Exploring the different types of business bank accounts
- Money transfer
- International business
Various business account types offer specialised features tailored to the needs of different enterprises:
- Checking account
- Savings account
- Foreign currency account
- Investment account
- Certificates of deposits (CD)
- Merchant account
- Money market account (MMA)
We show you different types of business bank accounts as well as examples of providers in different countries, so that you can make a sound financial decision for your business.
Business checking account: The most versatile business account type
A business checking account is required for most businesses and serves as the central hub for a company’s financial operations, providing a convenient and secure way to manage the cash flow.
Unlike personal checking accounts, business checking accounts typically offer features like the ability to process a higher volume of transactions, access to specialised business banking services and integration with accounting software for streamlined record-keeping.
Additionally, many banks offer business checking accounts with varying fee structures and account minimums, allowing businesses to choose an option that aligns with their financial needs and goals.
| Barclays business account | HSBC small business banking account | Lloyds Bank business account | |
|---|---|---|---|
| Subscription fee | First 12 months: free. After: £8.50/month | First 12 months: free. After: £8.00/month | First 12 months: free. After: £8.50/month |
| Debit card payments | Free | Free | No annual fee and a contactless limit of £100 |
| SEPA payments | 35p | 20p | £5 |
| International payments | Starting from £15 | Starting from £17 | Starting from £15 |
Business savings account: Hedging against inflation
A business savings account operates much like a personal savings account, but it’s tailored for business purposes. Depending on the bank or the specific account, your business might need to fulfil deposit or balance criteria or pay a monthly service fee to keep a business savings account or accrue interest. This is valuable for businesses that have a surplus and need to hedge against inflation.
It is important to note that some savings accounts may have restrictions or penalties associated with large withdrawals or closing the account, such as minimum balance requirements or early withdrawal fees.
| Sparkasse daily deposit account | ING daily deposit account | DKB Business daily deposit account | |
|---|---|---|---|
| Interest rate | 1-1.5% p.a., depending on the institution | First 6 months 3.3% p.a. After that variable interest rate of 1.5% p.a. | 2% p.a. |
| Interest credit | Monthly | Monthly | Quarterly |
| Minimum investment | €1 | €0 | €0 |
Business foreign currency account: Receive and hold multiple currencies
A business foreign currency account allows businesses to receive, hold and spend foreign currencies. These accounts enable businesses to conduct international transactions, such as receiving payments from overseas clients or making payments to suppliers in foreign currencies, without the need to convert currencies for each transaction.
Businesses may open foreign currency accounts with banks or financial institutions in various currencies. Depending on the provider and currencies offered, these accounts provide multiple advantages such as minimising currency exchange fees and protecting against currency fluctuations. Fintech providers nowadays also offer multi-currency accounts: a business account type that allows users to send and receive multiple foreign currencies centrally with a single IBAN.
| amnis | Revolut | PayPal | |
|---|---|---|---|
| Currencies | Receive, hold and send 20+currencies to over 200 countries | Exchange, hold, send, and spend money in 25+ currencies | Hold up to 21 currencies |
| FX fees | Starting from 0.20% | N/A | ~3.5%-4%, depending on the currency |
| Local payments | Local payment schemes for more than 20 countries | Limited local payment schemes | No local payment schemes |
Simplify your financial operations with amnis: Access Swiss and German IBAN accounts, free local payments, balance cashback on foreign currency accounts, 0% fee debit cards and transparent currency exchange on an all-in-one 24/7 self-service platform – all designed to save you time and money. Let amnis handle the details, while you focus on growing your business.
Business investment account: More risks & more rewards than savings accounts
A business investment account allows businesses to invest surplus funds in various assets with the goal of generating returns. These accounts offer businesses the opportunity to diversify their holdings beyond traditional savings or checking accounts. Investments may include stocks, bonds, mutual funds, exchange-traded funds (ETFs), or other securities, depending on the risk tolerance and investment strategy of the business.
Business investment accounts may be managed by financial institutions or investment firms, and they often provide access to investment advisors or online trading platforms to facilitate investment decisions. The primary aim of a business investment account is to help businesses optimise their cash management and potentially earn higher returns on their idle funds.
| Interactive Brokers | Bank of America | Fidelity | |
|---|---|---|---|
| Account type | For corporations, partnerships, limited liability corporations and unincorporated legal structures | Merrill Edge® Self‑Directed Business Investor Account (BIA Account) | Brokerage account for businesses |
| Trading options | Stocks, options, futures, currencies, bonds and funds | Mutual funds, stocks, fixed income and other securities | Stocks, bonds, and options |
| Markets | 150 markets in 34 countries | USA | USA |
Business certificates of deposits (CD) account: Locked funds, high interest
Business certificates of deposit (CD) accounts are special business bank account types, where a business deposits a sum of money for a fixed period, typically ranging from a few months to several years, in exchange for a fixed interest rate. These accounts usually offer higher interest rates compared to regular savings or checking accounts.
