The best business savings accounts offer high ongoing annual percentage yields (APYs), minimal fees, and Federal Deposit Insurance Corporation (FDIC) insurance. Businesses should also consider other factors when choosing a business savings account, like the provider’s ATM network and minimum balance requirements. We’ve reviewed the top business savings accounts ranked the seven best providers below.
Top 7 Business Savings Account Providers November 2019
Bank | Best for |
|---|---|
(Best overall) High APY and easy ATM access | |
Best for owners with low account balances | |
Businesses with balances over $25,000 | |
Best personal savings account option | |
Businesses with more than $500,000 in savings | |
Highest introductory APY | |
Highest introductory APY for a traditional bank |
What’s Changed Since Our Last Update
In this update, we’ve added two new banks to our list. These changes are reflected in our best business savings account for October 2019 rankings. We update this article frequently to stay current with bank changes. This article was originally published in March 2018.
The Federal Reserve Reduced Its Benchmark Rate
In September 2019, the Federal Reserve Bank cut its benchmark rate 0.25%, the second rate cut this year. The Federal Reserve prime rate impacts interest rates for bank loans, credit cards, and savings accounts. The majority of the accounts on our list did not change their rates.
We Added CIT Bank and Prime Alliance Bank to Our List
Since we last published this article in March 2019, we located two new banks that offered low costs and high APY for savings accounts. CIT Bank offers an APY up to 2.10% while Prime Alliance Bank offers 2.22% APY for its top-tier balances. These rates are reflected in our October 2019 rankings.
We Removed Chase, U.S. Bank, and Bank of America from Our List
When evaluating the best business savings accounts, we also considered the convenience of banking and fee structure. Chase dropped its Premier Savings account APY from 0.40% to 0.11% for balances with $250,000 or more. We removed these three traditional banks from our list because their APY wasn’t as competitive as others. Although these banks offered the best convenience banking with nationwide locations, we felt the high costs and low APY wasn’t worth it.
Wells Fargo Bank Changed Its Business Savings Rate and Terms
Wells Fargo Bank increased its special interest rate from 1.54% to 1.65%. It also cut its introductory period in half, leaving owners with only 6 months to receive the special interest rate. But businesses can now earn the top APY rate of 0.10% on all balances. Previously, Wells Fargo only offered this rate to those holding a balance of $100,000 or more. Wells Fargo rates and products vary based on location.
The seven best business savings accounts were determined by their interest rates, accessibility, and account fees.
How We Evaluated Business Savings Accounts
Business savings accounts typically have similar terms and costs while their APYs vary. The APY is the interest rate the savings account will earn every year, including the compound interest. It’s this rate that determines how much you could earn annually on the money in your business savings account. A higher APY means more money saved for your business. Banks often offer tiered rates that earn more on higher balances.
We considered the following factors when determining the best business savings accounts:
- APY: The interest rate that the bank offers to pay on balances
- Fees: Any ongoing monthly charges associated with a specific account
- Banking network: The accessibility to ATMs and physical branch locations
- Minimum balance requirements: The amount of money you are required to maintain in your account
- FDIC insurance: Whether the money deposited in the account is insured by the FDIC
All of the business savings accounts on our list are FDIC insured up to $250,000. Most of the banks offering the highest APY are online banks, and some lack a strong network of ATMs and physical branch locations. If you need to be close to a physical branch and/or ATMs, then you should consider a traditional bank like Wells Fargo Bank, or a similar institution. Banking is made easier when you already have an existing business checking account.
After researching the best business savings accounts, we recommend First Internet Bank as the best overall business savings account provider. First Internet Bank offers one of the highest APYs available in the industry at 1.41%, has multiple business checking account options, and has an inexpensive fee structure.
