Every small business needs a bank account, but do you need both a business checking and savings account? What about hybrid products like a high-yield business checking account or money market account?
While you should open a business checking account for day-to-day operations, whether you also need a business savings account depends on your cash flow, growth stage, and financial goals. This article breaks down what each account type does, when you might need both, and why a high-yield business checking account might be the best single account to handle all your small business’s financial needs.
Quick comparison
- Business checking accounts provide unlimited transactions, debit cards, and payment tools for daily operations, though they typically earn lower interest than savings accounts.
- Business savings accounts typically offer higher interest rates on reserve cash, but may limit transactions to 6 per month and lack payment tools.
- Bluevine Business Checking lets you earn up to 3.0% APY, with unlimited transactions, debit cards, and built-in invoicing and payments, eliminating the need for multiple accounts.
What is a business checking account for?
Business checking accounts are designed to be the backbone of day-to-day cash flow management. They typically allow you to make unlimited transactions, so you can move your money unrestricted—though some payment types, like ACH and wire transfers, may carry a fee. You’ll also usually have the option of receiving debit cards and paper checkbooks, which you can use to buy supplies and materials, pay online subscription and vendor fees, or purchase software to manage your business.
Some business checking account providers also offer integrations with payment platforms and accounting software. For example, Bluevine features built-in invoicing tools powered by Stripe.BVSUP-00180
High-yield business checking
Starting in 2011, Congress modified banking regulations to allow financial institutions to pay interest on balances held in demand deposit accounts (DDAs). This meant common business checking accounts could largely replace checking-saving hybrid accounts like money market accounts (MMAs) and Negotiable Order of Withdrawal (NOW) accounts, but APY paid to business checking accounts tends to be low—unless you open a high-yield checking account.
A high-APY checking account grows your operating funds while keeping them fully accessible. That’s especially valuable in an inflationary environment, in which idle cash can quickly lose purchasing power. By earning competitive interest on the balances you’re already holding for payroll, taxes, and expenses, you’re putting your money to work without locking it away.
Bluevine Tip
Bluevine Business Checking offers multiple account plans with competitive APY. Eligible customers earn 1.3% APY with the Standard plan, 1.75% APY with Plus, and 3.0% APY with Premier.BVSUP-00147
What is a business savings account for?
While business checking accounts are designed for spending cash, business savings accounts are designed for storing cash, a place to keep reserve funds you don’t plan on using for a long time. This means savings accounts can offer higher interest rates than standard business checking accounts, but may restrict money movement with monthly transaction limits. Savings accounts also don’t come with debit cards, so you’ll need to transfer funds from your savings account to your checking account before making a card purchase.
A business savings can be used as an emergency fund, tax reserve, or savings for a future investment. Separating those funds from your business checking account ensures they’ll be there when you need them. However, some business checking accounts offer cash flow management tools like sub-accounts for that very purpose.
Business checking vs. savings account comparison
| Business checking accounts | Business savings accounts | |
|---|---|---|
| Primarily used for | Daily operations, payroll, vendor payments | Long-term reserves |
| Typical APY range | 0–3.0%* | 2.5–4.39%* |
| Funds availability | High: Unlimited transactions, immediate payments | Low: Typically 6 transactions per month, must transfer to a checking account |
| Transaction/transfer fees | Unlimited number of transactions, no fees for standard ACH | None up to transaction limit, then high fees |
| Monthly fee | $0 for basic accounts, up to $95 for premium features | $5–$15 |
| FDIC insurance | Yes | Yes |
| Debit card(s) | Yes | No |
| Sub-accounts | Yes | No |
Online banking platforms like Bluevine give you the best of both worlds: High-yield APY on checking balances,BVSUP-00147 plus flexible money movement in the form of sub-accounts, a range of payment options, and even built-in invoicing tools for accounts receivable.
This allows you to manage cash flow from end to end, including receiving customer payments, separating funds for different purposes, and paying bills on time—all while earning high APY on your operational balances.
Bluevine Tip
With Bluevine, you can add up to 20 sub-accounts for easier budgeting, then create automatic transfer rules to set your cash flow on autopilot. The best part: Eligible customers earn APY on total balances across their main checking account and sub-accounts.BVSUP-00147
Do you need both a business checking and savings account?
If you’ve already built an emergency fund (about six months of operating expenses) or have capital you don’t need to access frequently, a dedicated business savings account makes sense as a separate vehicle for long-term interest. Higher interest rates and transaction limits can work in your favor by discouraging you from dipping into reserves. However, most types of small business don’t have strong enough margins to leave their savings inaccessible.
In fact, a Bluevine cash flow management study found that 39% of small businesses have less than a month of cash on hand to cover operating expenses.
For most small business owners, the answer is no—you don’t need both a checking and savings account. A single, high-yield business checking account is the ideal choice.
A high-yield business checking account eliminates the need to split funds across accounts while keeping your cash both fully accessible and earning enough interest to cover inflation.
Need access to working capital?
With Bluevine, you can also apply for a Bluevine Line of Credit or term loan via our partners—all through one simple application.BVSUP-00151
Apply with no impact to your personal creditBVSUP-00128
Why high-yield checking is best for small business owners
Here are some of the ways an interest-bearing checking account combines the strengths of standard checking and a savings account:
- Keep all your funds available. A high-yield business checking account allows you to earn interest on your operating balances while keeping your entire cash pool liquid, freeing you up to cover unexpected expenses or capitalize on growth opportunities.
- Earn high APY on your operating balances. The gap between business savings account interest rates and high-yield checking rates has narrowed in recent years, allowing you to earn enough interest on your checking account to optimize your funds for inflation and boost your long-term growth.
- Use sub-accounts to organize your finances. Sub-accounts help you separate the funds in your high-yield business checking account to be used for different expenses or savings projects without the need for account transfers.
Earn up to 3.0% APY with Bluevine Business Checking
With Bluevine Business Checking, you don’t have to choose between earning interest and having access to your money. Earn up to 3.0% APYBVSUP-00116 on your business checking account balances, while keeping every dollar available for expenses or investments.
Manage sub-accounts and invoicing from a single dashboard, and protect your funds with up to $3 million in FDIC insurance.BVSUP-00108 If you’re ready to make your business cash work harder without sacrificing flexibility, explore Bluevine and open an account in minutes.
