Business savings accounts are a valuable tool for business owners to promote financial stability and support growth while earning interest.
Live Oak Bank offers one of the best business savings rate along with an integration of popular business apps and a responsive U.S.-based customer service team.
Best Business Savings Account Of 2024
LiveOak Bank offers small business owners a high-interest business savings account that can be used for cash reserves, taxes, investments, and more.
- High interest rate – Earn 4.00% APY.
- Quickbooks integration – Connect essential business tool to your account.
- U.S.-based customer service – Important to many customers
Features
High-Yield Business Savings Account
No Monthly Maintenance Fees
Connect with QuickBooks
Minimum Opening Deposit
There’s no minimum deposit requirement to open a Live Oak Bank Business Savings Account. Customers must have a balance of at least $0.01 to earn interest.
Pros
- Competitive APY
- $0 minimum opening deposit
- No monthly fees
- Quickbooks integration
Cons
- No cash deposits
- No physical branches
About LiveOak Bank
Live Oak Bank was founded in 2008, with current assets of $11.5 billion. As a fully digital bank, LiveOak can offer business owners as well as individuals competitive high-yields on savings and CDs across the country.
While LiveOak is primarily known for their focus on small business banking, they also offer personal high-yield savings accounts, personal and business CDs (Certificates of Deposit).
Here's a breakdown of Live Oak's products:
For Businesses
- Business Checking Accounts
- Business Savings Accounts
- Business CDs
- SBA Loans, USDA Loans, and Commercial Loans
- Treasury Management Services
For Individuals
- Personal Savings Accounts
- Personal CDs
Why Have a Business Savings Account?
A business savings account can be a valuable asset for small business owners as well as solo entrepreneurs, providing several crucial benefits:
1. Emergency Fund: Unexpected expenses are a reality for any business. A savings account can provide a financial cushion to cover unforeseen costs like repairs, legal fees, or slow sales periods. This safety net can prevent you from dipping into personal funds or relying on high-interest loans.
2. Tax Payments: Quarterly estimated tax payments can be a significant financial burden. Having a dedicated savings account for taxes ensures you have the funds available when they're due, avoiding penalties and interest for late payments.
3. Future Investments: Whether it's purchasing new equipment, expanding your marketing efforts, or launching a new product line, having savings allows you to invest in your business's growth without accumulating debt or sacrificing daily operations.
4. Cash Flow Management: Separating your savings from your operating expenses helps you better understand your cash flow patterns and plan for future financial needs. It can also help you identify areas where you can cut back on spending to increase your savings rate.
5. Financial Stability and Peace of Mind: Knowing you have a financial safety net in place can reduce stress and allow you to focus on growing your business with confidence. It can also make it easier to weather economic downturns or industry fluctuations.
Final takeaway
A business savings account can be a valuable tool for businesses to manage their finances, save for future goals, and prepare for unforeseen circumstances.
While we recommend Live Oak Bank Business Savings Account due to its competitive rate, it's essential to research different options and choose an account that best suits the business's specific needs and financial goals.