First Internet Bank: Overall Best Business Savings Account Provider
First Internet Bank is the best business savings account provider on our list because it provides high APYs and an excellent online banking portal. Its online banking site offers “iScan” deposits, which allows you to deposit checks online. For balances up to $250,000, you will earn 1.16%, and for balances of $250,000 or more, you’ll earn 1.41%. It also provides FDIC insurance up to the federal limit of $250,000.
First Internet Bank Rates & Requirements
First Internet Bank’s Regular Savings account doesn’t offer an introductory APY, but it does offer a high ongoing APY at 1.16% for balances less than $250,000. With it being an online bank, it offers easy access and allows cash deposits to its ATM network. Businesses that expect to have a balance of at least $250,000 can earn up to 1.41% in interest.
The rates and requirements for First Internet Bank are:
- Introductory APY: Not applicable (N/A)
- APY after introductory period: 1.16% for balances below $250,000; 1.41% for balances $250,000 and higher
- Minimum opening balance: $100
- Minimum ongoing balance: $0
In addition to its high APY, First Internet Bank only requires a minimum balance of $1,000 to avoid its small monthly fee of $2. This is an excellent option for owners looking to maximize interest with fewer costs. In comparison, Capital One offers an ongoing APY of 0.40%, and Axos Bank offers an ongoing APY of 1.06% on all balances.
First Internet Bank Costs
First Internet Bank fees are standard for internet accounts. Although this provider doesn’t charge ATM fees, the transaction fees can add up quickly. The replacement fee for lost or stolen ATM cards is free for the first one, and $5 for each card after that.
The costs associated with First Internet Bank’s regular savings account are:
- Monthly service fee: $2; waived with a minimum balance of $1,000
- Monthly transaction fee: $0; up to six per month
- Monthly cash deposit fee: 3% of the amount or $10, whichever is greater
- Wire transfer fee: $15 for incoming wires and $20 for domestic outgoing wires.
- Outgoing automated clearing house (ACH) fee: $5
- ATM fees: None
If you have an ATM card, which is only offered to sole proprietors, you can use any ATM in your location. First Internet Bank doesn’t charge an ATM fee, but the ATM provider likely will. However, First Internet Bank offers an ATM rebate program that reimburses up to $10 per month in ATM fees.
What First Internet Bank Is Missing
The one downside to First Internet Bank’s business account is it only issues ATM cards to businesses that are structured as sole proprietorships. This can be a roadblock for any limited liability companies (LLCs) and corporations. If you need access to a debit card, consider opening an account with Axos Bank.
First Internet Bank Reviews
We searched online for user reviews and found that they were mostly positive. Account holders generally liked First Internet Bank’s high savings APY. In addition, it also offers an excellent money market account option, along with its business checking accounts. Some users complained about the strict sole proprietorship requirement for ATM card issuance.
Live Oak Bank: Best for Owners With Low Account Balances
Live Oak Bank offers a high ongoing APY at 1.10%, which makes them a good option for anyone who doesn’t need a physical branch location. Although there are no physical branches, you can apply completely online. Live Oak Bank also provides its account holders with FDIC insurance up to $250,000.
Live Oak Bank Rates & Requirements
Live Oak Bank is an internet bank with no branches, but it does have customer service offices in multiple states. Its high ongoing APY (1.10%) is much higher than what most traditional banks like Wells Fargo offer. It also has a comparatively low fee structure with no minimum balance requirements. Business owners can start earning its top APY from day one.
The rates and requirements for Live Oak Bank are:
- Introductory APY: N/A
- APY after introductory period: 1.10%
- Minimum opening balance: $0
- Minimum ongoing balance: $0
Live Oak Bank doesn’t require a minimum balance. However, accounts with no activity for 24 consecutive months with balances of $10 or less become dormant. Aside from getting closed, dormant accounts also receive a $10 charge. If you want another online-only account option like Live Oak Bank, consider using First Internet Bank to earn higher interest rates at 1.16%.
