Business Money Market Accounts: Compare Rates and Top Options – NerdWallet

Business money market accounts are a low-risk way for business owners to earn money on idle cash. These accounts have an annual percentage yield, or APY, on par with traditional business savings accounts (if not higher), but they often include check-writing and debit card access.

While your funds are accessible, there are still limits on withdrawals. Many money market accounts cap transactions at six per month. Need more than that? Consider a business checking account.

On the flip side, you may find even higher rates with a business certificate of deposit, if you can stomach locking your funds up for a set term.

The best business money market accounts offer interest rates that are well above the national average (0.48% as of this writing), without requiring you to deposit millions of dollars or manage other restrictions.

First Internet Bank’s Business Money Market account offers one of the highest, and most accessible, interest rates on the market. Account holders earn 3.04% on any balance up to $5 million and can earn 4.65% if their balance exceeds that amount.

• Monthly fee: $5, waived with an average daily balance of $4,000.

• ATM card: Sole proprietors only.

• Transaction limits: Up to six per month. No fee for additional transactions, but you may need to transition to a business checking account if you regularly exceed the limit.

The NBKC Business Money Market account is as simple as they come. You earn 1.75% APY, no matter your balance, and have no monthly fees or transaction fees to worry about. Plus, this online business account can be opened in a matter of minutes.

• Transaction limits: No transaction limit.

TD Bank’s Small Business Premium Money Market Account offers a surprisingly solid APY for a brick-and-mortar bank. At the high end, you can earn 2.12% APY with a balance of at least $250,000. At the low end, balances below $10,000 earn 0.15% APY. Between those markers, you can earn anywhere from 0.50% APY to 1.61% APY, depending on your balance.

• Monthly fee: $15, waived with average daily balance of $2,500.

• Transaction limits: Up to six per month, $9 fee for additional transfers, withdrawals or checks.

BMO Harris is another brick-and-mortar bank with a solid money market offering. You earn a base rate of 1% APY, no matter your balance, and you can earn quarterly rate bonuses of 0.50% to 2% if you maintain a balance of $100,000 or higher across all eligible BMO Harris business deposit accounts. 

• Monthly fee: $15, waived with average collected balance of $10,000.

• Transaction limits: Up to six per month (doesn’t include withdrawals or transfers made in person or through ATM). Fee of $15 per additional transaction.

A business money market account is a type of business savings account. Most money market accounts offer checks and/or debit cards so you can easily withdraw funds as needed. Like other business bank accounts, money market accounts are FDIC-insured up to $250,000 per depositor.

Interest rates on business money market accounts vary widely from one financial institution to the next: anywhere from 0.01% to more than 4%, depending on the balance you keep. Unlike business CDs, which lock in rates for a selected term, interest rates on these accounts are variable and can rise and fall depending on the rate environment.

Business money market accounts are a good option for business owners to save emergency funds or excess operating funds. Figure out what balance you can reasonably deposit and maintain, then shop around for the best rates, comparing business money market accounts with other high-yield business accounts. 

If rates are similar and you’re debating which savings vehicle is right for you, accessibility can be a useful deciding factor. 

• If you’re OK not touching your money at all: Business CDs often offer higher rates than other business savings accounts, and that rate is locked in for your term (anywhere from a few months to a few years). Your funds are also locked up for the term, though, so this option is best for money you don’t need for at least 12 months. 

• If you don’t want to be locked out entirely: A standard business savings account can deliver high-yield returns while still giving you access to your funds. You won’t get checks or even ATM access in most cases, but you can transfer money out of your business savings account if needed. Interest rates on business savings accounts are variable, which is a good thing in the current rate environment.

• If you want checks or a debit card, but you make six or fewer withdrawals per month:  Funds in a money market account are more accessible than a standard savings account — you can typically write checks or use a debit card — and you’re not locked in for a specific term, like with a business certificate of deposit. Most business money market accounts do impose transaction limits and charge fees if you exceed six withdrawals per month.

• If you need regular access to your money: High-yield business checking accounts typically have lower rates than other interest-bearing deposit accounts, but your money is easily accessible.

The national average rate for money market accounts is 0.48% APY as of this writing, according to the FDIC. While our picks for the best business money market accounts earn well above that rate, many money market accounts for businesses fall far below the national average.

Interest rates on business money market accounts are often tiered: The bigger your balance, the higher your interest rate. You may need a balance in the millions to earn the top-tier rate with some money market accounts. Rates can also vary by location, particularly if a bank has a regional or national footprint.