Key takeaways
- Banks sometimes offer bonuses for opening business savings accounts, although these perks are more common with business checking accounts.
- Interest-bearing checking and money market accounts are a smart way for businesses to earn a return on their savings while collecting a sign-on bonus.
- Be sure to weigh bonuses against perks other banks might offer, such as higher interest rates, better features or more convenience.
If you’re holding on to extra cash in your business account, you probably want to ensure it’s earning as high a return as possible. For most businesses, that means opening a business savings account.
While interest rate, convenience and account features should be your top priorities in selecting a bank, bonuses can also be a factor. A substantial business banking bonus could compensate for a slightly lower rate or act as a tie-breaker when comparing two similar accounts.
Common business bank account bonuses
In the latter part of the 20th century, banks were notorious for giving away a strange assortment of bonuses to new customers, including toasters, phones, cookware and clocks. All that changed when the Dodd-Frank Act passed in 2010, allowing banks to pay interest on commercial checking accounts. Today, banks focus on promoting their interest rates and leave marketing electronics to retail stores.
But banks still use bonuses — including business account bonuses — to entice customers to open new accounts. These days, those bonuses are nearly always in the form of cash or a higher interest rate.
Most bank bonuses are paid out after a set period, such as six months or a year. To earn the bonus, you must keep the account open for the entire period, and possibly maintain a minimum balance or initiate a certain number of transactions. A few banks pay annual bonuses, and credit unions pay out a share of profits as an annual dividend.
Where to find business bank bonuses
Banks are more inclined to offer bonuses for business checking accounts than savings, but it’s possible to find savings account promotions at a few banks. Here are a few examples of banks that often offer business savings account bonuses:
- AmeriCU: Typically offers promotional interest rates for new BusinessShare certificates opened at this credit union.
- Axos Bank: Regularly features cash bonuses for qualifying new Business Premium Savings accounts.
- Banner Bank: Periodically provides cash incentives when you open a business savings or money market account with a qualifying minimum balance.
- Capital One Bank: Often runs promotions featuring bonus interest rates for new business savings accounts during an introductory period.
Money market and interest-bearing checking accounts
Money market accounts and interest-bearing checking accounts also offer a chance to earn a return on your savings — and many come with bonuses. These accounts provide an attractive alternative when you want to earn a high return on your spare cash while maintaining easier access.
- American Express: Frequently offers Membership Rewards® point bonuses for opening qualifying business accounts.
- Bluevine: Provides competitive interest rates on business checking accounts with tiered rates based on the plan you choose.
- Huntington Bank: Periodically runs promotions for new business checking accounts, including interest-bearing money market options.
- US Bank: Often offers promotional interest rates for new Platinum Business Money Market Accounts.
Bonuses change frequently, so always check the bank’s website for the most up-to-date information.
Key considerations when comparing account promotions
There are several factors to keep in mind when you’re considering opening a new business account.
Interest rate
If you’re looking to earn more from your business savings accounts, the APY is more important than the sign-on bonus. While a $400 sign-on bonus might look appealing, a higher APY could earn you more in the long run.
For instance, if you have a $50,000 balance and your interest is compounded daily, a 1 percent change in interest rate can equal a yield increase of over $500 a year. In that case, an account paying 4.25 percent with no bonus will earn you more than a 3.25 percent interest rate and a $400 bonus.
You can use our free compound interest savings calculator to quickly compare your options.
Qualification requirements
Read the fine print carefully if you’re opening an account mainly to earn a bonus, as they often come with strings attached. You’ll usually be required to keep your account open for a set period to earn your bonus. It’s also common for banks to tie your bonus to certain behaviors, such as spending a specific amount per month through your debit card, linking to another account or setting up direct deposit.
Account features
Accounts sometimes offer other features you may value more than a business banking bonus. Some questions to ask yourself about features include:
- Will this account integrate with your bookkeeping software, or will you have to pay someone to enter transactions manually?
- Can you easily send and receive funds using ACH transfers, Zelle and other tools?
- Can you set up access for authorized employees, like your bookkeeper or office manager?
Minimum balance
Most bank accounts require you to maintain a minimum balance to earn interest or avoid a fee. You might also forfeit your bonus if your balance drops below the threshold.
Fees
Review the fee structure before opening any bank account. Some banks charge no or minimal fees, while others charge for various services. High fees can quickly eat up your bonus and any earnings from interest. Watch for:
- Monthly fees
- Transaction fees
- Cash handling fees
- Overdraft fees
- Fees for falling below your minimum balance
- Fees for sending or receiving wires
- Foreign exchange fees
- ATM fees
Convenience
Before opening an account to earn a bonus, consider how it will impact your banking life.
For example, if your checking and savings accounts are at the same bank, you can usually transfer funds between them instantly. However, if you open accounts with different banks, it could take up to a week to transfer funds. That’s a week where you’re not earning interest and don’t have access to your money.
Consider your cash needs as well. If your business operates mostly online, you might do well with an online-only bank. But if you run a retail business that handles cash, you’ll need to make deposits at a local branch.
Why your business needs a savings account
If your business has a large bank balance and isn’t earning interest on that money, you’re leaving money on the table. There are several reasons a business might be carrying a large cash balance:
- Receiving a loan or investment capital that will be spent slowly over time
- Holding cash reserves to be used during a future slow period
- Pooling profits for a future major purchase
- Collecting deposits from customers that must be kept liquid
- Reserving cash for taxes or paying dividends to shareholders
Moving that money to a savings account, interest-bearing checking account, money market or certificate of deposit (CD) is a wise choice — and not just for the bonus. Savings accounts help your money work for you by earning compounding interest over time.
The bottom line
Bonuses for opening new business accounts usually come in the form of cash rewards or higher interest rates. You’re more likely to earn a bonus if you keep your savings in an interest-bearing checking or money market account, but you can occasionally find incentives for opening business savings accounts.
These promotions can be a worthwhile incentive to choose a particular bank. However, it’s important to consider other factors when making banking choices for your business. Use an interest calculator to compare accounts that offer bonuses against those offering higher rates, and be sure to consider fees, convenience and other account features when comparing accounts.
Frequently asked questions
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