds, allowing you to save for future expenses. Second, you can set aside tax payments so those funds are not spent before your quarterly payments. Finally, you can save up for large capital purchases, which may keep you from taking out a loan.
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