Businesses big and small need a savings account to generate interest and pull funds from on a rainy day. That said, some options stand head and shoulders above the rest. This article reveals the six best business savings accounts as we head into the new year.
Quick View on the Best Business Savings Accounts
- Capital One Business Savings Account – Best Overall
- NBKC Business Money Market – Best for Add-On Services
- Bank of America Business Advantage Savings Account – Best for Rewards
- Lili Automatic Savings – Best for Tax Optimization
- Axos Bank Business Premium Savings – Best for Welcome Bonuses
- U.S. Bank Basic Business Savings Account – Best for Lending Options
When checking out the best business savings accounts, we looked for any pesky fees and interest rates that serve to offset them. We also found it important to understand minimum deposit requirements at the time of opening and limitations on drawing money out. Finally, we looked for additional features that made a particular company stand out and how easy it was to use an account.
You can find a more detailed look at our methodology below.
Bank or Fintech
$3 monthly service fee (waivable), $2 for out of network ATMs
$250 minimum opening deposit
Up to 6 free each cycle
Overdraft coverage if linked to business checking
6 free withdrawals each month
Four physical bank locations, additional banking services available
$10 monthly service fee (waivable), fees for excessive deposits
Up to 0.04%
$100 to open account
Up to 6 transfers or withdrawals each monthly cycle, up to $1,000 in cash from ATM
Can set up automatic transfers, overdraft protection, rewards program
$9 monthly service fee, $2.5 for out of network domestic ATMs, $5 for international
Maximum six withdrawals per month
Tax optimization software, fast enrollment, smart mobile banking, overdraft forgiveness
$25 overdraft fee
Up to 0.20% APY
$25,000 minimum opening deposit
Up to 6 free withdrawals per statement cycle
$200 bonus for new business owners, ATM reimbursements, Quickbooks integration
Monthly maintenance fee (waivable), fees at out of network ATMs
$500 minimum opening deposi
Limited to 6 withdrawals each month
More than 2,400 bank locations in 28 states
Business Checking Accounts That Earn Interest
Sometimes, you don’t have to look to business savings accounts to earn interest on your money. Some of the best business checking accounts offer APY on their own:
- Bluevine Business Checking – 2.0% APY on balances up to 100k & Best Bank Account for LLCs
- American Express Business Checking – 1.3% APY on balances up to $500k
Capital One has a baseline APY of 0.20%, but many businesses can qualify for higher promotional rates for the first 12 months of use. There are only a handful of branch locations around the country, but the bank’s extensive ATM network more than makes up for it.
If you accidentally pull too much from your account, you’ll never have to worry about overdraft fees. Beware of the monthly account fee should you not be able to keep up with the requirements.
Why we chose it: Capital One’s large ATM network, minimal fees, and high promotional interest rates of up to $5 million make it one of the best online savings accounts for businesses.
- High promotional interest rates
- Does not charge overdraft fees
- Large ATM network
- Limited physical locations
- Monthly account fee
- Out-of-network ATM fees
You’re looking at a $3 per month service fee with Capital One if you can’t meet monthly criteria. Fortunately, this is no more difficult than having at least $300 in your business savings account at all times. For other fees, expect a $2 charge for out-of-network ATMs both in the United States and abroad.
Capital One advertises a 0.20% interest rate as a current baseline to go off of when setting up your account. It’s possible to grab a promotional rate for your first year with the bank, although this amount seems to be on a case-by-case basis. Whatever rate you end up with, it’s good on balances up to $5 million. Any funds beyond that will receive a lower APY.
It takes a $250 initial deposit to open a business savings account with Capital One. Once you’ve opened an account, you don’t need to maintain a set amount. If you can maintain a balance above $300, you won’t have to worry about monthly fees.
Capital One gives six free withdrawals each payment cycle. Going over the limit can result in unsightly fees. For each withdrawal, you can take up to $600 out through an ATM at a time.
Besides a promotional interest rate for the first year, having a linked business checking account saves you from overdraft fees on your savings. Beyond that, Capital One works with business owners to find banking products that best suit their needs.
NBKC Bank loves offering a lot for very little. Its money market account has minimal fees to contend with across the board, so your money stays with you. Memberships unlock several add-on services you can build into your account, from fraud protection to invoicing. There aren’t any physical branches outside the Kansas City area, and the app lacks a few features. However, NBKC’s customer service more than makes up for it.
Why we chose it: NBKC Bank goes beyond traditional banking with professional invoicing, cash management, and several other powerful service options.
- Many extra service options
- Few fees to contend with
- Excellent customer service
- No physical bank branches outside of Kansas and Missouri
- High international wire fees
- Mobile app limitations
Good luck stumbling across a fee while using NBKC Bank. There’s no charge to open an account, maintain it, or if you have an overdraft. Furthermore, you aren’t penalized for returned checks, using a debit card, or depositing money into your business money market account. The only area you have to worry about is international wire transfers, which can set you back $45 a pop.
NBKC Bank has a high-yield business savings account at 1.26% APY. Best of all, this rate remains whether you have a penny or millions stashed away.
