How To Choose The Best Business Savings Account

Business savings accounts come in several varieties, each designed to do different things with your money. For business owners, choosing the right one is essential for long-term success.

Naturally, your savings needs evolve as your business changes and matures. At one time you might be looking to maximize earnings to help your business expand. At another, you’re trying to build a financial cushion to get you through the lean times.

The type of savings accounts you select should align with your company’s financial goals. Balancing the higher returns of fixed-term investment accounts with the liquidity and convenience of regular deposit accounts ensures your choices match both current cash flow and future needs.

TYPES OF SAVINGS ACCOUNTS 

The term savings account describes a range of accounts designed to keep money separate from your everyday expenditure and to allow it to grow. These include:

REGULAR (OR SHARE) SAVINGS ACCOUNTS 

All banks and credit unions offer regular savings accounts. In the case of credit unions, they are sometimes known as share or qualifying accounts and are the basic requirement to establish membership. Savings accounts feature:

• A low minimum balance to open and maintain an account
• Relatively low interest rates or dividends
• Immediate access to your money (transaction limits may apply)

MONEY MARKET SAVINGS ACCOUNTS 

Money market accounts are another type of deposit account designed to expose savings to higher interest rates or dividends with none of the risks of investing on the open market. Money market accounts feature: 

• Usually requires higher minimum balances to open or maintain an account
• Higher interest rates or dividends, typically arranged in tiers that offer better rates to accounts with higher balances. Dividends might not be paid below a certain level.
• Immediate access to your money (transaction limits may apply)

CERTIFICATE ACCOUNTS 

Unlike savings and money market accounts, certificate accounts are term investments, meaning that your money is invested for a fixed period, during which it is unavailable to you. On maturity, the money is usually invested for another term unless you choose to withdraw it. 

Certificate terms range from a few months up to five years. Rates vary widely, with longer-term investments offering the best returns. Certificates are also designed in different ways for different needs. Some are more flexible to attract occasional bonuses and windfalls, others require regular, structured contributions for long-term growth.

• Most certificates require a minimum balance to open an account. This is often higher than that required on regular savings accounts.
• Rates vary but are generally higher than money market or regular savings accounts.
• You may need to pay a penalty to access your money during the investment term.

MATCHING SAVINGS OPTIONS TO BUSINESS TYPES 

With an understanding of the available account options, it’s time to consider how to choose the best business savings account—or combination of accounts—based on your growth stage. Below, we outline eight common business profiles and their ideal savings strategies.

STARTUPS & NEW BUSINESSES 

New enterprises with limited resources work to build cash flow and establish business relationships. Examples include tech startups and small retail shops.

Needs:

• Build a financial safety net.
• Save small amounts but keep cash liquid.  

Best Options:

•  Basic savings accounts to store smaller amounts of extra cash.
•  Money market accounts for higher returns while keeping funds accessible.

GROWING BUSINESSES 

Earlier-stage businesses with regular revenue streams looking to lock in long-term growth. Examples include expanding franchises and businesses aiming to hire more staff.

Needs:

• Save for future expansion or investment opportunities.
• Maintain regular savings habits while staying flexible.

Best Options:

• Flexible investment certificates to build savings with varying deposits.
• Money market accounts to keep reserves liquid for short-term needs.

ESTABLISHED BUSINESSES 

Businesses with established revenue streams, customer bases, and reputations. Examples include longstanding local stores and mid-size corporations.

Needs:

• Maximize savings for stability and planned expenses.
• Take advantage of higher returns for long-term goals.

Best Options:

• Structured certificates for predictable expenses like bonuses or taxes.
• Money market accounts for high-yield, easily accessible savings.

SEASONAL BUSINESSES 

Companies that earn the bulk of their revenue during a limited time of the year. Examples include landscaping companies, holiday-focused retailers, and tourism businesses.

Needs:

• Save during busy seasons to cover off-season expenses.
• Budget for predictable costs like payroll and equipment storage.

Best Options:

• Structured saver certificates for recurring expenses.
• Money market accounts for flexible, high-yield savings.

SOLE PROPRIETORS & FREELANCERS 

Owners of one-person businesses and freelancers dependent on irregular income. Examples include designers, consultants, and home-based businesses.

Needs:

• Keep personal and business funds separate.
• Save for taxes, professional development, or equipment upgrades.

Best Options:

• Flexible certificates for saving smaller amounts when possible.
• A basic savings account for keeping extra cash separate from ongoing expenses.

NONPROFITS & CHARITABLE ORGANIZATIONS 

Organizations focus on providing needed services and meeting specific needs without showing a monetary return on investments. Examples include community service groups, small private schools, and religious groups.

Needs:

• Manage donations and grants effectively.
• Keep cash accessible for operational expenses.

