10 Best Business Savings Accounts in June 2023
This article is part of a larger series on Business Banking.
Editor’s note: This is a recurring post with regularly updated account details.
The best business savings accounts should provide you with an interest-earning account that allows you to earn passive income off of company reserves. With interest rates rising, some of the banks on this list offer outstanding high-yield savings and money market accounts (MMAs). The banks with lower interest rates offer other strong business products and services to support your company.
The 10 banks listed here offer business MMAs, business certificates of deposit (CDs), and high-yield savings accounts. Check out our guides comparing business MMAs vs business CDs and business MMAs vs high-yield savings accounts for the differences between the accounts.
Here are the 10 best savings accounts, with links directly to the provider pages:
- Live Oak Bank: Best overall with high annual percentage yield (APY) savings and short-term CDs
- Prime Alliance Bank: Best business savings account with tiered APY
- Mercury*: Best interest-earning digital savings account for balances over $250,000
- First Internet Bank: Best business savings account with a full-service digital bank
- Capital One†: Best traditional bank business savings for introductory APY and large ATM network
- U.S. Bank: Best traditional bank money market account with bonus introductory rate
- TAB Bank: Best for interest-earning savings and business financing options
- NBKC Bank: Best business savings for ATM fee reimbursements
- Nationwide*: Best business savings with high rates for large balances
- Oxygen*: Best for businesses looking for digital checking and savings with same provider
†Provider is geographically limited. See the Capital One Geographic Limitations to see if your business is located in an area served by these providers.
*Providers are financial technology (fintech) platforms backed by and Federal Deposit Insurance Corp. (FDIC)-insured through a supporting bank partnership. (Partnerships: Choice Financial Group and Evolve Bank & Trust for Mercury, The Bancorp Bank for Oxygen, and Axos Bank for Nationwide). All other listed banks are FDIC insured.
Best Business Savings Accounts at a Glance
Providers | Ongoing APY* | Monthly Fee | Free Monthly Transactions | Free Cash Deposit Limit |
|---|---|---|---|---|
 | 4.00% | None | No limit | No cash deposits |
 | 3.60% to 4.00% | None | 6 | None |
 | Up to 5.06% on treasury balances >$250,000 | None | No limit | No cash deposits |
 |
| $2 (savings) or $5 (MMA); waivable | 6 | None |
 | 0.20% first 12 months, then standard variable APY | $3; waivable | 6 withdrawals | $5,000 per month |
 |
| $15, waivable | Not stated | Not stated |
 |
| None | No limit | No cash deposits |
 | 2.0% | None | 6 | None; Free at MoneyPass ATMs |
 | Tiered up to 3.75% | None | 6; Fees charged after 20 transactions of any type | Cash deposits at ATMs; fees may apply |
 | 1.00% on balances up to $20,000 | None | None, but transaction types are limited | Cash deposits into checking, then transferred into savings |
*APY rates were accurate at the time of publication. Rates will fluctuate as the Fed raises or lowers interest rates. Visit the provider’s page for the most current APY rates before opening a savings account. | ||||
Live Oak Bank: Best Overall Business Savings Account With High APY Savings & Short-term CDs
What We Like
- No minimum balance requirements
- No monthly maintenance fees
- High-yield return on both savings and short-term CDs
Drawbacks
- Cannot withdraw cash from an ATM
- No free outgoing wires
- No cash deposits
Features
- High-yield CDs
- Small Business Administration (SBA) and other loans available
- Free online and mobile banking
 | |
|---|---|
Required Opening Deposit | None |
Required Balance Minimum | 1 cent to earn interest |
Transaction Limit Before Fees | No limit |
Automated Clearing House (ACH) Fees | None |
Monthly Fee | None |
Domestic Wire Transfer Fees | None for incoming; $19 for outgoing |
International Wire Transfer Fees | Unspecified |
ATM Fees | ATM product unavailable for savings |
Cash Deposited | None; bank doesn’t accept cash deposits |
APY | 4.00% |
Customer Service | By phone or fax during weekdays from 8 a.m. to 8 p.m. Eastern time or through its support page |
Other Products | Business checking, SBA loans, United States Department of Agriculture (USDA) loans, and commercial lending |
When To Choose Live Oak Bank
- You want a high-yield business savings account
- You prefer to bank online and don’t need physical branches
- You won’t be making cash deposits
Live Oak Bank is our best overall business savings account since it has one of the highest APYs, currently 4.00%. Also, it offers business CDs with some of the highest APYs on short-terms. You can get 5.00% APY on a one-year CD, with a 2.00% APY on CDs ranging from 18 months to five years.
