Opening a business savings account can be a good way to save money and may even prove helpful for building up capital for expansion or new business ventures. Money that sits in a business checking account typically earns very little interest for the account holder. By opening a business savings account, however, you may be able to take advantage of higher interest rates. Choosing the best business savings account usually involves comparing accounts based on interest rates, fees, and minimum balances. You may also consider the ease with which you’ll have access to your money as well as the bank’s online banking system.
One of the first ways you may compare business savings accounts is by the interest rates the bank is offering. Some banks offer higher interest than others. If you want to see your business savings grow, you’ll need to choose the account that offers the highest rate and watch out for teaser rates — some banks may offer higher rates to get your business, but eventually lower it. It’s wise to learn what an account's standard interest rate is so you won’t feel compelled to change accounts later.
Once you have developed a list of banks that offer the highest interest rates for business savings account holders, you may do well to consider any minimum opening amounts and minimum balances that each account requires. If you want to open an account with a small amount of money, you’ll typically need to narrow your list by crossing off those that require large opening deposits. Likewise, you may do well to exclude those that require large minimum balances if you aren't sure you’ll always keep the minimum amount on deposit. Many banks charge fees when accounts fall below their minimums.
You may also narrow your list and choose the best business savings account by crossing off those that charge account maintenance or fees. This way, you won't have to pay to save money for your business. You may also do well to cross any off your list that charge fees for making transactions or deposits. Likewise, you may want to exclude those that charge automated teller machine (ATM) fees. You should typically be able to use ATMs for free, unless you are using one owned by another bank.
If you travel a lot for business or will need to make deposits or withdrawals from various parts of your city, you may prefer a bank that has many branches. Likewise, you may do well to have your business savings account linked to your business checking account. By doing so, you’ll make it easy to transfer money between the two accounts, and you may even use your business savings account as overdraft protection for your checking account. Additionally, you may compare accounts based on their online banking systems. Some are more user-friendly than others, and many banks will allow you to demo, or at least view, their online systems before you open an account.
