With inflation rates around 3%, it’s a good idea to turn to high-yield savings accounts to maximize your idle business cash.

This guide presents the best high-yield savings accounts for businesses, where you can earn up to 5.48% APY on your company’s reserves.

When selecting the best business high-yield savings accounts, consider factors such as competitive APY, minimal fees, accessibility of funds, minimum deposit and balance requirements, and the process of opening a business savings account.

Our top picks include:

• Live Oak Business Savings (4.00% APY)
• First Internet Bank Business Money Market Savings (3.46%-5.48% APY)
• Prime Alliance Bank Business Savings (4.25% APY)

These accounts offer rates that significantly outpace the national average of 0.36% for business savings and provide features tailored to business needs.

With these high-yield accounts, your $100,000 in cash reserves could earn over $5,000 in interest annually, compared to just $460 with an average account.

The best business savings accounts for 2024 are:

• First Internet Bank Money Market Savings
• Live Oak Bank Business Savings Account
• Prime Alliance Bank Business Savings
• NBKC Business Money Market
• Axos Business Premium Savings
• U.S. Bank Platinum Business Money Market Account

Key Takeaways

• High-yield business savings accounts offer significantly higher APYs than traditional savings accounts, helping your business earn more on its cash reserves.
• When choosing the best business savings account, consider factors like competitive APY, minimal fees, accessibility of funds, minimum deposit and balance requirements, as well as the process of opening a business savings account.
• Top options for 2024 include First Internet Bank Money Market Savings, Live Oak Bank Business Savings, and Prime Alliance Bank Business Savings.
• These accounts can help you build an emergency fund, save for taxes, and prepare for future investments.
• FDIC insurance provides an extra layer of security for your business funds.

1. First Internet Bank Money Market Savings

APY: 3.46% for balances up to $5 million; 5.48% for balances over $5 million 

Minimum Opening Deposit: $100 

Monthly Fee: $5 (waivable with a $4,000 average daily balance) 

Who it’s best for: Established businesses with substantial cash reserves looking for high yields and flexibility

First Internet Bank Business Money Market Savings account offers an attractive combination of high yields and accessibility for your business funds. 

With a competitive APY of 3.46% on balances up to $5 million and an impressive 5.48% on balances exceeding that threshold, this account stands out in the current market.

As a business owner, you’ll appreciate the low barrier to entry with a minimum opening deposit of just $100.

However, to make the most of this account, you’ll want to maintain an average daily balance of at least $4,000 to waive the $5 monthly maintenance fee.

One of the unique features of this account is the expanded FDIC insurance coverage. While standard FDIC insurance covers up to $250,000, First Internet Bank partners with other institutions to provide additional protection for larger deposits. 

This makes the account attractive if your business has substantial cash reserves that exceed typical FDIC limits.

You’ll have the flexibility to make up to six monthly transactions, which aligns with standard money market account regulations. If you’re a sole proprietor, you’ll also benefit from ATM card access, adding extra convenience to managing your funds.

It’s worth noting that while the account offers high yields, the highest rate tier requires a substantial balance of over $5 million. However, even at the lower tier, the 3.46% APY is highly competitive today.

Pros

• Highly competitive APY, especially for balances over $5 million
• Low minimum opening deposit of $100
• Expanded FDIC insurance coverage for large deposits
• ATM card access for sole proprietors
• No minimum balance is required to earn interest

Cons

• Monthly maintenance fee of $5 (though waivable)
• The highest APY tier requires a very large balance ($5 million+)
• ATM card access is limited to sole proprietors
• Transaction limits (six per month) may be restrictive for some businesses

2. Live Oak Bank Business Savings Account

APY: 4.00% 

Minimum Opening Deposit: $0 

Monthly Fee: $0 

Who it’s best for: Online-focused businesses seeking high yields with no fees or balance requirements

With its impressive 4.00% APY, the Live Oak Bank Business Savings Account will earn you about eight times more than the national average.

For example, an account balance of $100,000 will give you an interest of $4,000 in one year. In comparison, you’d earn a national average of just $450 if your money were in a normal account.

