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- Comparing interest rates is an important part of choosing a business savings account.
- At many traditional banks, personal and business bank accounts have similar rates.
- You may find more competitive rate offers of up to 5% APY at online banks and credit unions.
If you're interested in opening a business bank account, there are many features you can compare to narrow down your options.
In addition to looking at monthly maintenance fees, opening deposit requirements, and business management tools, the interest rate could play an important factor in choosing an account.
Interest rates overview
The best high-yield savings accounts are paying around 4% APY (Annual Percentage Yield) to 5% APY. But how do business bank accounts compare to their personal banking counterparts?
At brick-and-mortar banks, personal and business bank accounts often have similar rates. With the exception of select financial institutions like U.S. Bank, you'll likely find more competitive interest-earning bank accounts at online banks and credit unions. You still might prefer banking with a brick-and-mortar bank if you value in-person banking or want access to a greater variety of banking services.
Below, we've compared the annual percentage yield (APY) of the most competitive business and personal bank accounts from the same financial institutions.
Business vs. personal bank account interest rates at brick-and-mortar banks
Bank | Business Bank Account | Business Bank Account APY (Annual Percentage Yield) | Personal Bank Account | Personal Bank Account APY |
0.01% to 0.04% | 0.01% to 0.04% | |||
0.01% to 0.02% | 0.01% to 0.02% | |||
Rates vary by region* | 0.01% | |||
up to 3.56%** | 0.01% to 3.50% (varies by location) | |||
0.05% | 0.05% to 2.51% |
*Regional differences are possible at Regions Bank. For example, the current rate for the Business Premium Money Market Account in Florida (with the ZIP code 33101) is 1.50% to 3.50% APY. However, in Alabama (with the ZIP code 35242) the rate is 1.50% to 2.00% APY. Rates are as of July 22, 2024.
**Receive a bonus interest rate of 3.50% from the account opening date when you open a new Platinum Business Money Market Account and complete qualifying activities, subject to certain terms and limitations.
Business vs. personal bank account interest rates at online banks
Personal bank accounts at online banks generally pay more than their business banking options. That said, online business bank accounts may still offer solid rates overall.
Online banks may have fewer business banking options than traditional financial institutions. You might only have one or two types of business bank accounts to choose from.
Bank | Business Bank Account | Business Bank Account APY (Annual Percentage Yield) | Personal Bank Account | Personal Bank Account APY |
1.30% APY on the first $500,000 in your account | 3.80% (as of 12/17/24) | |||
up to 1.01% (depending on balance) | up to 3.30% | |||
3.70% | 4.20% | |||
2.75% | 3.00% | |||
1.50% (up to 4.00% on Premier plan) | N/A | N/A |
*Current and prior American Express Rewards Checking customers aren't eligible for American Express Business Checking.
**Bluevine is an online business banking platform featured in our best business checking account guide. Bluevine doesn't have a personal checking account, though.
Business vs. personal bank account interest rates at credit unions
Credit unions also tend to offer competitive rates on business and personal bank accounts.
However, you may need to have a certain account balance or fulfill qualifying activities — such as using your debit card a certain number of times per month or making a minimum number of deposits — to obtain the highest APY.
While credit unions have membership eligibility requirements, anyone in the U.S. can join the credit unions listed below.
Credit Union | Business Bank Account | Business Bank Account APY | Personal Bank Account | Personal Bank Account APY |
0.10% to 1.20% | 0.10% to 1.20% | |||
0.01% to 3.00% | 0.15% to 5.00% | |||
0.00% to 4.13% | up to 5.00% | |||
0.50% to 4.00% | 0.25% to 4.00% | |||
0.00% to 3.50% | up to 4.00% |
*Consumers Credit Union business accounts must be opened in person at a service center. You have to be doing business in Illinois or Wisconsin.
Factors influencing business and personal account rates
The rate a financial institution offers on a checking or savings account is based on a number of factors. Here are the most important:
- Federal Reserve decisions: The Federal Reserve, the U.S.' banking authority, determines the federal funds rate, which is the rate banks use to lend to and borrow money from each other. When the rate goes up or down, deposit rates at banks tend to move in the same direction.
- Type of institution: Online banks and credit unions typically have lower overhead costs than traditional brick-and-mortar banks and can pass some of the savings onto their customers by offering higher rates on savings accounts and CDs.
- Type of account: Personal bank accounts tend to offer more competitive rates than business accounts. Broadly, savings accounts and money market accounts usually offer higher rates than checking accounts.
How to choose the right account: business vs personal banking
Assessing your financial needs and goals
When deciding which type of bank account to open, consider what you'll use the account for and how the account can help you reach your goals. This can apply to both personal and business banking.
For example, you might consider getting a business checking account over a personal checking account because it offers greater protection and access to merchants' services. Meanwhile, a business savings account or business money market account may be a useful option if you want to save money for specific goals, like a future business project or unexpected expenses.
Ultimately, the interest rate of an account may be a notable feature that can help narrow down your options. However, you should also compare and review other account characteristics before making a decision.
Comparing account fees and accessibility
Opening a business bank account involves more documentation than opening a traditional bank account.
When you open any bank account (whether business or personal), you must have at least two government-issued IDs to prove your identity. For a business bank account, you'll also need to have an employer identification number (EIN), a business license, and any important business documents that relate to partnerships, business, and operations agreements.
Take note of an account's fees, including monthly service fees, overdraft fees, and ATM fees, as well as any minimum balance requirements or tiered rates.
Business vs. personal banking FAQs
Business bank accounts typically have larger balances than personal accounts, which can affect the rate offered by a bank or credit union.
Yes, business owners can open both types of accounts, though it's a good idea to keep your business funds separate from your personal funds.
Online banks often have more competitive savings account rates than traditional banks for both personal and business accounts.
You can find the best rate by comparing offers from several different banks and/or credit unions. Before opening an account, be sure to review the institution's policies, fees, and any balance requirements.
A high interest rate may be attractive, but it's likely to change. Unlike a CD, rates on savings and checking accounts are not locked in, so it's important to also carefully consider an account's fees, customer service, accessibility, and account features.
Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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