Online Business Savings Accounts

Someone e-mailed me about high-yield savings accounts for businesses. These can be a helpful tool to maximize interest income for all kinds of businesses with idle cash, including sole proprietorships, partnerships, LLC’s, and corporations. Here’s a quick rundown of some favorites.

Capital One 360 

The Capital One 360 for Business Savings Account pays 0.40% APY and has no minimum balance requirements or monthly fees. The benefit of this savings account is that you get the “it just works” factor of Capital One 360. There are no bells and whistles, it simply pays you a good interest rate, and provides easy and fast transfers to/from your existing business checking account.

Capital One / Costco
If you can open with at least $1000 and will keep at least $100 in your savings account, you can get a slightly higher interest rate of 1.40% APY with the Business Money Market Account from Capital One Bank. The perks of this account include checkwriting ability (you are limited to 6 withdrawals per month, 3 of which can be checks) and the sign-up bonuses for Costco users. Executive members can get $60 and Gold/Business members can get $20 after you open your first account and deposit $5,000 within 30 days.

(Considering upgrading to Executive? Buy a Costco membership certificate and get over $50 in coupons.)

Fidelity Investments
For maximum flexibility, you can open a Fidelity Account for Businesses and invest in anything from a money market fund to bond mutual funds to individual stocks. (Online stock commissions range from $8 to $19.95.) You’ll need $2,500 to open, but there are no minimum balance requirements or annual account fees. Currently, money market yields in general are very low. The Fidelity Cash Reserves fund currently has a yield of 0.28%. But if you were so inclined, you could invest in Treasuries, municipal bonds, inflation-protected bonds, or even dividend stocks.

Comments

  1. GE Interest Plus for Business is currently 1.87% APY. While not FDIC insured, it is AA+ rated. I used to use Vanguard Prime MM, but the rates are pathetic these days.

  2. I like how 1.15% is considered a high-yield savings account.

  3. Alliant Credit Union is offering 2% APY for Savings. Not everyone can apply for an account there but if you can I feel it’s best in the market with least restrictions.

  4. I used ING awhile back and thought it was fantastic. As said, it was simple and straight-forward. At the time I think the APY was 4 percent or in that neighborhood. Times have changed.

  5. Same, I like how 1.15% is considered a high-yield savings account.

  6. I don’t really see why it’s important when my regular bank can handle all of these things and I have a great working relationship with them already. Are you mentioning these primarily for those who don’t already have good banking arrangements with necessary online tools?

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