During your business’s lifespan, you’ll likely need to tap into its cash reserves at some point. It may be to buy new equipment, cover expenses during a time of low cash flow or handle an unexpected emergency. Therefore, saving money for a rainy day is crucial to the success of your company.
But where should you keep your business’s capital? Most people automatically think of a regular business savings account. However, a money market account (MMA) can offer comparable, and often better, rates.
We’ve compiled a list of some of the best business money market accounts to help you find the right account for you and your business.
Methodology
Our team of experts analyzed hundreds of data points and then used data-driven methodology and thorough fact-checking to come up with the best business money market accounts. We heavily emphasized annual percentage yield (APY) because maximizing earnings is the most important feature of money market accounts. You can read more about our methodology below.
U.S. Bank Platinum Money Market Account
Why we picked it
U.S. Bank’s Platinum Money Market Account pays an excellent 4.60% APY for balances between $25,000 and $3 million. Interest is compounded daily and paid monthly.
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The account requires a $100 initial deposit to open and has a minimum balance requirement of $10,000 to avoid a $15 monthly fee.
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You can call customer support by phone 24/7 and access your account through the mobile app, which is highly rated on the Apple Store and Google Play Store.
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You can link the MMA to your business checking account and the first 25 deposits per statement cycle are fee-free (there’s a $0.25 fee for each additional transaction).
Pros
- Excellent APY
- Links to a business checking account
- Check writing privileges
Cons
- Balance requirement to earn APY
- Balance requirement to avoid monthly fee
- $0.25 fee for each deposit after 25 per statement cycle
Who should use it
If you have at least $25,000 to invest, the U.S. Bank Platinum Money Market Account earns an outstanding APY with no monthly fees.
Prime Alliance Bank Business Money Market Account
Best for unlimited deposits
Why we picked it
The APY on Prime Alliance Bank’s Business Money Market Account varies depending on your balance, but even its lowest tier (under $100,000) still earns a generous 3.85%.
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However, you can earn 4.05% APY on balances over $100,000 and 4.25% with $200,000 and above.
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Prime Alliance Bank has over 100,000 in-network ATMs where you can withdraw money without a fee. There is a limit of six transfers or withdrawals per month with a $10 excess transaction fee, but you can make unlimited deposits to the account.
Pros
- Excellent APY, even on smaller balances
- Extensive ATM network
- Check writing abilities
Cons
- Limited customer service hours
- Transaction limits
- No debit card
Who should use it
Prime Alliance Bank is ideal for businesses, including those with smaller savings balances, that want to earn a great APY and enjoy the ability to write checks and make unlimited deposits.
NBKC Bank Business Money Market Account
Best for Trustpilot ratings
Why we picked it
With the NBKC Bank Business Money Market Account, your business can earn 2.75% APY on any balance with no monthly fee. There are also no fees for overdrafts, NSF or stop payments.
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You receive a Business Debit MasterCard with the MMA that you can use to withdraw funds at over 37,000 ATMs. There are no limits to how much or how often you can transfer, withdraw or deposit in the account.
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While NBKC Bank doesn’t offer customer support by phone on the weekends, it has extended hours during the week, and its service has excellent ratings on Trustpilot.
Pros
- Competitive APY
- No transaction limits
- Good Trustpilot ratings
Cons
- Limited branch access
- No customer support by phone on weekends
- Higher APYs at other banks
Who should use it
The NBKC Bank Business Money Market Account may be best for businesses that value customer service, as well as those that want a great rate, unlimited access to their funds and few fees.
Service Credit Union Business Money Market Account
Best for no minimum deposit requirement
Why we picked it
At Service Credit Union, a balance of at least $2,500 will earn you a 0.55% APY. Balances from $25,000-$99,999 earn 0.70% and balances over $100,000 earn 1.70%, which is much higher than the national average on MMAs. And there’s no minimum deposit to open an account.
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Service Credit Union has over 5,000 shared branches and 85,000 ATMs worldwide, along with a 24/7 customer call center.
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If you don’t otherwise qualify for membership, you can join the American Consumer Council (ACC) free of charge by using the code “Service” to become eligible.
Pros
- Access to 5,000 branches worldwide
- Extensive ATM network
- Excellent mobile app ratings
Cons
- Balance requirement to avoid monthly fee
- Membership required
- Higher APYs at other banks
Who should use it
With thousands of ATMs and branches worldwide, this account may be ideal for people who travel a lot for business, as well as those who want to open an account without much money to deposit.
Navy Federal Credit Union Money Market Savings Account
Best for military members
Why we picked it
At Navy Federal Credit Union, you can earn 0.95% APY on balances over $2,500 with the Money Market Savings Account. Larger balances can earn an even higher rate — up to 1.50% on $50,000 or more.
