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The best high-yield business savings accounts can be found at First Internet, Live Oak, and Prime Alliance banks, based on our research. These institutions offer the highest rates, lowest fees, and the least amount of red tape.
Opting for an account with a high APY can help your business save for upcoming expenses, such as new equipment or a tax bill, or just maximize income. High-yield business savings accounts function much like personal savings accounts, but there are other things to consider. For example, if you are depositing more than $250,000 it's important to consider whether or not the bank partners with other banks to provide increased FDIC coverage.
Best High-Yield Business Savings Accounts for July 2024
- First Internet Bank: Money Market Savings - 5.48% APY
- Live Oak Bank: Business Savings Account - 4.00% APY
- Prime Alliance Bank: Business Money Market - 4.25% APY
- Prime Alliance Bank: Business Savings - 4.25% APY
- nbkc bank: Business Money Market Account - 2.75% APY
First Internet Bank : Money Market Savings - 5.48% APY
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- Minimum Opening Balance: $100
- Minimum Balance to Earn Stated APY: $5,000,000
- Monthly Maintenance Fee: $5
First Internet Bank has a lot to offer if you’re an established business. It only takes $100 to get started, but it’s a good idea to avoid this account until you’re able to keep at least $4,000 in it, after which point the monthly $5 fee is waived. You’ll earn a very good interest rate regardless of your balance amount, although you won’t earn the highest rates until you reach a balance of $5,000,000—a tough feat for most small businesses.
Normally, FDIC insurance only covers you up to $250,000 total per bank and it’s not wise to go above this amount, but First Internet Bank partners with other banks to offer an expanded level of coverage above that amount. This account comes with an ATM card, but only for sole proprietors.
Low minimum opening deposit
High rates for a money market account
Extra insurance for large deposit amounts
ATM card only offered for sole proprietors
High minimum balance required to waive fee
Very high balance needed to earn highest rates
- Monthly maintenance: $5, unless you keep at least $4,000 in your account
- Wire transfer: $15 for incoming wires, $20 to send domestic wires, and $50 to send international wires
- Dormant account: $5 per account, per month
Consider carefully whether you want a business bank account that charges monthly fees. Even if it’s possible to have them waived, it just adds yet another thing you need to keep tabs on each month.
Live Oak Bank : Business Savings Account - 4.00% APY
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Live Oak Bank
- Minimum Opening Balance: $0
- Minimum Balance to Earn Stated APY: $0
- Monthly Maintenance Fee: $0
Live Oak Bank offers many good small business bank accounts, and its savings account is no exception. It features exceptionally high rates and comes with very few fees or strings attached, especially if your business operates online just as Live Oak Bank itself does. You won’t be able to deposit cash, for example, which can be a big sticking point for many brick-and-mortar retailers.
While Live Oak Bank doesn’t penalize small businesses in any way by charging higher fees or offering lower rates, it does have some special advantages for large businesses. Like First Internet Bank, Live Oak Bank partners up with other financial institutions to offer expanded FDIC coverage for businesses with large bank account balances.
Extremely competitive interest rates
Offers higher amounts of FDIC coverage
No monthly fees or minimum balance requirements
No ATM access
No in-person branches
Doesn’t accept cash deposits
- Monthly maintenance: $0
- Wire transfer: $19 for outgoing wires
- Dormant account fee: Charged for accounts with no activity in 24 consecutive months and balances of $10 or less. The account will be closed.
Prime Alliance Bank : Business Money Market - 4.25% APY
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Prime Alliance Bank
- Minimum Opening Balance: Not shown
- Minimum Balance to Earn Stated APY: $200,000
- Monthly Maintenance Fee: $0
Prime Alliance Bank is a Utah-based business institution that specializes in business banking. It offers many different types of business loans and bank accounts with excellent rates; however, as a smaller regional bank, it does suffer in terms of customer service. You can’t open a bank account directly through the site, for example—instead, the website directs you to “Email Us to Open Account,” which isn’t exactly convenient.
However, if you’re persistent, there’s a lot to like. There aren’t any monthly fees to worry about and the minimum balance to earn interest is only $1, so you’ll earn a decent rate regardless of how much you have in your business savings account. The highest rates aren’t given until you have a balance of at least $200,000, however.
Very high rates
No monthly fees
No minimum balance requirements
Need to email the company to open an account
No ATM access
- Monthly maintenance: $0
- Stop payment fee: $15
- Wire transfers: $10 for incoming wires, $15 to send domestic wires, $40 to send international wires
- Excess withdrawals: $25 for each withdrawal past your sixth in one month
Prime Alliance Bank : Business Savings - 4.25% APY
Prime Alliance Bank
- Minimum Opening Balance: Not shown
- Minimum Balance to Earn Stated APY: $200,000
- Monthly Maintenance Fee: $0
Functionally speaking, Prime Alliance Bank’s business savings account is mostly the same as its business money market account. They both offer the same high interest rates with the same tier levels (as of publication), and are easily accessible to all with no monthly maintenance fees or balance requirements.
