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The Best Checking Account Bonus Offers of April 2021

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

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Check out the best checking account bonus offers — and what to look out for — below, ranked by bonus amount. Be sure to pay attention to expiration dates, as these offers don’t last forever.

It’s easy to stick with the same bank your whole life. If you’re not rate-chasing for the best deals out there, all you really need from an account is convenient access to your money to get by each day. Banks realize that it’s easy to stay put, too. So in an attempt to gain some new customers, banks can offer hundred- or thousand-dollar bonus offers on checking accounts.

The best checking account bonus offers of April 2021

BankMinimum deposit to earn bonusWhen the deal expires
HSBC - Up to $450 bonus$5,0006/30/2021
PNC Bank - Up to $400 bonus$5,0006/30/2021
TD Bank - $300 bonus$2,500No expiration date
BBVA — $200 bonus$5004/26/2021
Huntington Bank - $200 bonus$1,0007/7/2021
Chase - $225 bonusN/A7/14/2021
Huntington Bank - $150 bonus$1,0007/7/2021
TD Bank - $150 bonus$500No expiration date

Looking for a new checking account? Take a look at the offers below

Terms apply

HSBC — $450 bonus with $5,000 minimum deposit

Offer ends 6/30/2021

Offer rules: To earn this $450 bonus, open an HSBC Premier Checking account and make recurring direct deposits totaling at least $5,000 for three consecutive consecutive calendar months from the second full calendar month after account opening.

Who’s eligible: You must be a new HSBC customer to take advantage of this offer and fund the new account with new money. This means money not already held with HSBC.

Account details: The Premier Checking account earns 0.01% APY on balances of $5 or more. An HSBC Premier relationship costs $50 per month. You can waive the fee by keeping a combined balance of at least $75,000 in qualifying deposit and investment accounts; monthly recurring direct deposits totaling at least $5,000 to an HSBC Premier checking account; or with an HSBC U.S. residential mortgage loan of at least $500,000.

SEE DETAILS Secured

on HSBC’s secure website

PNC Bank — Up to $400 bonus, with direct deposits of $5,000

Offer ends 6/30/2021

Offer rules: PNC offers three different chances to earn a cash bonus with Virtual Wallet. You can earn a $400 bonus when you open a new Virtual Wallet with Performance Select and receive direct deposits totaling at least $5,000. You can earn $200 if you open a new Virtual Wallet with Performance Spend account and make at least $2,000 in total direct deposits. Finally, you can earn a $50 bonus if you open a new Virtual Wallet and make $500 in direct deposits.

You can only earn one bonus, depending on the account you open. Your qualifying direct deposit(s) must be made within the first 60 days. Direct deposits can be from a paycheck, pension, Social Security or other regular monthly income from an employer or an outside agency.

Who’s eligible: You must be a new PNC customer to qualify for this offer. This means you must not own an existing PNC Bank consumer checking account, have closed an account within the past 90 days or have been paid a promotional premium in the past 12 months.

To redeem this bonus, open the new checking account via the bonus page or at a PNC branch.

The account: The Performance Select offers various banking perks like free non-PNC ATM use and ATM surcharge reimbursement. The account’s checking aspects earn 0.01% interest. Its long-term savings account earns APY as well, unless you qualify for higher relationship rates. There is a $25 waivable fee.

The Performance Spend also pays 0.01% interest on its checking account for balances of $2,000 or more, in addition to its savings account, which earns 0.01% APY. There is the opportunity to earn at higher relationship rates. Performance Spend charges a $15 waivable fee.

Virtual Wallet includes a primary checking account, which does not earn interest, a short-term, interest-earning checking account at 0.01% APY and a long-term savings account, again with the opportunity for relationship rates. There is a $7 waivable monthly fee.

SEE DETAILS Secured

on PNC Bank’s secure website

TD Bank — $300 bonus with $2,500 minimum direct deposits

No expiration date

Offer rules: You can earn a $300 bonus when you open a new TD Beyond Checking account. The account needs to receive direct deposits of at least $2,500 within 60 days of opening to qualify. The direct deposit must be from your paycheck, pension or government benefits from your employer or the government.