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You can access your funds by transferring, withdrawing from an ATM and writing checks. There are no limitations to how often you can withdraw.
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Navy Federal Credit Union has 350 branches worldwide and 24/7 customer service by phone. To qualify for membership, you or a relative must be a servicemember of the armed forces.
Pros
- Unlimited withdrawals
- 24/7 customer support by phone
- Check writing privileges
Cons
- Membership required
- Higher APYs at other banks
- Compounded monthly
Who should use it
Navy Federal Credit Union is for servicemembers of the armed forces and their families. Its Money Market Savings Account can help them earn more on their businesses’ savings while still allowing plenty of access to the funds.
First Internet Bank Business Money Market Savings Account
Why we picked it
The Business Money Market Savings Account from First Internet Bank offers 3.46% APY on balances below $5 million. However, balances above $5 million earn a fantastic 5.48% APY.
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You’ll need to make at least a $100 deposit to open an account. While there is a $5 monthly service fee, the bank will waive it if you carry a minimum balance of $4,000.
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An ATM card is available for sole proprietors, but there is a limit of six transactions allowed per month.
Pros
- Competitive APY
- Extended customer service hours
- Excellent mobile app ratings
Cons
- Balance requirement to avoid monthly fee
- Transaction limits
- ATM card only available to sole proprietors
Who should use it
If you want a bank you can contact during non-business hours, the First Internet Bank may be a good choice. However, make sure you can meet the $4,000 minimum balance required to avoid a fee on its MMA. It’s an especially interesting account for anyone who plans to carry a balance above $5 million because of the 5.48% APY at that tier.
Wings Financial Credit Union Premium Business Money Market Account
Best for no monthly maintenance fee
Why we picked it
Wings Financial Credit Union has tiered rates for its Premium Business Money Market Account. You’ll need at least $10,000 in your account to earn 1.06% APY (balances below that amount only earn 0.10%), but you can earn up to 2.52% APY with higher balances.
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There is a $10,000 minimum deposit requirement to open an account, but no balance is required to avoid a monthly fee.
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While the account doesn’t come with check-writing privileges, you do receive a debit card that you can use at over 80,000 ATMs nationwide.
Pros
- Excellent APY on large balances
- Extended customer service hours
- Excellent mobile app ratings
Cons
- $10,000 minimum opening deposit
- Monthly compounding
- Requirements for eligibility
Who should use it
If your business has over $10,000 to invest, it can earn a decent APY with no monthly fee. However, businesses with a balance above $2 million can earn a fantastic rate with the Wings Financial Premium Business Money Market Account.
Axos Bank Business Money Market Account
Best for customer service availability
Why we picked it
The Axos Bank Business Money Market Account pays 0.20% APY on balances up to $5 million. It requires a minimum $1,000 deposit to open an account and a balance of $5,000 to avoid a $10 monthly fee.
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The account may limit transactions to six per month. There is a $10 excess transaction fee, and the bank may convert or close your account if you frequently exceed the limit.
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Axos Bank’s mobile app allows you to manage your account and deposit checks electronically. It also has extended hours for customer support by phone during weekdays.
Pros
- Extended customer service hours
- Mobile check deposit
- Excellent Apple Store ratings
Cons
- Higher APYs at other banks
- Balance requirement to avoid monthly fee
- $1,000 minimum opening deposit
Who should use it
The Axos Bank Business Money Market Account may be a solid option for businesses that can keep at least $5,000 in the account. However, if you’re looking for an excellent APY, you may want to look elsewhere.
Our picks at a glance
Why get a business money market account?
- Competitive rates: Depending on the financial institution, a business money market account may offer better rates than a traditional savings account.
- Liquidity: Although MMAs sometimes have transaction limits, you can still access the money through transfers, withdrawals and sometimes with a debit card or checks.
- Safety: When held at an FDIC or NCUA-insured financial institution, a money market account is a safe place to keep excess cash for your business.
What is a business money market account?
A business money market account is a type of deposit account that you can use to set aside money for your company’s future. Money market accounts combine the features of savings and checking accounts, giving you generally good interest rates with more ways to make transactions.
Money market accounts typically deliver higher interest rates than regular savings accounts. However, watch out for any minimum balance requirements. If you don’t keep the required amount in your account, you may receive a lower APY or incur a service fee from your bank or credit union.
While there may be limits to the amount of transactions you can make every month, some financial institutions give you a debit card or checks so you can draw straight from the account.
Importance of business money market accounts
Saving money can help your business prepare for the future. Your company may need extra cash to cover an emergency expense, seasonal downtimes, expansion or other business needs.