The bank has no monthly fees and no minimum deposit required, just a one-cent requirement to earn interest on the account.
There are a few drawbacks, however. The first one is no ATM access to funds in your savings account. While Live Oak Bank has an excellent ATM network for its business checking product, that is unavailable on its savings. So, you will need to transfer funds to a business checking before withdrawing from an ATM.
In addition, if you send wire transfers often, you will pay $19 per transfer. The bank doesn’t accept cash deposits, although you can deposit checks through the mobile app or by mail or transfer funds via ACH. Phone customer service is also limited to Monday through Friday, 8 a.m. to 8 p.m. Eastern time.
Nevertheless, Live Oak Bank offers a great savings product that will earn you an excellent yield.
Prime Alliance Bank: Best Business Savings Account With Tiered APY
What We Like
- No monthly maintenance fee
- No minimum balance requirement
- Tiered deposit levels to earn additional interest
Drawbacks
- No online account opening for business savings
- No debit card for business savings accounts
- No weekend customer service
Features
- SBA loans
- Equipment financing
- Checking, money market, and CDs available
| |
|---|---|
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | Unlimited free deposits and up to six withdrawals/transfers per month; $25 each after six |
ACH Fees | None |
Monthly Fee | None |
Domestic Wire Transfer Fees | $10 incoming; $15 outgoing |
International Wire Transfer Fees | $10 incoming; $40 outgoing |
ATM Fees | No fees at a MoneyPass ATM; $1.50 fee for out-of-network ATM withdrawals plus third-party ATM operator fees |
Cash Deposited | None |
APY |
|
Customer Service | Can visit the physical location, message online, or call Monday through Friday between 8:30 a.m. and 5:30 p.m. Mountain time |
Other Products | Commercial checking, money market, CDs, and commercial loans |
When To Choose Prime Alliance Bank
- You want to take advantage of the tiered APY structure to grow your savings account
- You don’t need customer service on weekends
- You prefer to bank online, as there is only one physical location in Woods Cross, Utah
Prime Alliance Bank now offers the highest APY available with its business savings product. It uses a tiered APY structure to reward you as your balance increases. The starting APY is 3.60%, which increases to 3.80% once you have at least $100,000. When your balances surpass $200,000, the APY increases to 4.00%.
The bank offers unlimited free deposits and up to six withdrawals and transfers per month. The cost of going over six withdrawals and transfers is steep at $25 per transaction, so keep that in mind if you regularly end up with more per month.
However, withdrawals made in person at the bank, by telephone, by mail, or by using an ATM are exempt from the six-transaction limit. If you exceed the transaction limit three times in a rolling 12-month period, the account will be converted to a demand deposit account.
Customer service is available Monday through Friday during business hours Mountain time, or you can stop by the company’s lone branch in Woods Cross, Utah.
Drawbacks include the high fee for going over six withdrawals and transfers per month, no free wire transfers, either incoming or outgoing, and a $1.50 charge at non-MoneyPass ATMs, plus third-party fees.
Mercury: Best Interest-earning Digital Savings Account for Balances over $250,000
What We Like
- No minimum deposit to open an account
- Physical and virtual debit cards
- Access multiple business entities with single sign-on (SSO)
Drawbacks
- Accounts unavailable to sole proprietorships
- Lacks paper check-writing abilities
- Must ask for the Treasury account and must have account balances in excess of $250,000 to qualify
Features
- Accounts integrate with major accounting software
- Set customer user permissions for your team members
- Create auto-transfer rules for your accounts
- Integrates fully with QuickBooks and Xero accounting software
 | |
|---|---|
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | No limit |
ACH Fees | None |
Monthly Fee | None |
Domestic Wire Transfer Fees | None |
International Wire Transfer Fees | None as long as it is sent through Mercury’s structure |
ATM Fees | No charge for out-of-network ATMs, although operator fees apply; free access to Allpoint ATM network (55,000 locations worldwide) |
Cash Deposited | None; bank doesn’t accept cash deposits |
APY | As high as 4.85% for money in Treasury account, which can be requested after balances exceed $250,000 |
Customer Service | Email customer service available |
Other Products | Checking―must open a checking to get a savings and interest-earning Treasury account; credit card |
Open an Account | |
*Mercury is a business fintech platform backed by FDIC-insured Evolve Bank & Trust. | |
When To Choose Mercury
- Business owners who are comfortable with an online-only bank and don’t need their business bank to have a physical location
- Companies that don’t need to deposit cash directly into their savings account
- Businesses looking for additional FDIC Insurance, as Mercury Vault allows you to insure up to $5 million
Mercury is an interesting option because you must open a business checking account to get a business savings account. The savings account is not interest-bearing; however, once you have at least $250,000 in your accounts, you can request the interest-earning Treasury account—which has one of the highest APYs on the market.