Live Oak Bank Costs
The fee structure for Live Oak Bank is the following:
- Monthly service fee: $0
- Monthly transaction fee: $0; up to six per month
- Monthly cash deposit fee: Cash deposits not allowed
- Wire transfer fee: $0 for incoming wires; $10 for outgoing fees
- ATM fees: None; account holders don’t receive an ATM card
Unlike Axos Bank and First Internet Bank, Live Oak Bank doesn’t provide its account holders with ATM or debit cards. However, this is a great savings account option if you’re worried about potential fees. Axos doesn’t charge transaction or service fees, and it has one of the lowest wire transfer fees on the list.
What Live Oak Bank Is Missing
Because it’s a digital bank, Live Oak Bank doesn’t have physical branches you can walk into. It only has offices in North Carolina, Florida, Georgia, and California. This makes it difficult for businesses that want to deposit cash directly into their business savings account. If your business requires regular cash deposits, consider using a traditional bank like Wells Fargo instead.
Live Oak Bank Reviews
We searched the web extensively for user reviews, which were mostly positive. Users stated that Live Oak Bank’s fee structure is better when compared to other accounts. Some users complained that although Live Oak Bank offered good ongoing rates, they sometimes found it difficult not having access to physical locations.
Axos Bank: Best for Businesses With Balances Over $25,000
Axos Bank is best for businesses with more than $25,000 in savings because the maximum APY is 1.06%. For balances below $25,000, you will earn 0.80%. Axos Bank provides FDIC insurance on all deposits up to $250,000 and access to a free debit card. It’s also a branchless bank and, for that reason, you can apply directly online.
Axos Bank Rates & Requirements
Axos Bank offers both a regular and premium high yield business savings account. Its regular business savings account carries interest rates of 0.80% compared to its premium account that has rates of 1.06%.
The rates and requirements for Axos Bank are:
- Introductory APY: N/A
- APY after introductory period: 1.06% for a premium account; 0.80% for a regular account
- Minimum opening balance: $25,000 for a premium account; $1,000 for a regular account
- Minimum ongoing balance: $0 for a premium account; $2,500 for the regular savings
Axos bases your interest rate solely on your daily balance and has two types of business savings accounts. Although you can still earn interest with a balance below that, you won’t be maximizing your earnings. In comparison, First Internet Bank has a minimum account balance of $1,000, which gives you access to interest rates of 1.16%.
Axos Bank Costs
The standard Axos Bank costs on their savings accounts are:
- Monthly service fee: $0 for a premium account; $5 for regular savings
- Monthly transaction fee: $0; up to six per month
- Monthly cash deposit fee: None―internet bank
- Wire transfer fee: Free for incoming wires and $15 for domestic outgoing wires
- ATM fees: None
Axos Bank offers one of the best fee structures for savings accounts because most of its services are free. Without physical locations, businesses need to deposit funds electronically, via mail, or by wire transfer. Axos also provides unlimited ATM fee reimbursements, which is better than First Internet Bank’s $10 monthly reimbursement.
What Axos Bank Is Missing
Axos Bank doesn’t have any physical locations because the bank is completely online. This makes it hard for businesses that need to make cash deposits directly to their accounts. If you need access to a physical branch, consider a more traditional provider like Wells Fargo Bank.
Axos Bank Reviews
Online user reviews suggest this is an excellent option for business owners who can deposit $25,000 from the start. Although it’s difficult to make regular cash deposits, account holders find its online banking features to be beneficial. Some users complained that customer service wait times were too long.
CIT Bank: Best Personal Savings Account Option
CIT Bank is best for business owners looking for a personal savings account option. Its Savings Builder account earns top rankings because of its high APY and low costs. Businesses looking for fast online banking can make deposits online and receive wires and electronic transfers with no additional cost. This bank offers an introductory interest rate of 2.176% through the fourth business day prior to the end of the first month. It’s well suited for businesses that don’t make cash deposits.
