Are you looking to open a high-yield corporate savings account to protect your money and earn interest?
High-yield savings accounts differ from traditional savings accounts in that they reward you with a higher interest rate and make your money grow even faster when it is in your account.
The interest rate offered by these accounts is expressed as an APY or annual percentage return. The higher your APY on a savings account, the faster your money will grow.
- Saving Account
- Business account
- What is a high yield business savings account?
- What Are the Features of The Best High Yield Savings Accounts?
- How does high-yield savings accounts work
- Best High Yield Business Savings Accounts
- Chase Bank: Great Access for Chase Customers
- Wells Fargo: Highest Intro APY from a Traditional Bank
- nbkc Business Money Market Account
- Axos Bank Business Savings Account
- Community Bank of Pleasant Hill Business Premier Money Management Account
- Goldwater Bank Savings Plus Business Account
- First Internet Bank Money Market Savings Account
- Live Oak Bank Business Savings Account
- Ally High Yield Savings Account
- Marcus by Goldman Sachs High Yield Online Savings Account
- Best Savings Account for Small Businesses: Conclusion
- Editor’s Recommendation
Deciding which savings account is best for your needs is no easy task. There is a world of possibilities out there. However, if you know what attributes to look for, you can find the best business savings account with the right mix of services and high yield returns.
For small business owners, a savings account is more than just a rainy-day fund. This is a once-in-a-lifetime opportunity to grow your capital by hundreds or thousands of dollars every year – especially if you choose a high-yielding corporate savings account.
High Yield Savings Accounts generally offer higher interest rates than the average savings account with an interest rate of 0.06% (as of July 2021). These average rates don’t even keep up with annual inflation, which is typically 2%.
As any small business owner will tell you, your commercial bank account is a crucial part of your financial operations. After all, your business account is where you keep your money to cover expenses, payroll, and operating expenses.
As your business grows and expands, you may have enough cash in your checking account to cover monthly expenses and other anticipated costs, and in fact, you even have additional capital to set aside.
Unlike business accounts, business savings accounts are meant to be used to store excess capital and hopefully, with a high-yielding business savings account, increase your money as you save.
What is a High-Yield Business Savings Account?
A high yield savings account is a type of deposit account that earns interest and is typically insured for up to $250,000 nationwide by the Federal Deposit Insurance Corporation (FDIC). That said, even if your bank or credit union goes down, the government guarantees that your funds are protected and available.
The best high-yield accounts can have an annual percentage return of 1-2% (APY). With an APY of 1.5%, a $10,000 balance would make approximately $150 per year.
That might not sound lucrative, but your return is much higher than an account with an APY of 0.06% which will give you $6 after a year. As you can see, a few percentage points, differences have a big impact on your income.
What Are the Features of The Best High Yield Savings Accounts?
Savings account rates rise and fall with the federal government rate, but under typical economic conditions, high-yield accounts offer APYs of 1-2% and higher.
In general, an online-only financial institution guarantees the highest APY because it does not have the same overheads as traditional banks. If you are familiar with online and telephone support and you don’t need an extensive ATM network, there is an easy way to get the best interest rates.
Realistic opening requirements
Depending on the savings product, you may need to make a minimum deposit. The best business savings accounts have a minimum deposit of $1 or waive the minimum deposit altogether, while others require $10,000 or $25,000 to open the account.
In the future, you may have to meet a certain minimum balance requirement, but many financial institutions don’t ask you to. Find out if you can make automatic transfers from your business account if they are from the same bank, so you can meet all requirements.
No or low fees
Regardless of which financial institution you choose, savings accounts have a withdrawal limit of six per statement cycle. After that, you can pay a withdrawal fee. Otherwise, account providers charge as they see fit.
Among the top accounts, most either had no recurring monthly fees, account fees, or transaction fees or waived them when they had a certain balance. If your account provider has fees – “monthly service fees” or “monthly maintenance fees” are common – they should be transparent about the costs and how to avoid them.
Online business banking services
For savings accounts, MMAs, and CMAs, online banking is no exception, it’s the norm. The best high yield accounts allow you to manage your account, transfer funds, or make withdrawals day and night in the office or on a mobile device.
Besides having a user-friendly desktop website, look for a handy mobile banking app. Your online account should also have timesaving native integrations.
By connecting your other business tools – such as accounting software and expense management software – you avoid manual data entry errors.
Save for the right account
By opening a high-yield business savings account, you can put your money to use with no additional effort. To get the best income, look for savings products with consistently high APYs and possibly low service fees.
Long-term options like CDs have great earnings potential, but they come at the cost of liquidity.
If you opt for a more flexible account for everyday use, choose one with secure online banking services, a fast-mobile app, and convenient integrations with no monthly fees.
