If you own a business or want to start one, it only makes sense to find the best bank account that will accrue interest.
Businesses usually start with a traditional business-style account, or, in other words, a non-interest checking account. That is how I started, and it was a long time before I considered making a move to an interest-bearing account. It took me a while to switch accounts, but I’m here to tell you not to wait. Switching to an interest account is an incredibly important move to make.
Why Interest Accounts Are Important
Most businesses operate on lower and lower profit margins. Overheads are increasing; they always do, it seems. So making every dollar of your money count is simply the smart thing to do.
There are two ways you can make money on your money. The first is simply a business savings account that will let you withdraw money when you need it, but the account is really designed to handle deposits.
The second way is to open a business checking account that pays interest. The interest is often lower than a savings account, but not always. With a checking account, your money has much more fluidity, of course, but if you want to earn interest on your money, you will need to make sure that you maintain a minimum balance. Most banks require this for a business checking account.
Interest rates, maintenance fees, and deposit and withdrawal terms are always changing, so it makes sense to check each bank before deciding. Our current list is in alphabetical order rather than recommendation order for that reason.
Best Bank Savings Accounts That Accrue Interest
Axos Bank Savings Account
Based in San Diego, California, Axos is currently a good choice for business owners who have a good bit of funds to invest. At present, you must deposit a minimum of $1,000, which is higher than many banks; but there is a decent APY to go with it.
There is a low monthly maintenance fee. The monthly fee may be waived by maintaining a minimum balance of $2,500. Axos also offers free online banking.
Capital One Bank Savings Account
Better known as a credit card company, you may be surprised that it also offers a business savings account. You must deposit, at present, $250 to open an account. If you deposit $300 and maintain at least that amount, then they waive the monthly service fee. There are no joining restrictions, but there is a six-withdrawal limit per month.
Live Oak Bank Savings Account
Although Live Oak Bank, based in Wilmington, North Carolina, does offer personal banking, it specializes in small business banking, including business savings accounts. The bank does not require a deposit to open an account, and there are no monthly maintenance fees. Live Oak allows six withdrawals per statement cycle for free, but after that, there is a small charge per withdrawal.
Best Bank Checking Accounts That Accrue Interest
Axos Bank Checking Account
Axos features in this category too. The current APY is a competitive 0.81%. They only require a $100 deposit to open an account, but there are monthly fees if you do not keep a daily balance of $5,000. There are no transaction fees for the first 50 items each month, but subsequent transactions will attract a small fee.
BlueVine Business Checking Account
BlueVine is an Internet-based bank, and so has no physical branches. The current APY is one of the highest out there, subject to a current minimum balance of $1,000. The account offers unlimited transactions, no NSF fees, and no monthly maintenance fees. In addition, there are no ATM fees if you use MoneyPass ATMs.
Radius bank Tailored Checking Account
Radius bank requires a minimum deposit of only $100. There is a service charge each month unless you maintain a minimum balance of $5,000. Radius may work well for a business that has that more than that monthly amount balance, as the APY only kicks in above that amount. For small businesses who operate on a lesser average, it may pay to look elsewhere.
Make a move and Open an Account That Will Accrue Interest
Of course, whether a savings bank account or an interest-bearing checking account is the best choice will depend on your particular business and its requirements.
For most existing small businesses, a savings account may prove to be a better choice. The balance required for checking accounts that accrue interest may prove higher than is practicable for some.
The amount of interest you will receive will depend on the existing interest rate the bank offers and the amount of money sitting in your account.
If your business is making money, then you should consider an account that will let you accrue interest. Even for a very small business, and there are more and more micro-businesses than ever before, it is a sensible move.