What is the Best Business Savings Account for October 2023

Are you ready to grow your business and make your money work harder? A great business savings account can make all the difference.

In this blog post, we’ll introduce the five best business savings accounts for October 2023, explore the ins and outs of these accounts, and offer tips on how to choose and manage the right one for your business.

Let’s dive in!

Top Business Savings Accounts to Consider

Our analysis of the best business savings accounts in the U.S. includes options from online and brick-and-mortar banks, along with large credit unions. We looked at factors like APY, fees, and account accessibility to rank our top five recommendations:

1. Live Oak Bank Business Savings Account
2. Axos Bank Business Premium Savings Account
3. Chase Business Total Savings Account
4. First Internet Bank Business Money Market Savings Account
5. NBKC Bank Business Money Market Account.

Here’s a detailed review of each account to assist you in selecting the best fit for your business.

Live Oak Bank Business Savings Account

Live Oak Bank Business Savings Account offers a competitive APY, no monthly fees, and no minimum balance requirements. However, it lacks ATM access and physical branches, meaning it’s more suitable for businesses that don’t rely heavily on cash transactions. On the bright side, you can withdraw cash for free at over 55,000 Allpoint ATMs, and customer service is available Monday through Friday from 8 a.m. to 8 p.m. Eastern time.

Bear in mind that:

• You’re limited to six eligible withdrawals per cycle, and each transaction over the limit incurs a $10 fee.
• This account does not accept cash deposits.
• To open the account, you’ll need to provide personal and business information, as well as your bank account details.
• There’s a $10 dormant account fee if your balance is $10 or less and you don’t use the account for 24 months.
• Wire transfers cost $19 each.

Axos Bank Business Premium Savings Account

Axos Bank Business Premium Savings Account is an attractive option for new business owners, offering:

• A welcome bonus
• No monthly fees
• No average daily balance requirements
• A 4.01% APY for deposits of $5,000 or more
• A minimum balance of $24,000 to earn interest
• The convenience of depositing checks remotely using a mobile device

To qualify for the welcome bonus of up to $300, maintain an average daily balance of $2,500 for the first two months, and use the promo code NEWBPS when applying. The Axos Bank Business Premium Savings Account is an excellent choice for businesses looking for a no-fee account with a generous welcome bonus.

Chase Business Total Savings Account

For businesses that value in-person banking, the Chase Business Total Savings Account stands out with its nationwide branch access. However, the account’s APY may not be as high as other options. Opening the account requires a minimum deposit of only $25, making it an accessible choice for businesses of all sizes.

Business owners should be mindful of the account’s limitations, including lower yields than other banks and charges for additional deposits beyond 15 per month. The Business Premier Savings account from Chase offers a higher Annual percentage yield (APY), compared to other accounts. This offer is made even better if the account is linked to a Chase business checking account.

First Internet Bank Business Money Market Savings Account

The First Internet Bank Business Money Market Savings Account features:

• Tiered interest structure
• Waived monthly fee for balances of $4,000 or more
• $100 minimum deposit to open
• Competitive 1.51% APY

This makes it an attractive option for businesses looking to maximize their interest earnings.

The account has a monthly maintenance fee of $5. However, this fee can be waived if you maintain an average daily balance of $4,000. Keep in mind that the account limits you to six eligible transactions per month before incurring additional fees.

The First Internet Bank Business Money Market Savings Account is an excellent choice for businesses seeking a low minimum opening deposit and competitive APYs.

NBKC Bank Business Money Market Account

NBKC Bank Business Money Market Account is an online-only account offering no fees, no minimum deposit, and no balance requirements. However, it’s only available at select locations, which may be a drawback for businesses requiring physical branch access. The account has minimal associated fees. There are no charges for activities such as overdrafts, non-sufficient funds, stop payments, and incoming domestic wire transfers..

NBKC Bank offers rather low short-term CD rates in comparison to other providers. Its three and six-month CDs are at 0.10% APY. CDs that offer a longer period of maturity can give you higher rates. These rates vary from 2.75% to 3.25% APY.

The NBKC Bank Business Money Market Account is a suitable option for businesses seeking a no-fee account with no minimum deposit or balance requirements.

Understanding Business Savings Accounts

Business savings accounts are designed specifically for businesses to manage their finances and grow their funds. They serve various purposes, such as holding a cash reserve, setting aside money for emergencies, and preventing overdrafts. Unlike personal savings accounts, business savings accounts cater to the unique needs of small businesses and provide them with the tools and resources needed to manage their finances effectively.