Finally, you should be ready to go beyond large traditional banks and credit unions to get competitive interest rates. Online-only financial institutions offer some of the best APYs on the market.
How do high-yield savings accounts work
With compound interest, your savings can grow quickly on a high yield savings account.
Compared to simple interest, compound interest means that you earn interest on both your principal and the interest it earns. With simple interest, it is only calculated based on your principal or the balance of your savings minus interest.
How often your interest is compounded depends on the savings account. Some sit together daily, others monthly. The more your interest increases, the higher your return.
With a high yield savings account, you can withdraw or transfer money (including electronic transfers, checks, and wire transfers) from your account up to six times a month without paying a penalty fee or risking the account being closed.
However, this federal law, known as Regulation D, was temporarily lifted from all savings during the coronavirus outbreak as people need more urgent access to their money.
Best High Yield Business Savings Accounts
Here are the Best High Yield Business Savings Accounts available for you to invest your money in and expect a little return
Capital One Business Advantage Savings Account
The first option on our list of the best high-yield savings accounts is the Capital One Business Advantage savings account.
This is a great option for entrepreneurs who want to take advantage of a high-interest rate but still want the convenience of banking with Capital One.
To open this account, you will need to go to a Capital One location. Once you’ve done this, you’ll have free access to online banking as well as the option to connect to your Capital One Business exam account.
Also, this Capital One business savings account offers a special APY of 2% for the first 12 months and then your APY is based on your account balance.
Features of the Capital One Business Advantage savings account
- Minimum deposit of $250
- Promotional APY of 2% for the first 12 months; After the 12 months are up, Capital One will apply a standard business savings account rate to your balance
- Six free withdrawals per month
- There is no monthly service charge of $3 if you have $300 in credit
- Free ATM withdrawals at Capital One ATMs
- $2 fee for withdrawals from most other ATMs; Select ATMs will charge a withdrawal fee of $5
- Send overseas and international transfers. Fees range from $10 to $50
Chase Bank: Great Access for Chase Customers
While Chase Bank doesn’t offer high-yield business savings accounts, it does offer great intangible benefits.
New account holders get only 0.15% interest on their first deposit, which increases to 0.4% if you deposit more than $25,000. This doesn’t seem like much, but it is still a lot higher than if you left your money in a checking account.
With thousands of national branches and ATMs across the country, you’ll never be without access to your money. With 24/7 customer service and the ability to visit your local office, you can always get help.
There are no monthly fees when you link your Chase Bank checking account to your business savings account.
The Chase Bank is an excellent option for:
- Current Chase customers
- Owners who want constant access, support, and security
- Companies with a balance greater than $25,000
Wells Fargo: Highest Intro APY from a Traditional Bank
Much like Chase and other traditional high-overhead banks, high-yield corporate savings accounts aren’t Wells Fargo’s calling card.
Instead, they entice customers to deposit over $25,000 by offering a high APY of 2.03% for 12 months. After that, they drop to 0.1%, in line with most major banks’ offers.
If you need to deposit less than $25,000, start with this 0.1% rate.
There is no monthly fee of $15 if you have credit over $ 10,000. However, Wells Fargo has other fees that reduce your potential savings. Wire transfers have a fee of $15 per transaction. For every $100 you deposit over $5,000 per month, it will charge you $0.30.
Like Chase, Wells Fargo Customer Service and its office are a preferred choice for many customers. Access to a debit card and thousands of ATMs, as well as the ability to write checks, make this account attractive to business owners with immediate cash needs.
Wells Fargo is a great option for:
- Current Wells Fargo customers
- Owners who want access, support, and security
- Larger companies that want a higher APY than most traditional banks
nbkc Business Money Market Account
For a savings account option that not only offers a great APY, but also allows you to quickly and easily open an account online with no minimum deposit, consider the nbkc Business Money Market account.
This savings account is a remarkable choice for business owners who do not have sufficient additional funds to invest in their savings accounts but still want to save for the future.
In addition, the nbkc money market account can be managed entirely online – via your computer or mobile device.
Features of the nbkc Business Money Market account
- No minimum deposit required
- APY of 0.80% as long as you have a minimum balance of $0.01
- Up to six including monthly withdrawals
- Free online and mobile banking with eStatements
- No monthly account fees
- Free nbkc Business Debit MasterCard with ATM access
- $0 transaction fees, unlimited transactions
- Check deposit of $0 and incoming domestic transfers
- $5 charge for domestic outgoing lines, $45 charge for international lines (incoming and outgoing)
Axos Bank Business Savings Account
Next on our list is online business savings account from the original online bank Axos. Besides being an online account, the Axos Business Savings account is also a high-yield savings option that outperforms the interest rates of most conventional and online banks.
Since you can apply for this account online, it is well suited for business owners who want instant access to their savings accounts.
