Guide to Choosing the Best Business Bank Account: Savings Account
PART 3: What to Look for in a Business Savings Account
As the owner of a small or fast-growth business, you’re often so used to reinvesting profits that the idea of a business savings account seems odd. This is normal. In most cases, the business savings account comes after the business checking account. So, if you don’t currently have a dedicated business checking account, we recommend taking a look at our Business Checking Account Guide first.
However, if you own a more established business, or find you have too much uninvested capital hanging around throughout the year (few or no seasonal down months resulting in low account balances), it’s time to open a business savings account.
Here are the most important features to consider when opening a business savings account:
Annual Percentage Yield (APY)
First off, congratulations on getting to this point! Now, you can start earning high-yield interest on your hard-earned money.
The best business savings accounts provide higher yield savings than personal savings accounts. One of the most popular high-yield business savings options is the Money Market account.
Money Market accounts are high-yield savings accounts. These often require higher balances than standard accounts. In return, you enjoy an enviable APY (Annual Percentage Yield) on your sizable account balance. In general, APY is paid monthly.
To give you a reference on the earning potential for Money Market accounts, our new Premier Money Market Account currently earns up to 212% more than the most common interest rate on savings accounts.
Many people laser their focus on interest rates, without thought to how often they access their money. This puts businesses in a bind later when they max out their monthly withdrawals.
Because federal regulations largely determine withdrawal limits on savings, withdrawals won’t vary much between business savings accounts. However, if the six transfer limit on preauthorized or automatic withdrawals scares you, stick to a business checking account.
Balances & Account Opening Requirements
Most bank accounts—business or personal—require minimum balances for opening and maintaining your account.
Make sure your business income is such that you can comfortably meet your minimum account balance each month. If you fall below your account’s required balance, you will likely be charged a fee and bumped to a lower interest tier.
Like a business checking account, most business savings accounts charge set monthly fees for maintaining your account. Common names for these types of fees are “maintenance fees,” “activity fees,” or “service fees.” However, you can usually waive these fees by maintaining the minimum balance.
As always, taking advantage of Online Business Banking can help you stay on top of your spending and meet monthly requirements—saving you hundreds, even thousands, in the long run.
Ready to start your Business Savings Account search? Download our helpful Business Savings Comparison Chart for a quick rundown on our competitive business checking accounts.
Open a new Texas Citizens Bank Business Savings Account today to earn more with high yield savings.
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