Best Business Savings Accounts Rates
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Best Business Savings Accounts Rates
8 min read
By: Aldo Saenz


A business savings account is a deposit account kept at a financial institution that guarantees your principal and pays interest. If you want to save money and earn a competitive annual percentage yield (APY), we've identified a number of different business savings accounts that are currently offering yields of about 2.27%, which might be an ideal place for you to stash your business' hard-earned cash. While business savings account rates at large traditional banks typically stay close to zero, some online banks offer rates higher than the average rate of 0.51% our research has identified. We've done the heavy lifting and sifted through the thousands of banks around the country to bring you the business savings accounts offering some of the best features and highest APYs for July 2024.


What is a business savings account?

Business savings accounts are federally insured, interest-bearing deposit accounts. The rates offered on these accounts are variable and fluctuate depending on economic conditions and the Fed Funds Rate. They are ideal for setting money aside that is not needed for immediate, day-to-day use such as payroll, bills, paying vendors, etc. One drawback is that most banks and credit unions limit the number of withdrawals to six per month or statement cycle in accordance with Federal Regulation D.


What are business savings accounts typically used for?

Savings accounts are very good tools to save money for shorter-term goals, such as an emergency fund, capital improvements, equipment purchases as well as capital expenditures and other non-recurring large expenses. The current nationwide average yield for business savings accounts is 0.51%.  The best business savings account is 2.27%, which is a very attractive yield and is ideal for helping your money grow at a faster rate and help your business reach its financial goals. 


Is a business savings account safe?

Generally speaking, yes, as long as your bank is FDIC insured or your credit union is NCUA insured and your account falls within the limits of up to $250,000 per depositor, per account ownership type, and per financial institution, there isn’t much to worry about as your money is insured in case of a bank failure, which is rare.


How to select the best business savings account?

Business savings accounts are an excellent way to meet your financial goals. It is very important to select a savings account with the following features:


  • A competitive APY

  • No monthly service charge, or at least one that can be waived by meeting a certain account balance

  • No minimum account balance requirement

  • A low opening deposit requirement

  • Online and mobile banking features to be able to easily manage your accounts 24/7


You may not be able to find a business savings account that satisfies all of the above, but as long as you find a bank or credit union that can at least meet some of your criteria and the financial needs of your business, that is what is most important.


Pros and cons of having a business savings account


Easy access to funds via a debit/ATM card or mobile banking.Most savings accounts limit the number of withdrawals to six as per Federal Regulation D.
Savings accounts are safe and typically fall under FDIC insurance at a bank or NCUA insurance at a credit union.Interest rates can vary and are variable.
Savings account are interest-bearing accounts and earn interest, which can very depending on the type of savings account that is opened.Rates offered on most conventional savings accounts tend to be very low.
Many banks and credit unions require little to no opening deposit, making opening an account fairly easy.There may be inactivity fees, non-network ATM fees, withdrawal limit penalties, etc.
The interest earned is taxable.


Alternatives to business savings accounts



  • Business Money Market Accounts: A business money market account is a type of interest-bearing account available at banks and credit unions. They are similar to business savings accounts; however, one significant difference is that many business money market accounts also provide some checking-writing features. They also tend to offer higher yields than conventional business savings accounts.


  • Business Certificates of Deposit (CDs): Banks and credit unions both offer a type of deposit account known as a certificate of deposit, or CD. Generally speaking, you commit to leaving money in the CD for a predetermined period without taking any withdrawals. Early withdrawals may incur penalties, depending on the type of CD. Rates offered on CDs tend to be significantly higher than conventional business savings account, making them an attractive option for people with idle cash.


  • Business Checking accounts: A business checking account is a form of transactional account that can be opened at a physical bank, internet/online bank, or a credit union. Business checking accounts allows you to deposit funds and then withdraw from them to pay bills or make purchases. Keep in mind, the money in your business checking account is money that you intend to use in the short term to meet your business' daily expenses. As the money isn't tied up for prolonged periods of time such as with a CD, the average rates offered on these accounts tend to be low with the average at 0.06% based on our research.


Frequently Asked Questions


Should I have multiple business savings accounts?
Are there withdrawal limits on my business savings account?
How frequently do business savings account interest rates change?
How often do business savings accounts pay interest?
If my account offers a debit card, do debit card purchases count as withdrawals?
How do you calculate interest on a business savings account?
Which business savings account is the best?
Is interest earned in my account taxable?
Is it true that online banks pay more interest than traditional banks?
Is it safe to put my business' money in a business savings account?


Terms to know



Annual Percentage Yield (APY): The total interest you receive on money in an account over the course of a year is expressed as an annual percentage yield or APY for short. The interest rate on an account is only one component of the APY, which also considers how frequently your interest compounds. The APY of an account provides a more precise estimate of how much money it will earn in a year. For example, the best business savings account we've identified from our research is yielding 2.27%, which is a very good rate to help your money grow faster.


Minimum Required Balance: The smallest amount of money you must deposit or keep in a savings account to avoid a monthly maintenance fee.


Minimum Opening Deposit: Depending on the bank, a minimum amount may be required to be deposited into a savings account just to open the account. Most online banks with lower overhead expenses do not require this but traditional banks might.


Interest: Interest is the money you earn from depositing your cash with a bank. When you deposit money with a bank, the bank borrows it from you, since it will lend a portion of it to clients or other banks, and the money they pay you is the interest.


Compound Interest: Compound interest is the interest you earn on interest you have already been paid.  This may be demonstrated using simple math: if you have $100 and it generates 5% interest every year, you will have $105 at the end of the first year. You'll have $110.25 by the end of the second year, because you earned interest on the $105, and so on and so forth.




Our editorial staff continually updates the information contained on our website. Our editorial staff has analyzed virtually all of the banks and credit unions that it follows, and it does weekly rate analysis for more than 250 prominent banks and credit unions. These institutions were chosen because they provide competitive APYs, low fees, and other factors we find important. These banks and credit unions often provide accounts that are available nationally. All of these banks are FDIC-insured, and all of these credit unions are NCUA-insured. Choosing an FDIC-insured bank or an NCUA-backed credit union assures that your money is protected as long as it stays within insurance limits and requirements.


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