Best Bank Option?

[mae0111]

Hello - 

I'm researching a good bank for DH's business account.  He runs a small business with 9 employees, and right now, excess cash is sitting in a checking account at a local bank, earning 0% interest.  We're trying to find a good high yield business savings.  Capital One business is only offering 4.15% for 6 months, then it drops to 0.1%. So I'm looking at others.

Top on my list so far:

Live Oak - 4% and links to quickbooks, which is a plus.
Bask Bank - 5.1%
Lili - 4.15%, but there's a cap.  Assets over $100K do not earn any interest.
First Internet Bank - .91%, or 3.46% for a money market account.  DH is reluctant to use a money market or CDs, just in case he needs money fast.

Other banks that offer good rates for personal accounts don't offer great options for business accounts.

So... does anyone have any experience with any of these banks?  Or do you have any other recommendations, especially if you own/work for a small business?

Thank you!

[ellipses84]

My business account is with Wells Fargo but it isn’t as complex as your DH’s and doesn’t have a large balance. Have you checked with your local credit unions?

[ellipses84]

I should also note that Credit Unions aren’t FDIC insured by the Gov’t, they should be insured by the National Credit Union Administration (NCUA). Whatever account you get, make sure it’s insured and that the amount in the account isn’t over the limit. If the balance is that high, an insured online high yield account(s) with a different banks would be a good way to go.

[k3am]

Depending on how much you consider "excess cash" - the posted rate isn't always the best rate you can get. We give out rate exceptions all the time. But it's not just for transactional accounts - we want a relationship, and if we need to give a rate exception to do it, we will. This is the case at every business bank I've worked at. We are never the highest available rate, even with the exception, but you also need to consider the value of the banking relationship. A local community bank is generally a great fit for a business vs. a national bank - you will never hit a national brand's tier for premier service.

ellipses84 , no need for accounts a multiple banks for full FDIC coverage. Most banks offer an intrafi account and they farm out the balances to get full FDIC coverage beyond the per bank limits without the need for multiple accounts. I think it can get to the $50MM range.

[mae0111]

Thank you! It’s a small business, not a ton of free cash but usually low to mid 6 figures. He has a relationship with a small local bank, and they have no high yield savings options at all. Only CDs, and he doesn’t want to tie up the cash like that. So I started looking online.

I will keep looking and try our local bank again.

[carieuu]

I recently tried to set up an account with Bask Bank. However, I could never get my existing bank (USAA) to recognize them to initiate a transfer nor the other way around (using micro transactions to confirm). Eventually I got frustrated and moved money to Vanguard's Cash Plus Account instead. The interest rate is a little lower (4.6%), but I had an existing ability to transfer money so it was a much faster process. Not sure if the Cash Plus Account is an option for a business account though!

[k3am]

mae0111, are you looking for their rates for HYSA's online (or even trying to find the product!) or asking your relationship manager there? We don't offer high yield savings accounts, so if someone was just trying to browse for a rate sheet, they wouldn't find it.

[mae0111]

May 29, 2024 17:46:54 GMT -5 k3am said:

mae0111, are you looking for their rates for HYSA's online (or even trying to find the product!) or asking your relationship manager there? We don't offer high yield savings accounts, so if someone was just trying to browse for a rate sheet, they wouldn't find it.

We spoke to our relationship manager (I’ve been on the business account since we opened it, I’ve met with him several times even though I’m not technically an employee yet). He told us they have nothing, but that was a while ago… maybe now that there has been a good amount in the business account for the past several years, they’ll offer us something if we ask again? I will check it out. Thanks!

[mae0111]

May 29, 2024 16:10:28 GMT -5 carieuu said:

I recently tried to set up an account with Bask Bank. However, I could never get my existing bank (USAA) to recognize them to initiate a transfer nor the other way around (using micro transactions to confirm). Eventually I got frustrated and moved money to Vanguard's Cash Plus Account instead. The interest rate is a little lower (4.6%), but I had an existing ability to transfer money so it was a much faster process. Not sure if the Cash Plus Account is an option for a business account though!

That’s good to know - thank you!!