Some business savings accounts now pay materially more than many traditional business accounts. That's easy to ignore until extra cash sits there earning almost nothing, which is a surprisingly common way for reserve money to spend its time. With the Federal Funds target range holding in restrictive territory through early 2026, top business savings APYs are still sitting in the 3–4% range, well above what most traditional banks pay on checking.
APY is only part of the picture. Fees, transfer rules, and coverage limits determine how useful the account will be in practice. This guide covers the business savings account setups that stand out right now, when alternatives like CDs or money market accounts may fit better, and which setup details matter once the account is actually in use.
Rates, fees, and coverage figures below are approximate and current as of May 2026. Always verify current details with each provider before opening an account.
What to Look for in a Business Savings Account
A bank's rate page can look great one month and less impressive later on. Money still has to get back to checking when needed, fees can eat into what the account earns, and a clunky setup can slow down the rest of the banking workflow.
APY, Tiers, and Compounding
APY gives a better comparison point than the interest rate alone because it shows the effect of compounding over a year, including interest paid on earlier interest. Some banks pay one rate across every balance, while others raise the rate after a balance tier is crossed, so it also helps to check whether a minimum balance is required to earn the advertised yield.
Here's what that difference looks like in dollars on a $100,000 balance held for one year:
Balance | 0.10% APY | 3.03% APY |
$100,000 | ~$100 | ~$3,060 |
That gap is the reason rate shopping matters for reserve cash.
Fees, Minimums, and Withdrawal Rules
The return looks a lot less exciting once fees start taking a cut. Monthly maintenance fees and excess-withdrawal penalties can eat into interest earnings. Frequent wire activity can make wire charges expensive. Some online banks require no minimum opening deposit. Businesses that move cash back and forth often should review withdrawal rules and transfer limits before opening the account.
Accounting Connections and Customer Support
Month-end gets slower when the savings account doesn't work well with the rest of the tools. Direct QuickBooks Online or Xero connections matter here, and so do fast internal transfers between checking and savings. Support quality becomes obvious fast when something goes wrong.
The Best Business Savings Accounts of May 2026
Comparison shopping for business savings accounts often means too many tabs open, a fee schedule in one, a rate page in another, and a lot of small-print checking. A side-by-side comparison makes it easier to spot differences in APY, fees, access, and coverage. Some accounts offer standard FDIC coverage only. Others add a sweep or ICS option for larger balances by spreading deposits across banks.
Account | APY (as of May 2026) | Monthly Fee | Minimum Deposit | FDIC Coverage | Best For |
Relay Savings | 1.11% (Starter), 1.75% (Grow), 3.00% (Scale)1 | $0 (Starter), $30 (Grow), $90 (Scale) | $0 | Up to $3M via Thread Bank, Member FDIC2 | Multi-account cash flow |
Axos Business Premium Savings | 3.60% | $0 | $0 | $250K (ICS available) | High APY |
Live Oak Business Savings | 2.85% | $0 | $0 | $250K (ICS up to multi-million) | No minimum deposit |
First Internet Bank Business Money Market | 3.46% ≤ $5M; 4.42% > $5M | $5 (waived with $4K avg daily balance) | $100 | $250K | Tiered yields |
Grasshopper Bank Accelerator MMA | Up to 3.55% (with $25K+ balance) | $0 | $100 | $250K | Venture-backed startups |
TAB Bank Business Money Market | 3.25% on first $1M; 0.25% above | $0 | $25 | $250K | High balances |
Capital One Business Advantage Savings | Promo + standard tiers (verify) | $3 (waived with $300 balance) | $250 to open | $250K | In-person + online access |
Figures are approximate and based on publicly available information as of May 2026. Rates change frequently: confirm current APYs and terms with each provider. Relay APYs are governed by Relay's current account terms.
Best for Multi-Account Cash Flow: Relay Savings
APY (as of May 2026): Up to 3.00% (Scale plan). Starter plan: 1.11% APY. Grow plan: 1.75% APY.
Monthly fee: No monthly maintenance fee on Starter plan
Minimum deposit: $0.
FDIC coverage: Up to $3 million through Thread Bank, Member FDIC's deposit sweep program.
Relay works well for multi-account organization. Businesses can open up to 20 individual checking accounts and 2 high-yield savings accounts under one login, which makes it easier to separate operating cash from tax reserves or payroll. Auto-transfer rules can move a fixed percentage or dollar amount between accounts on a schedule, so tax reserves and profit allocations happen without manual work.
On the integration side, Relay supports direct bank feeds to QuickBooks Online and Xero, plus connections to common payroll and AP tools. For businesses weighing Relay against another popular fintech option, see Relay vs. Mercury.
1For Relay Subscription Plans with an interest-bearing deposit account, the interest rate and Annual Percentage Yield on your account are accurate as of 5/1/2026 and are variable and subject to change based on the target range of the Federal Funds rate. Fees may reduce earnings:
When you are subscribed to the Starter Plan, the interest rate on your savings accounts is 1.10% with an APY of 1.11%.
