A high yield small business savings account is a small business deposit account that pays a higher interest rate than a traditional savings account. We reviewed the numerous small business savings account providers and found that the best business savings account can be found at Capital One, BOFI Federal Bank, and First Internet Bank. Read the article below for our comparison and review of these options, including a breakdown of APRs and fee structures.
Best High Yield Business Savings Account: Capital One
Capital One Spark Business Savings is our pick as the best overall high yield small business savings account. We chose it as the best high yield savings account because it has a higher introductory APR than both BOFI Federal Bank and First Internet Bank and also has comparatively lower fees.
Best Business Savings Account Comparison Table: Capital One vs. BOFI Federal Bank vs. First Internet Bank
 Capital One Spark |  BOFI Federal Bank |  First Internet Bank |
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|---|---|---|---|
First 12 Months 0.40% APR after promotional period. | (1.00% APR with $250k+) |
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(Waived if Requirements are Met) | (Waived if Requirements are Met) |
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(Only 6 Allowed Per Month) | $10 for Each Additional Transfer | $5.00 for Each Additional Transfer |
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0.2% for Additional Dollar Deposited | (Internet Bank) | (Internet Bank) |
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$25 for Outgoing Wires | $15 for Outgoing Wires | $20 for Outgoing Wires |
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ACH Transaction |
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(2,000 Accept Deposits), 700 Branches | (Less Than 1,000 Accept Deposits), 2 Branches (Internet Bank) | (Less Than 1,000 Accept Deposits), No Branches (Internet Bank) |
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| www.BOFIFederalBank.com |
Best Overall High Yield Small Business Savings Account: Capital One
Capital One Business Savings is our top pick for high yield small business savings accounts due to its high introductory APR offer and its flexible fee structure. Capital One offers an APR of 1.00% for the first 12 months and a 0.4% APR thereafter.
Capital One’s introductory APR offer is 0.2% higher than both BOFI Federal Bank and First Internet Bank. Further, Capital One has a better fee structure when compared to the two other options on our list. For example, Capital One Business Savings is the only option on our list that doesn’t have a monthly service fee.
What’s more, Capital One doesn’t have an opening balance requirement nor a minimum balance requirement. This is in contrast to BOFI Federal Bank and First Internet Bank, both of which have requirements for opening balances and minimum balances.
Capital One also has the most flexible network on our list. This is because while BOFI Federal Bank and First Internet Bank have large networks of ATMs, both of them are “Internet banks” and therefore have a limited number of branches and fully functional ATMs. By comparison, Capital One has 700 more branches and 1,000 more fully functional ATMs than both BOFI Federal Bank and First Internet Bank.
However, after the first 12 months, Capital One’s 1.00% introductory APR reduces to 0.4%, which is the lowest on our list. If you’re looking for a high, long-term APR, you might want to check out BOFI Federal Bank. And if you also have over $250,000 in cash, you may want to check out First Internet Bank.
Best Small Business Savings Account for Long-Term APR: BOFI Federal Bank
BOFI Federal Bank Business Savings is our pick for the best high yield savings account for long-term APR because it’s tied for the highest stated APR on our list. BOFI Federal Bank offers an APR of 0.8% throughout the life of the small business savings account.
This 0.8% APR is the same as you’ll find with First Internet Bank. However, BOFI Federal Bank has the slight edge over First Internet Bank when it comes to its fee structure, giving it the nod for the best long-term APR. For example, BOFI Federal Bank doesn’t charge an ACH fee while First Internet Bank does.
BOFI Federal Bank does charge a monthly service fee of $5.00, but it’s waived if a minimum daily balance of $2,500 is met. While First Internet Bank only charges a $2.00 monthly service fee, the fee is also waived if a $2,500 minimum daily balance is met. It’s therefore a non-issue if you expect to keep a balance greater than $2,500.
However, if you expect to have less than $2,500 in your account, it might be better to go with First Internet Bank or Capital One. Additionally, First Internet Bank offers a higher APR for accounts with more than $250,000 in deposits. If you expect to have this amount or more in your account, you should look into First Internet Bank.
Best High Yield Business Savings Account for More Than $250K: First Internet Bank
First Internet Bank Business Savings is our pick for the best high yield small business savings account for businesses with more than $250,000 in cash. This is because First Internet Bank offers a 1.00% APR for accounts with more than $250,000 in deposits. The APR is tied as the highest on our list with Capital One.
However, Capital One’s 1.00% APR only lasts for 12 months while First Internet Bank’s lasts for as long as an account has over $250,000. Further, the possible 1.00% APR is 0.2% higher than BOFI Federal Bank’s standard APR.
Even if a business doesn’t yet have $250,000 in cash but expects to in the near future, First Internet Bank is probably a better option than BOFI Federal Bank. This is because the fee structures of the two banks are almost identical.