The only difference is that Prime Alliance Bank’s savings account doesn’t come with the ability to write checks. That may be a point in favor of this account if you want to restrict access for yourself and others, but it can be inconvenient if you prefer to pay for regular business expenses via check.
Excellent rates
No monthly fees
No minimum balance requirements
No ATM or check access
Need to email the company to open an account
Not much different from Prime Alliance’s money market account
- Monthly maintenance: $0
- Stop payment fee: $15
- Wire transfers: $10 for incoming wires, $15 to send domestic wires, $40 to send international wires
- Excess withdrawals: $25 for each withdrawal past your sixth in one month
nbkc bank : Business Money Market Account - 2.75% APY
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nbkc Bank
- Minimum Opening Balance: $0
- Minimum Balance to Earn Stated APY: $0.01
- Monthly Maintenance Fee: $0
nbkc isn’t a good choice for very large businesses since it doesn’t offer the expanded FDIC coverage for balances over $250,000 that some other business banks offer. However, that’s not a huge concern for most small business owners, who will appreciate the high rate this money market account offers and the fact that it’s easy to use for ATM withdrawals on the go.
This account comes with a debit card and no limits on the number of deposits or withdrawals you can make, Plus, nbkc will even reimburse you up to $12 per month for ATM fees charged if you visit out-of-network ATMs. That means this account isn’t too different from a checking account, which makes it a good alternative since nbkc’s actual checking account doesn’t offer any interest.
Very few fees
No limit on number of transfers
Reimburses up to $12/month in ATM charges
Doesn’t offer higher FDIC coverage
Only offers branches in Kansas City area
Matching checking account doesn’t earn interest
- Monthly maintenance: $0
- ATM fees: No nbkc bank fee for using any ATMs; up to $12 in monthly reimbursements for out-of-network ATM charges
- Wire transfers: No fee for incoming domestic wires; $5 to send domestic wires; $45 to send and receive international wires
Final Verdict
If you’re not able to maintain the high savings balances needed by some business banks to earn good rates and waive any potential fees, then we recommend nbkc bank, Live Oak Bank, or Prime Alliance Bank.
Live Oak Bank also features excellent online support if you’re able to bank entirely online. First Internet Bank is the best choice if earning the maximum rate on a business bank account is important to you, as long as you have enough money in the account to waive the monthly fee and earn the maximum stated APY.
Compare High-Yield Business Savings Accounts
| Account | Maximum APY | Min. Opening Balance | Min. Balance to Earn Stated APY | Monthly Maintenance Fee |
|---|---|---|---|---|
| First Internet Bank - Money Market Savings | 5.48% | $100 | $5,000,000 | $5 |
| Live Oak Bank - Business Savings Account | 4.00% | $0 | $0 | $0 |
| Prime Alliance Bank - Business Money Market | 4.25% | Not shown | $200,000 | $0 |
| Prime Alliance Bank - Business Savings | 4.25% | Not shown | $200,000 | $0 |
| nbkc bank - Business Money Market | 2.75% | $0 | $0.01 | $0 |
In the News
In the News: The Fed held rates steady for a seventh consecutive time at its June 12 meeting. The federal funds rate is at its highest level since 2001, but Fed officials are projecting one or possibly two rate cuts before the end of the year. CD yields closely follow the fed funds rate. Back in October, CD rates reached peaks not seen in more than 20 years, but once the Fed starts cutting rates, CD rates will fall.
Savings account yields closely follow the fed funds rate and climbed to a new high in April. But once the Fed does make a rate cut, savings rates will fall.
Pros and Cons of High-Yield Business Savings Accounts
Higher interest rates than traditional savings accounts
FDIC insurance
Relatively easy access to funds
Higher account minimums
Monthly transaction limits
Interest rate variability
Limited availability
Pros Explained
- Higher interest rates than traditional savings accounts: High-yield savings accounts will beat a traditional savings account rates by a wide margin, even when rates, in general, are low.
- FDIC insurance: Like traditional savings accounts, up to $250,000 in deposits in HYSAs are insured by the FDIC. That makes these accounts nearly risk-free.
- Relatively easy access to funds: While you can't move your HYSA funds around as readily as you can the funds in your business checking account, it's still close to hand.
Cons Explained
- Higher account minimums: To earn the best rates you'll need to meet significant balance requirements. Among the accounts on our list, these can range from the tens to the hundreds of thousands of dollars.
- Monthly transaction limits: Most banks limit the number of "convenient," non-branch transactions account holders may make per month—a holdover from when the Federal Reserve promulgated bank reserve requirements. Those requirements are no longer in effect, but most banks still limit monthly transactions.
- Interest rate variability: Interest rates rise and fall according to conditions in the wider economy, competition among institutions, and actions taken by the Federal Reserve. While HYSAs will generally always pay better than traditional savings accounts, that may not be very much in a period of low interest rates overall
- Limited availability: Not all banks and credit unions offer HYSAs. You may be forced to keep your savings with an institution other than the one you have your business checking account with. This can add complexity and inconvenience to your business banking routine.
