Best business deposit accounts of 2021

Best business deposit accounts of 2021

A business deposit accounts is a sort of bank account for businesses that allows you to earn interest on your money. Savings accounts, unlike business checking accounts, often limit your monthly withdrawals, making them suitable for long-term savings — such as emergency cash — rather than daily use.

High-yield business savings accounts, or those with higher-than-average interest rates, are the greatest. They allow you to make more money over time.

The national average annual percentage return, or APY, on a savings account is now 0.05 percent, according to the Federal Deposit Insurance Corporation.

Although interest rates fluctuate, you’ll find that online business savings accounts typically provide higher rates than those offered by traditional banks.

Here are some of the best high-yield business savings accounts:

AccountAPYMinimum opening depositMonthly fee
Live Oak Business Savings0.50%$0$0
First Internet Bank Business Money Market Savings0.40% with a daily balance of $10 million or below; 0.25% with a daily balance above $10 million$100$5, waived with average daily balance of $4,000
TAB Bank Business Money Market0.25%$25$0
Axos Business Savings0.20%$1,000$5, waived with average daily balance of $2,500
NBKC Business Money Market0.05%$0$0

Live Oak Business Savings

The Live Oak Business Savings account is a web-based account with no monthly fees or minimum balance requirements. With a balance of one cent, this account begins to generate interest at 0.50 percent annual percentage yield (APY).

This business deposit accounts also comes with free internet banking, mobile app access, and six fee-free withdrawals per month ($10 each after that).

ACH payments, mobile check deposits, postal checks, and wire deposits are all options for funding your Live Oak Business Savings account. With this account, Live Oak does not accept cash deposits or provide ATM access.

First Internet Bank Business Money Market Savings

With a daily value of $10 million or less, First Internet Bank’s Business Money Market Savings account can be opened with as little as $100 and earns an APY of 0.40 percent.

You’ll get 0.25 percent APY on daily balances over $10 million. The $5 monthly maintenance fee on this online business savings account might be eliminated if you have an average daily balance of $4,000 or higher.

This account allows you to make up to six monthly purchases; any further transactions will be charged a $5 fee. This corporate savings account also features free online and mobile banking, as well as electronic statements and remote and scanning deposit options.

TAB Bank Business Money Market

TAB Bank is well-known in the trucking industry, but its business money market account, which pays 0.25 percent annual percentage yield, is open to all small businesses. This online business savings account requires a $25 minimum starting deposit and pays interest on balances of $1 or more.

There are no monthly fees with this account, which also offers online, mobile, and text banking, as well as online bill pay, account alerts, and automated telephone banking. You’ll also get six fee-free withdrawals per month; after that, each withdrawal will cost you $20.

Checks and an ATM card are included with the TAB Bank Business Money Market account. If you don’t have access to any in-network ATMs, you’ll have to pay fees to withdraw cash from a third-party ATM.

Axos Business Savings

A $1,000 minimum starting deposit is required for the Axos Business Savings account, which pays 0.20 percent APY. There is a $5 monthly maintenance charge on this account, which can be avoided if you keep an average daily balance of $2,500.

With the Axos Business Savings account, you get 20 fee-free items each month, including debits, credits, and deposited items; after that, each item costs 30 cents. Furthermore, you are limited to six fee-free withdrawals/transfers per month with this account; each additional withdrawal/transfer will cost $10.

A business debit card is not included with the Axos Business Savings account. You can utilize a wire transfer or an ACH transfer to an approved business checking account with bill pay to withdraw funds.

This business savings account, like all Axos bank accounts, may be opened and managed entirely online. Free online and mobile banking, as well as remote deposit from anywhere, an image statement, and bill pay are all included with the account.

Axos also offers a $100 welcome incentive for new accounts for small businesses formed after June 1, 2020. You must maintain an average daily balance of $2,500 for the first two months after creating your account to qualify for this prize. All applications must be submitted electronically.

NBKC Business Money Market

The Business Money Market account from NBKC is a no-fee business savings account with no minimum opening deposit and no monthly fees. This account pays 0.05 percent annual percentage yield (APY) and requires a minimum balance of one cent to earn interest.

This business savings account has no transaction costs, no overdraft or nonsufficient funds fees, no stop payment or returned item fees, and no fees for inbound domestic wires, just like the NBKC business checking account.

Sending domestic wires ($5 each) and sending or receiving international wires ($45 each) are the only expenses associated with this online business savings account.

Furthermore, the NBKC Business Money Market account features free online and mobile banking, as well as bill pay and mobile check deposit. You can also request a corporate debit card, which can be used for free at over 34,000 MoneyPass ATMs throughout the United States.

You are, however, limited to six withdrawals per month from your account. Excessive withdrawals are not subject to costs, however you will receive a warning from NBKC after the first occurrence. Your savings account will be converted to a checking account after the second.

Business savings accounts vs. business money market accounts

In addition to the interest rate, there are a few other considerations to consider when choosing a business savings account, depending on your company’s financial needs:

How much does it cost to start an account with a minimum deposit? These criteria vary, but you should have enough money prepared aside to open the account.

Is there a monthly price connected with keeping the account active? Your company savings account should ideally have low or no costs.

The following is the minimum balance requirement: Is there a need for a minimum account balance to earn the APY? This phrase is also sometimes used to refer to monthly fees: Is there a minimum account balance that must be maintained in order to avoid monthly maintenance fees? To avoid missing out on interest or, on the other hand, incurring monthly fees, be sure you can maintain minimum balance requirements on a consistent basis.

Monthly withdrawals or transfers: Although the Federal Reserve withdrew the regulation imposing a six-per-month maximum on withdrawals from savings accounts as of April 2020, several banks and credit unions still enforce these limits. Excessive withdrawals may result in the transition of your company savings account to a business checking account.

Is your savings account equipped with a corporate debit card or ATM card, and if so, where can you use it? If these amenities are important to you, brick-and-mortar banks may be more likely to provide them than online competitors.

How do I open an account: Can I open an account online or do I have to go to a branch? Is it possible to pick between the two choices when opening an account with the bank?

Michael Will

At Michael Will works as a writer and editor. He has 5 years of expertise in the business world, with an emphasis on small enterprises and startups. Digital marketing, SEO, business communications, and public policy are just a few of the areas he's addressed. He's also written about artificial intelligence, the Internet of Things, and blockchain, among other new technologies and their intersections with business.

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