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Review of Chase Bank’s CD Rates

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Chase Bank is a consumer and commercial bank operated by JPMorgan Chase & Co., an international business firm dating back to 1799 that currently has $2.6 trillion in assets and operations worldwide. Chase Bank has nearly 5,000 branches and 16,000 ATMs across the U.S., and offers a full range of financial products and services.In this article, we’ll concentrate on Chase Bank’s certificates of deposit (CDs). They can be opened at a branch or online, with terms ranging from 1 month to 120 months. And although there are multiple ways to open a Chase Bank CD, if you want to open one online, you will need to be an existing Chase Bank checking customer.

Chase Bank standard CD rates

Term

APY

Minimum Deposit to Open

1 month

0.01%

$1,000

2 months

0.01%

$1,000

3 months

0.01%

$1,000

6 months

0.01%

$1,000

9 months

0.01%

$1,000

12 months

0.01%

$1,000

15 months

0.01%

$1,000

18 months

0.01%

$1,000

21 months

0.01%

$1,000

24 months

0.01%

$1,000

30-Months

0.01%

$1,000

36 months

0.01%

$1,000

42 months

0.50%

$1,000

48 months

0.10%

$1,000

60 months

0.30%

$1,000

84 months

0.01%

$1,000

120 months

0.30%

$1,000

Chase Bank CD relationship rates

Chase Bank’s CD relationship annual percentage yields (APYs) are extended to customers who have a linked Chase Bank checking account. You can apply online, and if you use a transfer from your account to fund the CD, the account can be opened the same day. The minimum deposit is, again, $1,000. If you want to open a CD for than $1 million, you will need to visit a branch.

CD term

$1,000 - $9,999

$10K - $24,999.99

$25K - $49,999.99

$50K - $99,999.99

$100K - $249,999.99

$250K+

1 month

0.02%

0.02%

0.02%

0.02%

0.02%

0.02%

2 months

0.02%

0.02%

0.02%

0.02%

0.02%

0.02%

3 months

0.02%

0.02%

0.02%

0.02%

0.02%

0.02%

6 months

0.10%

0.20%

0.20%

0.20%

0.20%

0.20%

9 months

0.10%

0.20%

0.20%

0.20%

0.20%

0.20%

12 months

0.02%

0.02%

0.02%

0.02%

0.05%

0.05%

15 months

0.05%

0.15%

0.15%

0.15%

0.20%

0.20%

18 months

1.00%

1.00%

1.00%

1.00%

0.01%

0.01%

21 months

0.10%

0.20%

0.20%

0.20%

0.20%

0.20%

24 months

0.10%

0.20%

0.20%

0.20%

0.20%

0.20%

30 months

0.10%

0.20%

0.20%

0.20%

0.20%

0.20%

36 months

0.10%

0.20%

0.20%

0.20%

0.20%

0.20%

42 months

0.10%

0.20%

0.20%

0.20%

0.20%

0.20%

48 months

0.20%

0.20%

0.20%

0.20%

0.01%

0.01%

60 months

0.75%

1.01%

1.01%

1.01%

1.01%

1.01%

84 months

0.10%

0.20%

0.20%

0.20%

0.20%

0.20%

120 Months

0.10%

0.20%

0.20%

0.20%

0.20%

0.20%

How Chase Bank CD rates compare with those of other banks

You’ll need less money to qualify for a Chase Bank CD than you might at other banks. Chase Bank allows customers to open their CDs with a minimum deposit of $1,000, which is lower than at many other institutions. Chase Bank CDs are also open to applicants who do not bank with Chase, in contrast with the practices of some banks and credit unions that require member checking or savings accounts.

However, Chase Bank CD rates are well below the best seen on our round-up of the best CDs. You can easily find higher interest rates at other institutions, particularly for 1-year CDs. If you decide to go with Chase BAnk, look into its relationship rates for a higher APY.  Relationship rates are offered to customers who link their CDs to a Chase Bank personal checking account.

As mentioned, a minimum of $1,000 is required to open a Chase CD account, and interest is compounded daily. Depending on the term, your earned interest may be paid monthly, quarterly, semi-annually, annually — or at maturity.

