Bank of America Business Savings: All You Need to Know
So, you’re looking for a new home for your business’s savings.
In your search for a business savings account, you’re going to come across many different options with varying perks and disadvantages.
Some of your very best options can be found in one place—Bank of America.
Whether you’re just starting to save, or you’re looking to upgrade your business’s savings, Bank of America business savings accounts can offer you some pretty stellar perks for storing your savings with them.
What’s there to know about all of your Bank of America business savings accounts options?
Plenty—that’s why we’ve compiled this ultimate guide to navigating all of the info you’ll need to decide if one of the Bank of America business savings accounts is the perfect fit for your business.
So, without further delay, let’s just right into all there is to know about Bank of America business savings accounts.
Bank of America Business Savings: The Fundamentals
First and foremost, we’ll need to cover the fundamentals on what storing your business’s savings with Bank of America entails.
At risk of stating the obvious, opting for a Bank of America business savings account means primarily that you’re opting to trust Bank of America with your business’s hard-earned capital.
And that comes with its perks—though Bank of America is one of the biggest national banks in the U.S., it also happens to be one of the most small business friendly.
As a result, they offer quite a few business savings account options, all of which work wonderfully for small business, no matter what your saving preferences are.
But these multiple options are where some people might stop in their tracks—how do you navigate your options if there are just so many of them?
Not to worry—with this guide, we’ll give you all the info that you’ll need when it comes to deciding whether or not one of these Bank of America business savings accounts is right for you.
The Two Types of Business Savings Accounts
The first thing you’ll need to know before diving into your options?
The distinction between the two types of business savings accounts—a business savings account and a business certificate of deposit.
A business savings accounts, as its name indicates, is the most straightforward of your business savings options. In fact, it’s probably what you’re picturing as your goal on this search for a home for your business’s savings. A business savings account will allow you to store your business’s savings in an interest-bearing account while also being able to access these savings multiple times every month.
A business certificate of deposit, on the other hand, isn’t quite as straightforward. For one, a business certificate of deposit will come with a predetermined, rigid term length. If you end up needing to access your deposit before this predetermined term is up, then you’ll have to pay a pretty substantial early withdrawal fee.
That said, if you store your business’s savings in the form of a certificate of deposit, then your capital will earn interest at a much higher APY (or annual percentage yield) than with a traditional business savings account.
So, if you know you won’t need to access your business’s savings for a certain amount of time, then a certificate of deposit could be your more lucrative business savings option.
Your Bank of America Business Savings Options
With those fundamentals covered, it’s time to get down to business. You already know the basics of what it means to work with Bank of America. Not to mention, you already know what makes a business savings account different from a business certificate of deposit.
Now, let’s tackle the main question at hand—what are all of the details on each of your Bank of America business savings options?
Let’s take a look at all the prominent features of Bank of America business savings accounts and business certificates of deposit.
Perhaps you’re not looking to commit to a lengthy term that would tie up your business’s hard-earned capital.
Bank of America offers business savings solutions specifically for this common worry—their business savings accounts.
With these two Bank of America business savings accounts, your business’s savings will exist in a sweet spot between being fully accessible and earning optimal interest.
These business savings account can help you find a middle-ground for your savings, so let’s take a look at the details on each to see if either are your business’s perfect business savings account option.
Business Investment Account
First up of your Bank of America business savings account options is their Business Investment Account. This Bank of America business savings account is ideal for growing businesses who are just starting out in the savings game.
With a low minimum deposit and monthly maintenance fee, your business could save easily and affordably with this option. Let’s zoom in even further and take a look at the number this business savings account can boast:
If you end up opting for this business savings account, your savings will gain interest at a variable APY of 0.02%. Plus, you’ll only be required to open your account with a minimum opening deposit of $100. Not to mention, you’ll only have to pay a mere $5 monthly for this account’s maintenance fee.
Plus, Bank of America will give you two opportunities to waive this monthly fee—either maintain your daily balance is at least $2,500 or open a Business Fundamentals Checking account with them.
Business Advantage Savings
Your other Bank of America business savings account option is their Business Advantage Savings account. Whereas Bank of America’s Business Investment Account was a better fit for growing businesses, Business Advantage Savings is more geared towards established businesses with more significant balances.
If you’re looking to upgrade your business’s savings but still keep them accessible, then this Bank of America business savings account could be your very best bet. Let’s take a look at the numbers that make it so ideal:
First and foremost, when stored in a Business Advantage Savings account, your savings will gain interest at APY’s ranging from 0.02% to 0.04%. Even more, to access these stellar returns, you’ll only have to pay a $15 monthly maintenance fee.
