The Best Business Savings Accounts

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Stashing cash isn’t just a savvy move for individuals — small businesses need to squirrel away their profits to keep their company financially healthy. If your business doesn’t have a high-yield business savings account, you may be missing out on interest or neglecting to consider the financial future. Below are the best business savings accounts of April 2018, along with advice on when to open a savings account for your business.

The 10 best business savings account rates

Bank/Institution

APY

Min to earn APY

Goldwater Bank

Savings Plus Business

APY

0.50%

Min to earn APY

$0.01

LEARN MORE

on Goldwater Bank's secure site

First Internet Bank

Business Regular Savings

APY

0.60%

Min to earn APY

None

LEARN MORE

on First Internet Bank's secure site

Live Oak Bank

Business Savings

APY

0.70%

Min to earn APY

None

LEARN MORE

on Live Oak Bank's secure site

Presidential Bank (MD)

Commercial Premier Savings

APY

0.50%

Min to earn APY

None

LEARN MORE

on Presidential Bank (MD)'s secure site

St. Mary's Bank

Business Cash Management Sweep Account

APY

0.30%

Min to earn APY

$1,000,000

LEARN MORE

on St. Mary's Bank's secure site

How we chose the best business savings accounts

We used data from DepositAccounts.com, a LendingTree company, to compare business savings account products by annual percentage yield (APY). We excluded institutions with a health rating below a B, as well as credit unions with very restrictive membership requirements.

From there we selected the top 10 business savings accounts with the highest APYs for starting deposit amounts ranging from $500-$150,000. We excluded accounts that charged a monthly service fee for all account balances. If any accounts had the same APY, and the same fee structure, we broke the tie by choosing the account with the most stable rate history. (We consider that a better choice than an account with rates that tend to change often.) All products in this list are backed by either the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA).

Do I Need a Business Savings Account?

Setting profits aside in a specific business savings account is one of the best ways to ensure that your company has the funds it needs to grow or weather an emergency. However, not every business needs a business savings account. That’s particularly true for small-business owners who are just starting out.

Rather than a business savings account, small-business owners may want to start by establishing a business checking account. Separating your personal and business checking accounts makes recordkeeping easier. Great records make it easier to file taxes and to keep your business and personal finances separate. Having a separate business checking account can also offer your company a degree of business credibility, and business checking accounts often allow multiple signers to have signing authority.

Even though business checking accounts don’t pay very much interest, the Small Business Administration recommends it as your first business bank account.  A business checking account allows you to make regular payments for business expenses, but a business savings account is designed to hold savings and may not allow frequent withdrawals to pay expenses.

Once your company starts making a profit, you’ll want to start thinking about opening a business savings account. A business savings account will offer a modest return on your deposits, and it can work as collateral for a business loan if you want to expand your business. A business savings account is also a great place to set aside funds for mid-term needs, such as quarterly tax payments.

Keep in mind: All savings accounts are limited to six withdrawals or transfers per month by Regulation D. Excessive withdrawals and transactions may carry a fee, which will vary by bank. The bank can also close your account or convert it to a checking account if you make excessive withdrawals or transfers.

Are There Tax Advantages to Business Savings Accounts?

Holding money in a business savings account does not offer particular tax advantages to small businesses. However, small-business owners shouldn’t discount recordkeeping advantages of having a small business savings account.

A business savings account can help you make financial statements that make it easy to file taxes, and determine your company’s profitability.

What Do I Need to Open a Business Savings Account?

The specific documents you need to open a business savings account depend on your business structure, but the total documentation is, by and large, not overwhelming. Most businesses can open up a business savings account with fewer than four documents. Once you decide on a specific bank, you may want to speak with a business banker to be sure you have everything you need.

Sole proprietors

  • Social Security number or taxpayer ID number (for people without a Social Security number)
  • Photo ID
  • Doing Business As Certificate (Assumed Name Certificate): This is a certificate that you receive when you file for a DBA with your state. It’s not necessary, but this allows you to use the business name for your business account.

Limited liability corporation (LLC)

  • Employer ID Number or Taxpayer ID Number from the IRS
  • Articles of Organization (a document that lists names of members and managers)
  • Form indicating authorized signers (also called a business resolution)
  • Names, photo IDs and Social Security numbers of all authorized signers

Partnerships

  • Employer ID Number or Taxpayer ID Number from the IRS
  • Partnership Agreement (a document that lists names of all partners).
  • Form indicating authorized signers (also called a business resolution)
  • Names, photo IDs and Social Security numbers of all authorized signers.

Corporations

  • Employer ID Number or Taxpayer ID Number from the IRS
  • Articles of Incorporation
  • Business resolution indicating authorized signers
  • Names, photo IDs and Social Security numbers of all authorized signers

In addition to all the documents, every company will need someone with company authority to sign the documents required to open a bank account.