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Best Business Savings Accounts of October 2024

  • Opening a business savings account is a great way to protect your company against financial hardships.
  • The best business banking account for you depends on how much you plan to deposit and how many transactions you complete per month.
  • Our top banks for business savings accounts include Axos, Capital One, Chase, Western Alliance and NorthOne.
  • High-yield savings accounts have much higher APY than standard business savings accounts.
  • Before you open a business savings account, carefully review the minimum deposit, monthly transaction limit and other terms.

Although every business needs additional resources from time to time, it’s essential that you save for emergencies. If sales slow down or a natural disaster forces you to suspend operations, you’ll be glad to have a financial cushion.

To help you find the right business savings account for you, we reviewed savings products from five top banks.

Read this guide to learn:

  • Which financial institutions offer the best rates
  • Why you should get a small-business savings account
  • What you need to open a business savings account

Our top picks for the best savings accounts

Our top banks for business savings accounts

Axos Bank Business Premium Savings

Why we like it

The Axos Bank Business Premium Savings account is easy to use and comes with a high-than-average APY of 4.01%. You can also make remote deposits from anywhere in the world, access your account via the Axos mobile app and use the bank’s online features free of charge. The Business Premium Savings account also comes with free image statements.

This account doesn’t have a minimum opening deposit requirement to earn the maximum APY, making it a good fit if you’re not yet an established businesses. Axos also offers expanded FDIC coverage for customers who exceed the standard $250,000 coverage limit.

An overview

APY Minimum deposit Monthly Maintenance fee
4.01% N/A N/A

Pros and cons

Pros Cons
✅High interest rate
✅Remote deposits
✅No average daily balance requirement
✅No monthly maintenance fee
❌No physical branches
❌No ATM or debit card

Capital One Business Savings

Why we like it

The Capital One Business Savings account comes with low fees and the opportunity to earn a special APY on your deposits. We love that the six-month promotional APY is 4.1% on balances ranging from $10,000 to $5 million. This makes it easy to take advantage of the promotion even if your business is just getting off the ground.

Consider opening a Capital One savings account if you’re looking to keep your banking costs low. Capital One charges a $3 monthly service fee, but all you have to do to get the fee waived is maintain a minimum balance of $300.

An overview

APY Minimum deposit Monthly Maintenance fee
Promotional rate of 1% to 4.1% for the first six months depending on your balance; 0.55 to 2.12% for the first 12 months $250 $3; waived with $300 minimum balance

Pros and cons

Pros Cons
✅Low minimum deposit requirement
✅Easy to get monthly maintenance fee waived
✅Promotional APY of up to 4.1% for the first six months
❌Limit of six free withdrawals per month
❌Lower APY when the promotional rate expires
❌Must open your account at a branch

Chase Business Total Savings

Why we like it

Chase Business Total Saving is one of the best Chase savings accounts for small businesses, as you only need an average ledger balance of $1,000 to avoid the monthly fee. If sales aren’t steady just yet, you can still take advantage of the opportunity to save for the future.

If you make more than 15 deposits per month, Chase will charge you 40 cents for each additional deposit. However, there’s no fee for the first $5,000 in cash deposits each month.

An overview

APY Minimum deposit Monthly maintenance fee
0.01% N/A $10; waived if you maintain an average ledger balance of at least $1,000 or link your savings account with a Chase Business Complete Banking℠ account

Pros and cons

Pros Cons
✅Low balance needed to avoid monthly fee
✅Easy to connect your business savings account to other Chase accounts
✅No fee for the first $5,000 in cash deposits each month
❌Not available for partnerships
❌Limited number of free transactions
❌Low APY

Western Alliance Business Savings

Why we like it

The Western Alliance Business Savings Account comes with a debit card, making it a good fit for business owners who need convenient access to their funds. We also love that this account has a low minimum opening balance ($1,000) and allows up to 25 free deposits per month.

Note that you may not qualify for a Western Alliance account if your business involves cannabis sales or gambling. Business savings accounts come with a 0.05% variable APY.

An overview

APY Minimum deposit Monthly Maintenance fee
0.05% $1,000 $10; waived if you maintain a balance of at least $1,000

Pros and cons

Pros Cons
✅Low minimum deposit requirement
✅$10 monthly fee waived if you maintain a balance of at least $1,000
✅25 free deposits per month
❌$0.35 fee for every deposit over the 25-item limit
❌Lower-than-average APY

NorthOne Business Banking

Why we like it

NorthOne Business Banking combines standard banking features with advanced technology, giving you more control over your money. We love that NorthOne has several features designed to increase transparency, such as the ability for co-owners to view every transaction.

With NorthOne Business Banking, every owner gets their own debit card, making this account ideal for partnerships or LLCs with multiple managing members. Note that NorthOne is a financial technology company, not a bank, so your connected account may work differently than your previous savings accounts.

An overview

APY Minimum deposit Monthly Maintenance fee
N/A $50 $0 for Standard plan; $20 for Plus plan

Pros and cons

Pros Cons
✅Multiple debit cards
✅Virtual cards to reduce the risk of fraud
✅Increased transparency for business owners
✅Access to mobile application
❌Doesn’t work the same way as a standard savings account
❌Initial deposit limited to $250 for sole proprietorships/partnerships and $10,000 for corporations/limited liability companies
❌More fees than most savings accounts

What is a business savings account?

A business savings account works just like a personal savings account, but it’s designed for business owners.

Once you open an account, you build your savings by making regular deposits. You can also withdraw funds, but your bank may have a limit on the number of transactions you can perform each month before you have to start paying a fee.

One of the biggest differences between a personal savings account and a business savings account is that business accounts often come with extra features. For example, your bank may give you the ability to run custom reports, making it easier to keep track of your money.