Who’s eligible: To qualify for this checking account bonus offer, you must be a new TD Bank customer, without any previous or current TD Bank personal checking accounts. You must also open the account through this web page. You cannot redeem the offer if you’re a Canadian cross-border banking customer.

Account details: The TD Beyond Checking account earns interest on all balances. Higher balances have the chance to get a slight rate boost, but all rates are still pretty minimal. Account holders can access non-TD ATMs without a TD fee and receive reimbursement for other ATM surcharges with a minimum daily balance of $2,500. The account also includes a free standard checks, money orders, stop payments, paper statements and incoming wire transfers.

The account charges a $25 monthly maintenance fee. However, you can waive the fee when you receive monthly direct deposits of $5,000 or more, maintain a minimum daily balance of $2,500 or maintain a combined balance of $25,000 across eligible TD accounts.

BBVA — $200 bonus with $500 minimum direct deposit

Offer ends 4/26/2021

Offer rules: You can earn a $200 bonus after opening a BBVA Free Checking account and receiving a direct deposit of at least $500 by June 30, 2021. Increase that bonus to $250 if you open a BBVA savings account and have a savings balance of at least $1000 by August 31, 2021.

Who’s eligible: You must be a resident of Alabama, Arizona, California, Colorado, Florida, Texas, or New Mexico to qualify for this offer. You must also be a new BBVA consumer checking customer who has not had an account closed due to a negative account balance or had a BBVA consumer checking account balance in the last 36 months.

Account details: The BBVA Free Checking account has full-service features, including no ATM fees at BBVA USA ATMs, free online and mobile banking, a Visa Debit Card with cash back rewards, no monthly service charge, and an opening deposit requirement of just $25.

SEE DETAILS Secured

on BBVA’s secure website

Member FDIC

Huntington — $200 bonus with $1,000 cumulative deposits

Offer ends 7/7/2021

Offer rules: You can benefit from a $200 bonus by opening a Huntington 5 checking account. To earn the reward, you must make cumulative deposits of at least $1,000 within 60 days of account opening and keep your account open for at least 90 days.

Who’s eligible: You must be a resident of Illinois, Indiana, Kentucky, Michigan, Ohio, Pennsylvania or West Virginia to qualify for this bonus offer. You must also be a new Huntington checking customer who hasn’t closed a checking account within the last six months.

You’ll need to fund this new account with money not currently on deposit with Huntington. You cannot combine this offer with another checking offer.

You can redeem the offer by applying either online at the link below or through a code found online to bring to your local branch.

Account details: The Huntington 5 Checking account earns at a modest 0.05% APY. There is a small $5 monthly fee that you can waive with at least $5,000 in total relationship balances, which includes other Huntington deposit and investment accounts.

SEE DETAILS Secured

on Huntington National Bank’s secure website

Chase — $225 bonus with direct deposit

Offer ends 7/14/2021

Offer rules: When you open a new Chase Total Checking account you can get a bonus of $225 but the direct deposit needs to be made to the account within 90 days of coupon enrollment. This can be your paycheck, pension or government benefits.

Who’s eligible: You cannot open a new account with the checking account bonus offer if you already have a Chase checking account. The offer also doesn’t apply to those with fiduciary accounts, who have had accounts closed within the last 90 days or closed with a negative balance.

Account details: Chase Total Checking is the bank’s most popular checking account out of its three checking options. It’s also the most basic and straightforward without any added perks or features. It charges a $12 monthly service fee that you can waive with either direct deposits of at least $500, a minimum daily balance of at least $1,500 or an average daily balance of at least $5,000 in combined linked qualifying Chase checking, savings and other balances.

