Best Small Business Savings Accounts of November 2023

No one plans on hitting a rough patch, but every business needs to prepare for the unexpected. When circumstances change, having a business savings account can help you protect your company—and your cash flow. 💸

As an entrepreneur, you probably know firsthand that sometimes, things just go wrong. Whether it’s clients paying late or an unexpected expense, saving as a business can turn emergencies into minor inconveniences. 

So is opening a business savings account the right move for you? And what’s the best savings account option for small businesses? 

In this article, we’ll answer these questions and more:

• Why do small business owners need a business savings account?

• How to choose a savings account for your small business

• How to open a business savings account 

• The best small business savings accounts

  • Relay

  • Wells Fargo

  • Capital One

  • Live Oak Bank

  • Axos Bank

  • NBKC Bank

  • U.S. Bank

  • Bank of America

  • Chase

• What is the best small business savings account?

Why do small business owners need a business savings account? 

When it comes to owning a small business, it’s important to save for a rainy day. 🌧️ Having a small business savings account can help you weather financial storms. Plus, having a healthy cash reserve means you can seize new business opportunities when they arise. 🙌

Here are some more reasons you may want to open a small business savings account:

1. Prepare for emergencies 🚨

It’s common for businesses to have busy seasons and slow seasons. But a dip in sales can cause issues for your cash flow. If money’s tight, you could see if a lender will let you take out a business loan. However, interest rates can be unpredictable and borrowing costs can be expensive. That’s why liquidity is so important!

If you’re short on cash, it’s important to have quick access to funds. You can set aside extra money in a business savings account to build an emergency fund. If an unexpected expense pops up, you’ll be able to use these funds to cover the costs.

2. Make your business more resilient 💪

To build a business that’s sustainable long-term, it’s important to have a savings account. These extra funds will give your small business an added layer of security during uncertain times.

Business finance experts typically recommend that small businesses save about 10% of their monthly profit and set aside about six months’ worth of operating expenses. This will prepare your business for the unexpected and allow you to pivot quickly when needed. 

3. Scale your company ↗️

Regardless of your business’s size, maintaining a competitive edge is key to success. Growth opportunities—like opening a new location, entering a new partnership, or launching a new product—can help you scale operations. If you want to pursue these opportunities, though, you’ll need to plan for startup costs.

When a growth opportunity arises, you’ll probably need to act fast. A robust business savings account ensures your business has the funds you need to do just that, whether it’s investing in marketing, opening a new store location, or working with new vendors.

4. Prepare for tax season 😰

Whether you’re a sole proprietor or running a business with dozens of employees, it’s crucial to save for taxes throughout the year. The best way to do this is in a dedicated business savings account—not in your personal savings account. 

Filing taxes is a complex process, so it’s important to keep your personal finances separate from your business finances, even when it comes to your savings. That way, you’ll have a clear idea of your business’s income and expenses—and you can avoid tapping into funds set aside for your personal life. 

5. Earn interest 💲

A business savings account gives you fast access to cash when you need it. This kind of account can also make your money work for you. That’s because you can earn interest on the money you put in a business savings account. 🥳 For long-term savings goals like taxes, that’s a major win—you can make your money grow, with no additional effort on your part. 

For example, Relay (that’s us 👋) is an online banking and money management platform that lets business owners earn 1-3% APY* on savings. Plus, you can automate transfers between your business checking and savings accounts and make the most of your extra cash. 🥳

Business Banking That Keeps You On The Money

No account fees. 20 checking accounts. Savings with 1.00%-3.00% APY. 50 virtual debit cards. Apply 100% online.

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How to choose a savings account for your small business

Business savings accounts keep your money liquid and let you earn interest. So are you ready to find the perfect business savings account for your small business? 

Here are 9 things you may want to consider as you shop around:

Traditional banks vs. online banking platforms

Nowadays, many financial institutions offer business checking accounts and business savings accounts. When you’re trying to find the right fit, consider whether a traditional bank or online banking platform works better for needs.

Traditional banks 🏦and online banking platforms 💻 are two different types of financial institutions. These institutions share some similarities, but they have key differences, too.

Traditional banks have physical branches where customers can make in-person transactions. But online banking platforms like Relay offer small business owners a mobile banking alternative with modern services—including digital business savings accounts.

Banking Built for Business Owners

No account fees or minimums; 20 checking accounts; 2 savings accounts with 1.00%-3.00% APY; 50 virtual + physical debit cards. Open account 100% online.