Its Treasury account currently earns a maximum of 5.06% APY, although the provider expects that to increase as the prime rate increase from the Fed continues.
Mercury is a great choice for a tech or startup company. Mercury’s checking and savings accounts are free, with no minimum deposit or balance requirements. Most businesses incorporated in the United States are eligible for an account, except sole proprietorships and trusts.
The biggest perk of Mercury is its new Vault product. Mercury will use partner banks and a sweep network to insure business funds of up to $5 million.
Physical and virtual debit cards are available with your Mercury account. You can withdraw money from one of 55,000 Allpoint network ATMs for free. The bank doesn’t charge for out-of-network ATM withdrawals, but you will have to pay third-party operator fees.
It has also recently added a credit card product, Mercury IO Mastercard, which can help you earn a bonus with a new account. You can get a $300 cash back bonus if you spend $2,000 on your debit or credit card within the first 90 days of account opening.
One major drawback is its inability to accept cash deposits. Also, outside of its credit card and a venture capital term loan program, there are no standard lending products available.
First Internet Bank: Best Business Savings Account With a Full-service Digital Bank
What We Like
- Interest-earning savings and checking accounts
- Wide range of business lending products
- No minimum balance required
What's Missing
- No fee-free incoming and outgoing wire transfers
- $100 minimum to open
- ATM cards only available to sole proprietorships
Features
- Personal accounts, including checking, savings accounts, money market accounts, cash back personal credit card, and CDs
- Mortgage lending
- SBA loans and commercial loans
- Business accounts, including money market accounts and business CDs
 | |
|---|---|
Required Opening Deposit | $100 |
Required Balance Minimum | None |
Transaction Limit Before Fees | Six free transactions per month; fees apply thereafter |
ACH Fees | None |
Monthly Fee |
|
Domestic Wire Transfer Fees | $15 for incoming; $20 outgoing |
International Wire Transfer Fees | $15 for incoming; $50 outgoing |
ATM Fees | ATM card available to sole proprietors only; First Internet doesn’t charge, but third-party ATM fees will likely apply |
Cash Deposited | None; can be done through ATMs |
APY |
|
Customer Service | Toll-free customer service available Monday through Saturday and email customer service available as well |
Other Products | Commercial checking, savings, CDs, SBA loans, commercial loans, and commercial real estate (CRE) loans |
When To Choose First Internet Bank
- You want to earn interest on both your business checking and savings accounts
- You don’t use ATMs often, and if you do, you run a sole proprietorship (First Internet Bank only provides ATM cards to sole proprietorships)
- You prefer your business and personal accounts with one bank
For businesses looking for multiple options for interest-bearing accounts, First Internet Bank is an excellent choice. Its standard business savings account has an APY of 0.90%, and if you choose a business money market account instead of traditional savings, you can get 3.35% APY on balances of $5 million or less, and 5.20% APY on balances of greater than $5 million. Even its business checking product has a very solid 0.50% APY on balances of $10,000 or more.
It also offers commercial CDs, SBA loans, commercial loans, and commercial real estate loans. It is an outstanding choice for a business looking for a digital-only bank that provides full-service banking products and services. In addition to its outstanding commercial offerings, it has interest-earning personal checking and savings accounts.
However, there are some drawbacks to this savings account. All incoming and outgoing wires have fees, so the cost may start to add up if you send wires frequently. Also, you only get six transactions per month before fees hit, and while it doesn’t charge ATM fees, third-party fees may apply. You can only get an ATM card if you are a sole proprietor.