LEARN MORE Secured

on Chase Bank’s secure website

Huntington — $150 bonus with $1,000 cumulative deposits

Offer ends 7/7/2021

Offer rules: If the Huntington 5 Checking account above isn’t for you, consider snagging a $150 bonus with a new Asterisk-Free Checking account. Again, you have to make deposits totaling at least $1,000 within 60 days after account opening and keep the account open for at least 90 days.

Who’s eligible: Only residents of Illinois, Indiana, Kentucky, Michigan, Ohio, Pennsylvania or West Virginia are eligible for this bonus offer. Additionally, only new checking account customers may qualify, which excludes anyone affiliated with a Huntington checking account within the last six months.

Once you open the new Asterisk-Free Checking account, it must be funded with new money not already held with Huntington. Redeem the offer by applying either online or through a code found online to bring to your local branch.

Account details: The Asterisk-Free Checking account is the more basic of Huntington’s checking offerings. It does not charge a monthly fee, earn interest or have a minimum balance requirement.

SEE DETAILS Secured

on Huntington National Bank’s secure website

TD Bank — $150 bonus with $500 in direct deposits

No expiration date

Offer rules: If the TD Bank Beyond Checking account above isn’t quite your style, you can still earn $150 when you open a new TD Convenience Checking (SM) account. You’ll also have to make at least $500 in cumulative direct deposits within 60 days after opening to qualify for the offer. The direct deposits can be a paycheck, pension or government benefits from your employer or the government.

Who’s eligible: This offer is open only to new TD Bank customers without any previous or current TD Bank personal checking accounts.

The account: The TD Convenience Checking account doesn’t earn interest. It charges a $15 monthly fee that you can waive by maintaining a $100 daily balance or if you’re aged 17 to 23.

SEE DETAILS Secured

on TD Bank’s secure website

Member FDIC

Bonus offers selection methodology

The best checking account bonus offers are the ones with the biggest cash amounts we could find at the time of publishing. Below, we’ll detail each of the best checking account bonus offers. You’ll find out whether it’s available in your area and what the requirements you have to meet to earn the bonus.

You might also want to read more about what each account is like on its own. For example, you might want to snag the highest bonus, but what if the account normally charges a monthly fee that you can’t afford? Check it all out below.

5 things to watch out for with checking account bonus offers

#1 Checking account bonus offers aren’t entirely “no-strings-attached.” You can see above the various requirements you typically have to meet to earn a bonus, whether that’s meeting a minimum deposit amount or completing a certain number of direct deposits. But there’s often more to checking account bonus offers than what meets the eye.

#2 Banks report bonus payouts as interest to the IRS. In the year you receive your bonus, you’ll also receive a 1099-INT form, indicating you need to file the “income” in your taxes for that year. This lessens the total reward you gain from the checking account bonus offer. The exact amount deducted will depend on your tax bracket, but the higher the bracket, the smaller your final bonus.

#3 Banks may pull a credit check and a ChexSystem verification report when you apply for an account. This allows them to check for a history of good account standing, or, to the opposite, any dings in your financial history, like a trail of unpaid fees or bounced checks. Even if you have nothing to hide, a hard inquiry into your credit can temporarily dip your score just a little, so if you’re just opening one account, the effect won’t be catastrophic. However, if you’re opening multiple new accounts within quick succession, your credit score can take a hit.

Opening several accounts can also appear in a ChexSystem report. Whenever a bank pulls a ChexSystems report, it shows up as an inquiry. While this doesn’t ding your credit score or financial history, it may hurt your chances at a new account if a bank sees all those recent inquiries.

#4 You need to keep the account open for at least a few months. If you thought you could quickly open an account, collect your checking account bonus and close the account before moving onto the next one, we’re here to tell you that’s not how it works. Remember all those requirements you need to meet to redeem the offer? Not only is there a minimum deposit requirement, but you also need to keep your balance above that minimum for a certain number of days, typically 60.

Even after waiting two months to fully qualify, you may not see the bonus deposit into your account until months later. For example, Citi will deposit your bonus into the qualified account 90 days after you complete all the required activities. You may need to wait even longer if there are delays in depositing your reward. If that does happen, though, contact customer service to see what the delay might be.

