If your company has some spare cash and you want to give it the opportunity to earn interest, consider a business money market account (MMA). Like a regular business checking account, a business MMA usually has the ability to write checks and comes with a debit card for withdrawing money from ATMs, but it should offer higher interest rates.
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$5 (waived if your average daily balance is $4,000) |
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$15 (waived if minimum daily balance is $10,000) |
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Prime Alliance Bank Business Money Market Account |
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TD Bank Small Business Premium Money Market Account |
$15 (waived if minimum daily balance is $2,500) |
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BMO Elite Business Money Market |
1.00% (higher rates available with relationship packages) |
$15 (waived if minimum daily balance is $5,000) |
*APY as of 05/07/2024.
Best Business MMA Picks
Best for large balances: First Internet Bank
First Internet Bank's Business MMA is ideal for businesses with large amounts of cash. It offers significantly higher yields than most other banks, at 3.46% on balances up to $5 million and 5.48% on balances over $5 million. The minimum deposit is $100, and the $5 monthly fee is waived if you maintain a balance of $4,000.
Why did you choose it?: We chose First Internet Bank's Business MMA because it offers the best interest rates on balances over $5 million and has low, easily waived monthly fees.
Strong Points:
- High APY.
- The monthly fee is low.
Cons:
- The number of transactions per month is limited to six.
- ATM cards are only available to sole proprietors.
- There are no physical bank branches.
Highest Overall APY: US Bank Platinum
If earning a high annual percentage yield (APY) is your main goal, consider the US Bank Platinum MMA. If you open your account by June 5, 2024, you can earn up to 4.60%. A minimum deposit of $100 is required to open the account, but to get the best interest rate, you'll need to deposit at least $25,000. The account has a $10 monthly fee, but the fee is waived if your balance is over $10,000.
Why did you choose it?: I chose US Bank Platinum because it offers a higher APY than many of its competitors.
Strong Points:
- High APY.
- Ability to write checks.
- Low minimum initial deposit.
Cons:
- You need a high balance to get the highest APY.
- A high balance is required to waive the monthly fee.
Best for low balance and high APY: TAB Bank
If you're just starting out in business, you may need a Business MMA, but haven't had a chance to build up a substantial cash reserve yet. With the TAB Bank Business MMA, you can earn 4.00% APY on all balances under $1 million, plus an additional 0.25% yield on balances over $1 million. With no monthly maintenance fees, you can keep more of your money.
Why did you choose it?: I chose TAB Bank’s Business MMA because it offers a high APY even on low balances, making it ideal for new businesses.
Strong Points:
- High APY on all account balances.
- There are no monthly maintenance fees.
- The minimum deposit required is low.
Cons:
- The number of transactions per month is limited to six.
- If you have a higher balance, your APY will be lower.
Best Rates Under $100,000: Prime Alliance Bank Business Money Market Account
If you're looking for great interest rates and no fees, consider Prime Alliance Bank's Business Money Market Account. All balances under $100,000 earn a 3.85% annual interest rate. Balances between $100,000 and $199,999.99 earn a 4.05% annual interest rate. Balances over $200,000 earn a 4.25% annual interest rate.
Why did you choose it?
I chose Prime Alliance Bank's Business Money Market Account because it offers a high APY on balances under $100,000.
Strong Points:
- Competitive APY
- No fees
- No minimum deposit
Cons:
- Established one branch in Utah
- Limited customer service available
Best no fees: NBKC Bank
The nbkc Business MMA earns you a high 2.75% interest rate on all balances, has no monthly maintenance or overdraft fees, no minimum balance or opening deposit required, and also offers the nbkc Business Debit Mastercard, which allows you to withdraw cash at over 37,000 ATMs nationwide.
Unlike many other business MMAs, nbkc accounts do not have any restrictions on the number of times you can transfer, withdraw or deposit funds.
Why did you choose it?: I chose nbkc Business MMA because it has no fees, offers an attractive APY regardless of balance, and has no limits on the number of transactions per month.
Strong Points:
- No fees.
- Generous APY.
- There are no monthly trading limits.
Cons:
- There is no phone customer support on weekends.
- Higher APYs are available elsewhere.
Best for low minimum deposits: TD Bank Small Business Premium Money Market Account
Brick-and-mortar banks typically offer significantly lower APYs than many online banks, but TD Bank's Premium Money Market Account for Small Businesses offers a tiered APY system with rates up to 2.43%. Another attractive feature of TD Bank's Business Money Market Account is that the minimum deposit required to open is just $25.
This account has a monthly maintenance fee of $15, but this fee is waived if you maintain a minimum balance of $2,500 each month. Account holders can also issue up to six checks each month from this account.
Why did you choose it?: I chose the TD Bank Small Business Premium Money Market Account because of its low minimum deposit requirements and competitive APY.