When you are subscribed to the Grow Plan, the interest rate on your savings accounts is 1.74% with an APY of 1.75%.
When you are subscribed to the Scale Plan, the interest rate on your savings accounts is 2.96% with an APY of 3.00%.
2Your deposits qualify for up to $3,000,000 in FDIC insurance coverage when Thread Bank places them at program banks in its deposit sweep program. Your deposits at each program bank become eligible for FDIC insurance up to $250,000, inclusive of any other deposits you may already hold at the bank in the same ownership capacity. You can access the terms and conditions of the sweep program at https://thread.bank/sweep-disclosure/ and a list of program banks at https://thread.bank/program-banks/. Please contact customerservice@thread.bank with questions on the sweep program. Certain conditions must be satisfied for pass-through deposit insurance coverage to apply.
Best for High APY: Axos Business Premium Savings
APY (as of May 2026): 3.60%.
Monthly fee: $0.
Minimum deposit: $0.
FDIC coverage: $250,000 standard; ICS available for expanded coverage.
Axos posts one of the highest headline APYs in the online business savings category, with no monthly maintenance fee and no opening minimum to clear before earning the rate. The Premium Savings product fits businesses parking reserve cash and prioritizing yield over branch access or in-person service.
For businesses sitting on larger balances, Axos participates in the IntraFi Cash Service (ICS) network, which can extend FDIC coverage well beyond the standard limit by spreading deposits across multiple insured banks. Account management is fully online, with mobile and web access, and the account pairs with Axos business checking for internal transfers. Like most online-only setups, Axos has no physical branches, and cash deposits aren't straightforward.
Best for No Minimum Deposit: Live Oak Bank Business Savings
APY (as of May 2026): 2.85%.
Monthly fee: $0.
Minimum deposit: $0.
FDIC coverage: $250,000 standard; ICS network access for multi-million coverage.
Live Oak offers a competitive rate and no opening hurdle, with digital-first onboarding. The bank has a national SBA lending business, which makes it a reasonable fit for businesses that might want a banking relationship that can grow into financing later, even though the savings account itself is a standalone product.
The account is interest-bearing from dollar one, with no minimum balance to earn the advertised APY. Rate adjustments through early 2026 brought the headline yield down from earlier highs, so it's worth confirming the current APY before opening. It's a better fit for owners who don't need branch access than for those who prefer in-person banking, and there's no business checking product tightly integrated alongside it, which can mean an extra ACH step when moving cash to a daily-use account.
Best for Tiered Yields: First Internet Bank Business Money Market
APY (as of May 2026): Earn 3.46% on balances up to $5M; balances above $5M earn 4.42%.
Monthly fee: $5 (waived with $4,000 average daily balance).
Minimum deposit: $100.
FDIC coverage: $250,000.
A business holding $7 million earns the base rate on the first $5M and the higher rate on the remaining $2M, which makes First Internet Bank one of the strongest options in this group for seven-figure reserves.
The account opens with $100, and interest compounds monthly. The $5 monthly fee is waived as long as the account maintains a $4,000 average daily balance, which is a low bar for most businesses targeting this account in the first place. Because First Internet Bank is fully online, it works best for businesses that don't need branch access.
Best for Venture-Backed Startups: Grasshopper Bank Accelerator MMA
APY (as of May 2026): Grasshopper's standard Innovator MMA pays 3.00% under the same $25,000 balance threshold.
Monthly fee: $0.
Minimum deposit: $100 to open.
FDIC coverage: $250,000.
Grasshopper offers two money market products. The Innovator MMA pays 3.00% APY for general small businesses, while the Accelerator MMA pays 3.55% APY for venture-backed startups. Both require a $25,000 minimum balance to earn the headline APY, and balances below that earn a lower rate. The Accelerator tier is the better fit for funded startups parking runway, while Innovator is the default for established small businesses.
Grasshopper is a digitally native business bank focused on small businesses and startups, with a business checking product that pairs cleanly with the money market account for internal transfers. The platform supports accounting integrations and mobile-first account management.
Best for High Balances: TAB Bank Business Money Market
APY (as of May 2026): 3.25% on the first $1 million; 0.25% on balances above $1M
Monthly fee: $0.
Minimum deposit: $25 to open.
FDIC coverage: $250,000.
TAB Bank's money market account pairs a strong tier-one APY with money-market features like limited check-writing access, which makes it more flexible than a pure savings account when reserves need to move occasionally without an ACH round trip. The headline 3.25% rate applies only to the first $1 million; balances above that earn 0.25%, which makes the account most useful for businesses with reserves at or below the $1M ceiling.
The $25 opening deposit is nominal, and there's no monthly fee. TAB Bank operates as an online-focused institution headquartered in Utah, with a national business banking footprint. Businesses holding multi-million balances should consider pairing TAB with a sweep program or splitting deposits across institutions for extended FDIC coverage.
