What you need before you walk in or go online

Opening a business savings account requires you to bring proof of your business existence and your identity. Most banks want to see your Employer Identification Number (EIN) — the nine-digit tax ID the IRS assigns to your business — along with a government-issued ID like a driver's license or passport. If your business is brand new and you haven't received an EIN yet, you can request one from the IRS for free online at irs.gov, and many banks will let you use your Social Security Number temporarily while you wait for the EIN to arrive.

You'll also need to decide what type of business structure you have: sole proprietorship, partnership, LLC, S-corp, or C-corp. The bank will ask this question because it affects how the account is taxed and who has signing authority. If you're operating as an LLC or corporation, bring a copy of your formation documents — the Articles of Organization or Articles of Incorporation filed with your state. For a sole proprietorship, you may only need your personal ID and EIN.

Have a starting deposit amount in mind. Most business savings accounts require a minimum opening deposit, which ranges from $0 to $2,500 depending on the bank. Some banks waive the minimum if you set up automatic transfers or maintain a linked checking account with them.

Key Takeaways

  • Bring your EIN, government-issued ID, and proof of business structure (Articles of Organization for an LLC, for example) to open an account in person, or upload them during an online application.
  • Minimum opening deposits vary by bank and account type, ranging from $0 to $2,500, and some banks waive the minimum if you link a checking account.
  • Online banks typically open accounts faster (same day to 2 business days) than brick-and-mortar banks (3 to 5 business days), but you cannot deposit cash at an online bank without a linked account at another institution.
  • Interest rates on business savings accounts are usually lower than rates on money market accounts or CDs, so compare what each bank offers before opening.
  • Once your account is open, the bank will issue you an account number and routing number, which you'll need to set up payroll, receive customer payments, or pay vendors.

Opening in person at a local or national bank

Walk into any branch of your bank with your documents and ask to open a business savings account. Bring your EIN, government ID, and business formation documents if you have them. The banker will ask you questions about your business — what you do, how much revenue you expect, how many employees you have — to verify the account is for genuine business use and to flag any potential money-laundering concerns. This is standard procedure and does not mean the bank suspects anything wrong.

The banker will show you the interest rate the account currently offers, the monthly fees (if any), and the minimum balance required to avoid fees. Ask whether the bank charges for transfers, wire fees, or check deposits. Some banks charge per wire; others include a certain number per month. Write down the fees before you sign anything, because they vary widely.

Once you sign the paperwork, the account opens immediately. You'll receive a debit card and checks within 5 to 10 business days. Your account number and routing number are available right away, so you can start receiving payments or setting up payroll the same day.

Opening online with a digital bank

Online banks like Mercury, Brex, and Novo let you open a business savings account without visiting a branch. Go to the bank's website, click "Open an Account," and upload photos of your EIN letter and government ID. Some banks ask you to verify your identity by answering security questions or confirming recent transactions on a linked personal account.

The application usually takes 10 to 15 minutes. The bank reviews your documents and either approves you the same day or within 1 to 2 business days. Once approved, you can log into your account immediately and see your account number and routing number. You won't receive a physical debit card for 7 to 10 business days, but you can start receiving wire transfers and ACH payments right away.

Online banks typically offer higher interest rates on savings than traditional banks, but they charge fewer fees overall. The trade-off is that you cannot deposit cash directly — you'll need to transfer money from another bank account or receive payments electronically. If your business handles a lot of cash, an online bank may not be the right fit.

Comparing interest rates and fees across banks

Business savings accounts earn interest, but the rate varies by bank and changes monthly. As of early 2024, rates range from 0.01% to 5.35% depending on the bank and the account type. Online banks and credit unions tend to offer higher rates than traditional banks. Before you open an account, check the current rate on the bank's website — do not rely on rates you see in ads or comparison sites, because they change frequently.

Monthly maintenance fees also vary. Some banks charge $5 to $15 per month; others charge nothing. A few banks waive the fee if you maintain a minimum balance (often $1,000 to $10,000) or if you link a checking account. Over a year, a $10 monthly fee costs you $120, so it's worth comparing even if the interest rate is slightly lower elsewhere.

Create a simple spreadsheet listing three to five banks, their current interest rates, their monthly fees, and any minimum balance requirements. Multiply the fee by 12 and subtract it from the annual interest you'd earn on your expected balance. The bank with the highest net return is usually the best choice, unless you need features like in-person deposits or a physical debit card.

What happens after your account opens

Once the account is open, you'll receive an account number and routing number. Write these down and keep them safe — you'll need them to set up direct deposit for payroll, to receive payments from customers via ACH or wire transfer, and to pay vendors. Some banks send these numbers by mail; others show them in your online dashboard immediately.

Log into your online banking portal and set up alerts for deposits and withdrawals. Most banks let you set a threshold — for example, alert me if a deposit is over $5,000 or if the balance drops below $1,000. These alerts help you catch fraud or mistakes quickly.

If you plan to write checks from the business savings account, order checks from the bank or a third-party printer like Deluxe or Costco. Bank checks cost more but arrive faster; third-party checks cost less but take longer. You don't need to order checks immediately — you can use ACH transfers or wire transfers for most payments.

If you're denied or hit a problem

Banks sometimes deny business accounts if your credit score is very low, if you have a history of fraud or money-laundering convictions, or if your business is in a high-risk industry (like cannabis or gambling, even in states where it's legal). If you're denied, ask the bank why in writing. Federal law requires them to tell you the reason.

If the reason is your personal credit, you may be able to open an account at a credit union instead — many credit unions have looser requirements than banks. If the reason is your business type, you may need to find a bank that specializes in your industry. Some banks focus on cannabis businesses, for example, or on nonprofits.

If you opened the account online and it's been more than 5 business days and your account still isn't active, contact the bank's customer service. Sometimes documents get lost or the bank needs clarification on your business structure. A quick phone call usually solves it within 24 hours.

Frequently Asked Questions

Do I need a business license to open a business savings account?

No. You need an EIN and proof of business structure (like Articles of Organization for an LLC), but not a business license. Some states and cities require a business license to operate, but banks do not. If you have an EIN, you can open an account.

Can I open a business savings account as a sole proprietor without an LLC?

Yes. Sole proprietors can open a business savings account using their Social Security Number as their tax ID, though the IRS recommends getting an EIN instead. Many banks prefer an EIN because it keeps your personal and business finances separate on their records.

How long does it take to open an account and start using it?

In person: same day for account opening, 5 to 10 business days for debit card and checks. Online: 1 to 2 business days for approval, 7 to 10 business days for debit card. You can use your account number and routing number for transfers and direct deposit immediately after approval.

What's the difference between a business savings account and a business money market account?

A money market account usually offers a higher interest rate but requires a larger minimum balance (often $2,500 to $10,000) and limits how many withdrawals you can make per month. A savings account has lower minimums and no withdrawal limits. Choose based on how often you need to access the money.

Can I have multiple business savings accounts at different banks?

Yes. Some businesses keep one account for operating expenses and another for tax savings or emergency reserves. Just make sure you track which account is which, because the IRS will want to see all business accounts when you file taxes.