You could also lose your bonus rewards if you close the new account within a certain time period. For example, Chase will deduct the checking account bonus amount from your account at closing if you close the account six months after opening with the bonus offer. This protects banks from paying out too many bonuses without getting any new account deposits in return.

#5 Finally, make sure you’re opening your new account the right way. To snag a checking account bonus offer, you often need to start your application through the right webpage. Other banks may require you to visit a branch to redeem the offer. Pay attention to the specific bank and account requirements; otherwise, you could find yourself with a new checking account, just without a bonus.

Think beyond the bonus offer when committing to a checking account

Although it’s tempting, you shouldn’t open new accounts left and right just for a checking account bonus offer. Once you snag that bonus, you’re stuck with an entirely new checking account. You should make sure that you’re comfortable enough with the account to make chasing the bonus worthwhile.

Pay attention to the account’s fees. Banks are quick to advertise the checking account bonus offer and the account’s many benefits. But make sure you also look for the account’s monthly maintenance fee. Once you open that account, you’ll be responsible for paying that fee each month. Plus, don’t forget that it takes months to meet the offer requirements in the first place, and another few months for the bonus to be deposited into your account. Paying that fee over those months can really add up, cutting into the total bonus you’ll actually receive. No one wants to be trapped paying an unnecessary and high fee that could have been avoided.

If you do choose to close your new account, whether before or after snagging the bonus, you’ll likely face a fee for closing it early. Paying this fee certainly isn’t worth it if you didn’t earn the bonus. But even if you do earn those extra dollars, paying any fee lessens the total reward you could have received. Some banks may also deduct the checking account bonus amount from your account if you close it too early, leaving you with zero net gain.

Make sure you can meet an account’s minimum balance. You can often waive an account’s monthly fee by meeting further requirements, typically a minimum balance. These can reach pretty high, though, especially when accounts have several features and perks. These accounts also tend to offer higher bonuses, so be careful if you’re looking solely for the highest bonus.

Instead, look for the checking account bonus offers that require lower balances to qualify. These accounts tend to charge smaller monthly fees. Even better, look for an account that doesn’t charge a monthly service fee, no matter your balance.

The accounts with high bonuses may not be the most favorable ones. Banks create these checking account bonus offers to invite consumers to become a customer. But perhaps there’s a reason why not too many new customers are opening these accounts. If you take a look at the accounts above, you’ll see they’re all from brick-and-mortar banks. They all charge monthly fees and can require sky-high balances to waive those fees. Those that earn interest only earn at the most minimal rates. These accounts, while appealing in the short-term for their bonuses, may not be the most beneficial in the long run for your finances. You should invest in accounts that grow and save you money.

Analysis: Checking account bonus offers holding steady

Key findings

  • According to a biyearly analysis of DepositAccounts blog posts dating back to 2014, bonus offers for opening checking accounts have held steady in recent years. In both 2018 and 2020, we estimate the average bonus offer provided an annualized rate of return of 10.9%.
  • The average minimum deposit to earn a bonus saw a dip from 2018 to 2020. In 2018, the average offer required $23,333 in deposits to unlock a bonus after opening an account. In 2020, that figure dropped by almost $10,000 to $13,540. Over the same period, average bonus offer amounts have also trended downward.
  • Looking back biennially, 2016 had the best average checking account bonus offers available. That year, the annualized rate of return on bonus offers was an estimated 42.2%, which was tied to a few generous offers. For example, one bank offered a $150 checking account bonus for opening an account and making a direct deposit of $500 within 60 days. That equates to an annualized return rate of 393%.
  • The average time frame to earn a bonus offer has remained relatively steady since 2014, but it saw an increase from 2018 to 2020. Here are the time frames going back biennially to 2014:
    • 2020: 75 days
    • 2018: 60 days
    • 2016: 68 days
    • 2014: 70 days

Methodology

MagnifyMoney researchers compiled data from an assortment of DepositAccounts blog posts reporting on checking account bonus offers to track how these have changed. We focused on biyearly data, looking at 2014, 2016, 2018 and 2020. We gathered data on the average:

  • Bonus offer amount
  • Minimum deposit to earn bonus
  • Time frame (in days) to earn bonus

We combined these figures to estimate an annualized rate of return. These offers were only available on a one-time basis, so check above for details on the latest bonuses.