Compared to traditional banks and credit unions, Live Oak Bank often offers higher rates without the membership eligibility requirements that credit unions may have.

As a business owner, you’ll appreciate the absence of monthly maintenance fees and minimum balance requirements. Every dollar you deposit starts working for you immediately, without any deductions eating into your earnings.

One of the standout features is the Insured Cash Sweep service. If your business has substantial cash reserves exceeding the standard $250,000 FDIC insurance limit, you can access up to $10 million in FDIC coverage. 

The bank provides multiple options for funding your account, including:

• ACH transfers
• Mobile check deposits
• Mailed checks
• Wire transfers

However, Live Oak Bank operates entirely online, so you can’t make cash deposits or access funds through ATMs.

This works well if your business primarily deals with digital transactions, but it might be less convenient if you frequently handle cash.

The account integrates seamlessly with QuickBooks, simplifying your financial management. You can also add up to four additional authorized signers, allowing for flexible account management within your organization.

While the lack of transaction limits offers great flexibility, the absence of ATM access and weekend customer support might be drawbacks for some businesses.

However, if these aren’t deal-breakers for your operations, the high yield and fee-free structure make this account a compelling choice for maximizing your business savings.

Pros

• Exceptionally high APY (4.00%)
• No monthly maintenance fees
• No minimum balance requirements
• Interest earned on balances as low as $0.01
• Up to $10 million FDIC insurance through Insured Cash Sweep
• Integration with QuickBooks
• No transaction limits

Cons

• No ATM or debit card access
• No cash deposit option
• No physical branches for in-person service
• Customer support is unavailable on weekends
• Slightly lower APY if opting for extended FDIC coverage

3. Prime Alliance Bank Business Savings

APY: 3.85% to 4.25%, tiered based on balance

Minimum Opening Deposit: $0 

Monthly Fee: $0 

Who it’s best for: Businesses looking for high-yield savings with minimal fees and flexible balance requirements

Prime Alliance Bank’s Business Savings account offers an excellent opportunity to maximize your business’s idle funds with its impressive APY range of 3.85% to 4.25%. 

This high yield is available without the burden of monthly maintenance fees or minimum balance requirements.

The account’s tiered interest structure rewards you for maintaining higher balances. You’ll earn:

• 3.85% APY on balances up to $99,999.99
• 4.05% APY for balances between $100,000 and $199,999.99
• 4.25% APY for balances of $200,000 or more 

This tiered system encourages you to consolidate your business savings, simplifying your financial management while maximizing returns.

One of the standout features of this account is its accessibility. With no minimum opening deposit, you can start benefiting from these high rates immediately, regardless of your current cash position. This makes it an attractive option for businesses of all sizes, from startups to established enterprises.

The business savings account comes with modern banking conveniences, including online and mobile banking. 

The mobile app allows you to easily deposit checks, which is useful for businesses that frequently receive check payments. However, the account doesn’t offer ATM access or check-writing capabilities, which might be a drawback if you need frequent access to your funds.

Prime Alliance Bank imposes a standard limit of six monthly withdrawals or transfers on savings accounts. Exceeding this limit incurs a $25 fee per transaction, so this account is best suited for funds you don’t need to access frequently.

While the high yield and low fees are attractive, the account opening process may be less convenient than some competitors. You’ll need to email the bank to open an account.

Pros

• High APY across all balance tiers (3.85% – 4.25%)
• No monthly maintenance fees
• No minimum balance requirements
• No opening deposit requirement
• Free online and mobile banking with mobile check deposit
• Unlimited deposits

Cons

• No ATM or check-writing access
• Email required to open an account (unless local to Salt Lake City)
• $25 fee for exceeding six withdrawals/transfers per month
• No weekend customer support

This account is well-suited for businesses with substantial cash reserves they don’t need to access frequently.

