Capital One Business Savings Accounts Overview
As your business grows and progresses, you may find yourself with extra funds that you’d like to store away. In this case, you’ll want to look for the best savings account for your business. Compared to a business checking account, as you may already know, a business savings account allows you to accrue interest on the funds you store but limits your availability to withdraw and use those funds.
This being said, if you’re trying to find the right savings account for your business, you may start your search with Capital One—a traditional brick-and-mortar bank known for their wide range of small-business friendly products.
So, what does Capital One have to offer for this type of business bank account?
We’re here to help you find out.
In this review, we’ll break down each of the two Capital One Business Savings account options, discussing their fees, rates, and other features. We’ll also offer some top alternatives so that you have all of the information you need to decide which business savings account is right for you.
Capital One Business Savings Options
As we mentioned above, Capital One offers two different business savings account options:
- Capital One Business Advantage Savings
- Capital One Small Business Certificates of Deposit
The first important point to understand about these two options is that whereas the Spark and Advantage accounts are traditional business savings accounts, the Certificate of Deposit option functions a little differently.
Essentially, a certificate of deposit works like a savings account that has a predetermined term length. With a certificate of deposit, you won’t be able to access your business’s savings before your term length has fully transpired (unless you want to pay significant fees)—however, you will accumulate interest at a much higher rate than with a traditional business savings account.
This being said, the second point worth mentioning is that although we’ll discuss the Spark Business Savings account below, Capital One isn’t currently accepting new accounts for this option—and actually has not been doing so for a few years. According to the Capital One website, they’re making changes to the Spark business products—so this is something to keep in mind when comparing the best Capital One business savings account options.
The 3 Capital One Business Savings Accounts
Capital One Spark Business Savings
So, with these essentials in mind, let’s see what each of the three Capital One Business Savings accounts has to offer, starting with the Spark Business Savings account.
Once again, Capital One is not currently accepting new Spark Business Savings accounts, so if you’re looking to open an account now, you’ll want to start with the other two options.
This being said, like the Spark Business Checking account, the Spark Business Savings is Capital One’s digital-first savings account offering. In this way, the Spark Business Savings account is designed for businesses that don’t handle much cash and who want the ability to manage the entirety of their savings account online.
Here’s what you can expect with this Capital One small business savings account:
Minimum Account Opening Deposit
One of the biggest benefits of this Capital One Business Savings account is that it’s accessible regardless of how much money you have to start your account.
There is no minimum opening deposit requirement for this account, so you can deposit as much or as little as you want to get started. Plus, the Spark savings account does not require a minimum average daily or monthly balance.
Monthly Service Charge
Another top benefit of the Spark Business Savings account is that there is no monthly service fee. You don’t have to pay to earn interest on your funds, nor do you have to meet a certain minimum balance to maintain your account for free.
Although there is greater flexibility for ATM usage with the Capital One Business Checking accounts, the Spark Business savings account does not accommodate ATM withdrawals or cash deposits.
To make a withdrawal from this savings account, you’ll need to transfers funds into a linked Spark Checking account or another business bank account and make the withdrawal from there.
As a digital-first account, the Spark Business Savings account generally performs transfers via ACH deposits.
This being said, Capital One does allow wire transfers on a case-by-case basis, but if they agree to perform one on your behalf, you’ll have to pay an associated fee.
Overall, you’ll be charged $15 for every incoming wire transfer and $25 for an outgoing domestic wire transfer.
The Spark Business Savings account offers a 12-month promotional APY (allowing you to earn more on interest)—which is why this option is often considered a Capital One Business high-yield savings account.
With this promotional period, you’ll receive a higher APY during this period (at one time it was 2.00%) and when the period expires, your APY will settle to a lower rate based on your account balance and the market.
This being said, the promotional APY applies to the first $5 million in account balances and will expire 365 days after you open your account.
On the whole, the interest earned on this Capital One Business Savings account is compounded monthly and credited on the last day of each cycle.
Federal regulations dictate that only six withdrawals are allowed from a business savings account per month.
As such, you’ll only be able to make a maximum of six withdrawals per month with the Spark Business Savings account—if you exceed this limit, Capital One will charge a $10 fee per additional withdrawal. However, if you consistently make more than six withdrawals per month, Capital One may decide to close your account.
Capital One Business Advantage Savings
Next, let’s break down the Capital One Business Advantage Savings account.
Unlike the Spark Business Savings account, you can currently open a Business Advantage Savings account, as long as it’s available in your area.
This being said, the Capital One Business Advantage Savings account functions similarly to most savings account options from traditional banks—but notably, includes a high-yield promotional period and flexibility for business owners who need to deposit or withdraw cash.
Minimum Account Opening Deposit
With this Capital One Business Savings account, you’ll have to provide a minimum deposit of $250 in order to open an account.
Although this amount is more than what’s required with the Spark Business Savings account, it’s still a fairly low minimum compared to many other options on the market.
Monthly Service Charge
The Capital One Business Advantage Savings account comes with a monthly service charge of $3.
This being said, however, if you maintain a minimum balance of $300, Capital One will waive this fee. Therefore, as long as you can provide $50 more than the account opening minimum on an ongoing basis, you won’t have to worry about paying for this business savings account.
