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When you’re deciding where to store your company’s cash reserves, a business money market account (MMA) is an option worth considering.
Business MMAs often provide slightly higher interest rates than standard savings accounts, so your money can earn more interest. And if you need to draw from the fund to buy a new server or cover payroll when times are tough, withdrawals are free and convenient.
This guide dives into the nuances of business MMAs to help you make an informed decision, covering topics such as:
Ready to dig in? Let’s take a look at the business money market accounts with the highest rates.
Why we like it
U.S. Bank offers three MMAs for business customers, but the most attractive is the Platinum business money market account. We like this option for companies that intend to maintain a balance of at least $25,000 — when you do, you’ll get a bonus annual percentage yield (APY) of up to 4.25% on top of the standard APY.
If your U.S. Bank MMA account balance falls between $25,000 and $49,999.99, it would earn the standard APY of 0.05% plus the bonus for a total APY of 4.30%. That’s a significantly higher rate than most business savings accounts.
An overview
| APY | Minimum deposit | Monthly fee |
|---|---|---|
| 0.05% to 1.15%, plus bonus of up to 4.25% | $100 | $15 (waived with $10,000 minimum balance) |
*Figures are correct as of July 2024.
Why we like it
The online mph.bank offers a money market account via the Raisin digital platform. While this product isn’t exclusively geared toward businesses, it comes with a 4.7% APY that can add significant value for your company.
The mph.bank MMA is a great option for smaller companies and sole proprietorships — you can open it with as little as $1 and make additional deposits to build up a cash reserve. The account allows unlimited deposits and withdrawals, and because it’s administered through Raisin, there are no monthly fees.
An overview
| APY | Minimum deposit | Monthly fee |
|---|---|---|
| 4.7% | $1 | $0 |
*Figures are correct as of July 2024.
Why we like it
With an APY of 5.25%, the MMA from Harborstone Credit Union has one of the best business money market rates available today. Assuming the rate stays steady, you can deposit $50,000, leave it for a year and end up with a balance that’s $2,626 higher. This account is available only through Raisin, which means you’ll get the platform’s standard benefits: a $1 minimum deposit and no monthly fees. Withdrawals and deposits are unlimited.
An overview
| APY | Minimum deposit | Monthly fee |
|---|---|---|
| 5.25% | $1 | $0 |
*Figures are correct as of July 2024.
Why we like it
Want the highest business money market rates? Look no further than the Ponce Bank money market deposit account, which has an APY of 5.26%. That’s nearly eight times higher than the current national average for money market accounts. The Ponce Bank MMA is available through Raisin, which means you won’t pay monthly fees.
An overview
| APY | Minimum deposit | Monthly fee |
|---|---|---|
| 5.26% | $1 | $0 |
*Figures are correct as of July 2024.
Why we like it
The Key Business Select Money Market Savings® account may be a good place to keep your savings — but only if you already have a KeyBank business checking account or line of credit.
Eligible “Relationship Rate” customers who deposit at least $25,000 in the MMA and maintain a balance of at least $25,000 can get a six-month bonus interest rate — 3% for balances between $5,000 and $24,999.99 and 4.5% for balances of $25,000 and higher.
After that, the Relationship Rate APY drops to 3.05% for balances of $5,000 and above. Keep in mind that KeyBank accounts are not available in all states.
An overview
| APY | Minimum deposit | Monthly fee |
|---|---|---|
| 0.05% - 1.26% standard, up to 4.5% with bonus APY or Relationship Rates | $5,000 | $20 (waived with $25,000.00 minimum balance or a Key Business Reward checking account) |
*Figures are correct as of July 2024.
Why we like it
When your priority is simplicity, the Quontic money market account delivers. It offers an impressive 5.00% APY, regardless of your balance. The minimum deposit is just $100, and there are no monthly fees.
In return, you’ll get a debit card with fee-free withdrawals at 90,000 ATMS, check-writing privileges and easy account management using the app and website. The customer support team is entirely based in the United States.
An overview
| APY | Minimum deposit | Monthly fee |
|---|---|---|
| 5.00% | $100 | $0 |
*Figures are correct as of July 2024.
Why we like it
The First Business Money Market account from FVCbank is a solid option for businesses of all sizes. The minimum opening deposit is just $200, and you can avoid the monthly fee by making sure there’s at least $2,500 in the account at all times.