CIT Bank Rates & Requirements
Owners get an ongoing APY of 2.10% for accounts with balances of $25,000 or more, or a monthly deposit of $100. Accounts require a minimum opening deposit of $25,000 or a monthly deposit of $100, but there are no maintenance fees. The introductory period starts on the day of account opening through the end of your first month.
The rates and requirements for CIT Bank are:
- Introductory APY: 2.176% interest on all balances from the day of account opening and through the next month’s evaluation day.
- APY after introductory period: 1.22% APY for balances below $25,000; 2.10% APY on balances $25,000 and above; or accounts with a monthly deposit of $100 or more
- Minimum opening balance:$25,000, or no minimum balance required if you make a monthly deposit of $100 or more.
- Minimum ongoing balance: $0
CIT Bank savings account holders earn their top APY with deposits of $25,000 or more. Businesses can also earn top tier yield by making a minimum $100 deposit each month before the next evaluation day at the end of the month.
CIT Bank Costs
Like Live Oak Bank, CIT Bank offers costs that are very lenient. Savings account holders have no transaction fees for up to six transactions per month. The federal government requires that savings accounts that reach over six withdrawals in a statement period receive an excessive transaction fee. This fee is standard for all savings accounts, although the amount itself varies from bank to bank. CIT Bank charges an excessive transaction fee of $10.
The account costs associated with CIT Bank’s Savings Builder account are:
- Monthly service fee: None
- Monthly transaction fee: $0, up to six per month
- Monthly cash deposit fee: None―Internet Bank
- Wire transfer fee: $0 for incoming wires and $0 for outgoing wires on account balances $25,000 or more; $10 per wire for account balances below $25,000
- ATM fees: None
CIT Bank offers a generous fee structure, only charging for outgoing wires on accounts with balances less than $25,000. Axos charges wire fees for every outgoing wire transaction while CIT Bank waives the fee for account holders that meet the minimum balance requirement. This bank is not a full-service bank, so it doesn’t issue atm or debit cards.
What CIT Bank Is Missing
CIT Bank is an internet bank that isn’t full service. Businesses looking to make cash deposits or have access to funds will have to transfer funds electronically. Although businesses can mail in check deposits, all other services are electronically based. Owners looking for cash flexibility should consider another bank like Wells Fargo Bank.
CIT Bank Reviews
We searched online for user reviews for CIT Bank. Reviews for CIT Bank were mostly positive, with users liking the high APY. People also stated that the online site was easy to use. Some users complained that the customer service hold times were a little too long.
Prime Alliance Bank: High APY for Remote Banking
Prime Alliance Bank is best for owners looking to bank with a traditional bank remotely. Owners can earn up to 1.75% APY on balances of $250,000 and above, and 2.22% APY on balances of $500,000 and above. Prime Alliance Bank has one physical location in Utah but also offers online banking and mobile deposits. This account is free of monthly fees and has unlimited deposits and ATM withdrawals.
Prime Alliance Bank Rates & Requirements
Prime Alliance Bank has no monthly fees and no minimum deposit requirement. It also offers tiered rates that provide the highest APY on our list, for those who have $500,000 or more. This is a hefty balance requirement, but even owners who can’t break the $250,000 balance can still earn 1.25% APY.
The rates and requirements for Prime Alliance Bank Business Savings are:
- Introductory APY: N/A
- APY after introductory period: 1.25% on balances below $250,000; 1.76% on balances $250,000 to $500,000; 2.22% on balances $500,000 and above
- Minimum opening balance: $0
- Minimum ongoing balance: $0
Although Prime Alliance Bank doesn’t offer any introductory rates, its top rate of 2.22% is the highest APY on our list. This bank doesn’t offer a unique introductory offer, but that’s common among most banks on our list. CIT Bank offers a special introductory interest rate, but it requires a minimum balance of $25,000.
Prime Alliance Bank Costs
Prime Alliance Bank offers standard fees with unlimited ATM withdrawals. This account also carries no monthly maintenance fees, but outgoing domestic wires will cost you $30 each. Like First Internet Bank, there are no transaction fees for deposits, although the incoming wire fee of $15 can add up.
