If you’re a side hustler or small business, you might be considering where to park your business cash.Maybe you want to create a business emergency fund? Maybe you don’t want to take a distribution but you want your cash to at least earn some decent interest. You might already have a business checking account, and you’re looking for a savings account to compliment it. The hard part is, most business accounts don’t pay the same interest that the best personal high yield savings accounts do. Well, we have found your best options, and we put them here below.
Based on our criteria, here are our choices for the best business savings and money market accounts available. Some of these are a little unorthodox, but they work!
Theis one of the best business money market accounts available. It pays a high APY, connects to your US Bank Business Checking Account, and even offers a bonus APY when you sign up.Right now you can earn up to a solid 0.15% APY (current as of March 17, 2020) on your business cash in a Platinum Money Market Account. You do need to maintain a $10,000 balance to earn this APY.Why I Like It: One of the best business money market accounts.Learn more about .
The is another great solution for side hustlers and small business owners. This isn’t truly a business savings account, but rather a checking account with a high yield! This account does have a small monthly fee, but that can be waived with a $5,000 minimum balance.The real plus with this account is that it pays interest! You can earn 0.10% APY on balances over $5,000. This rate is current as of March 17, 2020. It’s nearly unheard of to have a business checking account that pays interest.This account also has the usual features you’d expect in a top notch business checking account:Read our full Radius Bank review here.Why I Like It: A business checking account option that can earn interest.Learn more about Radius Bank Tailored Checking here.
isn’t technically a bank account – it’s a brokerage account. However, you can open this brokerage account in your business’s name, and you can invest in the Fidelity Money Market Fund (as well as just about any other investments you want).The Fidelity Money Market Fund (SPRXX) currently yields 1.38% APY as of March 17, 2020. This account has no minimums or annual fees, and charges the same commissions as a regular brokerage customer. Why I Like It: Lots of options to invest for your business.Learn more about the .
is very similar to the Fidelity account mentioned above, except its offered by Charles Schwab. Inside the Schwab Small Business Account you can invest in Schwab’s Prime Money Fund (SWVXX), which is currently yielding 1.20% APY as of March 17, 2020.Note: They don’t advertise this on their website, but after doing some due diligence, Schwab does have a $250,000 to open their Schwab Organization Account. I wish they would make this more clear for business owners.Learn more about the .
is one of the best business savings products available, if you qualify to be a member of Navy Federal Credit Union. This account is a basic business money market account with online banking, mobile check deposits and more.The interest it pays is decent – starting at 0.80% APY as of March 17, 2020. You must maintain at least $2,500 to earn interest on your account.Why I Like It: Solid interest the can combine with a solid checking account.Learn more about .
While there are business savings and business money market accounts, sometimes it makes sense to go with savings account alternatives. We already mentioned a couple in this article – a high yield checking account and a business brokerage account.But there are other alternatives as well. For many investment products, you can always open an account in your business’s name. For example, the Wealthy Accountant recently wrote about how he is using Worthy Bonds to earn a 5% return on his money. The key is to simply open an account in the name of your business, and use your business EIN.You could find yourself needing or wanting a business savings account for a few reasons. Usually, it’s because you have cash inside your business checking account, and hate seeing it earn 0% interest. If you’re going to keep your money in your business, you want to at least see it earn something.But why not simply take a distribution and put it in your personal account? Well, you may be saving it for a bigger purchase, future expenses, a business emergency fund, or simply to keep your business well capitalized. In order to be one of the best business savings accounts, we put the following criteria in place:
Hopefully you can see that there are good options for a business savings or business money market account.You don’t have to pay fees to have a business account – you just need to open your account at a good bank or brokerage.