Important information about Chase Bank CDs

Chase Bank CD fees

There are no monthly service fees, but there are $15 fees for inbound domestic and international wire transfers (waived if they are from another Chase Bank account) and outbound domestic wire transfer fees. Accounts can be opened online if you are an existing checking customer with Chase Bank. Deposits of more than $1,000,000 must be opened at one of its branches.

Non-Chase Bank customer access

You do not need to have a Chase Bank checking or savings account to open a standard Chase Bank CD account. You’ll need to provide a Social Security Number, driver’s license and contact information. Deposits must be made from a checking or savings account at your existing bank.

Maturity date and grace period

Law requires banks to alert consumers before the maturation date on CDs. Chase Bank considers the maturity date as the last day of the term. It offers a 10-day grace period on all CDs with terms of 14 days or longer. During the grace period, you can withdraw the funds without penalty or roll over the account to another term.

Automatically renewable CDs vs. single-maturity CDs

Account holders have the option of opening an automatically renewable or a single-maturity CD account.

With an automatically renewable CD, the account renews on the maturity date for the same term as the original one, making the new maturity date the last day of the new term. The standard rate will apply unless the owner qualifies for a relationship CD.

The single-maturity CD does not automatically renew and earns no interest following the maturity date. You may want to see if Chase Bank is offering any promotional rates during the 10-day grace period if you plan to invest in another Chase Bank CD using a ladder strategy.

Earning interest on a Chase Bank CD

Interest on Chase Bank CDs begins to accrue on the first business day of deposit into your account and is calculated on a daily balance, 365 days a year. The accrued interest can be withdrawn during the term or at maturity without incurring penalties. For maturities of more than 1 year, interest will be paid at least annually, according to the bank.  If the CD matures and automatically renews, the interest in the account is rolled over into the new principal.

Early-withdrawal penalties and fees

If you wish to withdraw money before your CD matures, Chase Bank will charge penalties. According to Chase Bank, early-withdrawal penalties are deducted from your principal and do not exceed the total amount of earned interest. The amount that is deducted is below, listed by the length of the CD:

  • Less than 6 months: 90 days of interest
  • 6 months to 24 months: 180 days of interest
  • 24 months or more: 365 days of interest

Chase Bank CD early-withdrawal penalties can be waived upon:

  • Death of a CD owner
  • Disability of a CD owner in retirement
  • Retitling/reissue of a CD
  • A court ruling that the CD owner is incompetent

Overall Review of Chase Bank’s CD products

Chase Bank’s CD rates are likely best for customers who link the CD to their personal checking accounts because they can qualify for those juicier relationship rates. The rates improve for longer terms and larger deposit amounts.

Chase Bank’s online tools allow you to apply for relationship CDs and track your investments. The minimum amount to open a standard CD account ($1,000) is on par or slightly lower than those required by other institutions.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

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Best of, Earning Interest

The Best 6-Month CD Rates in 2020

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

The top 6-month CD rates

Short-term certificate of deposit (CD) accounts offer investors a safe opportunity to squirrel away money for a future expense. If you’re looking for a brief solution for storing your cash and want to earn more interest than a typical savings account will offer, a 6 month CD can make a lot of sense. (It’s also a good place to start if you’re building a CD ladder.)

Using information from DepositAccounts.com, another LendingTree company and a database of offerings at more than 17,100 banks and credit unions, we found the five banks and five credit unions with the top 6 month CD rates. If there was a tie, we chose the institution with the smaller minimum deposit requirement. The national average APY on 6 month CDs (among banks and credit unions) is 0.853%, according to the DepositAccounts.com database. These options outperform that average by a long shot. (You may also want to view our picks for the overall best CD rates.)