4. NBKC Business Money Market

APY: 2.75% 

Minimum Opening Deposit: $0 

Monthly Fee: $0 

Who it’s best for: Small to medium-sized businesses looking for a high-yield account with checking-like features and minimal fees

The NBKC Business Money Market account offers a competitive 2.75% APY on all balances starting from just $0.01.

You’ll appreciate the account’s fee structure—or lack thereof. There is no monthly maintenance fee, minimum balance requirement, or opening deposit. You can start benefiting from the high interest rate immediately without worrying about your balance dipping below a certain threshold.

Unlike traditional savings accounts, the NBKC Business Money Market account has check-writing capabilities and a debit card.

There are no limits on the number of transactions you can make, which is unusual for a money market account and provides you with greater flexibility in managing your funds.

The account also offers ATM access, with NBKC reimbursing up to $12 monthly for out-of-network ATM fees. This feature, combined with unlimited transactions, makes this account function much like a high-yield checking account — a significant advantage if you need frequent access to your funds.

NBKC’s digital banking platform provides online and mobile banking with features like mobile check deposit and bill pay. These tools can help streamline your business’s financial management.

It’s worth noting that while this account offers many advantages for small to medium-sized businesses, it may not be the best fit for very large businesses with balances exceeding $250,000. 

NBKC doesn’t offer expanded FDIC coverage beyond the standard $250,000 limit, which some other banks provide for large deposits.

Pros

• High APY (2.75%) on all balances
• No monthly maintenance fees
• No minimum balance requirements
• No opening deposit is required
• Includes checks and debit card
• No transaction limits
• Up to $12/month reimbursement for ATM fees
• Free online and mobile banking with bill pay

Cons

• No expanded FDIC coverage for balances over $250,000
• High fee for international wire transfers ($45)
• No weekend or after-hours customer support
• Matching checking account doesn’t earn interest

The account may not be ideal for large businesses due to the lack of expanded FDIC coverage. 

The high fees could also be a drawback if your business frequently deals with international wire transfers.

5. Axos Business Premium Savings

APY: 4.01% 

Minimum Opening Deposit: $0 

Monthly Fee: $0 

Who it’s best for: Businesses of all sizes looking for high-yield savings with expanded FDIC coverage options.

The Axos Business Premium Savings Account offers an impressive 4.01% APY on all balance tiers, with no minimum opening deposit required and no monthly maintenance fees.

One of the most compelling features of this account is the option to participate in the Insured Cash Sweep (ICS) program.

This allows you to extend your FDIC coverage to $240 million at no additional cost. This is valuable for larger businesses or those with substantial cash reserves, eliminating the need to manage multiple accounts across different banks.

The account’s structure is straightforward. The same high 4.01% APY applies across all balance tiers, from $0 to over $1,000,000. You don’t have to worry about maintaining a specific balance to achieve the best rate. 

Your funds will earn the same competitive yield regardless of your balance.

However, this account has some transaction limitations. You’re allowed 20 free monthly transactions, including debits, credits, and deposits. After that, each additional transaction incurs a $0.30 fee.

The account doesn’t offer check-writing capabilities or ATM/debit card access, which aligns with its purpose as a savings vehicle rather than a transaction account. You’ll need to transfer funds to a checking account for spending purposes.

Axos Bank provides free incoming wire transfers, both domestic and international, which can be a significant cost-saver if your business frequently receives wire payments.

Pros

• High APY (4.01%) on all balance tiers
• No monthly maintenance fees
• No minimum opening deposit or balance requirements
• Access to Insured Cash Sweep for expanded FDIC coverage up to $240 million
• Free incoming domestic and international wire transfers
• Online and mobile banking access

Cons

• Limited to 20 free transactions per month (30 cents per transaction after that)
• No check-writing capabilities
• No ATM or debit card access
• It may not be suitable for businesses needing frequent access to funds

The optional Insured Cash Sweep program, offering expanded FDIC coverage up to $240 million, makes the account attractive for larger businesses or those with significant cash reserves who want to maintain FDIC protection without the hassle of managing multiple accounts.

