Best Business Savings Account Rates in November 2022 - MagnifyMoney
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Best Business Savings Account Rates in November 2022

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As a business owner, you can maximize and protect profits by opening a business savings account. A great business savings account should be with an insured financial institution and offer interest with little to no fees — plus provide any other needs your business calls for.

To get you started, we’ve compiled the best business savings accounts by annual percentage yield (APY). Read our methodology to learn how we narrowed it down to these top five accounts.

Best business savings account rates in November 2022

Bank accountAPY
American Heritage FCU High-Yield Business Savings3.05% APY on balances of $10,000 and up
Prime Alliance Bank Business Savings3.65% APY on balances $200,000 and up
Heritage Bank Business Jumbo Deposit3.50% APY on balances $230,000 and up
Live Oak Bank Business Savings3.50% APY on all balances
Financial Resources FCU Business Purple Savings1.50% APY on balances $100,000 and up

1. American Heritage FCU High-Yield Business Savings

SEE DETAILS

on American Heritage Federal Credit Union’s secure website

NCUA Insured

  • APY: 3.05% APY on balances of $10,000 and up
  • Minimum balance to open: $10,000
  • Monthly fee: $10 (waivable)
  • Restrictions to joining: Donate to Kids-N-Hope Foundation

American Heritage FCU’s High Yield Business Savings requires a higher minimum balance, but if you’re able to maintain that daily balance, you won’t have to pay a monthly fee.

Unlike most business savings accounts, which allow up to six fee-free withdrawals per month, this account is limited to one withdrawal per month –– with a $25 fee for each extra transaction. You’ll have to consider if that’s too restrictive for your business.

The credit union offers several deposit accounts, small business loans and credit cards, as well as merchant and payroll services, investing services, eDeposit scanner services and ACH origination services. Through the bank’s mobile app, the credit union also offers a unique financial advisory service called VANA (Video Advisor Network Associates).

Becoming a member is simple: make a donation to the Kids-N-Hope Foundation and deposit $15 in a Share Savings account.

2. Prime Alliance Bank Business Savings

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on Prime Alliance Bank’s secure website

Member FDIC

  • APY: 3.65% on balances $200,000 and up
  • Minimum balance to open: None
  • Monthly fee: $0
  • Restrictions to joining: None

At Prime Alliance Bank, business savings account rates range from 2.70% APY on balances below $100,000 to 3.65% APY on balances $200,000 and above. Interest is compounded daily and credited to your account quarterly.

Business owners can access online and mobile banking and deposit checks using the mobile app for free. There is no limit on deposits, but the bank does enforce a six withdrawal or transfer limit per month. So, it’s important to stay aware of the $25 fee if you exceed this limit.

Prime Alliance Bank has a single location in Woods Cross, Utah, but it serves customers nationwide via a network of over 100,000 ATMs. To open their business savings account, you need to email the bank directly.

3. Heritage Bank Business Jumbo Deposit Account

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on Heritage Bank’s secure website

Member FDIC

  • APY: 3.50% APY on balances $230,000 and up
  • Minimum balance to open: $1,000
  • Monthly fee: $15 (waivable)
  • Restrictions to joining: None

Heritage Bank’s jumbo business savings account may be the right choice if you’re planning on a heftier balance. For a high balance of $230,000 or more, you’ll receive the 3.50% APY, but if your balance falls below that but stays above $100,000, you’ll still earn APY.

This business account is online only and does not come with checks or debit cards. There is a limit of six withdrawals per month, with a $30 fee if you exceed it. You’ll receive one free outgoing domestic wire transfer per month (another $30 if you go over), but you do get free, unlimited incoming domestic wires.

Heritage Bank has business loans for equipment and commercial real estate, and lines of credit for operational expenses, working capital and cash flow management. The bank’s Partnership Buy-In Program allows a business to expedite a partnership by financing up to 100% of the buy-in amount.

Although the bank only has physical branches across Minnesota, Iowa and South Dakota, you can apply for a jumbo deposit account (and most of their accounts) online.

4. Live Oak Bank Business Savings

SEE DETAILS

on Live Oak Bank’s secure website

Member FDIC

  • APY: 3.50% on all balances
  • Minimum balance to open: None
  • Monthly fee: $0
  • Restrictions to joining: None

In addition to its business savings and checking accounts, small business owners may be interested in Live Oak Bank’s selection of small business loans and competitive certificates of deposit (CD) rates. The bank has a network of over 55,000 in-network ATMs.

With its business savings account, Live Oak Bank doesn’t accept cash deposits and enforces the six withdrawal or transfer monthly limit. Any transactions after the threshold will cost $10. This account charges fees for stop payments, returned items, nonsufficient funds, outgoing wires and dormant accounts.

Live Oak Bank is an online bank that serves customers nationwide. In 2021, the bank was listed by the U.S. Small Business Association (SBA) as a #1 SBA 7(a) lender by dollar volume in the U.S. and is considered a leading USDA B&I lender by the U.S. Department of Agriculture (USDA) Rural Development.

