March 26, 2025

What are the best interest rates for a business savings account?

Key takeaways

Business savings accounts offer a range of interest rates, with high-yield accounts providing some of the most competitive annual percentage yields (APYs). Currently, they can exceed 4 percent, but you might need high balances to get the best rates.
Online banks typically offer higher interest rates than traditional banks due to their lower overhead costs.
Factors such as fees, withdrawal limits and minimum balance requirements can impact the overall benefits of a business savings account.

Is your business savings account earning next to nothing? You’re not alone. While some banks offer rock-bottom APYs, others provide business savings interest rates worth getting excited about. You just need to know where to look. Whether you’re thinking about a high-yield savings account, a money market account or a business certificate of deposit (CD), here’s a breakdown of current rates and what to consider when choosing an account.

Business savings rates overview

Business savings accounts typically offer lower interest rates than personal high-yield savings accounts. While rates fluctuate based on market conditions and Federal Reserve policy, most standard business savings accounts provide an annual percentage yield (APY) ranging from 0.01 percent to 1.00 percent.

However, some financial institutions offer high-yield business savings accounts with more competitive rates, sometimes over 4 percent APY.

Factors that influence business savings interest rates

Several factors influence these rates, including:

Institution type: Banks and credit unions choose their APYs based on their policies and market competition.
Account balance: Higher balances may earn better rates, depending on the bank’s tiered interest structure.
Account type: High-yield savings accounts, money market accounts and CDs all offer different rates. These differences largely reflect how easily you can access your money and how long your money and rates are locked in.
Economic conditions: The Federal Reserve’s monetary policy and broader market trends influence interest rates.
Bank type: Online banks tend to offer higher interest rates because they specialize in digital banking, allowing them to pass savings on to customers.
Business relationship: Some banks offer preferential rates for long-term or high-value business clients.

What to consider before opening a business savings account

In addition to interest rates, business owners should consider the following when selecting a savings account:

Fees associated with the account, including monthly maintenance charges
Monthly withdrawal limits that may affect access to funds
Minimum balance requirements to avoid fees or qualify for top interest rates
Transaction restrictions that could affect business operations
Customer service and availability, such as whether the bank offers 24/7 support or mobile banking
Additional banking services you may need as your business grows, such as business checking accounts, business loans and treasury management features like cash flow management tools, lockbox services and integration with accounting software

Best savings account types for high interest rates

To maximize returns, businesses can explore several different types of savings accounts.

High-yield business savings accounts

These accounts typically offer the highest APYs, making them ideal for businesses that want to earn more on their cash reserves. They work like traditional savings accounts but provide better returns. These accounts are particularly common at online-only banks.

Business money market accounts

As a hybrid between a savings and checking account, MMAs offer competitive interest rates along with limited check-writing capabilities. While they often require a higher minimum balance to earn top-tier rates, they provide more flexibility than traditional savings accounts. These accounts are great for businesses wanting to earn interest while maintaining transactional capability.

Business certificates of deposit (CDs)

CDs provide a fixed interest rate for a set term, benefiting businesses that can afford to set aside cash they won’t need until the CD matures. With terms ranging from a few months to several years, CDs offer predictable returns but come with penalties for early withdrawal.

If you think you may need the money before the CD’s term ends, look for no-penalty CDs that allow you to withdraw your money without a fee. If you want stability and guaranteed earnings, CDs can be a valuable option.

Best business savings accounts for high yields

The following banks offer some of the highest APYs for business savings accounts. However, many of them offer tiered rates, so you’ll need a healthy account balance to get the best APY. Rates are subject to change, so always check directly with the bank for the most up-to-date information.

Choosing the right business savings account

Deciding which account works best depends on how and when your business plans to use its funds. Here’s how different accounts align with various financial strategies:

If your business needs frequent access to funds: A high-yield savings or money market account is ideal. These accounts offer competitive business savings interest rates while maintaining liquidity. For example, a retail business with fluctuating expenses might benefit from a money market account that allows limited check-writing capabilities alongside higher interest earnings.
If you have a stable cash reserve: Businesses with predictable expenses can take advantage of CDs for higher guaranteed returns. If you know you won’t need certain funds for three months to a year, locking them into a CD can secure a better interest rate than a standard savings account. A consulting firm, for instance, might place excess quarterly earnings into staggered CDs to maximize returns while maintaining a steady cash flow.
If you’re deciding between an online or traditional bank: Many online banks provide higher interest rates to attract businesses that prioritize convenience, automation and digital account management. However, traditional banks offer different services and perks you may find invaluable, such as in-person cash deposits and lending opportunities. A business with frequent cash transactions, such as a restaurant, may prefer a local bank despite lower interest rates. However, an e-commerce business may prioritize an online bank’s higher returns.

How to maximize your business savings interest

Once you’ve chosen the best savings account for your business, there are ways to increase your interest earnings and make your money work harder:

Leverage tiered interest structures: If your account has a tiered structure, keeping funds above a certain threshold can unlock better rates. For instance, a marketing agency saving for a major expansion might consolidate funds in a high-yield account to maximize returns.
Time deposits strategically: If your business receives large seasonal payments, moving that money into a high-yield savings account or short-term CD before reinvesting it can generate additional earnings. A wedding planning business with peak-season profits, for example, could grow its off-season reserves this way.
Use multiple accounts to balance liquidity and earnings: Businesses can spread funds across different account types, keeping emergency cash in a high-yield savings account while locking in higher CD rates for other funds. A construction company, for instance, might keep cash for upcoming project expenses in a money market account for easy access while using CDs to grow reserves set aside for equipment purchases or future expansion.

By strategically managing your deposits, you can maximize interest without sacrificing financial flexibility.

The bottom line

The best business savings account is the one that meets your company’s needs while offering competitive business savings interest rates. Online banks often provide the highest APYs, while traditional banks may offer additional perks like in-person services and business loans. High-yield savings accounts, money market accounts and business CDs each provide unique benefits depending on your business’s cash flow requirements and financial goals.

Frequently asked questions

Is there a high-yield savings account for businesses?

Yes, several banks and online financial institutions offer high-yield business savings accounts with APYs of 4 percent or more. Availability and terms vary, so it’s worth comparing multiple options to find the best fit.
Which bank has the best business savings account?

The best account depends on your priorities, including APYs, fees and accessibility. Your business may be willing to trade a competitive interest rate for a bank where you can keep all your money under one roof.

Many brick-and-mortar banks also provide personalized financial advisory services, helping business owners develop effective savings strategies while gaining access to lending products, treasury management solutions and other essential financial tools designed to support business growth.
How much money should I keep in my LLC bank account?

The amount of money to keep in your LLC’s bank account depends on your business’s needs and cash flow. A separate business savings account can help protect against unexpected expenses while earning interest. Commonly, financial experts recommend maintaining at least three to six months’ worth of operating expenses in your business account.