What is the best business savings account?
Whether you’re a full-time business owner or side hustling, you need a business savings account that will work for you. Here are six banks with business savings, checking, and money market accounts that can benefit nearly any kind of business owner.
I specifically looked for banks that offered a higher than average APY, so you can earn the most money on your savings. These banks also have zero to low fees, no minimum balance requirements, and more.
Best savings account for business in 2021
Quick Links
- 1. Axos Business Interest Checking
- 2. Live Oak Bank
- 3. First Internet Bank
- 4. Radius Tailored Checking
- 5. NBKC Bank
- 6. Small Business Bank
- What to look for in a business savings account
- You’re able to earn interest on your savings
- No monthly maintenance fees
- No or low monthly balance requirements
- Online access
- What is the best bank for a small business account? The final word
1. Axos Business Interest Checking
While it’s not a savings account for business, Axos Business Checking has one of the highest interest rates, so it’s definitely worth considering.
Axos Business Interest Checking has an APY of up to 0.81% for account balances up to $49,999. Your interest can change over time based on a tiered system:
- $0 – $49,999.99: 0.81%
- $50,000 – $249,999.99: 0.50%
- $250,000 – $499,999.99: 0.20%
- $500,000 – $699,999.99: 0.20%
- $700,000 – $999,999.99: 0.20%
- $1,000,000 – $4,999,999.99: 0.20%
- $5,000,000 or more: Contact an Axos Business Relationship Manager
You’ll need $100 to open an account, and there’s no minimum balance requirement, but there’s a $10/month maintenance fee for accounts under $5,000.
Axos Bank gives you your first 50 checks free, and they offer unlimited reimbursement of domestic ATM fees. Domestic wire transfers cost $15, and your first 50 items each month free. After 50 items, you pay $0.50 each.
Axos Business Interest Checking |
|
---|---|
Minimum opening deposit |
$100 |
Minimum balance requirement |
$0 |
Monthly fee |
$10 (waived with $5,000 balance) |
APY |
Up to 0.81% |
Pros
- Higher than average APY on business checking, reimbursed ATM fees
Cons
- Monthly fee for accounts under $5,000
Related: How to Handle Taxes for Your Side Hustle
2. Live Oak Bank
Live Oak Bank, based in North Carolina, has one of the best business savings accounts with an APY of up to 0.60%, which is 12x the national average for savings accounts. This is an online savings account – there are no physical branches to visit.
There are no online banking or monthly maintenance fees at Live Oak. There’s also no minimum balance to open your account, but you’ll need a $0.01 balance to start earning interest.
The potential downside is that you only get up to six free withdrawals per month. They are $10 a transaction after that. Outgoing domestic wire transfers also cost $10 each, but income domestic wire transfers are free.
Minimum opening deposit |
$0 |
Minimum balance requirement |
$0 |
Monthly fee |
$0 |
APY |
0.60% on all balances |
Pros
- No fees or minimum balance requirement, reimbursed ATM fees
Cons
- Only 6 free withdrawals a month
3. First Internet Bank
Like the name suggests, First Internet Bank is an online bank, and like a lot of online banks, they can offer higher than average interest rates and low rates because they save on the costs of running a brick-and-mortar bank.
First Internet Bank’s online business savings account offers an APY of 0.40% with a daily balance of $10,000,000 or below. Accounts with balances above that receive a 0.25% APY.
You’ll need $100 to open your account, and there’s a $2 monthly maintenance fee, but First Internet Bank will waive the maintenance fee if you keep a daily balance of at least $1,000.
Sole proprietors will receive a First IB ATM card, and there’s no charge for ATM fees or electronic states. You can make up to six transfers or withdrawals a month, and there’s a $5 fee beyond that.
First Internet Bank Business Savings |
|
---|---|
Minimum opening deposit |
$100 |
Minimum balance requirement |
$0 |
Monthly fee |
$2 (waived with $1,000 minimum balance) |
APY |
Up to 0.40% |
Pros
- Sole proprietors receive an ATM card with no ATM fees, can waive monthly fees at $1,000
Cons
- Only 6 free withdrawals a month
4. Radius Tailored Checking
Even though it’s a checking account, Radius Bank has an option that’s worth thinking about because not only can you earn interest on what’s in the bank, you can earn 1% back or more when you use your Radius debit card. Radius also offers unlimited transactions.