You can apply for your Live Oak business savings account online by providing certain business and personal information

5. Financial Resources FCU Business Purple Savings

SEE DETAILS

on Financial Resources Federal Credit Union’s secure website

NCUA Insured

  • APY: 1.50% on balances $100,000 and up
  • Minimum balance to open: $25
  • Monthly fee: $10 (waivable)
  • Restrictions to joining: Join the American Consumer Council

The Business Purple Savings account at Financial Resources Federal Credit Union earns you a decent APY when you maintain a balance of $100,000 and up. For balances below that, you can earn anywhere from 0.60% to 1.21% APY — still high above the national average for savings accounts. The monthly fee is waivable if you keep your average monthly balance above $250.

To open the Business Purple Savings, you’ll have to first pay a low fee of $10 to open a Financial Resources Membership savings account in the business’ name.

The credit union offers small business and real estate loans, lines of credit, equipment financing, business CDs and checking accounts. And you’ll be able to register for the credit union’s business online and mobile banking, which gives you the ability to add third-party access and authority levels.

There are several ways to join the Financial Resources Credit Union, but anyone can become a member by joining the American Consumer Council (ACC). Call the credit union to set up your Business Purple Savings account.

Business savings accounts vs. personal savings accounts

The main difference between a business savings account and a personal savings account is that you’ll likely get a lower APY on business accounts compared with higher rates for personal savings accounts. The tradeoff is that business accounts often come with services catered toward business spending, saving and borrowing.

When you keep your business savings separate from your personal savings, it’s easier to:

  • Protect your personal assets (if your business can’t cover debts)
  • Protect your business’s credit score (if your personal finances suffer)
  • Prepare for tax season
  • Maintain a clear view of your business expenditures
  • Create more realistic budgets
  • Get approved for business loans or lines of credit

Business savings accounts vs. business checking accounts

Here are the key differences between a business savings account and a business checking account.

Business savingsBusiness checking
PurposeGenerally used for storing funds (often for business expansion, emergencies and large investments)Generally used for day-to-day transactions (payroll, bills, buying business equipment purchases, etc.)
Earns interestYes, typicallyYes, typically
Withdrawal limitsGenerally six withdrawals or transfers per monthUnlimited
ATM accessMost savings accounts do not come with debit cardsChecking accounts come with debit cards
InsuredYes, if the account is at a FDIC-insured bank or NCUA-insured credit unionYes, if the account is at a FDIC-insured bank or NCUA-insured credit union

Tip: Pair your business savings with a solid business checking account so that you can automatically transfer money between them according to your business needs.

What to look for in a business savings account

Choose a business account with a high APY so you can make the most of your earnings –– but pay attention to fees. Some banks may offer a great APY, but also charge high fees, which can eat into your return.

Prioritize these business account features:

  • Low fees: Ideally, your business savings account has low or no fees, including monthly maintenance fees. If they do have fees, check if they’re easily waivable.
  • High APY: When comparing interest rates, choose a rate above the current national average for savings accounts.
  • Reasonable minimum opening deposit: Be sure you have enough set aside when the time comes to make your opening deposit.
  • Minimum balance requirement: Make sure the required daily balance or monthly fee is sustainable for your business.
  • Wide ATM access: Most savings accounts do not come with a debit card, but you may get lucky. This is a great perk.
  • Business services and tools: You may come across banks that offer merchant services and SBA loans, which could set one account apart from another.
  • Online banking: Online and mobile banking is a crucial money management tool for business owners.
  • Linked checking account: Linking your business savings to your checking can help you avoid overdraft fees.
  • Bonus or introductory offers: You may get lucky and happen upon a welcome bonus or intro APY offer on a business account.

Tip: Having multiple business accounts can be a lot to juggle, but it may be worth it to keep finances organized, build credibility, increase security and seize opportunities and benefits across various banks.

How to open a business savings account

Open an account by applying online or in person. You’ll need to provide both personal and business proof of identification. Other requirements may vary by bank and the type of business, but typically, you’ll need:

  • Business name and address
  • Your contact information
  • Personal identification (driver’s license)
  • Your business license
  • Employer Identification Number (EIN) (or Social Security number if you’re a sole proprietor)
  • Your business’s formation documents
  • Ownership agreements

Once you’ve submitted your application either online or in person and provided the correct documentation, your account will likely be ready within 24 hours.

Frequently asked questions

It’s not required, but a business savings account can help you save for future emergencies, tax season and expansion. Keeping your business and personal savings separate will help you protect your assets and maintain credibility.

Yes, business savings accounts can earn interest. However, you’ll likely see lower rates on business savings accounts compared with personal savings accounts.

How much you should keep in your business savings account depends on your business, but typically you should aim to save around 10% of your monthly profits.

Methodology: How we chose the best business savings accounts

To curate a list of the best business savings account rates, we reviewed accounts from our sister site DepositAccounts, financial websites and other sources. We then ranked the top five business savings accounts based on annual percentage yield (APY). Each account is available across the United States and insured by the Federal Deposit Insurance Committee (FDIC) or the National Credit Union Administration (NCUA).