Learn more

Traditional banks or credit unions can be inconvenient for business owners, since many require in-person or ATM visits to complete deposits or withdrawals. By contrast, online banking platforms aren’t weighed down by the constraints of physical branches. With an online banking platform, you can sign up completely online and manage your account from anywhere. 🙌

APY 💸

A high-interest business savings account, sometimes called a high-yield business savings account, is a savings account that offers above-average interest rates on deposits. 💰 

When it comes to 💳 credit cards, you typically look for lower interest rates. But higher interest rates are a good thing for savings accounts. Accounts that offer a high APY, or annual percentage yield, can help you earn more interest on your extra cash. 🙂

Fees 💰

When you compare business savings accounts, watch out for hidden charges, like ATM fees, overdraft fees, monthly service fees, and monthly maintenance fees. 😨

Monthly maintenance fees can add up quickly and eat into your bottom line. The best business savings accounts typically strike the balance between high APY and low or no monthly maintenance fees. 

Minimum balance requirements ⛔️

Some financial institutions require you to keep a minimum balance in your business savings account. The account balance requirement could range anywhere from $100 to over $1000.

Many business owners prefer online banking platforms because of their low or nonexistent minimum balance requirements. For example, with Relay, you can open two business savings accounts with no minimum balance requirements. 🙌

Deposit requirements 🤔

Financial institutions may have deposit requirements that customers must follow. For example, some banks, credit unions, or online banking platforms require a minimum opening deposit. This term refers to the minimum amount of money a customer would need to deposit to open a business savings account.

Deposit limits ✋

Some business savings accounts require you to keep a minimum account balance. Certain financial institutions may also enforce deposit limits. 

For business savings accounts, the deposit limit refers to the maximum amount of cash you can deposit into the account in a certain amount of time. If you plan to deposit large sums of cash into your account, consider whether your financial institution has a deposit limit.

FDIC insurance 🏦 

A savings account should be a place where you can store reserve cash for safekeeping. The Federal Deposit Insurance Corporation (FDIC) 🔒 is an independent organization that provides deposit insurance to commercial banks, credit unions, and other financial institutions.

FDIC deposit insurance protects the money you hold in the following types of accounts:

• Business checking account

• Business savings account

• Money market savings account

• Certificate of deposit (CD) account

FDIC insurance provides insurance for your cash deposits in the event of a bank failure. But remember, FDIC insurance is only offered at FDIC-insured banks or financial institutions. As you shop for a business savings account, make sure you look for financial institutions that have the member FDIC accreditation. ✅

Automated savings 🛠️

Saving money is easier when you aren’t constantly thinking about doing it. Some online banking platforms, like Relay, let you automate your savings. 🙌

If you have a Relay business checking account, you can set up an auto-transfer rule. This feature lets you set a maximum deposit amount. Once your business checking account hits the deposit max, the extra funds are automatically transferred to your business savings account. This helps you grow your money on autopilot. 💸

Digital features 🧑‍💻

Running a small business takes a lot of effort and energy. The best small business savings account will help you streamline time-consuming money management tasks. 😎 

For example, Relay integrates with your accounting software. This can save you hours of time on manual bookkeeping and help you stay on top of cash flow. We also offer business owners other helpful features, like automatic transfer rules and virtual debit cards.

Customer reviews ⭐️

Researching reviews may give you a sense of which financial institution is the best fit for your small business. Pay attention to different aspects of the customer experience—like ease of using the mobile app, hidden fees, and account support. 

How to open a business savings account 🏦

The process for opening a business savings account may vary from one financial institution to the next. But here are some steps you can typically expect to take:

➡️ Step 1: Depending on the financial institution you choose, you may need to make an in-person appointment at a physical branch. However, some banks, credit unions, and online banking platforms let you open a business savings account online. With Relay, you can start your application online in less than 10 minutes. 🙌⏰

➡️ Step 2: Gather any documentation you may need. You could be asked to provide items like…

• Your Social Security number

• A photo ID

• Your employer identification number (EIN)

• Your business license or business registration papers

➡️ Step 3: Follow the steps listed by your chosen bank and complete your business savings account application.

➡️ Step 4: Once your application is approved, you can fund your business savings account. Most likely, you’ll need to link a business checking account to your business savings account to transfer funds. 

The best small business savings accounts 🏆

The best small business savings account is the one that fits your business’s unique needs. Today, we’re here to help you make the right choice. We’ve done some research for you and rounded up a list of the top small business savings accounts. Let’s dive in! 

