Best Business Savings Accounts Of May 2024

We’ve analyzed business savings accounts to find the best choices available based on interest rates, fees and other factors. We compared 34 accounts at 23 nationally available banks and credit unions to find some of the best business savings options available. See below to learn more about why we picked each account, the pros and cons, and to access individual bank reviews.

Annual percentage yields (APYs) and account details are accurate as of April 16, 2024.

To create this list, Forbes Advisor analyzed 34 checking accounts at 23 financial institutions, including a mix of traditional brick-and-mortar banks, online banks and credit unions. We ranked each account on 22 data points within the categories of fees, access, customer experience, digital experience, minimums and APY.

The following is the weighting assigned to each category:

• APY: 40%
• Fees: 20%
• Digital experience: 10%
• Customer experience: 10%
• Minimum deposit requirement: 5%
• Minimum balance requirement: 5%
• Access*: 10%

To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Banks.

*Access refers to the following: whether the account links easily to business checking; whether the account comes with a debit or ATM card; whether the account comes with check-writing capability; branch network size; ATM network size.

• What Is a Business Savings Account?
• How Does a Business Savings Account Work?
• Why Have a Business Savings Account?
• High-Yield Business Savings Accounts: Pros and Cons
• How To Find the Best High-Yield Business Savings Rates
• How To Choose a Business Savings Account
• How Much Money Should a Business Have in Savings?
• How To Open a Business Savings Account
• Alternatives to Business Savings Accounts
• Banks We Monitor
• Frequently Asked Questions (FAQs)

A business savings account is an account small businesses can use for storing a cash reserve. Usually, a business savings account is opened in conjunction with a business checking account to create a system to quickly move money between accounts as needed.

Other uses for a business savings account include putting money aside for emergencies, holding funds for tax payments and protecting against overdrafts.

A business savings account works similarly to a personal savings account, except it’s specifically for business use. Depending on the bank or specific account, your business may need to meet deposit or balance requirements or pay a monthly service fee to maintain a business savings account or earn interest.

Business saving accounts may carry transaction limits, depending on the bank. Savings accounts, personal or business, were previously subject to Federal Reserve Board Regulation D limits, but the law was suspended indefinitely in 2020 in part because of the Covid-19 pandemic. Some banks, though, have chosen to keep withdrawal limits in place.

If you’re a sole proprietor or independent contractor, a business savings account allows you to separate business funds from your personal savings.

It’s important for business owners to keep a separate business savings account. Here’s why having a business savings account might be beneficial:

• Safe-keeping. A business savings account gives you a safe place to store cash not earmarked for immediate needs and separate from your everyday business bank account.
• Interest. A business savings account lets you earn interest on surplus cash while keeping your money easily accessible.
• Cushion. Building up a savings fund for your business gives you a cushion to cover unexpected expenses.

While high-yield business savings accounts offer several benefits, these accounts might not be right for every business.

Pros

• Competitive rates. High-yield business savings accounts offer higher APYs than traditional savings accounts.
• Low fees. Online banks generally charge low or no monthly service fees on high-yield savings accounts.
• Accessibility. Generally, funds kept in high-yield savings accounts are accessible through electronic transfers and other methods. Some accounts may even come with an ATM card for convenient cash withdrawals.

Cons

• No local support. You won’t find a high-yield business savings account at most traditional banks with brick-and-mortar branches, although you might find competitive rates at your local credit union.
• Balance requirements. Your bank may require you to meet minimum balance requirements to avoid monthly fees or earn interest.
• Missed opportunities. Business savings accounts allow you to earn interest but could mean missing out on opportunities to invest those funds back into your business.

Finding the best high-yield business savings rates can be challenging because only some banks offer high-yield business savings accounts. Start with the accounts on our list and expand your search until you find an account that fits your needs. Be sure to compare options at traditional banks, online banks and credit unions.

Online banks are known for offering higher rates than brick-and-mortar banks due to lower overhead costs. Credit unions are not-for-profit organizations that often serve their members, including business customers, by offering higher rates. If you prefer a credit union, look for local options with high-yield business savings accounts or online savings accounts and membership requirements you can meet.

Traditional banks may not be the first place to look for competitive savings rates, but they are still worth a look. Plus, they are usually a better option for in-person banking and ATM access, which may trump the need to earn the highest rate. Savings rates are important but aren’t the only factor to consider when choosing a business savings account.

Compare multiple banks and other financial institutions to find the account best suited for your needs. Consider these factors when comparing accounts:

• Rates. Compare interest rates and find the highest APY to maximize your savings.
• Fees. Monthly maintenance fees eat into the interest earned on your account balance. Check the fee schedule for any other fees charged by the bank before opening an account.
• Customer service. Choose a bank that matches your customer service needs. If you need in-person support, look for a local institution that offers business banking. Consider features like phone support, private messaging and customer service hours when making your decision.
• Digital banking features. Many banks now offer mobile apps and online account access. Check app ratings and read about the online and mobile banking features offered with the accounts you’re considering.

