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Compare Your Capital One Business Savings Account Options

Brayden McCarthy

Brayden is Fundera's credit cards expert. He's passionate about helping businesses take advantage of the best credit card offers on the market, from the longest 0% intro APR periods to the richest cash back and travel rewards bonuses.
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Choosing a home for your business’s savings is a big, exciting decision. And it’s crucial to comb through every detail of all the savings account options available to make sure you find the very best place for them.

Two of the top choices for business owners looking for a home for their savings?

The two Capital One business savings account options.

Let’s look at all that these savings accounts have to offer business owners looking for a long-term home for their business’s capital.

The Rundown on the Capital One Business Savings Account Options

For starters, we should take a look at the fundamentals of the two Capital One business savings account options. While one is a straightforward savings account, the other is a certificate of deposit program. And though they’re structured differently, they do have a couple of things in common.

Most obviously, whichever Capital One business savings account option you go with, you’re signing on to work with Capital One, and that comes with some built-in perks. You can manage your accounts from any Capital One bank location, from online, and from your smartphone.

capital-one-business-savings-account

Additionally, unlike a business checking account options, these accounts let your deposits to accumulate interest gradually over time. So, as you save for your business’s future, your savings will gradually grow.

With the fundamentals covered, let’s dive into the details. Here’s everything you need to know about the two Capital One business savings account options:

Capital One Business Savings Account Option #1: Business Advantage Savings

First up, we have the Capital One Business Advantage Savings account.

Of your two Capital One business savings account options, this is the most straightforward. The Business Advantage Savings account is a true business savings account that functions pretty much how you would expect it to.

Let’s take a look at the details:

Minimum Account Opening Deposit

With this Capital One business savings account, you’ll have to provide an opening deposit of at least $250 in order to open an account. If this business savings account sounds like the right fit for your business, you’ll first have to gather a lump sum of at least the minimum opening deposit amount to move forward.

Monthly Service Charge

The Business Advantage Savings comes with a monthly service charge of $3. However, if you maintain a minimum balance of $300, Capital One will waive this fee. So, as long as you’re just $50 over the account opening minimum, this Capital One business savings account will be free from the get-go.

ATM Usage

You can use all of Capital One’s ATM’s for free with the Business Savings Advantage. That said, if you use a non-Capital One ATM, you could be charged either $2 or $5, depending on what kind of ATM it is.

Wires

For a fee, you can wire from this Capital One business savings account. If you’re performing a domestic wire, you’ll have to pay anywhere from $10-$25. A foreign wire will cost you $10-$50.

Interest Rates

With the Business Advantage Savings, you’ll gradually accumulate interest on your savings deposits. Currently, with a balance of $1 million or below in your Business Savings Advantage account, you’ll accumulate interest at a rate of 1.10%. Above this balance threshold, your savings interest rate will vary from 0.20%-1.10%.

Account Withdrawals

With this Capital One business savings account, you’ll be able to make up to six withdrawals for free over the life of your account. Thereafter, you’ll have to pay $10 per withdrawal.

Pros and Cons of Business Advantage Savings

So, what are the perks to saving your business’s money with this Capital One business savings account?

Well, the Business Advantage Savings allows your funds to exist in a great balance of being accessible and lucrative.

Though your business’s won’t be as liquid as if they were in a checking account, you’ll still be able to access them with withdrawals and account transfers.

capital-one-business-savings-account

However, this business savings account will make your money do more for you than if you had it in a checking account. With gradual interest accumulating on your savings, you’ll know that your business’s money is safely tucked away and earning.

With that said, you’ll still need to keep an eye on how often you withdraw from this account. If you pass the cap of six free withdrawals, then you’re going to have to pay an even $10 each time you withdraw from your account.

Additionally, if you want to put your savings away more definitively so you can earn more interest, then the Business Advantage Savings account’s halfway accessibility might not be the best fit.

Capital One Business Savings Account Option #2: Certificates of Deposit

The next and last Capital One business savings account option is their Certificates of Deposit. In contrast to the Business Savings Advantage, Capital One’s Certificates of Deposit last a predetermined amount of time and can only be withdrawn after that term length is up. This Capital One business savings account works well for businesses looking to make some longer-term savings.

Let’s take a look at the details on what Capital One’s Certificates of Deposit entail:

Minimum Account Opening Deposit

To open an account with this Capital One business savings account option, you need to be able to make a deposit of at least $1,000. 

Withdrawals

Though withdrawal fees will vary from product to product depending on your Certificate of Deposit’s terms, they will always be pretty hefty.

Put simply, if there’s a possibility that you’ll need to withdraw the savings your business has tied up in a Certificate of Deposit before it reaches maturity, you’ll need to brace yourself for some costly early withdrawal fees.

Interest Rates

Again, these numbers vary from product to product.

To get exact numbers for interest rates, you need to call a banker or visit a Capital One branch.

However, when you open your Certificate of Deposit, you can secure the competitive interest rate that currently come with this low-risk business savings option.

Pros and Cons of Certificates of Deposit

Having covered all the details, let’s consider the big picture pros and cons of storing your savings in the form of a Capital One Certificate of Deposit.

First off, this is one of the lowest risk savings options that a business can find. That’s because any Certificate of Deposit you use for your business’s savings will be insured by the FDIC.

Additionally, with this Capital One business savings account option, you can ensure your interest rate for the duration of your deposit. Not to mention, when your Certificate of Deposit reaches maturity, it will automatically renew if you don’t redeem the certificate.

That said, this is also one of the least flexible savings options you can choose.

Life as a business owner can be unpredictable, and if something comes up that causes you to need to access your deposit early, then you’ll incur a huge sum in early withdrawal fees in the process.

If you’re looking for a business savings account that will be hospitable to the possibility of accessing your savings early than you planned, then Capital One’s Certificates of Deposit probably aren’t a great option for your situation.

Capital One Business Savings Account vs. Capital One Business Checking Account

Perhaps you’ve read through this article and realized one fatal flaw of the Capital One business savings account options and business savings accounts at large—your business’s money is slightly less liquid than it would be if it were in a checking account.

If this thought went through your mind and ended up being a deal breaker, then the next move is to consider a Capital One business checking account.

The best part? A Capital One business savings account and a Capital One business checking account aren’t mutually exclusive.

In fact, they work wonderfully in tandem.

If you want a more liquid home base for your business’s finances, then consider your Capital One business checking account options, as well.

Which Capital One Business Savings Account Option Is Right for You?

There you have it—your two Capital One business savings account options laid out in detail before you.

On the one hand, you have the more accessible Business Advantage Savings, and on the other hand, you’ve got the lower-risk Certificates of Deposit.

Both fulfill specific needs that business owners might require for their business’s savings—whether you prioritize accessibility over security, or vice versa, there’s a Capital One business savings account out there for you.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

Brayden McCarthy

Brayden is Fundera's credit cards expert. He's passionate about helping businesses take advantage of the best credit card offers on the market, from the longest 0% intro APR periods to the richest cash back and travel rewards bonuses.

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