Relay 

Relay is an online banking and money management platform designed for small business owners. With Relay, you can open 20 free business checking accounts and two business savings accounts. There are no minimum balance requirements, maintenance fees, or other fees.  🙌

Banking Built for Business Owners

No account fees or minimums; 20 checking accounts; 2 savings accounts with 1.00%-3.00% APY; 50 virtual + physical debit cards. Open account 100% online.

Learn more

Plus, you and your team can get up to 50 virtual or physical debit cards and Relay offers competitive, tiered APYs for business savings accounts. The more you save, the more you can earn!

Wells Fargo

Wells Fargo is a traditional, nationwide bank that offers business checking accounts and business savings accounts. 💸 Wells Fargo offers three different types of savings accounts:

• Business Market Rate savings: This savings account is designed for small businesses that are just starting their savings journey. It comes with a $25 minimum opening deposit. There’s also a $5 monthly service fee. You can waive the fee if you maintain a $300 minimum daily balance or if you set up automatic transfers.

• Business Platinum Savings CDs account: Think of this account as a business premium savings account. Higher account balances may unlock higher APYs. That said, this account is designed for those with higher savings account balances. There’s a $25 minimum opening deposit and a $15 monthly service fee. You can skip the fee by linking this account to a Wells Fargo Navigate Business Checking account or by maintaining a $10,000 minimum daily balance.

• Business Time Accounts: This CD savings account is designed to hold funds for a specific amount of time. It’s less liquid than the other savings accounts Wells Fargo offers. But the APY increases with the amount of time funds are left in the account. There are no monthly service fees, but a $2,500 minimum opening deposit is required to enroll.

💡Read more: Wells Fargo vs. Relay

Capital One

Capital One offers a small business savings account option. You may earn a promotional interest rate for the first 12 months from account opening. This account allows up to six free withdrawals per monthly statement cycle. Capital One charges a $3 monthly service fee which can be waived if you maintain a $300 minimum balance. 💵

💡Read more: Capital One vs. Relay

Live Oak Bank

A Live Oak Bank business savings account offers a competitive APY for small businesses. There are no minimum balance requirements and no service fees for this online savings account. 💸

Axos Bank

The Axos Bank business savings account offers a standard APY. Opening an account requires a $1,000 minimum deposit. You may be charged a monthly service fee. But you can avoid paying the fee if you keep a $2,500 minimum average daily balance. 💰

NBKC Bank

NBKC Bank offers something called a business money market account. Think of it as a hybrid business checking and business savings account. There are no minimum opening deposit requirements or monthly service fees. But incoming international wire transfers may carry a $45 fee and NBCK Bank doesn’t offer after-hours or weekend customer support.

U.S. Bank

U.S. Bank offers three business savings account options. ⬇️

• Business money market account: This option is a hybrid checking and savings account. A $100 minimum deposit is required to open a standard U.S. Bank money market account. There are two additional types that require minimum opening deposits between $1,000 to $10,000.

• Basic business savings account: This option works like a traditional savings account. There are no monthly maintenance fees if you maintain a $500 minimum daily balance.

• Business CDs: A Certificate of Deposit account is a low-risk way to earn interest. You can choose the amount of the CD you’d like to purchase and the length, or term, of the CD. U.S. Bank offers different CD options for businesses. 

Bank of America

Bank of America offers business savings accounts with lower APYs. A Bank of America business savings account may be a good fit for those who want a one-stop-shop for all accounts. While this option offers some convenience for simple savings, you might earn more interest elsewhere.

💡Read more: Bank of America vs. Relay

Chase

Like Bank of America, Chase's business savings accounts offer lower APYs than some competitors. But you may get a higher interest rate and waive monthly service fees if you also have a Chase business checking account. 🏦

💡Read more: Chase Bank vs. Relay

What is the best small business savings account? 🏦 

The best small business savings account helps you simplify money management and earn interest on your extra cash. It’s also convenient, allowing you to open and manage your account from anywhere. 🌎

That's why we think Relay provides the absolute best savings accounts for small businesses. With Relay, you can open 2 business savings accounts, earn 1-3% APY* on your extra cash, and use automated savings features to grow your savings on autopilot. 

Ready to get started? You can apply for an account online in less than 10 minutes. Sign up for Relay here. 😎

*The interest rates and annual percentage yield on your account are accurate as of 05/16/23 and are variable and subject to change based on the target range of the Federal Funds rate. APY will vary between 1-3% depending on the balances held. Earn 1% APY on savings balances of less than $50,000, 1.5% APY on savings between $50,000 and $250,000, 2% APY on savings balances between $250,000 and $1,000,000 and 3% APY on savings balances of more than $1,000,000. There are no minimum balances or minimum deposits required to earn interest on your account.