5 Best Business Savings Accounts for 2021

Editor’s note: This is a recurring post with regularly updated account details.

Business savings accounts are one of the best tools available to help you meet your savings goals while safeguarding funds. The best bank boils down to two types of accounts: online or traditional. In most cases, you’ll get the largest return on your deposit with online business savings accounts. Meanwhile, traditional banks usually offer business owners more convenient ways to bank and deposit cash.

The best business savings accounts are:

• Live Oak Bank Business Savings: Best overall for a high ongoing annual percentage yield (APY) with no monthly fees on all balances―0.60% APY
• Axos Bank Business Premium Savings: Best for balances of more than $25,000―0.50% APY
• First Internet Bank Business Money Market Account: Best for high APY with a top online bank―0.40% APY
• Capital One Business Savings: Best for high-yield introductory APY―0.40% APY
• NBKC Bank Business Money Market Account: Best for no banking fees―0.40% APY

Live Oak Bank: Best for No Monthly Fees on All Balances―0.60% APY

Live Oak Bank’s Business Savings account tops our list by offering the highest APYs, making it a great option for business owners looking to grow savings balances. Plus, with no minimum balance requirements, you won’t need to worry about monthly service fees. This bank has no physical branches, so you must apply for and fund your account entirely online.

Who it’s best for: Owners looking for easy fee-free online banking and consistent APYs on all balances

Rates, Terms & Fees

• Introductory APY: None
• Ongoing APY: 0.60% on all balances
• Minimum opening deposit: $0
• Minimum balance to earn APY: 1 cent
• Monthly fee: None
• Withdrawal fee: Free up to six per statement period; $10 per transaction thereafter
• Domestic wire transfer fee: Free for incoming; $10 for outgoing

Live Oak Bank doesn’t require a minimum balance. However, accounts with no activity for 24 consecutive months and a balance of $10 or less will be considered dormant. Aside from closure, dormant accounts also incur a $10 charge.

Axos Bank: Best for Businesses With Balances of at Least $25,000―0.50% APY

The Axos Bank Business Premium Savings account is excellent for owners who have larger balances to start with. You’ll need at least a $24,000 minimum balance to unlock this account’s highest APY and $25,000 to open the account. Because it offers two other business checking accounts, this bank is a great way to keep your business and personal finances separate. However, Axos Bank is branchless and doesn’t accept cash deposits.

Who it’s best for: Businesses with at least $25,000 available for savings that don’t process cash deposits

Rates, Terms & Fees

• Introductory APY: None
• Ongoing APY: 0.50% on balances of at least $24,000
• Minimum opening deposit: $25,000 minimum opening deposit
• Minimum balance to earn APY: $24,000
• Monthly fee: None
• Withdrawal fee: Free up to six per month; $10 per withdrawal thereafter
• Domestic wire transfer fee: Free for incoming; $15 for outgoing

First Internet Bank Business Money Market Savings: Best for High APY With a Top Online Bank―0.40% APY

When it comes to digital banking, First Internet Bank’s money market account consistently offers the best in business savings with as little as $100 to start. Even better, you can maximize small balances because this savings account racks up high APYs on balances up to $10 million. You’ll earn less on balances above $10 million, but it still helps maximize your dollar. However, to avoid this account’s monthly fee, you’ll need to keep a minimum average balance of at least $4,000.

Who it’s best for: Businesses that don’t make cash deposits and won’t need a physical branch location

Rates, Terms & Fees

• Introductory APY: None
• Ongoing APY: 0.50% on balances of up to $10 million; 0.35% on balances above $10 million
• Minimum opening deposit: $100
• Minimum balance to earn APY: 1 cent
• Monthly fee: $5; waived with a minimum balance of $4,000
• Withdrawal fee: Free up to six per month; $5 per withdrawal thereafter
• Domestic wire transfer fee: $15 for incoming; $20 for outgoing

If you make frequent ATM transactions, it’s a good idea to consider a bank’s ATM fee policy before opening a business bank account. First Internet Bank doesn’t charge an out-of-network fee, but the ATM provider likely will. However, First Internet Bank offers an ATM rebate program that refunds up to $10 in ATM fees each month.

Capital One: Best for High Introductory APY―0.40% APY

The Capital One Business Advantage Savings account is the only one on our list that offers an introductory APY for the first 12 months. After the promotional period ends, your account will earn the standard APY. However, for owners who prefer Capital One, this bank’s ATM and branch network makes this account well worth it long after the promotion is over. To apply for a Capital One business savings account, you must visit a branch location.

Who it’s best for: Businesses that can visit a physical branch located in Connecticut, Delaware, Louisiana, Maryland, New Jersey, New York, Texas, Virginia, and Washington, D.C.

Rates, Terms & Fees

• Introductory APY: 0.40% for the first 12 months
• Ongoing APY: A standard variable rate
• Minimum opening deposit: $250
• Minimum balance to earn APY: 1 cent
• Monthly fee: $3; Waived with a minimum balance of $300
• Withdrawal fee: Free up to six per statement cycle; $10 thereafter
• Domestic wire transfer fee: Free for incoming; $25 for outgoing

NBKC Bank: Best Overall for a High Ongoing APY & No Banking Fees―0.40% APY

NBKC Bank’s money market account offers 0.40% APY with no banking fees. While some accounts require a minimum balance before you can earn high APYs, this account earns its best APY on the first dollar you deposit. Plus, this online bank offers a large ATM network, cash deposits, and wire transfers. However, ATM cash deposits typically have a five-day holding period, so they’re not ideal.

Who it’s best for: Business owners looking for easy online banking designed for startups

Rates, Terms & Fees

• Introductory APY: None
• Ongoing APY: 0.40% on all balances
• Minimum opening deposit: $5
• Minimum balance to earn APY: 1 cent
• Monthly fee: None
• Withdrawal fee: Free up to six per month; $10 per withdrawal thereafter
• Domestic wire transfer fee: Free for incoming; $5 for outgoing

Although NBKC Bank doesn’t charge fees for ATM withdrawals, non-NBKC Bank ATM transactions may have a fee for each transaction. This bank will reimburse you up to $12 per month for any out-of-network ATM fees.

How We Evaluated the Best Business Savings Accounts

To evaluate the best options, we reviewed features that most business savings accounts have, including APYs, account fees, and balance requirements. Account terms for business savings accounts often vary from bank to bank. These differences are even more apparent when comparing online banks to traditional banks. However, all business savings accounts on our list are Federal Deposit Insurance Corporation (FDIC)-insured up to $250,000.

Bottom Line

When it comes to the best savings account for your business, rates and fees can direct you to the perfect account. The best provider may also be the bank with the easiest online access or the bank you already use. Either way, you’ll get more bang for your buck when you can find a high-yield savings account that best fits your banking needs and earns a high APY.