Interest rates are tiered, with higher balances earning more. Make sure you’re comfortable with online banking before signing up — statements are digital, and you’ll need to manage this account online or FVCbank’s handy mobile app.
An overview
| APY | Minimum deposit | Monthly fee |
|---|---|---|
| Call for current rates | $200 | $12 (waived for balances of $2,500 or more) |
*Figures are correct as of July 2024.
A business money market account is a type of savings account that holds your company’s excess cash.
The money earns interest at rates of up to 5.26%, which is comparable to a high-yield savings account (HYSA). However, MMAs have an important advantage: they enable you to access your savings using a debit card, check or bank transfer.
Interest rates can be dramatically different depending on the bank and your balance, so it’s important to do your research. Online banks and MMAs offered through Raisin often have the best APYs, even for low balances. At a traditional bank, lower balances may earn an APY of 0.05% or lower.
Keep in mind that interest rates on MMAs are variable, which means they may change.
A business money market account is a safe place to store your company’s excess cash.
Interest rates are higher than traditional business savings accounts, so your balance grows faster. And because most banks allow free withdrawals, an MMA can also be a great place to build an emergency fund.
Here are some of the advantages and disadvantages of business money market accounts.
Pros of business MMAs include:
Cons of business MMAs include:
Most business money market accounts come in one of two types: traditional or high yield.
Traditional MMAs, which are often administered through brick-and-mortar banks, usually have lower interest rates. The APYs can be as low as 0.01% to 0.05%, particularly for accounts with smaller balances. This type of account often uses a tiered rate structure, with APYs that increase with each successive balance tier.
A high-yield MMA has rates that are comparable to a high-yield savings account — often, 5% or higher. These accounts are typically available through online banks or the online arm of a traditional bank.
A business money market account could be right for your company if:
Companies with solid savings will benefit most from a business MMA. Choose an account with a rate of 5% or higher and deposit a large sum, and you can earn a significant amount in interest.
Keep these factors in mind as you select a business MMA:
Opening a business money market requires a straightforward process:
Not sure if a business MMA is the right choice? You might be better off with an alternative.
Business savings accounts often have lower interest rates than business MMAs. Both savings and money market accounts allow unlimited deposits, but savings account withdrawals are usually limited to wires and transfers.
A business certificate of deposit (CD) may give you a higher interest rate than an MMA. CD rates are fixed, which makes it easier to predict your earnings. However, you’ll need to leave the money in the CD for the entire term to avoid early withdrawal penalties.
If you plan to make frequent deposits and withdrawals, a business checking account is a good option. Like business MMAs, these accounts come with debit cards, check-writing privileges and transfers. They usually have lower interest rates, and many come without minimum balance requirements.
A business money market account can be worth it for companies that want to maximize interest earnings on their cash reserves while maintaining easy access to the money.
The money market account with the best rates is the Ponce Bank MMA available through Raisin. It has an APY of 5.26%.
If you want the most convenient withdrawal options, get a business money market account. If you want the highest rates and you don’t mind being limited to bank transfers, a high-yield business savings account can help you earn more.
Business money market accounts may have minimum requirements for your initial deposit, and some offer the highest rates only to companies with high balances ($25,000 to $100,000 or more). Rates are variable, so they’re subject to change.
Business money market accounts are safe, as long as you choose a product that’s FDIC-insured.
Elizabeth Smith is an experienced travel and finance writer who specializes in topics including credit cards, travel insurance, and personal finance. Travel insurance, in particular, has both professional and personal significance for Smith. She’s traveled to 73 countries, and has extensive experience choosing and using various policies — she understands how valuable the right plan can be in an emergency, and loves to help readers find the perfect fit.
Smith comes to the world of finance from a scientific and technical background. She spent more than 10 years writing about engineering, science, and technology for universities and private companies. When she’s not writing or traveling, Smith can usually be found hiking or Nordic skiing.
Blake Esken has over 15 years of experience in product management and has been a member of the Los Angeles Times staff for over five years.
As part of his role at the Los Angeles Times Commerce Team, Blake acts as the in-house reviewer and fact checker for LA Times Compare. He supervises all content for compliance and accuracy and puts to use skills he has honed through years of experience managing high-stakes projects for a range of industry-leading companies.
He has a strong background in data analysis, compliance, and communication, which allows him to support LA Times Compare through fact-checking in an effort to provide up-to-date and factual information across our content.