Capital One: Best Traditional Bank Business Savings for Introductory APY & Large ATM Network
What We Like
- 70,000 fee-free ATMs
- Checking, savings, loans, and lines of credit available
- Good introductory APR rate
What's Missing
- Account opening only available in select United States locations
- Fees for domestic incoming and outgoing wire transfers
Features
- Shop for and finance a car
- Receive discounts on small business essentials
- Use Capital One Shopping for discount codes at checkout
- Selection of business credit cards for fair to excellent credit
| |
|---|---|
Required Opening Deposit | $250 |
Required Balance Minimum | None |
Transaction Limit Before Fees | 6 withdrawals |
ACH Fees | None |
Monthly Fee | $3, waivable with a minimum average daily balance of $300 |
Domestic Wire Transfer Fees | $25 per outgoing wire, $15 for incoming wire |
International Wire Fees | $40 per outgoing wire, $15 for incoming wire |
ATM Fees | No charge for in-network ATM usage; $2 charge for out-of-network ATMs |
Cash Deposited | Up to $5,000 per month free, then $1 fee per $1,000 after |
APY | 0.20% for first 12 months, then standard variable APY applies |
Customer Service | Toll-free phone support Monday through Friday, 8 a.m. to 8 p.m. ET or in branch during business hours |
Other Products | Lending products, credit cards, and Unlimited Business Checking |
Capital One Geographic Limitations: Capital One currently requires that you visit a branch to complete an application to open a business checking account. There are branch locations in Virginia, Texas, New York, New Jersey, Maryland, Louisiana, and Washington, D.C.
When To Choose Capital One
- You’re located near a Capital One branch, as you must open an account in a branch. You cannot open one online.
- You need to make large cash deposits, as Capital One allows up to $5,000 per month free and charges just $1 per $1,000 over that amount.
- You need the convenience of a large ATM network as it has more than 70,000 ATMs in the Capital One network.
Before deciding to choose Capital One, you need to ensure you are in one of the states listed above as you have to visit a branch to open an account.
The bank offers a solid APY of 0.20% for the first 12 months. After that, the rate reverts to the standard variable rate. So, if you’re looking for a short-term gain with a savings account, it could be a good choice.
Its biggest advantage is the physical locations (albeit limited), which allow for cash deposits and in-person customer service. Phone customer service is available Monday through Friday from 8 a.m. to 8 p.m. Eastern time.
You can deposit up to $5,000 in cash monthly for free. After that, Capital One charges just $1 for every $1,000 over that amount. So, if your business has large cash deposits into your savings, it could be a good choice.
In addition to the location restrictions, other drawbacks include fees for all wire transfers, limited time on solid APY rate, and an opening deposit requirement of $250. There is a monthly fee of $3, but it is waivable by maintaining a minimum balance of $300.
We recommend reaching out to Capital One for more information if you are interested in a savings account, as the provider offers less account information on its website than any other provider on this list.
U.S. Bank: Best Traditional Bank Money Market Account With Bonus Introductory Rate
What We Like
- Waivable monthly fee
- Free mobile check deposits
- Apply in person, online, or by phone
Drawbacks
- Opening deposit required
- Expensive wire fees
- Limited free transaction
Features
- Send and receive money through app
- Digital invoicing and payment systems integrated into your online dashboard
- Mobile app to monitor all of your accounts, transfer funds between accounts, and deposit checks online
- Easy integration with overdraft protection or credit card processing services for your business
- Free debit card and 50% discount on first check order up to $50
- Integrations with QuickBooks and U.S. Bank Payment Processing
| |
|---|---|
Required Opening Deposit | $100 |
Required Balance Minimum | None |
Transaction Limit Before Fees | Not stated |
ACH Fees | None |
Monthly Fee | $15, waived with $10,000 minimum daily ledger balance |
Domestic Wire Transfer Fees | $40 for outgoing, $14 for incoming |
International Wire Transfer Fees | $75 for outgoing, $15 for incoming |
ATM Fees | No charge for out-of-network ATMs, although operator fees apply |
Cash Deposited | No limit stated |
APY |
|
Customer Service | Customer service online, by phone, or in-branch during business hours |
Other Products | Business checking, lending and cash flow products, other checking options, POS services |
When To Choose U.S. Bank
- You have enough funds in your savings to waive the monthly fee
- You are looking for a traditional bank with a bonus APY for new account signup
- You want a full-service bank with physical locations in the Midwest and the western US
If you’re looking to take advantage of a bonus introductory rate, U.S. Bank is a good choice for a business money market account. It has a waivable monthly fee and higher APY for its standard money market account than Capital One for its business savings.