Unlike the Spark Business savings account, the Capital One Business Advantage Savings account allows you to use any Capital One ATM to withdraw cash for free.
This being said, if you use a non-Capital One ATM or an international ATM, you’ll face a $2 fee per withdrawal. Additionally, ATMs within certain locations will require a $5 fee per withdrawal.
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 to $25. A foreign wire, on the other hand, will cost you from $10 to $50.
Wiring policies and fees can vary based on location, however, so you’ll want to check with your local Capital One branch or representative to find out exactly what fees you might face with your account.
Like the Spark savings account, this is another Capital One business high-yield savings account.
With the Business Advantage Savings account, you’ll have access to a 12-month promotional APY at 1.85% (as long as your balance is under $5 million). After this period expires, a standard APY will set in based on the market and your balance.
This being said, the interest that you earn with this business savings account will compound monthly and will be credited on the last day of your cycle.
Once again, the Business Advantage Savings account will be limited to the federally-regulated six withdrawals every month. Any additional withdrawal you make will be subject to a $10 fee—and if you continuously perform more than six withdrawals per month, Capital One may choose to close your account.
This being said, however, you will be able to make an unlimited number of withdrawals from a teller at any branch or ATM.
Capital One Small Business Certificates of Deposit
Finally, the last of your Capital One Business Savings account options is their Certificates of Deposit (CD).
As a reminder, comparing business savings accounts vs. CDs, certificates of deposit last for a predetermined amount of time and you can only withdraw funds after the term length expires. On the whole, CDs accrue higher interest rates than traditional business savings accounts.
In this way, the Capital One Small Business Certificates of Deposit are well-suited for businesses looking to invest in longer-term savings.
Minimum Account Opening Deposit
To open a Capital One Small Business Certificate of Deposit, you’ll need a minimum deposit of $1,000.
Compared to many other business savings accounts, this is a fairly high requirement.
Additionally, it’s important to note that your Capital One Business Certificate of Deposit will likely have a minimum balance requirement, however, the specific amount (and therefore, any possible service charge) will vary based on the product and location.
The purpose of a certificate of deposit is to accrue the maximum amount of interest without using your funds. Therefore, unlike the other business savings account options from Capital One, you won’t have an included number of monthly withdrawals with your CD.
Instead, if you do make a withdrawal from your CD before the term expires, you’ll face significant fees that vary from product to product.
This being said, you will have no ATM access with a CD and you’ll need to make any deposits into the account when you open it.
Finally, although the specific rates can vary, you’ll see that Capital One CDs are high-yield business savings account options.
With a one-year fixed rate, for example, Capital One offers a 2.00% APY. For an 18-month fixed-rate CD, you’ll receive an APY of 1.90%—and for two years, 1.80%.
For small business CDs with variable rates or longer terms, you can work with a Capital One banker to explore your options.
This being said, once your term expires, you have the option to redeem your funds, or automatically renew the account into a new CD with the same product terms at current interest rates. If you choose to renew your Capital One CD, you’ll have a seven day grace period during which time you can change the amount of funds in your CD or redeem the funds without a penalty.
Capital One Business Savings Account vs. Capital One Business Checking Account
If after reading through these Capital One Business Savings account options, you feel that you’d like greater access to your business’s funds, you should probably turn your search to a business checking account.
On the whole, business checking accounts—including those from Capital One—are more liquid than savings accounts and they allow you to store, use, and manage your finances on a day-to-day basis.
This being said, once you open a business checking account, you’ll often find that the bank will allow you to open a connecting business savings account—and you can manage these accounts in tandem.
With Capital One, for instance, you can link your business checking and savings accounts—and this will allow you to easily transfer funds between the two accounts, as well as utilize overdraft protection to reduce fees and protect your stored capital.
Pros of Capital One Business Savings
With all of this information in mind, you’re probably aware that Capital One isn’t the only bank for small businesses that offers savings accounts.
So, what are the benefits of choosing one of these business savings accounts over the other options on the market? Let’s break down the pros and cons of these Capital One products.
First, perhaps the biggest benefit of the Capital One Business Savings suite is that there are three different options, each of which appeals to a different type of business owner and need. The Spark Business Savings account is a great digital-friendly option, the Business Advantage is a great option for physical branch and cash access, and finally, the Small Business CDs are perfect for earning the most on funds with little accessibility.
Additionally, another advantage of these options, especially the two traditional business savings accounts, is the low minimum deposit requirements and low (or easily waivable) service fees.
Finally, each of these Capital One Business Savings accounts allows you to earn significant interest on your funds. With the Spark and Advantage accounts, you can access a 12-month promotional APY and accrue interest at a high rate during this time. With the Small Business CDs, on the other hand, you’ll be able to accrue interest at these high rates for the length of your term.
Cons of Capital One Business Savings
On the other hand, there are also downsides to the Capital One Business Savings accounts to consider as well.
Perhaps one of the biggest of these issues is that Capital One isn’t currently accepting new accounts for their Spark Business Savings product. Without this option, Capital One really only has two different business savings offerings.