There are no requirements for opening or maintaining your money market account through NBKC Bank. You won’t ever encounter a fee for falling below a certain threshold, nor will your interest rate suffer.
You can withdraw funds from your money market account up to six times per statement period. It’s possible to pull out up to $1,010 from an ATM each day as long as you have sufficient funds.
This is where NBKC bank really shines. As a traditional bank, it offers a multitude of banking services you can use with your business. These extend to invoice processing, cash management tools, and one-on-one service from industry experts. Anyone living in the Kansas City area can take advantage of these services from a physical branch location.
The Business Advantage Savings account gives you the opportunity to level up your interest through various reward tiers based on your monthly balance. There are monthly fees, but it is possible to waive these through a handful of requirements. With thousands of branches and ATMs around the country, chances are you’ll never be far from one. This is a good thing, because transaction fees for using non-Bank of America ATMs can be high.
Why we chose it: Bank of America’s Preferred Rewards program offers interest rate boosts and other incentives to serve your business.
- Preferred rewards to boost interest rate
- Over 17,000 ATMs and 4,300 branches
- Can waive the monthly fee
- Lacks 24/7 customer service
- Monthly fees
- Transaction fees when using non-Bank of America ATMs
Bank of America has a $10 monthly service fee for anyone unable to meet the requirements to have it waived. To qualify for free savings, you’ll need to do at least one of the following:
- Maintain a $2,500 minimum daily balance
- Include one Business Advantage Savings account as part of your Business Advantage Relationship Banking solution
- Become a member of Preferred Rewards for Business
Otherwise, there are incremental fees if you deposit more than 25 items or over $5,000 in cash during a statement cycle.
You’ll start off at 0.01% APY, no matter what your average daily balance is. Should you enroll in Bank of America’s Preferred Rewards program, you’ll be able to increase this rate as you move up the ladder. To be eligible, you must open a Bank of American business checking account and have an average daily balance exceeding $20,000 across your business deposit accounts.
Interest rates at higher tiers are:
Platinum Honors: 0.04%
To open a Business Advantage Savings account, you’ll need to make an initial deposit of at least $100. There’s no penalty for falling below this number, but there are plenty of perks for moving it higher. You can waive the monthly service fee or tap into high-interest rates if your balance is high enough.
When working with your savings account, you’ll have to limit withdrawals to six per payment cycle. The maximum amount you can withdraw from an ATM at a time is $1,000.
The Preferred Rewards program offers many benefits beyond an interest rate increase. You can earn discounts on auto loans and merchant services while cutting down on ATM fees just by moving up the ranks. Bank of America also protects your account from overdrafts and allows automatic transfers so you can maximize your interest.
Lili’s all-in-one banking app is super simple to set up, rarely taking more than a few minutes to create your account. Although online-only, Lili has many great features, such as tax optimization software to help keep you in good standing with the IRS. To access business savings, you’ll have to sign up for Lili Pro, a premier service with a monthly service fee. Fortunately, this high-yield business savings account puts many other financial institutions to shame.
Why we chose it: Lili’s checking and savings accounts come with personalized tax optimization tools to ensure you can file easily and without issue.
- Tax optimization software
- High yield business savings account
- Quick enrollment
- Must transfer money to savings every day
- Monthly service fee
- Low monthly transfer and deposit limits
It will cost you $9 per month to subscribe to Lili Pro, the mobile app’s advanced tier of service. There’s no way to remove this fee, and you’ll need a Lili Pro membership to open a business savings account. There are no additional charges for doing business, but watch out for $2.50 fees for domestic out-of-network ATMs and $5 for international ones.
Lili is one of the top high-interest business savings accounts out there, offering up to 1.50% APY on funds located within. The rate actually went up from 1% at the beginning of the year.
There’s no minimum deposit required to start a Lili business savings account. However, you will need to deposit at least $1 per day into your business savings account to keep it open. You can set this transfer to happen automatically so you don’t forget.
Lili limits monthly withdrawals from your business savings account to just six. It can be challenging to move funds back to checking, and the process can take up to a week to complete. Make sure to plan ahead if you’re going to need to tap into what Lili calls an emergency savings account. When taking money out through an ATM, the cap is $500 per day.
Lili has cool tax optimization tools to help you save for the season. With it, you can categorize purchases, find your tax bracket, and file all from the app. Enrollment is lightning fast, and the smart mobile app makes it easy to bank from anywhere. There’s also overdraft forgiveness if you overstep the bounds of your account.
While most financial institutions stifle transfers, Axos offers a lot more leeway with up to 20 per month across your accounts. Anyone setting up an account for the first time can earn a $100 bonus for doing so, and new businesses may see up to $200 in free money. The Premium Savings account does have a hefty $25,000 initial deposit that some small businesses may not be able to afford, however.
Why we chose it: Axos allows more transfers than most other online savings accounts for businesses and has a nice welcome bonus for new owners.