Banks with the best 6-month CD rates

BankAPYMinimum deposit amount
HSBC Direct0.75%$1,000
BrioDirect1.20%$500
WebBank0.65%$2,500
My eBanc1.00%$5,000
Nationwide by Axos Bank0.40%$500

HSBC Direct — 0.75% APY, $1,000 minimum deposit

6 Month Direct CD from HSBC DirectHSBC Direct offers a true high-yield 6 Month CD, earning 0.75% APY on all balances starting at $1,000. You must fund an HSBC Direct CD with new money. Making an early withdrawal will trigger a penalty of 30 days simple interest.HSBC Direct is an online banking arm of HSBC which spans 65 countries and territories around the world. HSBC is headquartered in Tysons, Va.

SEE DETAILS Secured

on HSBC Direct’s secure website

Member FDIC

BrioDirect — 1.20% APY, $500 minimum deposit

High-Rate 9 Month CD from BrioDirect If you’re willing to wait a little longer for your CD to mature, you can open BrioDirect’s High-Rate 9-Month CD with at least $500. You’ll still snag one of the best short-term CD rates out there. BrioDirect will assess a penalty of 90 days interest whether earned or not on any early withdrawals.

BrioDirect is the online brand of Sterling National Bank, which was founded in 1888.

SEE DETAILS Secured

on BrioDirect’s secure website

FDIC Insured

WebBank — 0.65% APY, $2,500 minimum deposit

6 Month CD from WebBankWebBank offers only five CD terms, the shortest of which is its 6 Month CD which still earns at a top rate. There are no WebBank branches, so you’ll need to open the account online with at least $2,500. The early withdrawal penalty on this account equals three months’ interest.WebBank was founded in 1997 and is headquartered in Salt Lake City. It offers a savings account and several Time Deposits, its take on CDs. You can access your accounts online and over the phone.

SEE DETAILS Secured

on WebBank’s secure website

Member FDIC

My eBanc — 1.00% APY, $5,000 minimum deposit

6 Month Online Time Deposit from My eBancA high-yield 6-month Online Time Deposit at My eBanc requires an opening deposit of at least $5,000. You can easily open the account online. The account doesn’t charge any maintenance fees. However, making an early withdrawal from the 6-month CD will trigger a penalty equal to 90 days’ worth of interest.

My eBanc is a division of BAC Florida Bank of Coral Gables, Fla., which is part of The Pellas Group. The CD program, open to all foreign and domestic customers, is designated as a “BAC Internet Time Deposit.” Overseas CDs based on the euro are not insured by the FDIC.

SEE DETAILS 

Member FDIC

Nationwide by Axos Bank — 0.40% APY, $500 minimum deposit

6 Month CD from Nationwide by Axos BankSnag this competitive 6 Month CD rate from Nationwide by Axos Bank, a rate better than its longer 9-month-term counterpart. It requires at least $500 to open.
Nationwide has partnered with Axos Bank to provide Nationwide customers with a wider financial package. An entirely digital bank, Axos Bank was founded in 2000 and is headquartered in San Diego, Ca.

SEE DETAILS Secured

on Nationwide By Axos Bank’s secure website

FDIC Insured

Credit unions with the best 6-month CD rates

Credit UnionAPYMinimum deposit amount
Andrews Federal Credit Union2.05%$1,000
Keesler Federal Credit Union2.00%$1,000
Elements Financial1.85%$1,000
Partner Colorado Credit Union1.15%$25,000
Communitywide Federal Credit Union1.45%$1,000

Andrews Federal Credit Union — 2.05% APY, $1,000 minimum deposit

8 Month Certificate Special from Andrews Federal Credit Union To earn the top credit union rate, head to Andrews Federal Credit Union for its slightly longer 8-Month Share Certificate. It earns at a rate comparable to longer-term CDs and higher than the top 6-month CD rate from a bank/ You’ll need at least $1,000 to open the account either online or at an Andrews FCU branch. The early withdrawal penalty equals 90 days of dividends.

Andrews Federal Credit Union was founded in 1948 and is headquartered in Suitland, Md. It currently serves over 120,000 members worldwide. Andrews FCU membership includes residents of Washington, DC, Maryland, Virginia and New Jersey, including Joint Base Andrews and Joint Base McGuire/Dix/Lakehurst. It serves military installations abroad in central Germany, Belgium and The Netherlands. Andrews FCU also extends membership to Select Employee Groups throughout Maryland, Virginia and New Jersey.

