Here are the best savings accounts for small business owners looking for no fees and higher-than-average interest rates

Editor's Note: APYs listed in this article are up-to-date as of the time of publication. They may fluctuate (up or down) as the Fed rate changes. Select will update as changes are made public.

Picture this: Your small business is making enough revenue that you're left with excess cash that you can just set aside in a savings account because you don't yet have an immediate need to spend it.

While this is good news for your business, that extra capital you aren't using to cover everyday business expenses, like payroll and operating costs, is best placed in a high-yield business savings or money market account that also gives you checking account privileges.

These accounts offer higher interest rates than your standard savings or business checking account so your money grows faster, making those future business goals not too far out of reach, whether you'd like to take out a small business loan or plan to boot-strap future expansion.

Select analyzed and compared business savings accounts offered by online and brick-and-mortar banks, including large credit unions. We favored online banks since they typically offer above-average APYs, but there is an option for those who prefer to have access to physical branches. We also considered each account's accessibility, monthly fees and minimum deposit requirements. All of our top picks are FDIC-insured. (See our methodology for more information on how we choose the best business savings.)

• Best for banking online: Live Oak Business Savings
• Best for in-person banking: Capital One Business Advantage Savings
• Best for saving in a money market account: TAB Bank Business Money Market Account
• Best for making a large deposit: Axos Bank Business Premium Savings
• Best for sole proprietors: First Internet Bank Business Money Market Savings

• What is the difference between business checking and business savings
• What is a business savings account for?

There are two main differences between your business checking account and your business savings account.

For starters, the money in your checking account will typically not accrue interest over time like the money in your savings account. That's why it's important business owners don't keep all their funds stashed in their checking — it's earning very little in return.

The second big difference is account holders usually can't access the money in their savings account as easily as they can with a checking account. Account holders are limited to six withdrawals per statement cycle with savings accounts, and it's likely you'll be charged a fee if you exceed that limit.

Much like your personal savings account, a business savings account is ultimately a place where you can set aside your money for future use.

For business owners, a savings account can act as your company's emergency fund, should you have a bad month or face an unexpected expense. Having some savings is also crucial whenever there is an economic downturn or uncertainty, as we have seen many businesses struggle during the pandemic.

A healthy balance in your business savings account may help you get approved for a small business loan in the future, too. Lenders typically like to see that your business has the finances to repay borrowed money.

To determine which small business savings accounts offer the best return on your company's money, Select analyzed U.S. business savings accounts offered by online and brick-and-mortar banks, including large credit unions. We narrowed down our ranking by only considering those savings accounts that offer an above-average APY, as well as no monthly maintenance fees, or the option to waive. Since most business savings accounts require a minimum deposit upfront, we favored accounts with manageable minimums.

While the accounts we chose in this article consistently rank as having some of the highest APY rates, we also compared each savings account on a range of features, including ease of use and account accessibility, as well as factors such as insurance policies and customer reviews when available. We also considered users' deposit options and each account's compound frequency.

All of the accounts included on this list are FDIC-insured up to $250,000. Note that the rates and fee structures for savings accounts are not guaranteed forever; they are subject to change without notice and they often fluctuate in accordance with the Fed rate. Your earnings depend on any associated fees and the balance you have in your savings account. To open an account, most banks and institutions require a deposit of new money, meaning you can't transfer money you already had in an account at that bank.