Are you among those who are standing at the door of starting and growing their businesses and want to keep safe your business revenue or profit by opening most profitable businesses savings accounts right now, then you have put your best foot forward by clicking this link regarding the best high yield business savings accounts right now?
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Opening a business savings account can offer federal protection for the funds you deposit (up to $250,000) and provide a source of liquidity should inevitable expenses arise. You can earn interest while setting aside money for capital improvement or income taxes.
A commercial savings account can add credibility to your business, arm you with a business debit card and help your cash flow. The best way to choose a high-yield business savings account that fits your needs is to start by comparing the annual percentage yield (APY) offered by banks and credit unions.
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Then look for benefits that might make the account attractive based on your needs. Is there a monthly maintenance fee or a minimum deposit to open? Does the bank provide ample access to ATM and online account services?
Deciding which business savings account is best for your needs can be a difficult process, but hopefully, this round-up of our picks for best business savings accounts will help give you a head-start. So, let’s get started and take a look at some of the popular banks to open business savings account with.
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Let’s look at what the best high yield business saving accounts offer high ongoing annual percentage yields (APYs), minimal fees and Federal Deposit Insurance Corporation (FDIC) insurance. Businesses should also consider other aspects when choosing a business savings account, like the provider’s ATM network and minimum balance requirements.
In this article, we have reviewed some of the top high-yielding business savings accounts that you can consider right now for your small business.
First Internet Bank is among the best business savings account provider on our list because it offers 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 will earn 1.41%. It also provides FDIC insurance up to the federal limit of $250,000.
First Internet Bank’s Regular Savings account does not 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 mostly require to have a balance of at least $250,000 so that they can earn up to 1.41% in interest.
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 seems the best option for business owners who are 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 fees are standard for internet accounts. Although this provider does not 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.
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If you have an ATM card, which is only offered to sole proprietors, you can use any ATM in your location. First Internet Bank does not 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.
One downside to First Internet Bank’s business account is that 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.
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If you would like to set up business savings account directly with First Internet Bank, you can start and finish the process online. You will need to be a United States resident, provide your Social Security number (SSN), your business information and have your identification card ready.
Live Oak Bank offers a high ongoing APY at 1.10%, which makes them a good option for anyone who does not require a physical branch location. Even though 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.
Oak Bank Rates and Requirements
The bank is an internet bank with no branches, but it does have customer service offices in multiple states. Its high ongoing APY – annual percentage yield (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 annual percentage yield from day one.
Live Oak Bank does not require a minimum balance. However, accounts with no activity of transaction for 24 consecutive months with balances of $10 or less become dormant or inactive.
And also 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%.
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The fee structure for Live Oak Bank is the following:-
Live Oak Bank does not provide its account holders with ATM or debit cards. However, this is a great savings account option if you are worried about potential fees. Axos does not charge transaction or service fees and it has one of the lowest wire transfer fees on the list.
Because it is a digital bank, Live Oak Bank does not 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 targets the regular cash deposits, then consider using a traditional bank like Wells Fargo instead.
You can apply for a Live Oak Bank business savings account online. You will need to provide your personal and business information along with an initial funding method. Live Oak Bank will then verify your information electronically.
Axos Bank is considered ideal 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 grants your businesses FDIC insurance on all deposits up to $250,000 and access to a free debit card. It is also a bank without branches and, for that reason, you can apply directly online.
Axos Bank provides both a regular and premium high yield business savings account. Its regular business savings account has interest rates of 0.80% compared to its premium account that has interest rates of 1.06%.
Axos bank bases your interest rate on your daily balance and has two types of business savings accounts. Although you can still earn interest with a balance below that, you will not 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 provides one of the best fee structures for savings accounts because it has most of its free services. Without the requirement of physical location, 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.
Axos Bank does not 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.
In order to open business savings account with Axos Bank, you will need to speak to one of its relationship managers. You can do this by calling the institution directly or by scheduling a call via the online form.
An Axos support representative will walk you through the quick process of verifying your business and making your first deposit.