SEE DETAILS Secured

on Andrews Federal Credit Union’s secure website

NCUA Insured

Keesler Federal Credit Union — 2.00% APY, $1,000 minimum deposit

9 Month CD Special - New Money from Keesler Federal Credit UnionCash in on this 9-month-CD special with Keesler’s second highest APY. The only deposit that will net you a higher rate is their 5-year CD. To take advantage of this promotional APY, you’ll need to fund the CD with new money.Keesler Federal is the largest credit union in Mississippi and one of the largest credit unions in the Southeast. Membership is available to employees of their 300+ select groups and their family members; military with Keesler Air Force Base or Royal Air Force Bases in the UK; as well as people who live, work, attend school or worship in specific counties/parishes in Mississippi, Louisiana and Alabama.

SEE DETAILS Secured

on Keesler Federal Credit Union’s secure website

NCUA Insured

Elements Financial — 1.85% APY, $1,000 minimum deposit

8 Month CD Special from Elements FinancialElements Financial offers this more competitive rate on its 8 Month Term Certificate Special. Like its regular certificates, it requires $1,000 to open. Upon maturity, this certificate will renew as a 6 Month Term Certificate. Careful to not make an early withdrawal from this account as you’ll lose 60 days’ dividends.Headquartered in Indianapolis, Ind., Elements Financial was established in 1930 by the management of Eli Lilly and Company. Today, membership is open to employees of over 135 partner organizations in the country.

SEE DETAILS Secured

on Elements Financial’s secure website

NCUA Insured

Partner Colorado Credit Union — 1.15% APY, $25,000 minimum deposit

6 Month Baby Jumbo CD from Partner Colorado Credit UnionPartner Colorado Credit Union’s 6 Month Baby Jumbo CD yields a higher rate for larger investment. You’ll need to deposit a minimum of $25,000 to earn interest higher than the credit union’s typical CDs.Partner Colorado caters to residents and employees in the Denver area but can be joined nationwide with a simple $5 donation to the Partner Colorado Foundation.

SEE DETAILS Secured

on Partner Colorado Credit Union’s secure website

NCUA Insured

Communitywide Federal Credit Union — 1.45% APY, $1,000 minimum deposit

6 Month Share Certificate from Communitywide Federal Credit UnionWith at least $1,000, you can open a high-yield 6-month CW Certificate Account online. The early withdrawal penalty from this account is equal to the amount withdrawn multiplied by the remaining days left in the term.

Founded as a credit union to provide quality financial services to individuals in South Bend, Ind., Communitywide Federal Credit Union has grown to offer their services to various communities within Indiana as well as the digital world.

Anyone can become a member by donating to a list of organizations including the Y.M.C.A. If you’re a member of the Michiana Goodwill Boosters or Marine Corps. League of St. Joseph Valley, you’re also eligible to become a member.

SEE DETAILS Secured

on Communitywide Federal Credit Union’s secure website

NCUA Insured

Pros and cons of using 6 month CDs

Pros:

  • The CD rates offered by banks and credit unions are generally higher than those on savings accounts.
  • The rates are fixed and guaranteed for the length of their term.
  • The discipline of keeping the funds in the CD means the money will be available upon maturity. (Note: Most banks offer a seven-day grace period to reinvest or withdraw the investment, after which the funds will roll over into a new CD. However, you are not guaranteed the same rate.)

Cons:

  • Six-month CD rates are lower than those offered on longer CD investment terms.
  • To tap into the CD funds — even for emergencies — consumers must accept a loss through penalties, which can include a percentage of the funds, a percentage of the earned interest, or a combination of both. A typical penalty on a short-term CD is between 30 and 90 days’ worth of interest earnings.
  • If you’re not confident you can do without access to the funds for six months, you may be better off putting your money in a traditional savings account, which is likely to earn less interest than a CD.
  • Since CD rollovers may reset at a different percentage rate, consumers must speak with the bank before the grace period ends to ensure they are getting the best deal.