- Up to $200 welcome bonus
- Allows 20 transfers per month
- Integrates with Quickbooks
- No cash deposits
- High initial deposit required
- Poor customer service
Axos Bank scoffs at fees, charging absolutely nothing for monthly maintenance nor costs should your balance fall below a certain threshold. This makes Axos the best free business bank account for cash deposits.
You’ll want to keep tabs on your finances though, as $25 for over drafting your account can be a punch in the gut.
You’re looking at a 0.20% interest rate with Axos Bank no matter how high your business savings account goes. The online provider does seem to imply a rate increase if you pass the $5 million mark. If your Premium Savings account falls below $24,000, the rate drops to 0%.
You’ll need at least $25,000 in initial funds to open up an Axos Premium Savings account. Once up and running, there’s no requirement to maintain this balance or fees if you drop below it. If funds dip below $24,000, you won’t earn any interest.
Like most other business savings accounts, you can perform up to six withdrawals each statement cycle. You can draw up to $1,010 from your account each day.
Axos Bank really stands out for dropping money into your account at startup, making a good bank account for startups. An extra $100 to $200 can mean a lot to an up-and-coming business, and all you have to do is sign up. Additionally, Axos integrates well with Quickbooks software for financial tracking.
U.S. Bank has some great lending options to complement its checking and savings accounts for business owners. It’s possible to set up business loans or business lines of credit for an immediate expense or grow your business. The bank has more than 2,400 branch locations around the country in 28 states, so you may have a drive a little to find one. While you’re there, take advantage of the specialized merchant services U.S. Bank offers for your business type.
Why we chose it: You can use U.S. Bank’s business savings account to set money aside for a rainy day or make use of a long list of lending options.
- Lending to fit your needs
- Specialized merchant services for restaurants, retailers, and service providers
- 2,400 branch locations
- Nontransparent fees
- Only locations in 28 states
- Very low APY
The fee schedule at U.S. Bank is very muddy. You’ll need to visit a branch or call an agent to figure out monthly charges for not meeting your account requirements. It is clear that you can avoid monthly fees if you maintain at least $500 daily. There are also ambiguous fees for transactions and the use of out-of-network ATMs.
U.S. Bank’s interest rate is 0.01%. It doesn’t matter how much you have in your account; your money will only grow at this rate.
There’s a $500 minimum opening deposit for a U.S. Bank Basic Business Savings account. Should you call below this minimum, you will incur a monthly maintenance fee from the company.
With U.S. Bank, you’ll have the standard six monthly withdrawals to work with. Within a 24-hour period, it’s only possible to pull out $300 from your business checking account using an ATM.
If you prefer to bank in person, U.S. Bank has more than 2,400 locations scattered throughout the United States. These branches cover 28 states, seemingly without rhyme or reason. The bank does make it easy to view account features through a handy app and detailed monthly statements.
Methodology for the Best Business Savings Accounts
We looked into many different factors when selecting the best business savings accounts to populate this list. Here are the top considerations we used when making our decision.
- Fees: There’s little point in using a bank that’s going to slowly suck your account dry. We make sure to avoid institutions with hidden fees or high costs for doing business that ultimately put you at risk of losing money instead of growing your account. If there are monthly maintenance fees, we prefer providers with the option to waive these amounts if you meet certain criteria.
- Interest Rates: Interest rates are the bread and butter of any savings account. Without a good interest rate, there’s no reason not to leave all your funds in a checking account for quick and easy access. With a national average rate hovering around 0.24%, banks should meet this or have incredible features to make up for it.
- Minimum Deposit: Banks requiring a minimum initial deposit can be a barrier for startups or up-and-coming small businesses. Even worse are penalties for failing to maintain a certain threshold over a period of time. Any institution with a high deposit requirement has to have a good reason for doing so.
- Withdrawals: Your money only works for you when you have the ability to access it. It’s hard to find a bank without withdrawal limits on a savings account, but knowing how much you can take out and when is half the battle. ATMs should allow withdrawals from your business savings account, and the limit should be on the higher side.
- Additional Features: Many banks and fintech companies follow cookie-cutter systems that lead to lackluster service options. The best business savings accounts have features making them stand out from the masses. This can include a large ATM network, access to physical branches, overdraft protection, and financial management tools.
- Ease of Use: We wanted to make sure each option making our list was easy enough for the most novice of business owners to understand and use. Access to funds was an important factor, along with the ability to communicate with support staff should the need arise. We also tried to locate organizations with transparent fee structures and clear guidelines on what you can and can’t do.
Best Business Savings Account Frequently Asked Questions (FAQs)
The logic behind a business savings account isn’t always clear. This FAQ answers some of the most popular questions about the benefits of opening one.
Business savings accounts are just as important as their checking counterparts, serving as a place to accrue interest and put money away for future use. Many of the best savings options have minimal fees and easy requirements for opening.
Having funds set aside can be a godsend in an emergency situation where other business owners would have to take out an expensive loan. Since most banks limit withdrawals, you’ll just have to be mindful of pulling out the money you need.
Not sure how to open a business savings account? Read our guide on how to open a business bank account to find out.