Once the funds are deposited, they are “locked in” for the duration of the CD term, meaning the business cannot access the money without incurring penalties. At maturity, the business can withdraw the initial deposit plus the accrued interest. CDs are considered low-risk investments, making them attractive for businesses to earn higher returns while preserving their capital.
| Chase Bank | U.S. Bank | Community America | |
|---|---|---|---|
| Account type | Business CD account | CD Special | Business CD account |
| Interest rate | ~0.02%-5.00%, depending on location, amount and time frame | ~4.21%-4.31% | ~2.96%-5.13% |
| Minimum investment | $1,000 | $1,000 | $500 |
| Timeframe | 31 days to 10 years | 7 months to 11 months | 3 months to 5 years |
Business merchant account: More payment options for your customers
A business merchant account is a specialised type of bank account that enables businesses to accept payments via credit or debit cards. These accounts facilitate electronic transactions, allowing businesses to process payments from customers using various payment methods such as credit cards, debit cards and digital wallets.
Merchant accounts are typically provided by banks or financial providers, and they are essential for businesses that engage in e-commerce or accept card payments in-person. They may also offer additional features such as fraud prevention tools, reporting capabilities and integration with point-of-sale systems to streamline payment processing.
| PayPal | Stripe | Square | |
|---|---|---|---|
| Features | Business card and e-commerce support | Single integration for global payments | Offers integrations for personal, online, remote payments |
| Transaction costs | 3.49% + 0.49 USD (plus 1.5% for international transactions) | 2.9% + 30¢ per successful charge | Starting at 2.6% + 10 cents per transaction |
| Availability | 202 countries, 25 currencies | 135+ currencies | No multi-currency support |
Business money market account (MMA): Middle ground between savings accounts and CD accounts
A Business Money Market Account (MMA) is a type of deposit account offered by banks and financial institutions that combines features of both savings and checking accounts. Similar to a traditional savings account, these business bank account types allow businesses to earn interest on their deposited funds, typically at higher rates than regular savings accounts.
One key feature of a business MMA is its ability to invest deposited funds in low-risk securities, such as government bonds or short-term corporate debt, to generate higher returns. These investments help financial institutions offer competitive interest rates to MMA holders while maintaining liquidity.
| nbkc bank | U.S. Bank | First Republic | |
|---|---|---|---|
| Account type | Business MMA account | Platinum Business Money Market account | Business MMA account |
| Interest rate | 2.71% | ~0.05%-1.15%, depending on location, amount and time frame | ~1.29%-1.39%, depending on location, amount and time frame |
| Minimum balance | $0.01 | $100 | $5,000 |
Make the most of your business account with amnis
amnis provides multi-currency accounts with both physical and virtual debit cards, starting from 0 EUR/month. Businesses can send, receive, and hold multiple currencies and benefit from interest on foreign currency balances. Plus, free local payment options are available across Europe and America, regardless of your business location.
Tip: Open a free demo account today to discover how much you could save with amnis.
Sources (21.05.2024):
Barclays: https://www.barclays.co.uk/content/dam/documents/business/Accounts/BAR_9918661_0922_WCAG.pdf
HSBC UK: https://www.business.hsbc.uk/en-gb/products/start-up-business-bank-account
Lloydsbank: https://www.lloydsbank.com/assets/assets-business-banking/pdfs/lb-account-charges-and-processing-times.pdf
Sparkasse: https://www.sparkasse-dortmund.de/fi/home/produkte/geldanlage/tagesgeld.html
ING: https://www.ing.de/business/extra-konto/firmentagesgeld/
DKB: https://www.dkb.de/geschaeftskunden/konto-anlage/anlageprodukte
Interactivebrokers: https://www.interactivebrokers.com/en/accounts/small-business.php
Merril: https://olui2.fs.ml.com/publish/content/application/pdf/gwmol/biaaccountapplicationandagreement.pdf
Fidelity: https://www.fidelity.com/open-account/fidelity-account-for-businesses
CHASE: https://www.chase.com/business/banking/savings/business-cd-rates
usbank: https://www.usbank.com/business-banking/business-bank-accounts/business-savings/business-cds.html
Community America: https://www.communityamerica.com/business/bank/accounts/business-certificates-of-deposit
PayPal: https://www.paypal.com/us/business
stripe: https://stripe.com/pricing
Square: https://squareup.com/us/en/payments
Nbkc bank: https://www.nbkc.com/business/money-market
usbank: https://www.usbank.com/business-banking/business-bank-accounts/business-savings/money-market.html
First Republic: https://www.firstrepublic.com/current-deposit-rates?rateType=Business%20Money%20Market
Revolut: https://www.revolut.com/business/business-account-plans/
PayPal: https://www.paypal.com/us/brc/article/how-to-accept-foreign-currency-with-your-business-account