Using a 6 month CD for laddering

A CD ladder comprises small-amount CDs with varying terms and respective interest rates that contribute to a long-term investment strategy. After the 6 month CD matures, investors can withdraw the funds for a predetermined expense. Or, they can reinvest the money into a longer-term CD with a better rate. By staggering the maturity dates on short-term CDs, consumers have access to their cash on a regular, predictable basis.

Where can you open a CD account?

Consumers can open 6 month CD accounts (or longer) from banks and credit unions. Bank and credit union CD rates are based on Federal Reserve rates, and there may be strategic times to pursue these short-term instruments following a rate increase.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

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Best of

The Best Business Savings Account Rates in 2020

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Are you looking to start or grow a business? Opening a business savings account can offer federal protection for the funds you deposit (up to $250,000) and provide a source of liquidity should inevitable expenses arise. You can earn interest while setting aside money for capital improvement or income taxes. A commercial savings account can add credibility to your business, arm you with a business debit card and help your cash flow.

The best way to choose an account that fits your needs is to start by comparing the annual percentage yield offered by banks and credit unions. Then look for benefits that might make the account attractive based on your needs. Is there a monthly maintenance fee or a minimum deposit to open? Does the bank provide ample access to ATM and online account services?

Deciding which business savings account is best for your needs can be a difficult process, but hopefully this roundup of our picks for best savings accounts will help give you a head-start.

The best business savings account rates — March 2020

Institution

APY

Minimum balance amount

First Internet Bank

1.61%

None

Live Oak Bank

1.00%

None

Digital Federal Credit Union (DCU)

0.90%

$25,000

Capital One

1.25%

None

Goldwater Bank

0.75%

$0.01

Community Bank of Pleasant Hill

0.02%

None

Axos Bank

1.06%

$25,000

Presidential Bank (Maryland)

0.50%

$5,000

Northpointe Bank

0.40%

$25,000

Andrews Federal Credit Union

0.10%

$100

Source: Deposit Accounts, March 6, 2020

1. First Internet Bank, 1.61% APY, No minimum balance, ATM services

First Internet Bank offers an FDIC-insured savings option for businesses with a good 1.61% APY on any balance amount. You only need $100 to open the account. There is no minimum balance to deposit or maintain the account to earn the APY.

While it only costs $100 to open your business savings account and you must maintain an average daily balance of $4,000 to avoid a $5 monthly maintenance fee.

Unlimited deposits can be made each month and six transfers or withdrawals are allowed without charge. Keep in mind that the FDIC only insures up to $250,000. So, if you deposit more than $250,000 into the business savings account, the excess deposit amount will not be insured by the FDIC.

The First IB ATM cards are offered to sole proprietors only. There is no charge for ATM transactions or electronic statements. Founded in 1999 by the First Internet Bancorp, First IB offers remote banking in all 50 states.

Fine print: Only six preauthorized, automatic, PC, or telephonic transfers are allowed each month. This restriction is common among most of these institutions, however, First Internet Bank will charge you $5 per item if you go beyond the allotted six.

Restrictions on joining: none.

SEE DETAILS Secured

on First Internet Bank’s secure website

Member FDIC

2. Dedicated to Businesses: Live Oak Bank, 1.00% APY, No minimum balance

Live Oak Bank awards a 1.00% APY on its business savings account, which is eight times the national average. There is no minimum opening balance or deposit required to open a business savings account.

The business savings account is open to deposits of up to $5 million and is free of monthly maintenance fees. You may make up to 6 withdrawals from your Live Oak Bank Savings account per statement cycle, including pre authorized, automatic and telephone transfers. After that there’s a $10 fee per withdrawal. Live Oak Bank, established in 2008, holds assets of $2.12 billion.

The bank is in Wilmington, N.C., and is a member of the FDIC. Learn more about business savings at Live Oak Bank.

Small Print: The bank may verify credit and employment history at its discretion, meaning you may receive a pull against your credit report.

Restrictions on joining: none.

SEE DETAILS Secured

on Live Oak Bank’s secure website

Member FDIC

3. Digital Federal Credit Union (DCU), 0.90% APY, $25,000 minimum balance

The Digital Federal Credit Union offers a solid 0.90% APY rate through its Business DCU Ltd Savings Account with a minimum $25,000 balance. This account features unlimited free deposits and no charge for the first withdrawal per month. However, withdrawals after that are $25 each.