6. U.S. Bank Platinum Business Money Market Account

APY: Applies to new U.S. Bank Platinum Business Money Market accounts opened between July 11, 2024, and August 7, 2024

• 4.25% bonus interest rate for balances between $25,000 and $2,999,999.99
• If the balance falls below $25,000 or exceeds $2,999,999.99, the account earns a standard variable interest rate
• The bonus rate may change without notice 

Minimum Opening Deposit: $100 ($25,000 for promotional rate) 

Monthly Fee: $15 (waivable with a $10,000 minimum balance) 

Who it’s best for: Businesses with balances between $25,000 and $2,999,999.99 looking for a high short-term yield and integrated checking/savings solution with U.S. Bank

U.S. Bank’s Platinum Business Money Market Account offers standard APY ranges from 0.05% to 1.15%, depending on your balance. However, the standout feature is the promotional rate of up to 4.34% APY, available through August 7, 2024, for those who meet certain criteria.

To qualify for the promotional rate, you need to open a new Platinum Business Money Market Account and maintain a balance between $25,000 and $2,999,999.99. You’ll also need a U.S. Bank business checking account (Silver, Gold, or Platinum). 

The account requires a minimum opening deposit of $100, but to benefit from the promotional rate, you’ll need to deposit at least $25,000. A $15 monthly maintenance fee can be waived by maintaining a minimum daily balance of $10,000.

U.S. Bank offers three different business money market accounts, each tailored to different business needs and preferences:

Unlike many high-yield savings accounts, this account offers check-writing capabilities and ATM access. There are no transaction limits, which is unusual for a money market account and can benefit businesses needing frequent savings access.

U.S. Bank’s extensive branch and ATM network could be a significant advantage for businesses that value in-person banking services or need widespread ATM access.

Pros

• High promotional APY (up to 4.34%) for qualifying accounts
• No transaction limits
• Includes checks and ATM card
• Extensive branch and ATM network
• Integrates with U.S. Bank business checking accounts

Cons

• Low standard APY (0.05% – 1.15%)
• High balance requirement ($25,000) to qualify for promotional rate
• Monthly maintenance fee (though waivable)
• The promotional rate is temporary and subject to specific terms
• Requires a U.S. Bank business checking account for the promotional rate

If your business can maintain a balance of at least $25,000 and already uses or is willing to open a U.S. Bank business checking account, this money market account could be an excellent way to maximize returns on excess cash, at least during the promotional period. 

However, you should have a plan for what to do with your funds once the promotional period ends, as the standard rates are significantly lower.

Key Features to Consider When Choosing a Business High-Yield Savings Account

A competitive Annual Percentage Yield (APY) is important, but several other factors significantly impact your business’s overall value and usability of the account. 

Consider these key features to ensure you choose an account that maximizes your earnings and aligns with your business’s specific needs and operational requirements.

1. Minimum Balance Requirements

Minimum balance requirements can greatly affect the accessibility and profitability of your savings account.

Some accounts may offer attractive interest rates but require substantial minimum balances to either open the account, earn the advertised APY, or avoid monthly fees.

For example, an account might advertise a 4% APY but require a $25,000 minimum balance to earn that rate. Maintaining such a high balance might be challenging for smaller businesses or those with fluctuating cash flows. 

Conversely, accounts with no minimum balance requirements offer more flexibility but might have lower interest rates.

When evaluating minimum balance requirements, consider your business’s cash reserves and cash flow patterns. An account with a higher minimum might offer better returns if you consistently maintain a higher balance. 

However, if your available cash fluctuates, an account with no or low minimum balance requirements might be more suitable, even if it means accepting a slightly lower APY.

2. Fee Structure

Fees significantly erode your earnings, especially in a high-yield savings account that aims to maximize returns on your idle cash. 

Common fees to watch out for include:

• Monthly maintenance fees
• Excess transaction fees
• Wire transfer fees
• ATM fees (if applicable)

For example, an account like First Internet Bank Money Market Savings charges a monthly maintenance fee of $5 if you don’t maintain an average daily balance of $4,000.

