Are There Any Savings Accounts for Businesses?

Banks Editorial Team · December 7, 2018

Do you want to find out if there are savings accounts for businesses? Do you want to know how to access savings accounts for Businesses? Are you interested in finding out types of savings accounts for businesses that can be opened? The answer to your query is yes, there are savings accounts for businesses.

Savings Accounts for Businesses: What are Your Options?

There are savings accounts for businesses which provide good interest rate for businesses through businesses investments. Savings accounts for businesses are quite difficult to assess due to the fact that they are not linked with checkbooks and credit cards and this also make a withdrawal from the account harder. Part of the application process for savings accounts for businesses is setting up a linked transaction account which might not necessarily be from the same bank. Savings accounts for businesses can also serve a purpose for emergency fund especially when cash flow is slow thereby avoid using high-interest credit cards. Savings accounts for businesses are of various types, of which each has its own advantages it offers. Examples of savings accounts for businesses include; Capital one spark business savings account, Bank of internet a.k.a. Axos bank, Community Bank of Pleasant Hill, Goldwater bank, First internet bank, Live oak bank.

Benefits of Savings Accounts for Businesses

Savings accounts for businesses provide the business with return by saving and managing the business’ liquid assets in order to accrue interest. It is comparatively difficult to access savings accounts for businesses as they are not linked with checkbooks and debit cards. It is harder to withdraw from an account when the business savings account is online. Setting up a linked transaction account, not necessarily from the same bank, is usually part of the application. While the transfers are instant from the same bank, it may take up to three days for transferring between different banks. Savings accounts for businesses is a good way to diversify business investments in a way that is safe and easy to manage cash investment or higher yield options such as term deposits or shares. Savings accounts for businesses can also be used as an emergency fund to avoid using high-interest credit cards when cash flow is slow. It might also require keeping a minimum balance in the account, paying monthly fees, or agreeing to other terms as dictated by the bank. Savings accounts for businesses are fruitful only if the purpose is to maximize interest without giving up the ability to take out money when it is needed.

There are savings accounts for businesses. To know more about conditions associated with savings account for businesses check here.

Types of Business Savings Accounts

Based on the study conducted, there is no standard categorization of types of Savings Accounts for Businesses. High Yield Business Savings Accounts is itself a type of savings account meant for businesses. However, some banks like Capital One Spark Business Savings Account and Bank of Internet a.k.a. Axos Bank does offer more than one option for Saving Accounts for Businesses.

CAPITAL ONE SPARK BUSINESS SAVINGS ACCOUNT

  • BUSINESS SAVINGS ACCOUNT – This is a liquid and accessible version of savings account. Withdrawal can be made from the account for free at a certain number of times. Interest can also be earned in the business savings account and this does not come with a predetermined term throughout which capital will have to be deposited in the bank.
  • BUSINESS CERTIFICATES OF DEPOSIT – This is a business savings option that will keep funds in a far less accessible state as compared to a normal business savings account. A deposit (at least $1,000) is made in the bank throughout a pre-determined term length which is not accessible unless a hefty early withdrawal fee is paid. Much more interest for savings can be earned with a certificate of a deposit than with a straightforward business savings account.

BANK OF INTERNET A.K.A. AXOS BANK

  • BUSINESS PREMIUM SAVINGS – It offers 1.06% APY; $25,000 initial deposit is required.
  • BUSINESS SAVINGS – It offers 0.80% APY; an initial deposit of $1,000 along with average daily balance requirement of $2,500 is required.
  • BUSINESS MONEY MARKET – It offers 0.80% APY; an initial deposit of $1,000 along with average daily balance requirement of $5,000 is required.

COMMUNITY BANK OF PLEASANT HILL

  • This bank offers only one type of Savings Account for Business known as Premier Money Management Account. The interest-bearing account is designed for those with high account balance and those that desire a high level of security. The interest rate will not be less than the 13-week U.S. Treasury Bill index rate, as published in the Wall Street Journal, is less than one-quarter of one percent (0.25%).

GOLDWATER BANK

  • This bank offers only one type of Savings Account for Businesses known as Goldwater Business Savings. Goldwater bank offers a great way to segregate business funds on deposit for different purposes with a competitive rate and low minimum opening deposit requirement.
  • Goldwater Business Savings provides a convenient way to manage money based on specific business needs with features like Interest Earned Daily and Paid Quarterly.

FIRST INTERNET BANK

  • This bank offers only one type of Savings Account for Businesses known as Money Market Savings. It offers APY of 1.81% with a daily balance of $250,000 or less and APY of 2.02% with a daily balance above $250,000.
  • First internet bank also offers an interest rate of 1.80% with a daily balance of $250,000 or less and Interest rate of 2.00% with a daily balance above $250,000.

LIVE OAK BANK

  • This bank offers only one type of Savings Account for Businesses known as Business Savings Account.
  • It offers a high yield business savings account with a rate of 1.05%—11 times higher than the national average.

Please find a list of Banks that offer best Savings Accounts for Businesses here.

You may also like

  • In case you are searching for the best savings accounts for business in 2018, there are a number of factors that need to be taken into consideration. Some of these factors include the highest annual…

  • The 5 best savings accounts of 2018 are Marcus by Goldman Sachs, FNBO Direct, Ally Bank, CIT premier high yield, and Synchrony high yield. These accounts offer APYs between 1.90% and 2.15%, with all having…

  • There are several savings account advantages and disadvantages. Three advantages of savings accounts are the potential to earn interest, it’s easy to open and access, and FDIC insurance and security. Three disadvantages of savings accounts…

  • Are you wondering if savings accounts have beneficiaries? Do you want to add a beneficiary to your savings account? Are you interested in finding out the number of beneficiaries that can be included in a…