Businesses participating in the DCU Ltd Savings Account receive 24/7 online banking, mobile banking through the DCU Mobile Banking App, access to DCU ATMs, deposits, transfers or balance verification. Created by the Digital Equipment Corporation in 1979, DCU is the largest credit union in Massachusetts by assets. Federally insured by NCUA, DCU is based in Marlborough, Mass.

Restrictions on joining: To join, you must meet eligibility requirements within the field of membership for employers, organizations, participating communities or condominium associations.

SEE DETAILS 

NCUA Insured

4. Capital One, 1.25% APY, No minimum balance

Capital One is currently offering a business savings account with a 1.25% APY. This account doesn’t have a minimum balance requirement and doesn’t come with any monthly fees.

While this account doesn’t come with ATM access, Capital One makes it easy to transfer funds to either another one of their accounts or a linked account of your choosing. You can easily set this up through their online banking platform or mobile app. Their mobile app also allows you to deposit checks. Keep in mind, however, that you’ll be limited to depositing $5,000 per month into the business savings account. You’ll also be limited to making six withdrawals per month due to Federal regulations.

Restrictions on joining: none.

SEE DETAILS Secured

on Capital One’s secure website

Member FDIC

5. Goldwater Bank, 0.75% APY, $100 minimum amount to open

Goldwater Bank is an online institution with a highly competitive rate on their business savings account. With a minimum deposit of $100, you can open their Savings Plus Business account and start earning an APY of 0.75%. Once you open the account you only need a balance of $0.01 to continue earning the APY.

Restrictions on joining: none.

LEARN MORE Secured

on Gold Water Bank’s secure website

6. Community Bank of Pleasant Hill, 0.02% APY, No minimum balance

With its 0.02% APY, the Business Premier Money Management Account at Community Bank of Pleasant Hill offers highly competitive rates to explore. You need only put down $25 to open the account and maintain a minimum balance of $10,000 to avoid a $10 monthly service charge and $4 paper statement fee.

ATM access is offered surcharge-free when using ATMs in the MoneyPass® network. Community Bank began operations on Dec. 6, 2006, and is a member of the FDIC. Members can search for partner ATMs online or through mobile access.

Fine print: Just watch out for hefty withdrawal fees. You can make free withdrawals on the second and fourth Wednesdays of the month; on other days, there’s a $25 withdrawal fee. If you plan to make regular in-person withdrawals, this probably isn’t the best account for your needs.

Restrictions on joining: none.

SEE DETAILS Secured

on Community Bank Of Pleasant Hill’s secure website

Member FDIC

7. Axos Bank: 1.06% APY, $25,000 minimum balance, ATM access

Axos Bank, formerly known as BofI Federal Bank offers one of the top APY rates in our nationwide survey of business savings accounts. The bank’s Business Premium Savings Account with a high-yield 1.06% APY can be opened with a $25,000 minimum deposit.

There is no monthly maintenance fee for the account and no average daily balance requirement.

Axos Bank also makes it easy to access your funds when you need it. Customers have ATM access to their accounts along with free online banking. However, ATM withdrawal limits are $1,010 per day and there’s a daily purchase limit of $5,000. BofI is an FDIC-insured bank based in San Diego and publicly traded online. Other products include Business Interest Checking and Business Money Market accounts.

SEE DETAILS Secured

on Axos Bank’s secure website

Member FDIC

8. Presidential Bank (Maryland), up to 0.50% APY, $5,000 to open, ATM services

Presidential Bank’s Commercial Premier Savings account offers 0.50% APY for balances up to $35,000, making it a decent — if not extraordinary — bet for business owners.

Business customers are not required to maintain a minimum balance on the account in order to receive all ATM privileges. So long as you use one of their ATMs you won’t incur fees, but there is a $0.75 ATM fee for non-network ATMs. Free online banking, mobile banking and ATM card come with the account.