In addition, if you open a new money market account, you can receive a bonus interest rate of 4.25% for six months. The APY calculation for this rate includes six months of 4.25%, followed by six months at the standard rate. So the APY ranges from 2.17% for balances between $25,000 and $49,999.99 up to 2.72% on balances from $1 million to less than $3 million.
To qualify, you must open a new Platinum Business Money Market Account and deposit between $25,000 to $2,999,999.99 in new money deposits. See the full list of the tiered APY for U.S. Bank’s money market account on the company’s website. This offer ends July 31, 2023.
This money market account is now available nationwide and not just in the 26 states where U.S. Bank operates physical branch locations.
U.S. Bank charges a $15 monthly fee, which can be waived if you have at least a $10,000 daily ledger balance. The company’s website doesn’t list cash deposit limits, so check with your local branch for additional fees. The bank requires a $100 minimum opening deposit.
Capital One beats out U.S. Bank in a comparison of the two bank’s basic savings accounts. Capital One offers a one-year introductory rate of 0.20% APY, while U.S. Bank offers a meager 0.01% APY on its savings balances. If you want a savings account, choose Capital One. If you want the highest rate regardless of savings type, U.S. Bank’s MMA is the right choice.
TAB Bank: Best for Interest-earning Savings & Business Financing Options
What We Like
- Full-service online bank
- Customer service Monday through Saturday
- Partners with Autobooks for invoicing services
Drawbacks
- No physical branches
- No free incoming wires
- No ATM network, no reimbursements for ATM use
Features
- Checking, savings, money market accounts, and CDs
- Accounts receivable (A/R) financing
- Asset-based lending
- Term loans
- Equipment financing
| |
|---|---|
Required Opening Deposit | $25 |
Required Balance Minimum | $1 to maintain |
Transaction Limit Before Fees | No limit |
ACH Fees | None |
Monthly Fee | None |
Domestic Wire Transfer Fees | $15 for incoming wire; $30 for outgoing |
International Wire Transfer Fees | Unspecified |
ATM Fees | No ATM card provided |
Cash Deposited | None; bank doesn’t accept cash deposits |
APY |
|
Customer Service | Message through the website, or call toll-free Monday through Friday 6 a.m. to 7 p.m. Mountain time; Saturday from 9 a.m. to 3 p.m. MT |
Other Products | A/R financing, asset-based lending, invoice factoring, equipment financing, business checking, money market, CDs, and CRE lending |
When To Choose TAB Bank
- You have business financing needs, as the bank offers a wide array of lending products
- You prefer an online bank and don’t need to visit a branch
- You don’t need to use an ATM with your savings account, as there is no ATM card available with this account
TAB Bank is a great option for a business savings account thanks to a solid APY and a wide array of other business lending and deposit accounts. TAB Bank has improved its money market account by offering 3.5% APY on the first $1 million. Balances above that, and business savings balances earn 0.25% APY. You need at least $25 to open either account, but as long as the account balance remains above $1, you’ll earn interest.
The bank offers accounts receivable financing, asset-based lending, a couple of varieties of invoice factoring, equipment financing, and commercial real estate lending. If you want to keep all of your business needs with the same bank, having deposit accounts and lending products with TAB Bank makes sense. It also offers invoicing services through Autobooks.
In addition, it has interest-earning business checking and CDs. Its CD rates are much stronger than its savings and money market accounts, with APY earning between 3.90% and 4.76% depending on the length. The minimum balance to open a CD is $1,000.
However, there are drawbacks to this savings account, starting with no option to obtain an ATM card. If you need to withdraw money from your savings, you cannot do it through an ATM. In that case, you probably want to consider another savings provider on this list.
In addition, the bank has no ability to accept cash deposits, no physical branches, and no free wire transfers.
