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What is a Business High-Yield Savings Account?

What is a Business High-Yield Savings Account?

A business high-yield savings account is a type of bank account  //businesscity.us that offers a higher interest rate than a traditional savings account. This means that you can earn more money on your savings over time. Business high-yield savings accounts are typically offered by online banks, as they have lower overhead costs than traditional brick-and-mortar banks.

Why Get a Business High-Yield Savings Account?

There are a few reasons why you might want to get a business high-yield savings account. First, it can help you grow your business savings faster. Second, it can help you save money on taxes. Interest earned on business savings accounts is typically taxed at the lower business income tax rate. Third, it can give you peace of mind knowing that your money is FDIC insured up to $250,000.

How to Choose a Business High-Yield Savings Account

When choosing a business high-yield savings account, there are a few factors you should consider. First, you’ll want to compare interest rates. Look for an account that offers a competitive interest rate, but also be sure to factor in any fees that may be associated with the account. Second, you’ll want to consider the account’s features. Some accounts offer features like online bill pay, mobile check deposit, and free ATM withdrawals. Third, you’ll want to make sure the account is FDIC insured.

Here are some of the best business high-yield savings accounts in 2023:

  • Live Oak Bank Business Savings Account: This account offers an APY of 4.00%. There are no monthly maintenance fees or minimum balance requirements.
  • First Internet Bank Money Market Savings: This account offers an APY of 5.20%. There is a $100 minimum balance requirement.
  • Prime Alliance Bank Business Money Market: This account offers an APY of 4.25%. There is a $1,000 minimum balance requirement.
  • nbkc bank Business Money Market Account: This account offers an APY of 2.00%. There is no minimum balance requirement.

Conclusion

A business high-yield savings account can be a great way to grow your business savings and save money on taxes. When choosing an account, be sure to compare interest rates, fees, and features.

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