Established in 1985, Presidential Online Bank was one of the first lenders to offer online banking. Located in Bethesda, Md., it currently lists assets in excess of $550 million.

Restrictions on joining: none.

LEARN MORE Secured

on Presidential Bank’s secure website

9. Northpointe Bank, 0.40% APY, $25,000 minimum balance

The Business Savings account at Northpointe Bank currently pays out 0.40% APY if you deposit and maintain a balance of $25,000. However, you only need $1,000 to open the account and you can start earning 0.20% APY with that balance. If your balance increases anywhere between $2,500 and $24,999.99, the APY will increase to 0.25%. If your balance increases to $100,000, the APY will further increase to 0.50%. There are no monthly fees with this account.

Restrictions on joining: none.

SEE DETAILS Secured

on Northpointe Bank’s secure website

Member FDIC

10. Andrews Federal Credit Union, 0.10% APY, $100 minimum balance, ATM banking

The Business Base Share Savings account at Andrews Federal Credit Union offers a 0.10% APY. You can open the account with as little as $5 and there is a $100 minimum balance requirement to earn the APY.

The account comes with free online banking, free eStatements and a debit card. Transactions are free at Andrews Federal & CO-OP ATMs. However, there is a $25 charge for withdrawals that result in overdrafts.

Founded in 1948 in Suitland, Md., Andrews Federal Credit Union has assets over $1.5 billion and offers a range of banking services to 120,000 members worldwide.

Restrictions on joining: $5 fee to join the credit union. Open to field of membership including nationwide membership eligibility through the American Consumer Council.

LEARN MORE Secured

on Andrews Federal Credit Union’s secure website

Learn more about business savings accounts

How we ranked the best business savings accounts

To come up with this list, we first used data from DepositAccounts.com, which tracks rates on a range of deposit accounts across thousands of banks in the U.S. Note: DepositAccounts is also owned by MagnifyMoney’s parent company LendingTree.com.

We eliminated any institutions that were given a health rating below a B by DepositAccounts. We also weeded out any credit unions that have very restrictive membership requirements. From there, we chose the top 10 business savings accounts with the highest APY. And lastly, all the banks on our list offer FDIC or NCUA insurance.

Business savings accounts vs personal savings accounts

Business and regular savings accounts may offer many of the same features ,such as 24/7 online banking, free electronic reporting, debit cards, fund transfers and ATM machines.

The trade-off in choosing a business account is that you’ll get services focused on business planning and spending in exchange for a less-desirable APY.

When you compare the interest earned on a business savings account with the best APY rates offered on savings accounts, it may not look like opening a business account is a wise strategy. The top business savings account APY right now is 1.40%. The top APY among personal savings accounts is 1.50% with no minimum deposit and ATM access. You can weigh the services, charges and minimum account fees between the top business and top personal savings accounts to decide which is best for you.

There are other benefits to offset any differences in earnings, particularly if your business is incorporated. It’s considered sound business practice to separate your personal saving and checking accounts from your business saving and checking accounts. A business account can help you manage cash flow, accounting, recordkeeping and working capital. At income tax time, separate accounts can help you differentiate business from personal expenses.

Paired with a business checking account, your business savings account can add professional branding, since all payments and correspondence with clients will bear your business name.

Or you can create savings in your business account to pay quarterly income taxes or purchase equipment.

Finally, business savings accounts are secure when you open accounts with banks and credit unions that are insured up to $250,000 per account by the FDIC or the NCUA.

North Shore Bank of Brookfield, Wis., says that a business savings account can boost your credit ratings and make it easier to obtain a business loan, since the lender can see you have an account dedicated to your company.

Choosing the right business savings account

When evaluating a financial institution for your business, there’s more than just finding a good APY.

Many of the banks on our Top 10 list look great on the APY front but carry fees that can eat into any of the returns you might make. Particularly, watch out for fees for ATM or bank withdrawals, monthly service fees and ATM fees.

The Small Business Administration (SBA) has identified the key factors to consider when searching for the right bank or credit union. These include:

  • Customer service reputation
  • Access to branches or no-surcharge ATMs
  • Benchmarks to have fees waived
  • Automatic FDIC insurance

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