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.
|American Heritage FCU High-Yield Business Savings||3.05% APY on balances of $10,000 and up|
|Prime Alliance Bank Business Savings||3.65% APY on balances $200,000 and up|
|Heritage Bank Business Jumbo Deposit||3.50% APY on balances $230,000 and up|
|Live Oak Bank Business Savings||3.50% APY on all balances|
|Financial Resources FCU Business Purple Savings||1.50% APY on balances $100,000 and up|
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.
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.
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.
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
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.
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:
Here are the key differences between a business savings account and a business checking account.
|Business savings||Business checking|
|Purpose||Generally 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 interest||Yes, typically||Yes, typically|
|Withdrawal limits||Generally six withdrawals or transfers per month||Unlimited|
|ATM access||Most savings accounts do not come with debit cards||Checking accounts come with debit cards|
|Insured||Yes, if the account is at a FDIC-insured bank or NCUA-insured credit union||Yes, 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.
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:
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.
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:
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.
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.
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).