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The Best Business Savings Account Rates in 2021

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

Written By

Reviewed By

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 (APY) 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 — April 2021

Source: Deposit Accounts, April 09, 2021

1. Live Oak Bank — 0.60% APY, $0.01 minimum balance to earn APY

Live Oak Bank awards a 0.60% APY on its business savings account. 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 preauthorized, automatic and telephone transfers. After that there’s a $10 fee per withdrawal. Live Oak Bank was established in 2008.

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

2. Axos Bank — 0.50% APY, $24,000 minimum to earn APY

Axos Bank, formerly known as Bank of Internet USA, 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 0.50% APY can be opened with a $25,000 minimum deposit. While this account requires no minimum balance, interest is only doled out on funds of $24,000 and up. If you have less than that to keep in your account, you’ll want to go with their regular business savings account instead, which currently offers the same rate.

Axos Bank also makes it easy to access your funds when you need them. Customers have free online and mobile banking and remote deposit from anywhere as well as free image statements. Axos is an FDIC-insured bank based in San Diego. Other products it offers include business interest checking, CDs and money market accounts.

Restrictions on joining: none.

SEE DETAILS Secured

on Axos Bank’s secure website

Member FDIC

3. Presidential Bank (Maryland) — up to 0.50% APY, no minimum to earn APY

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. Any amount above $35,000 will earn you 0.25%. You’ll need to open your account with a minimum of $5,000.

Business customers are not required to maintain a minimum balance on the account in order to receive all ATM privileges. You won’t incur an ATM fee if you use an Accel, Allpoint, Cirrus, MoneyPass or Visa location. 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.

Restrictions on joining: none.

SEE DETAILS Secured

on Presidential Bank (MD)’s secure website

Member FDIC

4. First Internet Bank — 0.40% APY, no minimum to earn APY

First Internet Bank offers an FDIC-insured savings option for businesses with a good 0.40% APY on any balance up to $10 million. 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, you must maintain an average daily balance of $1,000 to avoid a $2 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.

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

5. Financial Resources Federal Credit Union — 0.40% APY, $10,000 minimum to earn APY

Financial Resources Federal Credit Union offers a premium tiered rate account, dubbed its Business Purple Savings account. The sweet spot of this account applies to balances between $10,000 and $49,999, which rewards you with an APY of 0.40%. The rates for all of the tiers are as follows:

  • $0 – $499: 0.05%
  • $500 – $9,999: 0.35%
  • $10,000 – $49,999: 0.40%
  • $50,000 – $99,999: 0.50%
  • $100,000 and more: 0.60%

This account requires a Financial Resources Membership Savings account in the name of your business, with a minimum balance of $10.

Restrictions on joining: To join, you must also join the American Consumer Council or meet other eligibility requirements.

SEE DETAILS Secured

on Financial Resources Federal Credit Union’s secure website

NCUA Insured

6. Premier America Credit Union — 0.30% APY, $0.01 minimum to earn APY

Premier America Credit Union is currently offering an attractive rate of 0.30% on its Business Savings account. There is a required minimum deposit of $250 associated with this account. There are no minimum or maximum limits listed.

Premier America Credit Union has physical branches in California and Texas, but offers its products and services nationwide online.

Restrictions on joining: To join, you must also join the Thousand Oaks Alliance for the Arts or meet other eligibility requirements.