Why should I get a business savings account?

Opening a business savings account offers several advantages for companies of all sizes:

Pros and cons of high-yield business savings accounts

A business high-yield savings account comes with a much higher APY than a standard business savings account. Opening one of these accounts has the following pros and cons.

Pros
  • Better earning potential due to increased APY
  • Increased flexibility
  • Insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration
Cons
  • Variable interest rates
  • No debit cards available with most HYSAs
  • Monthly limit on withdrawals at some banks

Pros explained

Cons explained

How to choose a business savings account

Before you choose a business savings account, consider the factors below.

APY

APY stands for annual percentage yield, which is how much you can earn in one year based on your interest rate. The higher your APY, the easier it is to grow your balance.

Minimum deposit requirements

Many banks require a minimum deposit, so you’ll need enough cash on hand to open an account. Some banks ask for as little as $50, while others want you to deposit several thousand dollars. Think carefully about how much you can afford to deposit.

Minimum balance requirements

In some cases, you won’t earn any interest unless you maintain a minimum balance. Your bank may also require you to maintain a minimum balance or average ledger balance to avoid monthly service fees. Before you open an account, make sure you can meet these minimum requirements.

Fees

The best business savings accounts have little to no fees, making them affordable for businesses of all sizes. Before you sign up for an account, make sure you get a copy of the bank’s fee schedule.

Digital features

Digital features make it easier to manage your funds, so look for an account that comes with online banking access and/or a mobile banking app.

Insurance

If your account is insured by the FDIC or NCUA, you don’t have to worry about losing your money if a financial institution fails. However, you may want to open multiple accounts if you plan to hold more than $250,000 at a time. FDIC and NCUA insurance only covers up to $250,000 per depositor, per bank, and per ownership category.

Customer service

Before you open an account, find out what type of support is available. Do you have to email the bank and wait for a response, or can you get phone assistance 24 hours per day? Online banks typically offer higher interest rates than traditional banks, but don’t be afraid to go with a local bank if you’d prefer to talk to a representative in person.

How to open a business savings account

The process of opening a business savings account varies from one financial institution to the next.

Many banks allow customers to open new accounts online, but your preferred bank may require you to complete the application process in person. By law, financial institutions must verify the identity of their customers, so be prepared to provide your driver’s license, passport or some other type of photo ID.

If you want to open a business bank account, you may also need to provide a copy of your business license or articles of incorporation. Once you have an account, you can fund it by depositing cash or transferring funds from your business checking account.

Alternatives to business savings accounts

If a business savings account doesn’t meet your current needs, here are three alternatives.

Business savings accounts vs. business checking accounts

The purpose of opening a savings account is to let your balance grow over time. If you need to write checks, use a debit card or perform other transactions, you may want to get a business checking account instead. A checking account usually comes with a debit card, check-writing privileges and other features designed to make it easier to manage your financial affairs.

Business savings accounts vs. business money market accounts

Money market accounts combine the features of a checking account with the features of a savings account. You earn interest on your balance, but you can also write checks, make debit card purchases or transfer funds to other accounts.

Business savings accounts vs. business certificates of deposit (CDs)

A certificate of deposit (CDs) is a special type of savings account that requires you to deposit money and leave it in place for a specific amount of time. For example, if you open a 12-month CD, you can’t make any withdrawals for the first year. Otherwise, you’ll forfeit some of the interest you should have earned.

Our top picks for the best savings accounts

FAQ: Best Business Savings Account

What is the best business savings account?

It depends on your needs. If you’re just starting out, you may need an account with a low minimum deposit requirement and no monthly fees. Established businesses may benefit from opening an account with extra features.

What are the benefits of having a business savings account?

Having a business savings account makes it easier to save for emergencies. This type of account can also help you limit your liability and enhance your company’s reputation.

What should I look for in a business savings account?

Look for an account with a high APY, low monthly fees and a low minimum balance requirement.

How much should I put into a business savings account?

It depends on your financial goals. If you anticipate an economic downturn within the next few months, it’s wise to save as much as you can. If you need some of your funds to purchase new equipment, you may want to ease up on saving.

How many business savings accounts should I have?

For most business owners, one account is plenty. However, if you plan to keep more than $250,000 in the bank, it’s wise to open multiple accounts. Having more than one account helps you maximize your FDIC or NCUA insurance benefits.

Do I pay taxes on a business savings account?

If you open a business savings account, you must pay tax on your savings account interest earnings.

About the Author

Leigh Morgan
Leigh Morgan Personal Finance

Leigh Morgan is a seasoned personal finance contributor with over 15 years of experience writing on a diverse range of professional legal and financial topics. She specializes in subjects like navigating the complexities of insurance, savings, zero-based budgeting and emergency fund development.

In the last five years, she’s authored over 300 articles for credit unions, digital banks, and financial professionals. Morgan is also the author of “77 Tips for Preventing Elder Financial Abuse,” a book focused on helping caregivers protect the elderly from financial scams.

In addition to her writing skills, she brings real-world financial acumen thanks to her previous experience managing rental properties as part of a $34 million real estate portfolio.

About the Reviewer

Blake Esken
Blake Esken Los Angeles Times

Blake Esken has over 15 years of experience in product management and has been a member of the Los Angeles Times staff for over five years.

As part of his role at the Los Angeles Times Commerce Team, Blake acts as the in-house reviewer and fact checker for LA Times Compare. He supervises all content for compliance and accuracy and puts to use skills he has honed through years of experience managing high-stakes projects for a range of industry-leading companies.

He has a strong background in data analysis, compliance, and communication, which allows him to support LA Times Compare through fact-checking in an effort to provide up-to-date and factual information across our content.

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