How to Earn Interest on Your Business Cash (Without Locking It Up)
Businesses can earn interest on their cash reserves without locking them up in long-term investments. Two of the best options are high-yield business savings accounts and money market accounts (MMAs)—both offering competitive interest rates while keeping funds accessible. Let's talk about them.

Every business needs cash on hand for daily operations, emergency expenses, and growth opportunities. However, keeping large sums in a standard checking account means missing out on potential earnings. Fortunately, businesses can earn interest on their cash without locking it up in long-term investments or certificates of deposit (CDs).
In this guide, we’ll explore the best options for growing your business funds while maintaining liquidity, focusing on high-yield business savings accounts vs. money market accounts (MMAs).
Why Earning Interest on Business Cash Matters
Keeping cash in a non-interest-bearing account is a lost opportunity. Instead of letting inflation erode your money’s value, consider earning passive income by placing your reserves in an interest-bearing account. The benefits include:
✅ Maximizing Returns – Even a small interest rate can generate significant returns over time.
✅ Preserving Liquidity – Unlike CDs, these accounts let you withdraw funds when needed.
✅ Enhancing Financial Security – Extra earnings create a buffer for emergencies or reinvestment.
The key is choosing the right account—one that provides a competitive yield while keeping your funds accessible.
High-Yield Business Savings Accounts: A Low-Risk Way to Earn Interest
A high-yield business savings account (HYSA) functions like a regular savings account but offers significantly higher interest rates. These accounts are ideal for businesses that want to:
✔ Store excess cash safely
✔ Earn more interest than a traditional savings account
✔ Retain full access to funds when needed
Pros of High-Yield Business Savings Accounts:
✅ Higher Interest Rates – Typically 5–10x higher than traditional savings accounts.
✅ FDIC Insurance – Your funds (up to $250,000 per bank) are protected.
✅ Easy Transfers – Move money between checking and savings seamlessly.
Cons:
⚠ Limited Withdrawals – Some banks restrict savings account withdrawals to six per month.
⚠ Rate Fluctuations – Interest rates can vary based on market conditions.
Best for:
- Businesses that maintain cash reserves but want higher returns than a checking account.
- Companies looking for a safe, FDIC-insured option with minimal risk.
Examples of High-Yield Business Savings Accounts:
- Live Oak Bank Business Savings – Competitive rates with no monthly fees.
- American Express Business Savings – High APY with flexible access.
- LendingClub Tailored Checking – A business checking account with a high-yield feature.
Money Market Accounts: Balancing Interest and Accessibility
A money market account (MMA) is another interest-bearing option that combines features of savings and checking accounts. These accounts typically offer:
✔ Higher interest rates than standard savings
✔ Limited check-writing and debit access
✔ FDIC protection (when held at an insured bank)
Pros of Money Market Accounts:
✅ Higher Interest Rates – Often comparable to or higher than savings accounts.
✅ More Liquidity – Allows limited check-writing and debit transactions.
✅ Secure and Low-Risk – FDIC-insured up to $250,000.
Cons:
⚠ Higher Minimum Balance – Many MMAs require $5,000+ to earn the best rates.
⚠ Withdrawal Limits – Typically restricted to six withdrawals per month.
⚠ Potential Fees – If your balance drops below the required minimum, fees may apply.
Best for:
- Businesses that want higher yields but occasional access to funds.
- Companies with larger cash reserves that can meet minimum balance requirements.
Examples of Money Market Accounts:
- Axos Bank Business Money Market – High APY with easy online access.
- Capital One Business MMA – Competitive rates and check-writing ability.
- First Internet Bank Business MMA – High interest with FDIC protection.
Which Option Is Best for Your Business?
Both high-yield savings accounts and money market accounts offer excellent ways to grow your business cash while keeping it accessible. Here’s a quick comparison to help you decide:

Bottom Line:
- If you don’t need frequent access and want higher rates, go with a high-yield savings account.
- If you need some spending flexibility, choose a money market account.
Alternative Ways to Earn Interest on Business Cash
Beyond traditional bank accounts, consider these alternative cash management options:
💰 Business Checking Accounts with Interest – Some online banks (e.g., Bluevine, LendingClub) offer interest-earning business checking with full liquidity.
📈 Treasury Bills (T-Bills) – Short-term government securities offering higher returns than savings accounts with minimal risk.
🔄 Sweep Accounts – Automatically move excess cash into an interest-bearing account without manual transfers.
🔹 Corporate Bonds or Money Market Funds – Higher-yield, low-risk investment options for businesses with extra cash reserves.
Final Thoughts
You don’t have to let your business cash sit idle. By choosing the right high-yield business savings or money market account, you can earn passive income while keeping funds accessible.
✅ Need full liquidity? Consider an interest-earning business checking account.
✅ Want the highest rates? Go with a high-yield savings or money market account.
✅ Have excess cash? Explore T-Bills, sweep accounts, or money market funds.
By optimizing your cash management strategy, your business can maximize earnings without sacrificing flexibility.