SEE DETAILS Secured

on Premier America Credit Union’s secure website

NCUA Insured

7. Prime Alliance Bank — 0.25% APY, $1 minimum to earn APY

Prime Alliance Bank is currently offering a competitive APY of 0.25% for balances starting at just $1 for its Business Savings Account. If you have more cash to stash, though, you’ll be rewarded with an even higher APY. Balances between $100,000 and $199,999 earn an APY of 0.45% while balances of $200,000 or more earn an APY of 0.60%.

The Business Savings Account does not require any minimum balances to maintain the account (but you’ll want to have at least $1 in the account to keep earning), and it does not have any monthly maintenance fees. Additionally, Prime Alliance offers unlimited deposits and up to six transfers or withdrawals per month.

Restrictions on joining: none.

SEE DETAILS Secured

on Prime Alliance Bank’s secure website

Member FDIC

8. TAB Bank — 0.25% APY, $1 minimum to earn APY

TAB Bank’s Business Savings account is currently featuring a decent APY of 0.25% with a low minimum deposit of just $25, and a low $1 minimum daily balance required to earn the APY. There is no maximum limit listed for its Business Savings account.

TAB Bank is based in Ogden, Utah, but offers its services and products to consumers nationwide online.

Restrictions to joining: None.

SEE DETAILS Secured

on TAB Bank’s secure website

Member FDIC

9. Service Credit Union — 0.25% APY, $50 minimum to earn APY

Currently, Service Credit Union is offering an 0.25% APY on funds in its Business Savings account, as long as you maintain a daily balance of at least $50. Additionally, Service Credit Union offers a Business Secondary Savings account, also with a 0.25% APY, if you want to save for multiple savings goals at the same time.

There are no monthly fees on either savings account. Both accounts also offer online banking and remote deposits. The credit union, located in New Hampshire, was established in 1957 to support military personnel.

Restrictions to joining: You will need to join the American Consumer Council if you don’t qualify through the military, Department of Defense or a select employee group If you use the code “Service,” the council membership won’t cost you anything.

SEE DETAILS Secured

on Service Credit Union’s secure website

NCUA Insured

10. First National Community Bank — 0.25% APY, $25,000 to earn APY

Like another institution on our list, First National Community Bank’s Wise Savings account (available to both consumers and businesses) breaks its rates down into tiers based on the amount in your account. To score the rate listed in our table, you’ll need to deposit at least $25,000. If you have more or less to sock away, here’s how much you’ll earn:

  • $0.01-$24,999: 0.12%
  • $25,000-$49,999: 0.25%
  • $50,000-$74,999: 0.34%
  • $75,000-$149,999: 0.43%
  • $150,000 and more: 0.51%

You’ll also owe a $1 monthly maintenance fee if your account falls under $50, but this shouldn’t be a problem because of the minimum required to earn our listed rate.

First National was founded in New Richmond, Wisconsin, in 1919.

Restrictions on joining: None

SEE DETAILS Secured

on First National Community Bank’s secure website

FDIC Insured

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 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 0.60%. The top APY among personal savings accounts is 0.70% 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, record keeping 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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The Best IRA Savings Accounts

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

Written By

Reviewed By

Saving enough for retirement remains a daunting goal for many Americans. A 2018 survey by financial services company Northwestern Mutual found 41% of respondents worried about their retirement savings. Individual retirement accounts (IRAs) can help keep your blood pressure down by providing you with a powerful savings tool for retirement with significant tax advantages.

While you may associate IRAs with investing in stocks and bonds, one of the safest places to open an IRA is with a bank or credit union in the form of a savings or money market account. The list of IRA savings accounts below are the best for earning a high interest rate on your savings while keeping your future nest egg secure.