- Monthly service fee: None
- Monthly transaction fee: $0
- Monthly cash deposit fee: $0
- Wire transfer fee: $10 for incoming wires and $15 for outgoing wires
- Outgoing ACH fee: None
- ATM fees: None
Prime Alliance Bank only has one location in Utah, so businesses that aren’t comfortable with remote banking may want a bank with more locations, like Wells Fargo. Although you won’t incur ATM fees from Prime Alliance Bank, you’ll likely be using out-of-network ATMs that will charge a fee. Unlike Axos bank, Prime Alliance Bank does not reimburse ATM fees from other banks.
What Prime Alliance Bank Is Missing
Although Prime Alliance Bank offers top APY rates, it’s limited locations make it difficult for owners still needing access to traditional banking. This bank also doesn’t allow online account opening, which makes it inconvenient. Businesses must go into the branch or contact customer service online or over the phone to open an account remotely.
Prime Alliance Bank Reviews
We searched online for reviews for the Prime Alliance Bank. With this provider being a smaller bank, there wasn’t too much feedback, but user reviews were mixed. Users said the website was smooth and easy to use. Other users complained the website was inaccurate at times and required a call to customer service.
Capital One: Best Introductory APY Business Savings Account
Capital One is best for owners looking for the highest introductory yield on its business savings account. With an introductory offer of 2.00% for the first 12 months, it offers the third-highest yield on our list. After the promotional period ends, your account will earn 0.40% APY. The FDIC insures capital One savings accounts up to the federal limit. To apply for a Capital One business savings account, you must visit a Capital One location.
Capital One Rates & Requirements
Capital One offers a business savings account with a high introductory yield and a flexible fee structure. Plus, its ongoing APY of 0.40% is higher than most traditional banks, even after the 12-month introductory period is up.
The rates and requirements for Capital One are:
- Introductory APY: 2.00% for the first 12 months
- APY after introductory period: 0.40%
- Minimum opening balance: $250
- Minimum ongoing balance: $0
With Capital One, you’ll never be required to carry a minimum balance, either when you open your account or as you keep it open. It also has a flexible network with more than 39,000 ATMs where you can withdraw funds, although there are only around 700 branch locations. The majority of its locations are in New York, Texas, Louisiana, and Maryland. If you need access to more branches, consider Wells Fargo Bank.
Capital One Costs
Capital One has a great fee structure, including the following:
- Monthly service fee: $3; waived with a minimum balance of $300
- Monthly transaction fee: $0; up to six per month
- Monthly cash deposit fee: $5,000 per month for free; then 0.20% for additional deposits
- Wire transfer fee: $15 for incoming wires; $25 for outgoing wires
- Outgoing ACH fee: $0
Capital One has a decent fee structure compared to other traditional banks, except for its cash deposit fee. While they waive service fees with a minimum balance of $300, they do charge you 0.20% on any money deposited more than $5,000 every month. In comparison, Prime Alliance Bank offers free unlimited cash deposits.
What Capital One Is Missing
Capital One doesn’t have as many physical locations as a traditional bank. This makes it more difficult for businesses to combine their checking and savings accounts at a single bank if they need to deposit a lot of cash or make a lot of transactions each month. Unlike CIT Bank, Capital also doesn’t allow you to open an account online.
Capital One Reviews
We searched the web for Capital One user reviews. Most online reviews suggest account holders think it’s a great option to maximize your interest in the first year. Users also liked the good customer service. However, most users found it difficult to deposit cash into their account because of its scarce branch locations.
Wells Fargo: Highest introductory APY for a Traditional Bank
The Wells Fargo business savings account is best for business owners who already have a relationship with Wells Fargo. It offers introductory APYs of 1.65% on $25,000 and up, and an ongoing APY of 0.10% after that. Wells Fargo gives account holders the ability to write checks and has more than 13,000 ATMs. You can apply online or visit one of its 5,500 physical branches nationwide. Rates vary slightly based on location and ZIP code.