Best for In-Person Access: Capital One Business Advantage Savings
APY (as of May 2026): New customers earn up to 3.50% APY for the first 3 months. The account transitions to a standard variable rate (around 0.10% to 0.25% APY) once the 3-month promotional window ends.
Monthly fee: $3 (waived with $300 minimum balance).
Minimum deposit: $300.
FDIC coverage: $250,000.
Capital One is one of the few large banks pairing a business savings account with a national branch footprint, which makes it a reasonable choice when in-person service or cash deposits matter alongside online access. The account uses promotional tiers for new funds and standard rates after the promotional period, so the headline yield can look stronger upfront than what it settles into longer-term.
The $3 monthly fee is waived when the account maintains a $300 minimum balance. The savings account integrates with Capital One's business checking products for same-bank transfers. For businesses that value branch availability and an established lending relationship more than chasing the highest possible APY, this account fits.
Pros and Cons of Business Savings Accounts
Money set aside for taxes earns far more in a high-yield savings account than in a standard checking account. At ~3.03% APY, $50,000 held for a year earns roughly $1,515, while the same balance in near-zero-rate checking earns only a few dollars.
Pros | Cons |
Idle cash earns meaningful interest | Can't usually send outbound payments directly |
Keeps reserves separate from operating spend | Some banks impose withdrawal limits by policy |
FDIC protection up to standard limits, or higher via sweep programs | Top rates often require online-only banks (no branch access) |
Pairs naturally with checking for clean cash organization | Promotional APYs can drop after introductory periods |
Alternatives to a Business Savings Account
A business savings account works well for reserve cash, but CDs and money market accounts can fit better when the timing is fixed or the business wants a few extra ways to access the money.
Business CDs
A business certificate of deposit locks cash for a set term in exchange for a guaranteed rate. CDs often pay slightly more than savings accounts at the same institution, but early access usually triggers a withdrawal penalty. They work best for money tied to a known spend date.
Money Market Accounts
A money market account sits closer to savings than checking, but with a few extra ways to access the balance. That can matter if the cash is still reserve money and the business wants more flexibility than a standard savings account usually offers. Business money market accounts usually pay interest close to a high-yield savings account while adding limited transaction features, sometimes including check-writing or an ATM card. Minimum balance requirements are often higher.
How to Open a Business Savings Account
Applications usually stall for a few common reasons: missing paperwork or an unanswered verification step. Sometimes the delay is as simple as stopping to track down a signer ID halfway through. Pulling everything together first makes the process easier.
In most cases, businesses need an Employer Identification Number (EIN), business formation documents, a government-issued photo ID for each account signer, and business address and contact details.
Most online-only banks check information online and approve the account after review. Once the account is active, most businesses connect it to accounting software and set up transfers from checking.
For a broader look at digital-first options, see our guide to the best online business bank accounts.
Put Your Savings Account to Work
Match the account to how the business moves money. Yield on idle balances matters, and coverage limits do too. The path back to checking when payroll or taxes come due matters just as much. The right pick depends first on balance size and transfer frequency. Account connections often matter more than a headline APY.
Open a Relay account to organize reserves by purpose, and separate operating cash from taxes or payroll.
Frequently Asked Questions
Common questions center on eligibility, FDIC coverage, and rates.
Can an LLC Open a Business Savings Account?
Yes. LLCs, sole proprietorships, partnerships, and corporations are all eligible. The application requirements are covered in the "How to Open a Business Savings Account" section above.
Are Business Savings Accounts FDIC Insured?
Yes, in standard cases up to $250,000 per depositor, per insured bank, per ownership category. Coverage beyond that depends on whether the bank participates in a sweep or ICS program and whether the account is structured to meet program requirements.
What's the Highest-Paying Business Savings Account?
Among the accounts on this list, First Internet Bank's tiered structure tops out highest at 4.42% APY on balances above $5 million, and TAB Bank's money market product pays 4.00% on the first $1 million as of May 2026. Headline rates change often, so the leader can shift month to month; confirm current APYs before opening an account.
Is Interest from a Business Savings Account Taxable?
Yes. Interest earned on business savings counts as taxable income and should appear on your business tax return. Your bank will issue a Form 1099-INT for interest earned during the calendar year.
Do Business Savings Accounts Have Withdrawal Limits?
Sometimes. Banks commonly cap monthly withdrawals or transfers by policy and may charge an excess-withdrawal fee above the threshold, even when no federal cap applies. Check the account's terms before opening: the rules vary widely between online banks and traditional ones.
How Can I Get FDIC Coverage Beyond $250,000?
Choose a bank that participates in a sweep network like ICS/IntraFi, or split balances across multiple insured institutions. Relay extends coverage up to $3 million through its partner bank's sweep program, subject to program requirements.