The top 10 IRA savings accounts of April 2021

Account

Minimum opening deposit

APY

Patelco Federal Credit Union Money Market Select IRA (Traditional, Roth, CESA)

$0

2.00%

Premier Members Credit Union IRA Money Market Account (Traditional, Roth)

$5

2.00%

All America Bank

$100

0.85%

Connexus Credit Union IRA Savings (Traditional, Roth, CESA)

$0

0.75%

Signature Federal Credit Union IRA Savings (Traditional, Roth, CESA)

$0

0.70%

CommunityWide FCU IRA

$2,000

0.60%

Latino Community Credit Union IRA Share Account (Traditional, Roth, SEP)

$25

0.60%

Alliant Credit Union IRA Savings (Traditional, Roth, SEP)

$0

0.55%

Ally Bank IRA Online Savings Account (Traditional, Roth, SEP)

$0

0.50%

Lake Michigan Credit Union (Traditional, Roth)

$5

0.50%

Patelco Federal Credit Union Money Market Select IRA (Traditional, Roth, CESA) — APY 2.00%, no minimum deposit

Patelco Federal Credit Union’s rate is dependent on the size of your deposit. This APY decreases the more money you have invested; the rate begins dropping after $2,000. Patelco is based in California, and you’re eligible to join if you live, attend school or worship in certain California communities. Students at a few universities also qualify, as do employees of one of their member companies and associations. If none of these apply to you, you can also join by becoming a member of the nonprofit Financial Fitness Association, and your first year is on the credit union.

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on Patelco Credit Union’s secure website

NCUA Insured

Premier Members Credit Union IRA Money Market Account (Traditional, Roth) — APY 2.00%, $5 minimum deposit

Premier Members Credit Union is the merged company formed by two well-established credit unions: Boulder Valley Credit Union and Premier Members Federal Credit Union. It caters to residents of Colorado, but you can also join through their affiliation with Boulder Valley School District’s charity Impact on Education. It’s worth noting that you’ll only earn this high APY on your first $2,000. After that, the rate drops down in tiers.

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on Premier Members Credit Union’s secure website

NCUA Insured

All America Bank Variable IRA — APY 0.85%, $100 minimum deposit

This Oklahoma-based bank makes its accounts available to anyone by calling, and those looking for an IRA savings account earning a high APY should take a look. While this bank doesn’t offer some of the more specialized IRAs that others do, All America Bank provides the tried-and-true traditional and Roth IRAs for a modest minimum deposit of $100.

Connexus Credit Union IRA Savings — APY 0.75%, no minimum deposit

Membership at Connexus Credit Union is open to employees, retirees, students and alumni of a small list of groups, as are their family members. Residents of a few communities are also eligible. But for everyone else, all you need to do to join is make a $5 donation to the Connexus Association.

Connexus offers traditional and Roth IRAs. There’s no minimum opening deposit needed to secure this rate on balances up to $2,000, but the more you have to contribute, the more you’ll earn. In fact, any balances over $2,000 will get you a rate that would come in third on this top 10 list.

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on Connex Credit Union’s secure website

Signature Federal Credit Union IRA Savings — 0.70% APY, no minimum deposit

Membership in the American Consumer Council qualifies you to join up with this Virginia-based credit union, which offers Traditional, Roth and CESA IRAs. The barrier to funding these IRAs couldn’t be lower—there’s no minimum deposit required, meaning you could open an IRA savings account with the change you find under a couch cushion (though we recommend trying to save more for your retirement). The APY should also entice you, as the interest earned starts to rapidly drop off the further you get down this list.

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on Signature Federal Credit Union’s secure website

NCUA Insured

CommunityWide Federal Credit Union IRA — 0.60% APY, $2,000 minimum deposit

Anyone can become a member of Communitywide FCU by joining the Michiana Goodwill Boosters or the Marine Corps League of St. Joseph Valley. Communitywide offers both traditional IRA and Roth IRA accounts, with a $2,000 deposit needed to open, with dividends paid into the account on a quarterly basis. You’ll need to contact the credit union directly by phone to open an account, as you cannot open an IRA account online right now.

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on Communitywide Federal Credit Union’s secure website

NCUA Insured

Latino Community Credit Union IRA Share Account — 0.60%, $25 minimum deposit

This North Carolina credit union offers its banking products to anyone in the nation so long as they make a one-time $10 donation to the Latino Community Development Center, a nonprofit promoting financial literacy and general economic development “for low-income Latino and other immigrant communities in North Carolina,” according to its mission statement.