Transaction fees are also important for business accounts. While savings accounts typically limit transactions, some are more restrictive than others.

An account might allow 6 free transactions per month and charge $10 for each additional transaction, while another might allow 20 free transactions.

Calculate the potential impact of fees based on your expected account usage. An account with a slightly lower APY but fewer fees might yield better returns than one with a higher APY but more fees.

3. Access and Transaction Limitations

Business savings accounts often restrict how often you can access your funds, limiting the number of monthly withdrawals or transfers.

In contrast, personal savings accounts typically offer more flexibility with fewer transaction limitations, often allowing more withdrawals without fees. Considering these limitations is important based on your business’s cash flow needs.

For example, some accounts limit you to 6 monthly transactions (a common limitation due to federal regulations), while others might allow more. Exceeding these limits will result in fees or account closure if done repeatedly.

Also, consider how you can access and manage the account. Features to look for include:

• Online and mobile banking capabilities
• ACH transfer options
• Wire transfer services
• Check-writing privileges (uncommon for savings accounts but available with some money market accounts)
• ATM access (again, more common with money market accounts)

If your business frequently needs to move money in and out of savings, an account with more flexible access and higher transaction limits might be more suitable, even if it comes with a slightly lower APY.

4. FDIC Insurance and Account Security

The safety of your business funds should be a top priority. 

Ensure that the financial institution is FDIC insured, which covers up to $250,000 per depositor per insured bank for each account ownership category.

If your business has larger cash reserves, consider banks that offer extended FDIC coverage through networks like the Insured Cash Sweep (ICS) service. This lets you access FDIC insurance on balances well beyond the standard $250,000 limit.

For example, a Live Oak Bank business savings account allows you to receive FDIC insurance coverage for up to $10 million through the IntraFi Network.

Beyond FDIC insurance, evaluate the bank’s online and mobile banking security measures. Look for features like:

• Two-factor authentication
• Encryption for data transmission
• Fraud monitoring and alerts

5. Additional Business Banking Services

The primary purpose of a high-yield savings account is to earn interest on idle funds.

However, consider whether the bank offers other services that could benefit your business. 

Multiple banking services with one institution can streamline your financial management and potentially lead to better terms or rates.

Look for banks that offer:

1. Business checking accounts
2. Business credit cards
3. Merchant services
4. Payroll services
5. Business loans or lines of credit

For instance, some banks offer higher savings rates or waive certain fees if you also have a business checking account.

Others provide seamless integration between savings and checking accounts for easy transfers and cash management.

Additionally, consider whether the bank specializes in serving businesses in your industry. Some banks offer tailored services for specific sectors, such as healthcare, real estate, or technology startups, which could provide added value beyond high interest rates.

The Impact of High-Yield Savings on Your Business Bottom Line

Let’s explore how a high-yield business savings account could significantly impact your bottom line.

Imagine your business has $100,000 in cash reserves. In a traditional savings account earning the national average of 0.36% APY, here’s what you’d earn:

$100,000 x 0.36% = $360 per year

Now, let’s see what happens if you move that same $100,000 to a high-yield account earning 4% APY:

$100,000 x 4% = $4,000 per year

That’s a difference of $3,640 in just one year — money that could be reinvested in your business, used to cover expenses, or added to your emergency fund.

But what if your business has more substantial cash reserves? Let’s look at a few scenarios:

The impact becomes even more significant with larger balances. That $18,200 difference on a $500,000 balance could cover a part-time employee’s salary, fund a marketing campaign, or be a substantial contribution to new equipment.

Remember, these figures represent just one year of earnings. Over time, the effect of compound interest makes the difference even more pronounced.

For example, if you kept that $100,000 in a high-yield account for five years (assuming the rate stays constant), you’d earn over $21,665 in interest, compared to just $1,815 in a traditional savings account.

Moreover, in times of inflation, high-yield savings accounts will help protect the purchasing power of your business’s cash reserves. 

While the 4% might not always outpace inflation, it certainly mitigates its impact far better than the 0.36% from a traditional account.

Frequently  Asked Questions