Additionally, although the Capital One Small Business CDs are high-yield, the Business Advantage Savings and Spark Business Savings are only high-yield during the promotional period. Therefore, after this period expires, you won’t have a truly high-yield savings account with either of these options.
Finally, compared to some other business savings accounts (as we’ll discuss below), the Capital One Business Savings products all have a certain level of inflexibility.
The Spark Business Savings account, for example, is not only not currently available, but it also can’t accommodate ATM use or cash deposits. In the same vein, although the Advantage Savings account can offer ATM and cash deposit access, it isn’t available throughout the U.S. and you have to actually visit a Capital One branch to apply. Plus, by the very nature of the Capital One Business Certificate of Deposit, you can’t access your funds once you’ve opened your account. In addition, like the Business Advantage account, Capital One CDs are not available everywhere and you have to visit a location to apply.
Chase Business Savings Accounts
Before you decide whether a Capital One Business Savings account is right for your business, you’ll want to explore some top alternatives and see if there’s an option that will be a better fit.
With this in mind, one of the best alternatives to consider is the Chase Business Savings suite.
Chase offers three business savings account options: Total Business Savings, Premier Business Savings, and a Certificate of Deposit.
Chase Total Business Savings is the best option for smaller businesses that will have lower account thresholds. The monthly fee for this account will be $10, waived if you maintain a balance of $1,000 or more, or have linked a Chase business checking account. With this account, you’ll also receive 15 monthly deposited items at no charge, up to $5,000 in cash deposits per month with no fee, and a typical market rate APY.
The next option, the Premier Business Savings account will be a worthwhile option for businesses with higher balances. This account has a monthly fee of $20, waived if you have a balance of $25,000 or more. The Chase Premier Business Savings account includes 30 monthly deposits, up to $10,000 in cash deposits, and higher interest rates with higher balances (or when linked to a Chase business checking account).
Finally, the Chase Certificate of Deposit account offers a fixed rate of return, and might also allow for high return rates if you hold higher balances. The Chase CD has no monthly service fee and requires a $1,000 minimum deposit (which is the same as Capital One’s).
Ultimately, with three comparable options and a range of features, the Chase Business Savings accounts are worthwhile alternatives to Capital One if you’re looking for a business savings account from a traditional brick-and-mortar bank.
Axos Business Savings Accounts
On the other hand, if you’re interested in a Capital One alternative that operates wholly online, you might consider either of the Axos Business Savings accounts.
Within the Axos business bank account suite, you can choose between the Business Savings and Business Premium Savings accounts—each of which can be opened quickly and easily online.
With the Business Savings option, you can earn interest at a 0.80% APY. You’ll need a small minimum deposit of $1,000 to open this account, and there will be a monthly service fee of $5—waived by maintaining an average daily bank balance of $2,500. This account also includes 2o items per month, with an additional 60 items per month via the Axos Remote Deposit Anywhere feature. The Axos Business Savings account is an easy way to get started growing your business reserves at a rewarding rate.
The second option, the Business Premium Savings account, is best for bigger businesses that want a higher interest rate on their savings account. For accounts with balances of $24,000 or more, you’ll earn a 1.06% APY. This being said, however, this account will require an initial deposit of $25,000. There is no monthly fee for this account and you’ll have access to 20 free items and 60 free remote deposits per month.
At the end of the day, either of the Axos Business Savings accounts will give you greater flexibility than the Capital One accounts—plus, they’ll include a higher APY on an ongoing basis. However, if you’re looking to start a savings account with a small amount of funds, it’s going to be difficult to do so with Axos.
NBKC Business Money Market Account
Finally, for a Capital One alternative that can offer the highest APY at the lowest cost, you’ll want to consider the NBKC Business Money Market Account.
With this account, you can earn a .25% APY as long as you have $0.01 in your account. There is no minimum opening deposit requirement for this business savings account, no average balance requirement, no monthly fees—virtually no fees at all.
The NBKC Business Money Market Account will include business and mobile banking, free mobile check deposit, free incoming domestic wires, and the ability to open and connect a free NBKC Business Checking account.
This being said, you’ll only face fees on this account for outgoing domestic wires ($5) and incoming or outgoing international wires ($45).
As an online-based bank, however, you won’t have the same ATM or cash access as you might see with Capital One or Chase, however, there’s no doubt that you’ll be able to earn the most on any extra funds you store with this NBKC account.
The Bottom Line
At the end of the day, only you can decide which Capital One Business Savings account (if any) is best for your business.
This being said, however, with the small-business friendly nature of Capital One and generally affordable and accessible nature of their business savings accounts, one of these three options very well might be right for you.
On the other hand, if you’re looking for a digital-first business savings account, or an account that earns a higher APY on an ongoing basis, you may decide to explore some top alternatives, like Chase, Axos, or NBKC.
Ultimately, whichever business savings account you choose, you’ll want to be sure to pay close attention to the federally regulated withdrawal limit (six per month). Although there’s nothing wrong with utilizing your savings account, you’ll want to leave your funds as long as possible to allow them to earn the greatest amount of interest—and of course, to avoid any additional fees.