The credit union offers an IRA share account — their version of a savings account — with either a Traditional, Roth or SEP plan. The account requires a minimum deposit of $25.

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on Latino Credit Union’s secure website

NCUA Insured

Alliant Credit Union IRA Savings— APY 0.55%, no minimum deposit

Although based in Illinois, it’s a simple matter for anyone in the country to join this credit union. A $10 donation to Foster Care to Success qualifies you for membership and the ability to take advantage of Alliant’s personal banking products, including their IRA Savings account.

Alliant offers three different plans for its IRA savings: Traditional, Roth and SEP. You must maintain an average daily balance of at least $100 to receive the paid dividends on the last day of each month.

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on Alliant Credit Union’s secure website

NCUA Insured

Ally Bank IRA Online Savings Account— 0.50% APY, no minimum deposit

Ally may be an online-only bank, but its history stretches back to the beginning of the 20th century as a financial institution that helped automaker General Motors finance sales. In its current iteration, Ally offers a wide range of competitive savings products, including an IRA account that earns the listed APY. Ally offers three different types of plans: Traditional, Roth and SEP, covering a variety of retirement needs while offering a high rate of return.

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on Ally Bank’s secure website

Member FDIC

Lake Michigan Credit Union Money Market Savings — APY 0.50%, $5 minimum deposit

You don’t have to belong to any specific industry, company or organization to join Lake Michigan Credit Union. Becoming a member allows you to access all of their products and services and requires only a minimum donation of $5 to the ALS (Amyotrophic Lateral Sclerosis) Foundation if you live outside Michigan or Florida.

Lake Michigan Credit Union offers traditional and Roth IRA plans, with no maintenance fees to earn the listed APY.

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on Lake Michigan Credit Union’s secure website

NCUA Insured

What’s the benefit of an IRA savings account?

Like any IRA account, an IRA savings account provides tax advantages to the saver. The exact benefits depend on the IRA plan or type you choose. While the two most common types of IRA offered are Traditional and Roth, more specialized versions of the account are also available, including:

  • Simplified Employee Pension (SEP): A type of IRA that can be used by either small business owners on behalf of their employees, or by self-employed individuals, the SEP IRA functions similar to a Traditional IRA — except it has a much higher annual contribution limit. You can contribute 25% of your annual compensation to the plan or $57,000 (whichever is the lesser), and like a Traditional IRA, those contributions are tax-deductible.
  • Savings Incentive Match Plan for Employees (SIMPLE): Another IRA tailored for small-business owners or those who are self-employed, SIMPLE plans allow you to put up to $13,500 of your business net earnings into the account, where the money remains tax-deferred until you start taking your withdrawals.
  • Coverdell Education Savings Account (CESA): This account aids with saving for education costs for those 18 years old or younger, but functions similar to a Roth IRA with more limits. For example, the beneficiary must be 18 years or younger when the account is set up (or be a special needs beneficiary), and you can make a maximum contribution of $2,000 per year. Only those with modified adjusted gross incomes of up to $110,000 ($220,000 if filing a joint return) may make a contribution to the account, and the contributions are not tax-deductible. The beneficiary can use the funds from the CESA for qualifying expenses toward their education.

How does an IRA savings account work?

You can contribute money to your IRA savings account anytime, just as you would with an ordinary savings account. However, because this is an IRA product, it’s still subject to a 2021 contribution amount limit of $6,000 (or $7,000 if you’re age 50 or older), the same as an IRA account at a brokerage firm.

In that same vein, the penalties for withdrawing money early from your IRA remain in effect for the IRA savings account. Taking money from your Traditional IRA savings account incurs a 10% penalty if you’re younger than 59 1/2 years old (and assuming you don’t qualify for one of the special circumstances allowing a penalty-free withdrawal, such as a first-time home purchase).