Again, Bank of America will give you two way to get this fee waived, though. If you either maintain a $5,000 minimum daily balance or you open a Business Advantage Checking account, then your Business Advantage Savings account will be completely free.
Bank of America Business Certificates of Deposit
On the other hand, you might be looking to earn the most bang for your buck when it comes to saving your business’s capital—and you might be willing to sacrifice your savings’ accessibility to do so.
In which case, you ought to look to Bank of America’s business certificate of deposit options in order to meet your saving preferences. Though they’ll vary from option-to-option, Bank of America’s three business certificates of deposit offer up stellar returns at varying term lengths.
Unfortunately, because Bank of America doesn’t provide much online information on these savings options, you’ll have to call in or schedule an appointment at a nearby branch in order to learn more and open an account.
Call 866.543.2808 or follow this link to schedule an appointment at a nearby Bank of America branch to learn more.
That said, we’ve compiled all of the available information on Bank of America’s business certificates of deposits below, so let’s take a look at what each of these certificates of deposit options can offer your business.
Business Featured CD
With this business certificate of deposit, Bank of America offers locked-in rates that will allow your business’s savings to earn higher yields.
It will come with a term length of 12 months and will be FDIC insured. Plus, if you opt for this business certificate of deposit, your savings will automatically renew after its term has transpired, making for more efficient savings.
Standard Business Shorter Term CD
Next up on your list of Bank of America certificate of deposit options is the Standard Business Shorter Term certificate of deposit.
This is a perfect option for business owners who are looking for a shorter-term yet still high-yield savings option.
The Standard Business Shorter Term certificate of deposit will allow business owners to access certificates of deposits with terms as short as seven days but no longer than 27 days. Additionally, if you decide that you want to continue to save after your shorter-term is up, then your Standard Business Shorter Term certificate of deposit will automatically renew.
This is a great fit for business owners who will need to access their savings soon, but still want to see a substantial yield from their business savings account.
Standard Business Longer Term CD
Last but certainly not least of your Bank of America business certificate of deposit options?
The Standard Business Longer Term certificate of deposit. This product mirrors its shorter-term counterpart in all things but—you guessed it—available term lengths.
With this business certificate of deposit, business owners can access term lengths ranging all the way from 28 days to 10 whole years. Plus, just like your other two business certificate of deposit options from Bank of America, the Standard Business Longer Term certificate of deposit will renew automatically after your initial term length transpires.
Axos Business Savings Accounts
A top online alternative to Bank of America business savings accounts are Axos’ business savings accounts.
Axos is an online bank offering two high-earning savings accounts.
The Axos Business Savings account allows you to earn a better APY than Bank of America offers—at 0.80% it’s one of the best high yield business savings accounts out there.
You’ll only need a small initial deposit of $1,000, and the monthly service fee of $5 is easily waived by maintaining an average daily balance of $2,500. This account is a good option for smaller business that want to get started with an online account that’s rewarding.
Axos also offers a larger savings account, the Business Premium Savings, with a better APY, at 1.05 – 1.06%. There isn’t a monthly service fee on this account, but you’ll need to deposit a minimum of $25,000 to get started, which might be tough for newer businesses.
Bank of America Business Savings Accounts vs. Bank of America Business Checking Accounts
After reading about your Bank of America business savings options, you might be stuck on the one fundamental catch of business savings accounts—that they don’t allow you unlimited access to your business’s capital. In order to gain interest, your business’s savings will have to be more or less tied up in an account, to an extent. Even if it’s relatively accessible in a business savings account rather than a business certificate of deposit, you’ll still be limited in how many times you’ll be able to withdraw your funds each month.
What’s the answer to this conundrum? Easy—it’s a business checking account.
While business savings accounts are best for stowing away capital for the future, business checking accounts are meant to be high-activity homes for business’s working capital. And it just so happens that there are some pretty stellar Bank of America business checking account options that work wonderfully in tandem with their business savings accounts.
In fact, as you might remember, getting the corresponding Bank of America business checking account with your Bank of America business savings account is an easy way to get your savings account’s monthly fee waived.
So, if you’re looking for a more accessible home for your businesses money, certainly consider a business checking account in tandem with your business savings account.
Bank of America Business Savings Accounts: The Bottom Line
Now that we’ve combed through all of the details on each of your Bank of America business savings options, what’s the bottom line?
Well, that’s for you to decide—because you’re the one who knows your business and its finances best, we won’t prescribe a verdict. And there’s no need to—now that you’ve made your way through this guide, you have pretty much all the info you need should you decide to move forward with one of these Bank of America business savings options.
All in all, whether you’re looking for your savings to be short-term, high-earning, or semi-liquid, Bank of America will have a business savings option for you.