But still, the flexibility and size of First Internet Bank’s overall network is still less than Capital One. When you take into account Capital One’s fee structure, it might be best to use Capital One until you meet or exceed the $250,000 threshold.
In-Depth Review: Capital One vs. BOFI Federal Bank vs. First Internet Bank
Annual Percentage Yield (APR)
Annual percentage yield (APR) is the interest rate paid on a savings account. When it comes to small business savings accounts, APR represents the percentage cash a business owner should expect to make each year on his or her cash savings.
The standard APR found on a non-high yield small business savings account is low and typically between 0.01% – 0.05%. The APR found on high yield small business savings accounts, by comparison, are much higher and can range anywhere from 0.4% – 1.00%. The money earned on APR is typically deposited directly into the savings account on the first of each month.
Opening Deposit Requirement
It’s common for many high yield small business savings accounts to require an opening deposit amount. Opening deposit requirements can range anywhere from $25 to more than $1,000. The amount of the opening deposit requirement is typically tied to the account’s APR. Accounts with higher APRs usually have higher opening deposit requirements, and vice versa.
Once the opening deposit is made there’s typically no ongoing minimum deposit requirement. However, high yield small business savings accounts will sometimes charge a service fee if certain minimum thresholds aren’t met. Luckily, there are a few high yield small business savings accounts that don’t require a deposit amount at all, such as with Capital One.
Minimum Balance Requirement
Like opening deposit requirements, some high yield small business savings accounts also have requirements on minimum balances. However, many savings accounts charge a service fee for accounts that dip below a certain threshold rather than requiring a minimum balance. In fact, all three of the high yield savings accounts on our list don’t have minimum balance requirements.
Monthly Service Fee
Like small business checking accounts, many high yield small business savings accounts charge a monthly service fee. This fee is typically waived if certain minimum daily balance requirements are met. For savings accounts, it’s typical to see monthly service fees between $2.00 – $10.00. To waive the fee, it’s common for banks to require minimum daily balances between $1,000 – $2,500 or more.
Monthly Balance Transfer Fee
The Federal Deposit Insurance Commission (FDIC) oversees the financial system and regulates such things as high yield small business savings accounts. The FDIC limits the number of balance transfers out of a savings account to 6 per month. This is a national requirement that’s abided by all banks.
To help the FDIC, banks typically charge a fee for each balance transfer that exceeds 6 per month. The costs can range anywhere from $5.00 – $25.00 per outward balance transfer that exceeds the limit of 6 per month.
Monthly Cash Deposit Fee
Most high yield small business savings accounts charge a monthly cash deposit fee. These savings accounts typically allow for a specific number of cash deposits per month, usually around $5,000, after which they charge a fee for each additional deposit. The fee is usually around 0.2% – 0.3%, and it’s charged on each additional dollar deposited until the new month begins.
It’s also common, however, to find high yield small business savings accounts without a monthly cash deposit fee. It’s therefore important to understand how much cash you expect to deposit in your high yield savings account each month.
Wire Transfer Fee
Wire transfer fees are most commonly associated with small business checking accounts. However, there are occasions when a business owner might want to send or receive wire transfers directly from his or her high yield small business savings account.
Wire transfer fees for a small business savings account can range anywhere from free to upwards of $50 per transaction. Since it’s more common to receive a wire rather than send a wire via a savings account, it’s important to understand any incoming wire transfer fees associated with your high yield small business savings account.
Outgoing ACH Fee
ACH fees are similar to wire transfer fees in that they’re a charge on a transfer of money from one account to another. For example, an ACH payment is a direct deposit into a high-yield small business savings account. This means that any vendor payments, payroll, or something similar, if directly deposited, is considered an ACH transaction.
It’s common to find high yield small business savings accounts that have ACH fees as well as savings accounts that don’t charge an ACH fee. ACH fees are typically around $5.00 – $10.00 per transaction.
Size of Network
A bank’s network consists of its ATMs and branches. The larger the network the easier it is for a small business owner to deposit checks and cash as well as withdraw funds.
For high yield small business savings accounts, however, the size of the network is often limited because the banks are typically Internet banks. This means that most of their business services are offered online. Further, some banks, while they boast a large network of ATMs, only have a few ATMs that are fully functional, meaning that they can both withdraw cash as well as deposit funds.
Bottom Line: Best High Yield Business Savings Account
High yield small business savings accounts are a great way for a small business to earn money on its cash and opening a business bank account is easy. This is because high yield small business savings accounts typically have high annual percentage yields (APR). For this reason, we researched the available small business savings accounts and found Capital One, BOFI Federal Bank, and First Internet Bank to have the best APR at the lowest cost.
Capital One Business Savings is our choice for the best overall high yield small business savings account. Capital One offers a high introductory APR and the best fee structure on our list. For more information on a high yield small business savings account, check out Capital One:
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