How To Guides

The business money market accounts offer a low-risk option for owners of businesses to make money from their idle cash. These accounts offer an annual percentage yield (or APY) that is comparable to traditional business savings accounts, but often include check writing and debit card access.

Although your funds may be accessible, withdrawals are not allowed. Many money market accounts limit transactions to six per month. You may need more. You might also consider a business checking bank.

If you are able to lock your funds up for a specific term, you might find higher rates with a certificate of deposit for businesses.

The highest interest rates for business money market accounts are at least 0.48% above the national average. You don’t have to deposit millions or comply with other restrictions.

First Internet Bank’s Business Money Market Account offers one of the best and most accessible interest rates in the market. Account holders can earn 3.04% on balances up to $5,000,000 and 4.65% on balances above that amount.

• Opening deposit: $100.

• Monthly Fee: $5. Waived with an average daily balance $4,000.

• Checks: No.

• ATM Card: Only for the sole proprietors.

• Limits on transactions: Maximum six per month Additional transactions are free, but you might need to switch to a business checking bank account if your monthly limit is exceeded.

The NBKC Business Money Market Account is simple. No monthly fees and transaction fees are required. You will earn 1.75% APY regardless of your balance. This online business account is easy to open in just minutes.

• Opening deposit: $0.

• Monthly Fee: 0.

• Checks: Yes.

• Debit/ATM card: Yes.

• Transaction limits: No transaction limit.

The Small Business Premium Money Market account from TD Bank offers a solid APY, even for brick-and-mortar banks. With a minimum balance of $250,000.00, you can earn 2.12% APR. Balances below $10,000 earn 0.15% of the APY. You can earn between 0.50% and 1.61% depending on the balance.

• Opening deposit: $25.

• Monthly Fee: $15. Waived with an average daily balance $2,500

• Checks: Yes.

• Debit/ATM card: Yes.

• Limits on transactions: Maximum six per month. $9 for additional withdrawals or checks.

BMO Harris, another brick-and mortar bank, has a solid money market offering. No matter how large your balance is, you earn a base rate 1% APY. You can also earn quarterly rate bonuses of 0.50 to 2% if there are $100,000 and more in eligible BMO Harris business deposits accounts.

• Opening deposit: $100.

• Monthly Fee: $15. Waiver with an average balance of $10,000

• Checks: Yes.

• Debit/ATM card: Yes.

• Limits on transactions: Maximum six per month. This does not include withdrawals or transfers that are made in person or via ATM. Additional transactions incur a $15 fee.

A business money market account can be described as a type or business savings account. Money market accounts often offer debit and/or check cards, so that you can withdraw funds when needed. Money market accounts are FDIC insured up to $250,000 per depositor, just like other business bank accounts.

The interest rates for business money market accounts can vary from one financial institution or another. They range from 0.01% up to more than 4 percent depending on how much you have. These accounts have variable interest rates, unlike business CDs that lock in rates for a specific term. They can fluctuate and change depending on the rate environment.

For business owners, business money market accounts can be a great option to store excess funds or emergency funds. Calculate how much money you can afford to deposit and keep, then compare business money market accounts with high-yielding business accounts.

Accessibility can help you decide which savings vehicle you should choose if rates are comparable.

• If you are comfortable not touching your money, business CDs offer higher rates than most other savings accounts. The rate is locked in for the term of your term (from a few months up to a few decades). This option is great for money that you won’t use for more than 12 months.

• You don’t have to be locked out completely. A standard business savings account can provide high-yield returns and still give you access to your money. Although you won’t be able to get checks or ATM access in most cases of the case, you can transfer money from your business savings account if necessary. Variable interest rates are a good thing, especially in today’s rate environment.

• You can get checks or a debit card if you have six or fewer monthly withdrawals. Money market accounts are generally more accessible than standard savings accounts. You can write checks and use a card. And you don’t have to keep your money in the account for a certain term like with a certificate of deposit. If you withdraw more than six times per month, most business money market accounts have transaction limits. Fees may also be charged.

• You need to have regular access to your money. High yield business checking accounts often have lower interest rates than other interest bearing deposit accounts. However, your money is always accessible.

According to the FDIC, the national average rate for money markets accounts is 0.4% APY at this writing. Our picks for the top business money market accounts earn much more than that rate. However, many money market account for businesses are far below the national average.

Tiered interest rates for business money market accounts often have tiered rates. The higher your balance, the lower your interest rate. To earn the highest-tier rate for some money market accounts, you may need to have a balance of millions. Rates can vary depending on where a bank is located, especially if they have a national or regional footprint.