Guide to Choosing Business Savings Accounts
What Is a Business Savings Account?
A business savings account, much like a personal savings account, serves as a safe place to store your money away from dangers like fires and thieves (the in-person kind, at least). If you’re running any type of business at all, a business savings account is one of the basic money-management necessities, along with a business checking account and possibly a merchant account, if your business allows customers to pay by credit card.
A business savings account can be used for many of the same things you use your personal savings account for. But when it comes to your business, these accounts have other handy advantages too:
- Safe place to store extra business funds
- Lets you save for emergencies, tax payments, equipment purchases, and business investments
- Serves as a funds source for overdraft protection on your business checking account
- Helps you access business financing products such as commercial real estate loans
Alternatives to a High-Yield Business Savings Accounts
Most banks offer plain ol’ “business savings accounts,” but there are actually a few different types of business accounts that you can use to store your excess business funds. These generally work the same as for your personal finances:
- Business savings accounts: A basic-level savings account allows you to make as many deposits as you want and up to six withdrawals per month. You may earn interest, but the APY offered is typically very low.
- Business money market accounts: A money market account is a savings account that may offer higher rates than a basic business savings account, and may come with its own checkbook that you can use to write checks directly as needed.
- Business certificate of deposit (CD) accounts: A CD is a “timed” savings account that requires you to deposit the full amount up front and then wait several months or years until the account matures and your money becomes available for withdrawal again. CDs usually offer the highest rates, but you may pay expensive early withdrawal penalties too.
- Lower-risk investments: When savings account rates are low, government and corporate bonds may be an alternative way to set aside cash, but it comes with some additional risk and less liquidity.
How to Compare Business Savings Accounts
Although business savings accounts generally work the same way as personal bank accounts, there are a few key differences and things to watch out for as you shop around.
- APY: This is the interest rate offered on savings accounts. The higher the rate, the more you’ll earn for your savings. Higher rates may be reserved for businesses with larger account balances.
- Fees: Business bank accounts generally have higher fees than personal accounts. You may be charged even higher fees in certain cases, such as if you aren’t able to keep a certain balance in your account.
- Online banking: Some banks offer better online services than others. Online banks usually offer good experiences, but consider if in-person banking is important to you too, especially if you need a place to deposit cash after business hours.
- FDIC or NCUA insurance: If your bank fails but is insured by one of these two organizations, you’ll be able to get your money back for up to $250,000 worth of total deposits at any one bank. Some banks offer higher insurance coverage by partnering with other banks.
- Minimum deposit requirements: Some banks require that you open an account with a certain amount of money or face high fees. The rate you earn on your business savings account may also depend on how much you have in your account.
- Customer service and support: Some banks are more known for their good customer service than others. Research each bank fully so you know what you’re getting into, and consult resources such as J.D. Power’s Small Business Banking survey rankings.
Potential Earnings From a Business Savings Account
The table below shows how much additional revenue you could earn for your business over one year based on different starting balances and different APYs:
| Balance | 4.00% APY | 4.25% APY | 4.50% APY |
|---|---|---|---|
| $200,000 | $8,000 | $8,500 | $9,000 |
| $500,000 | $20,000 | $21,250 | $22,500 |
| $1,000,000 | $40,000 | $42,500 | $45,000 |
Make sure to check whether the bank’s other business accounts will work for you too, since it’s easiest to keep all your accounts with the same institution. See our list of the best business bank accounts to narrow down your options.
Frequently Asked Questions
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What Are Business Savings Accounts For?
Business savings accounts serve as a safe place to store liquid capital. You can save up to invest in your business or to pay taxes, as well as keep extra money on hand for emergencies just like you do with your personal savings account.
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How Do You Open a Business Savings Account?
Opening a business savings account isn’t difficult. Shop around for banks offering the features you’re looking for with the highest rates and lowest fees. Make sure you can meet the qualifications to open the account, and then complete an application online or in person. If approved, you can transfer over funds from your existing business bank accounts.
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How Do You Qualify for a Business Savings Account?
Requirements vary by bank, but you’ll generally need to provide your business license and your Employer Identification Number (EIN), or your Social Security number if you don’t have an EIN. If your business has a formal organization such as an LLC, you’ll also need to provide your business formation documents and any ownership agreements, if applicable.
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What’s the Difference Between Business Checking and Business Savings Accounts?
Your business checking account serves as your home base for daily money management, such as accepting customer payments and making business purchases of your own. A business savings account, on the other hand, serves as a handy place to store liquid capital until you need it, such as to pay quarterly taxes or for emergencies.
How We Pick the Best High-Yield Business Savings Accounts
Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews. To rate business savings accounts we collected over 200 data points for over a dozen accounts, including APYs, minimum balance requirements, account features, and fees, to ensure that our reviews help users make informed decisions about their banking needs.
Guide to High-Yield Business Savings Accounts
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