Wells Fargo Rates & Requirements
Similar to Capital One, Wells Fargo offers a special interest rate for the first 6 months. If you deposit at least $25,000, you will earn 1.65% interest. This offer is only valid in branches by speaking with a relationship banker. It’s important to note these funds must be deposited from outside sources and can’t be transferred from an existing Wells Fargo account.
Wells Fargo’s rates and requirements are:
- Introductory APY: 1.65% for 6 months if you deposit $25,000
- APY after introductory period: 0.10% for $0 or more
- Minimum opening balance: $25
- Minimum ongoing balance: $0
With the Wells Fargo Business Savings Account, you’ll earn an ongoing APY of 0.10% on all balances. Although the special interest rate is only valid for 6 months, its intro offer is higher than Live Oak Bank’s ongoing APY. Once the 6-month period ends, you will earn 0.10% APY on all balances, which is the lowest APY on our list. Wells Fargo’s rates and products vary based on location.
Wells Fargo Costs
The fees associated with the Wells Fargo Business Platinum Savings account are:
- Monthly service fee: $15; waived if you have a minimum daily balance of $10,000
- Monthly transaction fee: $15; first six are free
- Monthly cash deposit fee: 30 cents for every $100 deposited above $5,000 per month
- Wire transfer fee: $15 for incoming wires; $15 for outgoing wires
- Deposited items fee: First 20 are free; each after that cost 50 cents each
- ATM fee: None
Wells Fargo doesn’t have the best free structure when compared to other banks on our list. This bank charges a cash deposit fee of 30 cents for every $100 deposited above $5,000 in a month and $15 for every withdrawal or transfer. Wells Fargo also charges a fee of $15 if your balance is less than $10,000.
What Wells Fargo Is Missing
Wells Fargo doesn’t provide a high APY, like some of the other accounts on our list, such as CIT Bank at 2.10%. Even with Wells Fargo’s special interest introductory offer, you can only earn up to 0.10% in ongoing APY. Businesses also receive no additional benefits for having a Wells Fargo business checking account.
Wells Fargo Reviews
We sourced the web for user reviews and found them to be both positive and negative. Wells Fargo account holders typically like using its business savings account because of their previous banking experience with the institution. However, some reviews suggest its ongoing interest rates are far too low to make an impact on their savings.
Best Business Savings Account Rates October 2019
Bank | APY | Minimum Balance |
|---|---|---|
1.41% | None | |
1.10% | None | |
1.06% | None | |
2.10% | $25,000 | |
2.22% | None | |
2.0% | None | |
0.88% | $25,000 |
Bottom Line
When it comes to business savings accounts, rates, and fees make all the difference. The best account is likely going to be the bank you already use, the bank with the closest geographic location to yours or the one offering you the highest APY.
When considering all of these factors, we recommend First Internet Bank as the best business savings account. You can receive 1.16% APY or 1.41% APY, depending on your savings account balance. You can open an account by filling out an online application.
Issa Ajlouny
January 23, 2019 at 5:16 amJeff, I liked your story on the BEST BUSINESS SAVINGS ACCOUNTS for 2018. Do you any current suggestions for a new non profit corporation that has a large amount of money to deposit. I figure there are new players in this market with better interest rates.
Jordan Tarver
June 5, 2019 at 5:59 pmHi Issa,
Thank you for joining our conversation. We recently updated this article and believe First Internet Bank offers the best option. It provides the highest ongoing APY on our list.
For balances below $250,000, you will earn 1.16%. For balances of at least $250,000, you will earn 1.41%. It’s important to note, though, First Internet Bank only provides FDIC insurance up to the federal limit of $250,000. Any deposits over $250,000 will not be FDIC insured.
Best,
Jordan