Final Verdict

If you’re not able to maintain the high savings balances needed by some business banks to earn good rates and waive any potential fees, then we recommend nbkc bank, Live Oak Bank, or Prime Alliance Bank.  Live Oak Bank also features excellent online support if you’re able to bank entirely online. First Internet Bank is the best choice if earning the maximum rate on a business bank account is important to you, as long as you have enough money in the account to waive the monthly fee and earn the maximum stated APY. 

Compare High-Yield Business Savings Accounts

Account	Maximum APY	Min. Opening Balance	Min. Balance to Earn Stated APY	Monthly Maintenance Fee
	5.48%	$100	$5,000,000	$5
	4.00%	$0	$0	$0
	4.25%	Not shown	$200,000	$0
	4.25%	Not shown	$200,000	$0
	2.75%	$0	$0.01	$0

Pros and Cons of High-Yield Business Savings Accounts

Pros Explained

• Higher interest rates than traditional savings accounts: High-yield savings accounts will beat a traditional savings account rates by a wide margin, even when rates, in general, are low.
• FDIC insurance: Like traditional savings accounts, up to $250,000 in deposits in HYSAs are insured by the FDIC. That makes these accounts nearly risk-free.
• Relatively easy access to funds: While you can't move your HYSA funds around as readily as you can the funds in your business checking account, it's still close to hand.

Cons Explained

• Higher account minimums: To earn the best rates you'll need to meet significant balance requirements. Among the accounts on our list, these can range from the tens to the hundreds of thousands of dollars.
• Monthly transaction limits: Most banks limit the number of "convenient," non-branch transactions account-holders may make per month—a holdover from when the Federal Reserve promulgated bank reserve requirements. Those requirements are no longer in effect, but most banks still limit monthly transactions.
• Interest rate variability: Interest rates rise and fall according to conditions in the wider economy, competition among institutions, and actions taken by the Federal Reserve. While HYSAs will generally always pay better than traditional savings accounts, that may not be very much in a period of low interest rates overall
• Limited availability: Not all banks and credit unions offer HYSAs. You may be forced to keep your savings with an institution other than the one you have your business checking account with. This can add complexity and inconvenience to your business banking routine.

Guide to Choosing Business Savings Accounts

What Is a Business Savings Account?

A business savings account, much like a personal savings account, serves as a safe place to store your money away from dangers like fires and thieves (the in-person kind, at least). If you’re running any type of business at all, a business savings account is one of the basic money-management necessities, along with a business checking account and possibly a merchant account, if your business allows customers to pay by credit card.

A business savings account can be used for many of the same things you use your personal savings account for. But when it comes to your business, these accounts have other handy advantages too:

• Safe place to store extra business funds
• Lets you save for emergencies, tax payments, equipment purchases, and business investments
• Serves as a funds source for overdraft protection on your business checking account
• Helps you access business financing products such as commercial real estate loans

Alternatives to a High-Yield Business Savings Accounts

Most banks offer plain ol’ “business savings accounts,” but there are actually a few different types of business accounts that you can use to store your excess business funds. These generally work the same as for your personal finances:

• Business savings accounts: A basic-level savings account allows you to make as many deposits as you want and up to six withdrawals per month. You may earn interest, but the APY offered is typically very low. 
• Business money market accounts: A money market account is a savings account that may offer higher rates than a basic business savings account, and may come with its own checkbook that you can use to write checks directly as needed. 
• Business certificate of deposit (CD) accounts: A CD is a “timed” savings account that requires you to deposit the full amount up front and then wait several months or years until the account matures and your money becomes available for withdrawal again. CDs usually offer the highest rates, but you may pay expensive early withdrawal penalties too.
• Lower-risk investments: When savings account rates are low, government and corporate bonds may be an alternative way to set aside cash, but it comes with some additional risk and less liquidity.

How to Compare Business Savings Accounts

Although business savings accounts generally work the same way as personal bank accounts, there are a few key differences and things to watch out for as you shop around. 

• APY: This is the interest rate offered on savings accounts. The higher the rate, the more you’ll earn for your savings. Higher rates may be reserved for businesses with larger account balances.
• Fees: Business bank accounts generally have higher fees than personal accounts. You may be charged even higher fees in certain cases, such as if you aren’t able to keep a certain balance in your account.
• Online banking: Some banks offer better online services than others. Online banks usually offer good experiences, but consider if in-person banking is important to you too, especially if you need a place to deposit cash after business hours.
• FDIC or NCUA insurance: If your bank fails but is insured by one of these two organizations, you’ll be able to get your money back for up to $250,000 worth of total deposits at any one bank. Some banks offer higher insurance coverage by partnering with other banks. 
• Minimum deposit requirements: Some banks require that you open an account with a certain amount of money or face high fees. The rate you earn on your business savings account may also depend on how much you have in your account. 
• Customer service and support: Some banks are more known for their good customer service than others. Research each bank fully so you know what you’re getting into, and consult resources such as survey rankings. 

Methodology

Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews. To rate business savings accounts we collected over 200 data points for over a dozen accounts, including APYs, minimum balance requirements, account features, and fees, to ensure that our reviews help users make informed decisions about their banking needs.