However, you may not want your funds to be locked up as they would be with a certificate of deposit. A business MMA is a liquid account where you can hold these savings until needed.
While the money sits in the account, you can receive a competitive APY and regular interest payments back from your balance.
A money market account also offers a convenient way to manage your business’s expenses. You can often make payments with checks or a debit card, which may come in handy when buying supplies, inventory or other essentials for your business.
Evaluating the business money market accounts
When looking at business MMAs, there are a few aspects you’ll need to evaluate before opening an account.
Finding an account with a high APY should be one of your top priorities. It will ensure you optimize the returns you receive from your savings.
However, always check for balance requirements or monthly maintenance fees associated with the MMA. Extra charges can eat into your earnings and may even cost you money to hold the account.
You should also consider how much access your business will need to the funds. Some banks have transfer, deposit and withdrawal limits on their MMAs and may charge a fee if you exceed them.
Business money market account rates
As mentioned earlier, money market accounts often have higher APYs than traditional savings accounts. The national average rate for MMAs is 0.67% compared to 0.47% for regular savings accounts, according to FDIC data.
Like other types of savings accounts, financial institutions typically pay compounding interest, earning you a return on both your principal and any interest it accrues. The more often a bank compounds interest, the better returns you will see.
Some MMAs require a certain balance to earn interest, while others have a tiered-rate system, meaning higher balances earn a greater APY. However, some banks have balance caps, so you can only earn the promotional rate up to a certain amount.
Pros and cons of business money market accounts
Opening an MMA can provide many benefits for your business:
- Safety: An MMA can be a safe investment for your business’s savings. When held at a federally insured bank or credit union, your funds are covered up to $250,000 if the financial institution fails or experiences a bank run.
- Competitive rates: Money market accounts often yield better returns than traditional savings accounts. You can earn an excellent rate on your capital with virtually no risk or loss of access to the funds.
- Accessibility: When you open a business MMA, you can still access the money when needed. Although some banks have transaction limits, you don’t have to worry about early withdrawal penalties like you would with a CD.
- Convenience: Many financial institutions offer a debit card or checkbook with their money market accounts. It can provide more convenience than a savings account because you can pay your business’s expenses straight from the account.
While MMAs have their advantages, they also have some drawbacks and may not be ideal for all businesses:
- Balance requirements: Some business MMAs require a certain balance to earn the promotional APY. The financial institution might also have a monthly service charge if your balance is under their required amount.
- Minimum deposit requirements: Business MMAs also may require a substantial initial deposit to open an account. However, many banks and credit unions have low or zero deposit requirements on their business money market accounts.
- Transaction limits: Similar to regular savings accounts, MMAs tend to limit the number of transfers, withdrawals, checks and debit transactions to six per month because of Regulation D. However, since this federal rule was suspended during the pandemic, some banks have eliminated their transaction limits.
- Lower rates: While MMAs can offer fantastic rates, you may see lower returns than you would with other investments. CDs and the stock market may prove a better investment if you can afford to lock away funds for a specific timeframe or have a higher risk tolerance.
Methodology
Our team of experts at CNN Underscored Money analyzed 14 accounts to determine the rankings for the best business money market accounts. This included accounts from a mix of traditional banks, online banks and credit unions that are available nationally. We ranked each account on 14 data points across six categories.
Here are the categories we analyzed and how we weighted each:
APY (45%)
The amount of interest you earn on your savings is the most important part of choosing a business money market account for many consumers, so we weighted this highest of all factors.
Fees (20%)
Fees are a critical factor to consider with your business money market account because they can eat away at any interest earnings, especially if an account has a high monthly maintenance fee.
Access (15%)
A business money market account must work with you, so we rewarded accounts with links to business checking, debit cards, checks and large branch/ATM networks.
Minimums (10%)
A high minimum deposit makes a business money market account less accessible, so we rewarded accounts that more people can use. We also rewarded accounts that don’t make you carry a minimum balance to avoid fees.
Customer experience (5%)
It’s important to have a bank that’s trustworthy and easy to reach when you need help.
Digital experience (5%)
You’ll want a bank with a usable app and plenty of online features so that it’s easy to bank from anywhere.
Frequently asked questions (FAQs)
A business money market account is a type of deposit account that businesses can use to put away their savings while still having easy access to the funds when needed.
A money market account is a secure place for a business to set aside cash for future purposes, such as taxes, emergencies or expenses. Your money earns interest while it sits in the account, but you can still access it relatively easily.
To open a business MMA, banks commonly require your Employer Identification Number (or Social Security number for sole proprietors), business formation documents, ownership agreements or business license.
Business MMAs are a safe option for business savings when held at a federally insured bank or credit union because funds are typically protected up to $250,000.