Features of the Axos Bank business savings account
- Minimum deposit of $1,000
- APY of 0.8% for all accounts that include the initial required deposit of $1,000
- Six free transfers per month with a fee of $10 for each transfer over this limit.
- 60 free items (debits, credits, deposited items) per month with remote deposit
- 20 free items per month, $0.30 for each item past this limit
- No monthly service fee if you have an average daily balance of $2,500, otherwise $5 service fee
- Free online and mobile banking
Community Bank of Pleasant Hill Business Premier Money Management Account
Sometimes local and regional banks offer savings account rates that are much better than the national banks. While these options may not be available to every customer, they make up for it with great APYs and customer service.
In that case, the Community Bank of Pleasant Hill offers their Business Premier Money Management account – a high-yielding corporate savings account with a small opening deposit that can appeal to businesses of all shapes and sizes.
Community Bank of Pleasant Hill Business Premier Money Management Account Features
- A minimum deposit of $25
- APY of 1.63%
- Free electronic bank statements
- A monthly service fee of $10 if the account balance drops below $10,000
- Free withdrawals on the second and fourth Wednesday of each month; All other withdrawals will be charged a fee of $25
Goldwater Bank Savings Plus Business Account
The next option on our list of the best high yield savings accounts comes from Goldwater Bank. The Goldwater Bank Savings Plus business account has a solid APY, but the highest minimum deposit on our list. This means that you will need significant resources for this option.
However, applying for an account with Goldwater is easy – you can do it in person or online – and you can use Goldwater Bank’s online and mobile banking platforms.
Features of the Goldwater Bank Savings Plus Business Account
- Minimum deposit of $25,000
- 1.65% APY
- Two free withdrawals per month
- Transfers (for a fee)
- Quarterly electronic bank statements
First Internet Bank Money Market Savings Account
First Internet Bank of Indiana is offering a great value on its online business savings account, the Money Market Savings Account.
You can apply for the First Internet Bank Money Market Savings Account online and have quick access to the full suite of free online and mobile banking tools. With the highest APY on our list, this savings account could be a worthwhile option for a wide variety of small businesses.
First functions of the internet bank money market savings account
- A minimum deposit of USD 100
- 2.02% APY
- USD 5 monthly maintenance fee if daily credit is less than $4,000
- Six free withdrawals or transfers per month; $5 for additional transactions
- ATM debit card for sole proprietorships only
Live Oak Bank Business Savings Account
The final option on our list of the best high yield savings accounts comes from Live Oak Bank. Live Oak Bank is paying off as a small business-oriented bank that offers its savings account with an APY 12 times higher than the national average.
You can also open your Live Oak account entirely online. This is a great option if you want to access your savings account almost instantly.
Live Oak Bank Business Savings Account Features
- No minimum deposit
- 1.10% APY
- No monthly maintenance fee
- Free online banking
- Six free transactions; $10 per additional transaction
- USD 15 incoming transfer fee
- $19 outbound transfer fee
Ally High Yield Savings Account
Ally has been a power player in high-return savings for a number of years and regularly receives top awards for online banking. It’s a particular favorite among millennials who advertise its accessibility and ease of use.
You can deposit checks using the mobile app and open multiple accounts in minutes.
Ally makes it easy to save for specific goals. Assign a nickname to each account, e.g. B. “Emergency Fund” or “Travel Account” to track your progress and stay motivated.
You can choose to have a separate account for each destination, but Ally has a bucket feature that allows you to save for multiple destinations in one account.
- 24/7 support
- No monthly maintenance fees or minimum credit requirements
- Your money earns money with interest compounded daily
- Limit of 6 withdrawals per statement cycle
Marcus by Goldman Sachs High Yield Online Savings Account
Marcus currently pays one of the most competitive tariffs in the industry. No deposit or minimum account balance is required, and there are no monthly maintenance fees. Marcus’ mobile app has also received positive reviews.
Mobile check deposit and customer support availability. Although users of the Marcus Mobile app give it good reviews, the app does not allow you to deposit checks digitally. Marcus also has less restricted customer service hours than many competitors, both over the phone and online.
- No fees and no minimum deposit
- Link other bank accounts for incoming and outgoing transfers
- The US-based contact center is open 7 days a week
- FDIC insured
Best Savings Account for Small Businesses: Conclusion
Before you put all of your savings in one place, consider what a high yield savings account can do for you. With growing your money over time, choosing an account with a higher yield is a breeze.
After all, you know your business best and are the only person who can determine which savings account suits your needs.
However, each of these high-yield corporate savings accounts might serve your business well – each offering significant APY and accessibility, as well as other account perks.
With these options, you have all the knowledge you need to effectively find a savings account and make the right decision for your business.
Regardless of your choice, opening a savings account is an exciting step – a step that means your business is growing and you are ready to invest in your future.