Best Options:

• Money market accounts for liquidity and tiered rates.
• Structured certificates for funds allocated for specific goals, like annual events or funding drives, as well as long-term asset growth.

BUSINESSES FOCUSED ON STABILITY 

Long-established businesses looking to maintain assets and limit risks. Examples include family-owned or legacy businesses prioritizing low-risk investments.

Needs:

• Secure funds for future generations or predictable ongoing expenses.

Best Options:

• Structured certificates for long-term growth.
• Money market accounts for accessible, secure savings.

BUSINESSES IN TRANSITION 

Companies preparing for a major change in corporate structure or ownership. Examples include companies preparing for sale, mergers, or new ownership.

Needs:

• Maintain liquidity while protecting capital.
• Building savings for legal or consulting fees.

Best Options:

• Money market accounts for easy access to funds.
• Flexible certificates for saving during uncertain timelines.

The following table summarizes the savings accounts recommended for each business type.

SMART SAVING: CHOOSING A BUSINESS SAVINGS ACCOUNT 

Wondering which combination of savings accounts is right for you? The above recommendations should help, but every business’s needs are unique. Here are some things to consider as you decide which savings options are going to work with you.

1. LIQUIDITY NEEDS 

How much money will you need to cover unexpected expenses or emergencies? For a new business or sole proprietorship, this can be a significant amount. Basic savings and money market accounts provide easy access to funds, while more flexible, short-term certificates allow you to earn better dividends while contributing as you’re able.

2. LONG-TERM VS. SHORT-TERM GOALS 

Take a good look at your business’s long-term and short-term goals. Your account choices need to help you save for the long term while also keeping money available for upcoming needs. 

As your business matures you want to increasingly establish long-term savings with regular, planned contributions to a structured savings certificate. However, a money market account will often suffice for upcoming needs of unplanned expenses.  

3. RISK TOLERANCE 

Decide with your partners how much risk you are willing to bear on behalf of your company. For start-ups and early-stage companies, this may be significant as they seek to gain a foothold in the market. Companies like this will likely prioritize basic savings accounts with low minimum balances that keep money close and allow funds to be spent down with no penalty.

Less risk-tolerant, established companies have obligations to employees, suppliers, and partners. They need to plan well ahead to meet commitments so long-term saving is essential. Structured certificate accounts can be a big part of this strategy.

4. ACCESSIBILITY & FLEXIBILITY 

While savings and money market accounts keep your money readily available, it’s important to think about the accessibility of your funds and your ability to contribute when investing in term certificate accounts.

Consider whether you can do without invested funds for weeks or months at a time. Also, assess if you can make regular or scheduled contributions via direct debit to a structured certificate product over the long term.

5. EXPECTED GROWTH & SAVINGS HABITS 

Be realistic about how much growth you expect to see from your company in the coming years and months. If rapid growth is expected, prioritize keeping plenty of cash on hand. For steady or gradual growth, focus on meeting long-term needs.

Be honest about your savings habits. If you're highly organized, managing various savings products with different requirements and returns may suit you. If not, avoid relying too much on basic savings and money market accounts. Instead, opt for a structured product that automates savings.

WASATCH PEAKS: YOUR BUSINESS SAVINGS PARTNER

Different businesses have different saving needs, and these needs change over time. It pays to have an experienced, knowledgeable partner who can help you choose the best combination of saving products for today and into the future.

As Wasatch Peaks Credit Union, we build long-term relationships with our business members by offering a full range of savings accounts designed for every stage of your company’s journey. These include:

BUSINESS SHARE SAVINGS ACCOUNTS

The Business Share Savings Account is your primary or qualifying account when your business joins Wasatch Peaks. It’s a straightforward account. It offers:

• Competitive dividends
• A minimum deposit of only $5 to maintain.
• Your money is always available (subject to transaction restrictions)

BUSINESS MONEY MARKET ACCOUNTS

Our Business Money Market Account lets you earn more on your savings without the term restrictions of certificates. It features:

• Tiered rates – the higher the balance, the higher the dividend paid
• No term restrictions or minimum balance to open
• Add any amount of money at any time

FLEX CERTIFICATES 

Flex Certificates are designed for flexible, shorter-term savings with better rates than savings or money market accounts.

• Minimum balance $50, computed daily, paid monthly
• Deposit anytime up to $100,000
• Withdrawals are allowed the first three business days of each quarter (January/April/July/October)

DEDICATED SAVER CERTIFICATES 

A Dedicated Saver Certificate is a great way to save for pre-planned expenses through the convenience of Direct Deposit.

• Higher interest rates, and choice of terms from 3 to 60 months
• Automatic transfer or payroll deduction (required)
• Start with a minimum deposit of $10 per month (required)
• Make one manual transfer of a maximum of $10,000 per month

Ready to get serious about business savings? Click below to learn more about our smart saving solutions for businesses like yours.

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