Radius Tailored Checking has a 0.10% APY on accounts with balances of $5,000 and up, which is still higher than the national average of 0.05%. Radius does not charge ATM fees, and they reimburse ATM fees charged by other banks worldwide.
You’ll earn 1.0% cashback on debit card purchases, and there’s currently a promotion that gives you 1.5% back when you use your debit card on advertising, computer equipment, and computer services.
You need $100 to open an account, but there’s no minimum balance requirement after that. Balances of $5,000 and over earn the 0.10% APY and will also have monthly maintenance fees waived.
Radius Tailored Checking |
|
---|---|
Minimum opening deposit |
$100 |
Minimum balance requirement |
$0 |
Monthly fee |
$10 (waived with $5,000 balance) |
APY |
Up to 0.10% |
Pros
- Earn 1.0% back on debit purchases and zero ATM fees worldwide
Cons
- Need at least $5,000 to earn APY
5. NBKC Bank
NBKC (National Bank of Kansas City) has a really solid money market account with an APY of 0.25% on all account balances. There are no monthly maintenance fees, no transaction fees, no minimum balance, and no fees for income domestic wire transfers. You need $5 to open an account with NBKC.
This bank is based out of Kansas City, but they use the MoneyPass ATM network that has over 34,000 ATMs throughout the U.S. and Puerto Rico. It’s free to use one of these ATMs, and they refund up to $12 in ATM fees or fees you’re charged by other banks.
NBKC Bank Money Market |
|
---|---|
Minimum opening deposit |
$5 |
Minimum balance requirement |
$0 |
Monthly fee |
$0 |
APY |
Up to 0.25% |
Pros
- Earn the APY on all account balance and no monthly fees
Cons
- May pay ATM fees
6. Small Business Bank
Small Business Bank is the best business saving account for businesses that can maintain a high monthly balance. You earn an 0.70% APY with a balance of over $100,000. Balances under that still earn at a much higher than average APY of 0.20%.
You need $100 to open a high yield business savings account with Small Business Bank. There’s a $10 monthly maintenance fee that’s waived with a daily balance of at least $100. You get unlimited monthly transactions.
This is purely a savings account, as account holders don’t get debit card access.
Small Business Bank |
|
---|---|
Minimum opening deposit |
$100 |
Minimum balance requirement |
$0 |
Monthly fee |
$10 (waived with a balance of $100) |
APY |
Up to 0.70%, all accounts at least 0.20% |
Pros
- Much higher than average APY and unlimited monthly transactions
Cons
- No debit/ATM cards access
What to look for in a business savings account
As you shop around and look for a place to stash your business savings, there are a few things I recommend you look for in a bank. These guidelines are exactly what I used as I looked through dozens of different business saving accounts to find the best options for you.
You’re able to earn interest on your savings
There’s no reason that your business savings should sit in an account that isn’t paying interest. The current national average APY is 0.05%, so you should look for a savings account with that as a minimum.
No monthly maintenance fees
Ideally, you find a bank that doesn’t have maintenance fees, but if your bank does have monthly fees, it shouldn’t take much to have them waived. Look for a bank without fees or monthly fees that you can realistically have waived each month. Monthly fees don’t usually cost much, but I want you to keep as much of your money as possible.
Also, look for a bank that has zero to low fees overall. Usually, you can find these options with online banks (they have a much lower overhead than brick-and-mortar banks and can pass along some of those savings to their customers). But to stay competitive, many brick-and-mortar banks have started waiving fees too.
No or low monthly balance requirements
None of the banks on my list have monthly balance requirements, and that’s really important. There are too many savings account options right now that don’t require you to have a high balance – there’s no reason for you to be with a bank that penalizes you if your account dip too low.
Online access
This is a no-brainer this day in age, but it’s still worth mentioning. Look for a bank with an intuitive online platform so you can do your banking in your own time, wherever you are.
What is the best bank for a small business account? The final word
What I look for when I compare business bank accounts is how am I going to save as much of my money as possible. I don’t want to pay fees, I want to earn interest, and I want the experience to be easy for me as a business owner. My time is money, just like you.
So the best bank for a small business is one that ticks all of those boxes, and I honestly think that all of the accounts on this list are really solid choices. Axos Bank has the highest APY – currently 0.81% – out of anything on this list if you’re looking at high APYs alone.
But all of these banks have low to zero fees, no minimum balance requirements, and come with perks for the modern business.
Shop around and see what fits your needs, but remember, there’s no reason that business banking should be expensive for you in 2021!