NBKC Bank: Best Business Savings for ATM Fee Reimbursements
What We Like
- No monthly fees, minimum balance, and initial deposit required
- No fees for incoming domestic wires
- ATM fee reimbursements of up to $12 per month
Drawbacks
- Limited branches (only in Kansas and Missouri)
- Autobooks subscription costs $10 per month after 60-day free trial
- International and domestic outgoing wires aren’t free
Features
- Free debit card
- Business account add-ons, such as business fraud tools and desktop deposits
- Deposit checks and pay bills via the NBKC app on your mobile, tablet, or desktop
- Autobooks software integration
- Business money market accounts and business CDs to grow your funds
- Other business solutions, including disbursement, fraud management, collections, and cash management
| |
|---|---|
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | Six free transactions; exceeding those transactions could result in the account being reclassified |
ACH Fees | None |
Monthly Fee | None |
Domestic Wire Transfer Fees | $5 per outgoing wire, free for incoming |
International Wire Transfer Fees | $45 per outgoing wire, $45 for incoming |
ATM Fees | No charge for out-of-network ATM usage; refunds ATM fees up to $12 per month |
Cash Deposited | Free at 34,000-plus MoneyPass ATMs |
APY | 2.0% |
Customer Service | Hotline: (888) 905-2165 Monday to Friday, 8 a.m. to 5 p.m. Central time E-mail: customersupport@nbkc.com |
Other Products | Money market, CDs, credit cards, lending, business solutions including disbursement, fraud management, collections, and cash management |
When To Choose NBKC Bank
- You’re looking for a largely fee-free banking experience with a solid APY on business money market balances
- You make frequent ATM withdrawals, as NBKC refunds up to $12 in out-of-network fees each month
- Your business is located near one of the bank’s four branches (Kansas City, Missouri; Liberty, Missouri; Overland Park, Kansas; and Leawood, Kansas)
If you’re specifically looking for an online-only business money market account for your business savings, NBKC Bank is an excellent choice. You can earn 2.0% APY on all balances in its money market account.
NBKC is largely a fee-free banking product, with no minimum balance or opening balance required, no monthly fees, and free domestic incoming wires. Outgoing domestic wires are just $5, though there are higher fees for international wire transfers.
Not only does NBKC not charge for out-of-network ATM usage, but it refunds up to $12 in ATM fees each month. You can also make deposits at one of over 34,000 MoneyPass ATMs nationwide.
If your business is near one of the four physical locations in Missouri and Kansas, you can use NBKC as a traditional brick-and-mortar bank. If you aren’t located near a branch bank, this account can be used just like any other online-only bank.
Short-term CD rates are low compared to other providers in this guide, with three-month and six-month CDs at 0.10% APY. Rates increase once you get past the one-year CD, with the maximum APY of 3.25% on 5-year CDs.
The bank also offers a business credit card and other business solutions, including disbursement, fraud management, collections and cash management. It’s a great choice for a business looking for a one-stop shop for its business banking needs.
Nationwide: Best Business Savings With High Rates for Large Balances
What We Like
- High APY for larger balances
- No monthly fees
- Free incoming wires
What's Missing
- Minimum opening deposit of $25,000 required
- Limited free transactions of any type before fees are charged
- High balance required before any interest is earned
Features
- No monthly maintenance fee or average daily balance requirement fee
- Free image statements
- Free online banking
- Remote deposit from anywhere
- Tiered interest earning for higher APY for larger balances
- Uses Insured Cash Sweep through partner Axos Bank to extend FDIC insurance for balances up to $150 million
| |
|---|---|
Required Opening Deposit | $25,000 |
Required Balance Minimum | None |
Transaction Limit Before Fees | Six transactions per month |
Processing Fee | 30 cents for each debit, credit and deposited item over 20 per month |
ACH Fees | None |
Monthly Fee | None |
Domestic Wire Transfer Fees | Incoming are free; Up to $15 outgoing |
International Wire Transfer Fees | Incoming are free; $50 outgoing |
ATM Fees | Free; ATMs out of Axos Bank’s network may charge third-party fees |
Cash Deposited | Cash deposits may be possible at certain ATMs; fees may apply |
APY | Tiered up to 3.75% APY. No interest on balances less than $24,000. |
Customer Service | Available by phone, mail or email |
Other Products | Personal checking and savings, mortgage and personal loans |
Nationwide is a business fintech platform backed by FDIC-insured Axos Bank. | |
When To Choose Nationwide
- If you have large business reserves and you want to earn a higher interest return
- You have at least $25,000 to open an account
- You don’t have many monthly transactions as Nationwide limits free transactions
Nationwide has partnered with Axos Bank to provide a solid business savings product. For businesses with large amounts of business reserves wanting a higher interest rate, Nationwide offers up to 3.75% APY.