CIT Bank another best savings accounts provider for business owners who are 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 business interest rate of 2.17% through the fourth business day prior to the end of the first month. It is well suited for businesses that do not make cash deposits.
Owners get an ongoing APY of 2.10% for accounts with balances of $25,000 or more, or a monthly deposit of $100. Accounts have requirements of a minimum deposit of $25,000 and 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.
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.
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.
CIT Bank offers a generous fee structure, only charging for outgoing wires on accounts with balances less than $25,000. Axos Bank 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, therefore, it does not issue ATM or debit cards.
CIT Bank is an internet bank that is not a 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. And owners who are looking for cash flexibility should consider another bank just like Wells Fargo Bank.
You can apply for CIT business savings account online by setting up a profile. And will only need some personal information, including your Social Security number (SSN) and e-mail address. You will have your account set up in minutes. Fund your account by mailing in a check or by making an electronic transfer from a different bank.
Wells Fargo’s 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% afterward.
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 are the different basis on location and ZIP code.
Wells Fargo lets you grab a special interest rate for the first 6 months. If you deposit at least $25,000, you will earn 1.65% interest. It is important to note these funds must be deposited from outside sources and can’t be transferred from an existing Wells Fargo account.
With the Wells Fargo Business Savings Account, you will 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. And rates and products differ in basis on location.
Below have mentioned the fees that are associated with the Wells Fargo Business Platinum Savings account
Wells Fargo does not 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. And furthermore, businesses receive no extra benefits for having a Wells Fargo business checking account.
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There are a couple of different ways you can open a Wells Fargo account. You can either call to make an appointment or walk into one of its physical branches. Only people with a pre-existing deposit relationship with Wells Fargo can open an account online.
To qualify for the special interest rate offer, you will need to visit a branch location. Once approved, you will be able to make deposits immediately.
With an offer of 2.00% for the first 12 months, Capital one offers the third-highest yield on our list. After ending the promotional period, your account will earn 0.40% APY – Annual percentage yield.
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 provides the best savings accounts to many small businesses with a high introductory yield profit 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 finished.
You will never be required to carry a minimum balance, either when you open your account with Capital One bank 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 has a great fee structure, including the following:-
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 allows free unlimited cash deposits.
Capital One does not 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 One does not allow you to open an account online.
To open a Capital One business savings account, you must walk into a Capital One Branch. A Capital One representative will assist you with outlining the required documentation needed to prove the existence of your business. Once your business is verified, you will be set to open an account and make your first deposit.
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 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 cannot break the $250,000 balance can still earn 1.25% APY.
Although Prime Alliance Bank does not offer any introductory rates, its top rate of 2.22% is the highest APY on our list. This bank does not offer a unique introductory offer, but that is common among most banks here on our list. CIT Bank offers a special introductory interest rate, but it requires a minimum balance of $25,000.
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.
Prime Alliance Bank only has one location in Utah, so businesses that are not comfortable with remote banking may want a bank with more locations, like Wells Fargo.
Although you will not incur ATM fees from Prime Alliance Bank, you will 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.
Although Prime Alliance Bank offers top APY rates, its limited locations make it difficult for owners still needing access to traditional banking. This bank also does not 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.
Businesses are not able to open accounts with Prime Alliance Bank online. You can apply for a business savings account by visiting the branch location or by contacting customer service over the phone. Businesses will need to provide two forms of ID, an employer identification number (EIN) and, if applicable, articles of incorporation. Owners can e-mail personal documents to customer service where a bank representative will instruct you further.
High-yielding business savings accounts generally 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 is 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 usually offer tiered rates that earn more on higher balances.
We considered the following factors when determining the best business savings accounts for your small business:-
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 suggest you First Internet Bank as the best and superior above all for a business savings account. First Internet Bank offers one of the highest APYs available in the industry at 1.41%, has multiple businesses checking account options and has an inexpensive fee structure.
When it comes to business savings accounts, other essential things such as 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 it comes to considering all these factors, we generally 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.