Strong Points:
- Competitive APY
- Low minimum deposit amount
- Check your writing skills
Cons:
- Monthly maintenance fee
- Not available nationwide
Best for Relationship Bonuses: BMO Elite Business Money Markets
With recent acquisitions, BMO has expanded its footprint across the U.S. The BMO Elite Business Money Market Account has become popular due to its relationship packages. The base APY is 1.00%, but you can earn more depending on the total amount you deposit with BMO. The relationship tiers are as follows:
- Elite Gold ($100,000-$249,999.99): Base rate + 1.00%
- Elite Platinum ($250,000-$499,999.99): Base rate + 2.00%
- Elite Diamond (over $500,000): Base rate + 2.50%
Why did you choose it?: We chose the BMO Elite Business Money Market Account because of the relationship bonuses it offers customers. Some banks require you to have more than $1 million in deposits to get the top interest rate, but BMO makes that a bit easier to achieve.
Strong Points:
- Competitive APY with Relationship Bonuses
- Low minimum deposit amount
Cons:
- Monthly maintenance fee
- Limited to 6 trades per month
Our Methodology
We researched dozens of banks and considered several factors to select the best business MMAs possible, including APY, minimums, transaction limits, fees, etc. We also scrutinized the fine print of each account to make sure all information is transparent for anyone considering signing up for an account.
How to Choose the Right Business MMA
There are a number of factors to consider when choosing a business MMA. These include:
Annual Interest
APY represents the amount of interest you earn each month on your account balance, and this was the most important factor we considered.
Fee
After the APY, you'll need to consider account fees. Some banks charge a monthly maintenance fee that you can avoid by maintaining a minimum balance, while others don't charge any fees at all.
Minimum Opening Deposit
Many banks require a minimum deposit to open an account, so make sure it's an amount that your business can manage. Some banks don't have a minimum deposit, which may be more appealing.
Digital Tools
Make sure your bank offers a robust digital experience, including apps that let you deposit checks, transfer funds, and manage other aspects of your account from your smartphone, tablet, or computer.
Customer Satisfaction
Check the bank's Better Business Bureau and Trustpilot reviews to see what other customers have to say. This should give you an idea of what your experience will be like. Of course, all reviews are subjective and opinions can vary widely.
Alternatives to Business MMA
Business MMA isn't for everyone, so here are some alternatives you can consider.
Business Checking Account
A business checking account is similar to a personal checking account. It is intended for everyday use, whereas an MMA is meant as a place to store excess cash. You can make as many transactions as you like with your checking account. While some business checking accounts earn interest, a business MMA usually offers a higher APY.
Business Savings Account
Business savings accounts are the closest alternative to MMAs. Most accounts earn interest, but it's a fixed APY, unlike MMAs, which often have a tiered interest rate based on your account balance.
More on Business MMA
What are the current business MMA interest rates?
As of April 15, 2024, the average interest rate on an MMA was 0.66%, although many banks on our list have higher interest rates. Banks often offer tiered interest rates, meaning the higher your balance, the higher your interest rate.
What is Business MMA?
Business MMAs are very similar to business savings accounts. Interest rates vary, but the best ones yield 4% or more. Some offer debit cards and check-writing capabilities, making it easy to access your funds. MMAs are insured up to $250,000 by the Federal Deposit Insurance Corporation (FDCI).
How does business MMA work?
MMAs allow you to store cash and earn interest. You can access your funds by transferring them to a checking account. Some accounts allow you to write checks, offer debit cards, or both. Unlike other savings accounts, some MMAs limit the number of transactions you can make each month.
The Pros and Cons of Business MMA
Here are some things to consider before opening this type of account:
Strong Points:
- Competitive APY, with some business MMAs offering rates over 4.00%.
- Low minimum initial deposit. Some accounts have no minimum at all.
- Federally insured. Accounts are insured by the FDIC or the National Credit Union Administration (NCUA) up to $250,000.
- Quick access to cash. You can withdraw funds by check or debit card.
Cons:
- Transaction Limits. You may be limited to six (6) transactions per month.
- Floating interest rate. Unlike fixed-rate certificates of deposit (CDs), interest rates change with the market.
- Monthly fees. Some banks may charge a monthly maintenance fee. However, most banks will waive the fee if you maintain a certain balance.
Timestamp: Business MMA is a great place to park your extra cash
Business MMAs are a great way to earn high interest on your excess cash. A regular savings account gives you unlimited access to your funds but offers a lower APR. A business MMA may limit the number of transactions you can make per month. Still, your funds aren't completely locked up until maturity like a CD.
Frequently Asked Questions (FAQ)
Can businesses invest in money market funds?
Yes, businesses can invest excess cash in money market funds. Money market funds typically allow businesses to earn higher interest rates than bank accounts and have shorter terms (60 days or less). According to the U.S. Chamber of Commerce, “When businesses have cash in excess of their immediate needs, they invest it in money market funds…” [These funds] It invests in highly liquid and low-risk U.S. Treasury bonds, municipal bonds, corporate commercial paper and other short-term securities.”
Can a Limited Liability Company (LLC) have a Business MMA?
Yes you can. LLCs are small businesses and some MMAs are for small businesses. Among the banks on our list, TAB Bank offers high APYs on low balances, which may make it a good fit for LLCs.