There are several types of business savings accounts, including:

• Traditional business savings accounts
• High-yield business savings accounts
• Business money market accounts
• Business CDs

Each account type has its advantages and disadvantages, so it’s essential to choose the right one based on your business needs and goals.

Finding the right business savings account is vital to your business’s financial health, whether you’re saving for business goals or need cash for unexpected expenses. By understanding the purpose and function of business savings accounts, you can better manage your business finances and make informed decisions for your company’s growth.

Factors to Consider When Choosing a Business Savings Account

Selecting a business savings account requires thoughtful consideration of several factors, including fees, APY, and account accessibility. Some banks charge monthly maintenance fees, while others offer no-fee accounts. Be sure to select an account with minimal fees that won’t eat away at your principal or interest earnings.

The APY is another crucial factor as higher interest rates help your business reach its financial goals faster. Typically, online-only banks offer the best rates for business savings accounts.

Lastly, consider how easy it is to access your funds. Some accounts may have transaction limits, while others offer more flexibility in managing your money.

Remember that your business needs, monthly expenses, and future goals should guide your decision when choosing a business savings account. By carefully considering these factors, you can select the best account to support your business’s growth and financial stability.

Comparing Online Banks vs. Traditional Banks for Business Savings

Both online and traditional banks offer unique advantages and disadvantages when it comes to business savings accounts. Traditional banks offer physical branches for face-to-face banking, which can be advantageous for businesses that value in-person customer service. However, their APY may not be as high as online banks.

Online banks, on the other hand, typically provide higher interest rates and lower fees, making them a more attractive option for businesses looking to maximize their savings potential. They also offer convenient digital banking features, but the lack of physical branches and possible security concerns may deter some business owners.

In terms of customer service, traditional banks generally offer in-person assistance at branches, while online banks have fewer options but usually provide phone, email, or online chat support. Weighing the advantages and disadvantages of both online and traditional banks is key in determining the best option for your business’s needs and preferences.

How to Open a Business Savings Account

Opening a business savings account is a straightforward process. First, research banks with the features you want and ensure you meet their requirements. Confirm that you can transfer money from your current business bank accounts to the new savings account.

Opening a business savings account requires providing personal and business details, such as:

• Your business license
• Employer Identification Number (EIN) or Social Security number if you don’t have an EIN
• Business formation documents and any ownership agreements if your business is formally organized, such as an LLC.

Many banks allow you to open a business savings account online, making it a quick and convenient process. Once your account is open, ensure you regularly monitor it and make use of its features to maximize your savings and manage your business finances effectively.

Alternatives to Business Savings Accounts

Although business savings accounts are frequently chosen by businesses, alternative account types might be a better fit for your needs. Some benefits of high-yield accounts include:

• Higher interest rates than regular savings accounts
• FDIC insurance
• Easy access to funds
• More interest earnings
• Better cash flow management
• Competitive rates for growing business reserves

Consider these advantages when deciding which type of account is best for your business.

Interest-earning checking accounts are another option, combining the benefits of a checking account with the ability to earn interest. This type of account may be more suitable for businesses with frequent transactions, as they typically have fewer transaction limits compared to savings accounts.

When exploring alternatives to business savings accounts, evaluating your business’s specific needs and financial goals is crucial. By exploring different account types and their associated benefits, you can find the perfect account to support your business’s growth and success.

Tips for Managing Your Business Savings Account

To maximize the benefits of your business savings account, consider implementing the following tips. First, set clear objectives for your savings by defining SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals. This will help you stay focused on your financial targets and track your progress.

Second, separate your business and personal finances to maintain clear financial records and minimize potential tax complications. This will also help you better understand your business’s financial health and make more informed decisions.

Lastly, automate your savings deposits by setting up regular transfers from your business checking account to your savings account. This ensures consistent savings growth and helps you establish a strong financial foundation for your business. By following these tips, you can effectively manage your business savings account and make the most of its benefits.

Summary

In conclusion, a great business savings account can significantly impact your business’s financial health and growth. By understanding the different types of business savings accounts, comparing online and traditional banks, and considering alternative account types, you can choose the best account for your needs. Furthermore, by implementing effective management strategies, you can maximize the benefits of your chosen account and set your business up for long-term success. So take charge of your business finances today and watch your savings grow!