The amount of cash your business should keep in savings depends on your monthly needs, expenses and how long you’ve been in business. Experts generally recommend keeping at least three to six months’ worth of operating expenses on reserve in savings. Consider your business structure and goals to find a sweet spot for your business.

Established businesses with consistent profits may benefit from keeping more savings in the bank, which can offer the opportunity to earn steady returns on funds not in use. Startups, on the other hand, often need to reinvest profits in order to grow and might not have as much money to set aside.

Shop around to find the best business savings account, considering factors such as:

• Interest rates
• Deposit and balance requirements
• Fees
• Account features
• Accessibility

The process to open a business savings account depends on the financial institution. Many banks allow business owners to open business savings accounts online, but some may require an in-person visit to a bank branch to apply.

During the application process, your bank will ask you to provide pertinent personal and business information to verify your identity. The information needed to open an account often depends on the type of business. At the bare minimum, you’ll probably need to provide the following documentation to open a business bank account:

• A government-issued photo ID such as a driver’s license, state-issued ID card or passport
• Your Social Security number
• Your employer identification number (EIN), if applicable
• Business name
• Business address
• Email address

Once your application is approved, you can typically fund your new business savings account by linking another bank account and transferring funds into the account.

What Is Needed To Apply for a Business Savings Account?

You must provide personal and business information during the application process to open a business savings account. The information required may vary depending on your business structure and the financial institution, but you should generally prepare to provide the following:

• Full name
• Date of birth
• Social Security number or Employer Identification Number (EIN)
• Contact information
• Physical address
• Legal name of business
• Business type
• Business establishment date with signer’s full name
• Business license
• Ownership structure
• Number of employees
• Annual gross revenue
• Initial deposit

Some banks may require you to make an appointment at a local branch to open a business bank account, but many banks allow you to apply online.

Business savings accounts aren’t the only option businesses have for parking excess funds. Many alternative accounts offer similar benefits as savings accounts, such as earning interest, with other unique advantages.

Here are a few business accounts to consider instead of a savings account:

• Business money market accounts. Money market accounts offer high interest rates and often come with benefits like a checkbook and debit or ATM card for more convenient access to cash.
• Business certificates of deposit (CDs). CDs often carry higher earnings rates than savings accounts and require you to keep funds in the bank for a predetermined period in return. They’re ideal for cash you won’t need to use immediately.
• Investment accounts. Some brokerage firms offer investment accounts for businesses, with options that often include stocks, bonds, mutual funds and exchange-traded funds (ETFs). Brokerage accounts made up of volatile assets come with greater risk than savings accounts but also offer the potential to earn higher returns.

These financial institutions were included in our research: ableBanking, Acorns, Affinity Federal Credit Union, Affirm, Albert, Alliant Credit Union, Ally Bank, Amalgamated Bank, American Express, Aspiration, Axos Bank, Apple Federal Credit Union, BancorpSouth Bank, Bank of America, Bank5 Connect, BankDirect, BankPurely, BankUnitedDirect, Barclays, Bethpage Federal Credit Union, Betterment, Blue Federal Credit Union, Bread Savings, BrioDirect Banking, Capital One, Charles Schwab Bank, Chase, Chevron Federal Credit Union, CIT Bank, Citibank, Citizens Access, Colorado Federal Savings Bank, Comerica, CommunityWide Federal Credit Union, Connexus Credit Union, Consumers Credit Union, Credit Union of Denver, Dave, Discover, Dollar Savings Direct, E*Trade Bank, EmigrantDirect, Fidelity, Financial Partners Credit Union, Financial Resources Federal Credit Union, First Internet Bank, First National Bank of America, FNBO Direct, Georgia’s Own Credit Union, Golden1 Credit Union, Greenwood Credit Union, Heritage Bank, HSBC Direct, Hughes Federal Credit Union, Ideal Credit Union, iGoBanking, Investors eAccess, Keybank, Kinecta Federal Credit Union, LendingClub, Limelight, Live Oak Bank, MAC Federal Credit Union, Marcus by Goldman Sachs, Michigan State University Federal Credit Union, My eBanc, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, Northern Bank Direct, Northpointe Bank, Nuvision Federal Credit Union, Pacific National Bank, Paramount Bank, Pen Air Federal Credit Union, PenFed, PNC Bank, Popular Direct, Quontic, Quorum Federal Credit Union, Radius Bank, Regions Bank, Rising Bank, SalemFiveDirect, Sallie Mae Bank, Santander, SFGI Direct, SmartyPig Bank, SoFi, Spectrum Federal Credit Union, State Bank of Texas, State Department Federal Credit Union, Step, Superior Choice Credit Union, Synchrony Bank, TAB Bank, TD Bank, EverBank, TotalDirect Bank, Truist, Union Bank & Trust, U.S. Bank, USAA, USAlliance Federal Credit Union, Varo Bank, Vio Bank, Virtual Bank, Wealthfront, and Wells Fargo.

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