The Best Business Money Market Account Rates

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Business owners don’t need to settle for regular bank accounts for their savings. Opening a business money market account can offer the liquidity you want from a regular savings account while potentially having more ways to access your cash, such as being to write checks or mobile pay. Money market accounts generally offer limited check writing (up to 6 per month per federal regulation). Savings accounts rarely offer any check writing.

Most businesses use a money market account to hold extra cash, much like a buffer account. The money is intended to be stored to help funds grow a bit more while it sits there. The business owner then would withdraw money or write a check to cover any surprise expenses.

LendingTree researched business money market accounts and found the best rates based on a minimum deposit of $1,000.

Using data from DepositAccounts.com, which is owned by LendingTree, we found business money markets that offered the best APY with a good business rating. All accounts mentioned below are either FDIC- or NCUA-insured up to $250,000.

The 10 best business money market accounts

Bank/Institution

APY

Min to earn APY

Premier Members Credit Union

Business Money Market Account

APY

2.00%

Min to earn APY

None

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on Premier Members Credit Union's secure site

First Internet Bank

Business Money Market Savings

APY

0.60%

Min to earn APY

None

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on First Internet Bank's secure site

Bethpage Federal Credit Union

Business Money Market Account

APY

0.50%

Min to earn APY

$500

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on Bethpage Federal Credit Union's secure site

Goldwater Bank

Business Money Market PLUS

APY

0.50%

Min to earn APY

$100,000

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on Goldwater Bank's secure site

nbkc bank

Business Money Market

APY

0.60%

Min to earn APY

$0.01

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on nbkc bank's secure site

Latino Credit Union

Micro Business Money Market

APY

0.75%

Min to earn APY

$1,000

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on Latino Credit Union's secure site

Apple Federal Credit Union

Commercial Money Market

APY

0.40%

Min to earn APY

$100,000

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on Apple Federal Credit Union's secure site

NASA Federal Credit Union

Business Premier Plus Money Market

APY

0.55%

Min to earn APY

$40,000

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on NASA Federal Credit Union's secure site

How a Business Money Market Account Works

Making withdrawals

You can make withdrawals any time without penalty, unlike with other types of accounts like a CD or an IRA. However, you may be limited to the amount of withdrawals you can make every month. Federal regulations allow a maximum of six electronic payments and transfers per month, though that may vary for each institution.

Opening an account

Opening an account is similar to other types of accounts. Instead of your personal information, you’ll need to provide the business’ Employer Identification or tax number. If you’re a sole proprietor, you can use your Social Security number. You’ll also need to provide paperwork documenting when you opened your business and a government issued ID of someone who is authorized to make financial transactions on behalf of the business. Other documentation may include a DBA certificate, Articles of Incorporation or other governing documents. After that, you need to make an initial deposit and you’re good to go.

When opening an account, consider what the minimum balance requirements are or else you could be paying maintenance fees.

Business Money Market vs Business Savings Accounts

It used to be that business money market accounts had higher interest rates than business savings accounts. Since 2009, the difference between the two has become minimal. Many online banks offer very competitive rates on savings accounts versus a money market account. The main difference is how the money is invested. With a money market account, the bank purchases short-term cash securities or its equivalent. A savings account, on the other hand, earns you interest by letting the bank lend your money and in turn, giving you a cut of their returns.

You may be able to earn much higher interest rates with a regular savings account. However, some money market accounts offer better flexibility in terms of how you access your cash. Some offer limited check writing capabilities and ATM cards giving you more options to take money out. Many competitors even offer ATM reimbursements, saving you money on fees.

At many banks, both types of accounts are FDIC- or NCUA-insured up to $250,000.

Withdrawals are limited with both business savings accounts and money market accounts. Federal Regulation D limits you up to six withdrawals per account cycle. If you exceed the limits imposed by the bank, you will be charged a penalty. Your account could be converted to a basic checking account or closed if you continually exceed the federal transaction limits. There may be exceptions to these limits, so it’s best the check with your bank or credit union to see which types of transactions are limited to the six per month.

To sum it up, there really isn’t much difference between the two types of accounts. You can use both for savings or as a backup funding source. If you want to find the best rates, you’re better off comparing both business money market and savings accounts to shop for the best deal.