This article is part of a larger series on Business Banking.
The best business savings accounts should provide your company with an interest-earning account so your reserve funds can grow. As interest rates continue to rise, some providers below offer outstanding APY rates for your business savings. Others provide solid rates while also offering outstanding business products and services.
The providers listed below offer many different savings options, including traditional business savings, a business money market account, and business certificates of deposit (CDs). Any of these accounts can allow your company to earn extra money off business reserve funds.
Here are the eight best savings accounts and what each is best for:
- Live Oak Bank: Best overall with high annual percentage yield (APY) savings and short-term CDs
- Prime Alliance Bank: Best business savings account with the highest APY and tiered APY
- First Internet Bank: Best business savings account with a full-service digital bank
- Mercury*: Best interest-earning digital savings account for high balances
- Capital One: Best traditional bank business savings for introductory APY and large ATM network
- TAB Bank: Best for interest-earning savings and business financing options
- Axos Bank: Best for businesses with excess savings transactions
- NBKC Bank: Best business savings for ATM fee reimbursements
*Mercury is a business financial technology (fintech) platform backed by Federal Deposit Insurance Corp. (FDIC)-insured Evolve Bank & Trust.
Live Oak Bank: Best Overall Business Savings Account With High APY Savings & Short-term CDs
Live Oak Bank Business Savings Terms & Features
Prime Alliance Bank: Best Business Savings Account With the Highest APY & Tiered APY
Prime Alliance Bank Business Savings Terms & Features
First Internet Bank: Best Business Savings Account With a Full-service Digital Bank
First Internet Bank Business Savings Terms & Features
Mercury: Best Interest-earning Digital Savings Account for High Balances
Mercury Business Checking Terms & Features
Capital One: Best for Introductory APY & Large ATM Network
Capital One Business Savings Terms & Features
TAB Bank: Best for Interest-earning Savings & Business Financing Options
TAB Bank Business Savings Terms & Features
Axos Bank: Best for Businesses With Excess Savings Transactions
Axos Bank Business Savings Terms & Features
NBKC Bank: Best Business Savings for ATM Fee Reimbursements
NBKC Business Savings Terms & Features
How We Evaluated the Best Business Savings Accounts
When we evaluated the best small business savings accounts, we considered the following terms and features:
- Interest earned (in APY)
- Monthly fees, and how easy they are to waive
- Minimum opening deposit and balance requirements
- ATM fees and withdrawal limits/availability
- Customer service availability
- Cash deposit availability and limits
- Other business products provided by the bank
- Wire transfer fees and transaction fees
Alternatives To the Best Business Savings Accounts
- Bluevine: Best for those looking for an interest-earning, digital-only bank account. Earn up to 1.5% APY on balances up to $100,000 with qualifying transactions. Check out our Bluevine business checking review for more information.
- Grasshopper: Best for businesses looking for interest-earning business checking and cash back on debit card purchases. It offers an uncapped 1% APY on business checking balances over $10,000 and 1% cash back. Read our Grasshopper review to learn more.
When choosing a savings account over a checking account, you’re looking for an interest-earning account that exceeds most checking account APYs. Choosing one of these accounts would give you more freedom with fee-free transactions, making them two of the best small business checking accounts.
What You Need To Open Small Business Savings Accounts
The documents required to open a small business savings account are the same as those for a small business checking account. Be sure to confirm whether you can open the account online or if you need to visit a branch to do so. Requirements may vary from bank to bank and depend on your business type, but they typically include the following:
- Employer identification number (EIN) or Social Security number if you’re a sole proprietor
- Fictitious business name certificate or doing-business-as (DBA) certificate
- Business formation documents
- Organization documents, including your ownership agreements
- Business licenses
- Government-issued photo ID, such as a passport or driver’s license
- Percent of ownership and annual gross revenue
Frequently Asked Questions (FAQs)
Are business savings accounts worth it?
Business savings accounts are a great way to earn interest on reserve business funds. If your business has extra finances that aren’t needed for the day-to-day operations of your business, it’s worth it to open a business savings account so that money can grow.
How much money should a small business have in savings?
Depending on which business savings account provider you choose, they may have a minimum or maximum amount of money on which you can earn interest. You should keep at least enough money to make sure you’re drawing interest. If your bank has a tiered APY structure for its savings account, you’d like to keep enough money in your savings to earn the highest interest rate possible.
At a minimum, you should figure out how much you need to operate your business for one month and keep anywhere from three to six months’ worth of reserves in your savings account in the event of an emergency.
What are the benefits of a business savings account?
There are four major benefits to having a business savings account:
- Saving for a future large purchase: Instead of taking out additional business debt, which might not be possible in the early stages of your business, you can put money in a savings account to allow you to make a large capital purchase.
- Saving for an emergency: You want to keep anywhere from three to six months’ worth of savings in the bank in the event of an emergency. This should hopefully allow your business to weather a short financial crisis without shutting down.
- Earning extra revenue: A savings account will allow your business to earn revenue on reserve funds.
- Saving for scheduled payments, such as taxes and insurance: If you have annual or quarterly payments due regularly, having money in a savings account can allow you to budget for these payments in advance and let you earn interest on the money in the meantime.
A business savings account can help your business earn extra revenue on its reserve funds. It lets you earn interest while allowing you access to the funds in the event you need to use them—money market accounts and CDs can put restrictions on when you can access the funds, but both often come with higher APY. Compare the options on this list and choose the provider that best meets your business needs.