While you won’t earn interest on balances of less than $24,000, balances of $24,000 to less than $250,000 start at 2% APY. For balances of $1 million or more, you will earn 3.75% APY.
There are some drawbacks with Nationwide. They still have the six transaction limit, so it is an account best for businesses with limited monthly transactions into and out of a savings account. The transactions included here include:
- Preauthorized transactions
- Telephone and electronic transactions
- Online or mobile banking transfers or bill payments
- Transfers by check, draft, and debit card
In addition, it charges 30 cents for any transactions above 20 in a month, which includes all debits, credits and deposited items. Accounts that limit transactions typically reclassify accounts to noninterest-earning accounts if that limit is regularly exceeded.
Otherwise, it’s a solid business savings product with no monthly or balance requirement fees. However, the $25,000 minimum opening deposit may be a nonstarter for many businesses looking to earn interest on small reserve amounts.
Oxygen: Best for Businesses Looking for Digital Checking & Savings With Same Provider
What We Like
- Rare fintech that offers both personal and business banking
- No monthly or transaction fees
- Single-use virtual cards available with checking for online shopping provide extra security
What's Missing
- Must have a checking account with Oxygen to open business savings
- No cash deposits into savings
- Limited transaction types available into savings
Features
- Nationwide limited liability company (LLC) creation available through the Oxygen App
- 5% cash back rewards on everyday purchases with your debit card
- Ability to create single-use virtual cards to keep your business bank account secure
- Business savings product available with 1% APY on balances up to $20,000
- Multiple personal checking accounts available
- Free Oxygen Visa Business Debit Card and an unlimited amount of virtual cards
- Integrations with QuickBooks, Xero, Plaid, and Gusto
- Customer service via a toll-free phone number, email, social media support, and online help articles
| |
|---|---|
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | None, but transaction types are limited to transfers to and from your checking |
ACH Fees | None |
Monthly Fee | None |
Domestic Wire Transfer Fees | No fees incoming; outgoing unavailable |
International Wire Transfer Fees | N/A |
ATM Fees | (Checking only): None at Allpoint ATMs; $3 out-of-network domestically; $5 out-of-network internationally |
Cash Deposited | (Checking only) $4.95 fee per transaction, available through Green Dot retail locations; can also deposit through link to external bank via Plaid |
APY | 1.00% APY on balances up to $20,000 |
Customer Service | Available via a toll-free phone number, email, social media support, and online help articles |
Other Products | Business checking |
When To Choose Oxygen
- You have an Oxygen business checking account and want to earn interest on business reserves
- You are looking for a fintech that has both personal and business accounts
- You are a freelancer or creative looking for business checking and savings for your business
Oxygen is a digital-only bank geared toward freelancers and creatives, among other small businesses. If you open an Oxygen business checking account, you can also open a business savings account which earns 1% APY on balances up to $20,000.
There are limitations with Oxygen savings. To withdraw money from your savings, you must transfer it to your Oxygen business checking account. There isn’t an option to withdraw money via ATM from your savings. Also, the account cannot be used for preauthorized direct debits (or ACH debits) from merchants, internet service, or other utility providers.
It’s one of the few fintechs that provides personal and business banking options. For businesses considering becoming LLCs, Oxygen offers nationwide LLC creation in the Oxygen app powered by CorpNet, Inc. There are fees involved, which is one of the few services with a fee.
It also has a business checking account with no monthly fees, minimum balance requirements, and transaction limits. Deposits can be made through Green Dot locations for $4.95 per transaction and by in-app mobile check capture, via ACH or Plaid, from an outside account.
However, it has no outgoing and international wire transfers, and you cannot set up multiple users in the app. It’s only open to a single sign-on (SSO) per account.
How We Evaluated the Best Small Business Savings Accounts
When compiling this list, we reviewed 95 banks, including more than a dozen specific 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 Small Business Savings Accounts
- Bluevine: Best for those looking for an interest-earning, digital-only bank account. Earn up to 2.0% APY on balances of $250,000 or less 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 up to 2.25% APY uncapped on business checking and 1% cash back. Read our Grasshopper review to learn more.
When choosing a savings account over a checking account, you are 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 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 are not needed for the day-to-day operations of your business, it is 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.
Bottom Line
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.
