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Capital One 360 Business Savings Account Review

by Ryan Guina


Reviewed by:
Rating:
4
On January 8, 2009
Last modified:May 21, 2013

Summary:

High interest rates for business savings accounts. However, the accounts are somewhat more limited than a personal account. Read on for more details.

Shortly after starting my business, I formed an LLC. There are several reasons why I did this, but one of them was to make it easier to separate my business income and funds from my personal accounts. I needed a business checking account, and at some banks it is easier to open a business bank account with a legal entity other than a sole proprietorship.

Soon afterward I opened a free business checking account at my local bank. Unfortunately, my bank’s business savings account paid out at 0.01%, so I decided I needed to put my excess funds into an online business savings account where I could earn a larger return on my money.  I needed a local bank for my business checking, but I didn’t need a local bank for my business savings account. Enter the Capital One 360 Business Savings Account, one of the most widely available high yield business savings accounts.

Capital One 360 Business Savings Account Review

Capital One 360 Business Savings Account ReviewThe Capital One 360 Business Savings Account is similar to the Capital One 360 savings account in several ways, but there are some key differences. First, the Capital One 360 Business Savings Account is designed only as a savings account. It does not offer a checking account option and you can only link one business checking account to your Capital One 360 Business Savings Account (unlike Capital One 360 Savings Account which you can use to link to multiple external accounts).

Key features of the Capital One 360 Business Savings Account:

  • High Annual Percentage Yield.
  • No minimums, fees or service charges.
  • Account access for up to 3 authorized individuals.
  • FDIC Insured up to $250,000 per business.
  • High yield CDs.

How to qualify for a Capital One 360 Business Savings Account:

To open an Capital One 360 Business Savings Account, you need to have a business entity in any of the following categories:

  • Sole Proprietorships
  • Partnerships
  • Limited Liability Companies (LLCs)
  • Corporations
  • Not-for-profits and small organizations

How to open a Capital One 360 Business Savings Account:

The Capital One 360 Business Savings Account is easy to open, but it requires more paperwork than a personal savings account. The good news is that if you already have an Capital One 360 account, you can opt to use the same contact information and view your business account under the same login as your Capital One 360 Savings Account. (note: the accounts will be accessible under the same login, but you will not be able to transfer funds between the accounts; you can only link the Capital One 360 Business Savings Account to one external business account). Still, it is very nice not to have another login and password to remember! (Note: you can add up to 3 users, including yourself. Each person gets their own login and PIN, and will not have access to your personal account).

What you need to open an Capital One 360 Business Savings Account:

  • Your Business Employer Identification Number (EIN) or Social Security Number (SSN) for Sole Proprietors
  • Your Personal Social Security Number
  • Your existing business checking account and routing number

After opening your account, you will need to send in some additional information and legal paperwork regarding your business. You will have 60 days to provide the following information:

  • Voided Check with the Exact Business Name Pre-printed
  • Proof of Existence Documentation. Depending on your business formation, these items may include one of the following: Articles of Incorporation, Certificate of Existence or Status, Certificate of Formation, Charter, Trade Name Registration, non-profit paperwork, or other documentation. You can see a full list of options at the Capital One 360 Business Savings Account sign up page.

Other items of note regarding the Capital One 360 Business Savings Account

The Capital One 360 Business Savings Account only allows electronic transactions from one other bank account. You must link your Capital One 360 Business Savings Account to another business checking account.

  • There is a 10 business day hold before initial deposits can be transferred back to your linked business checking account. After this hold has expired, all future deposits are subject to a 5 business day hold.
  • You may grant account access to an additional two people associated with your business either during the application process or after your account has been opened.
  • Electronic transfers only – no deposits by check.

My thoughts on the Capital One 360 Business Savings Account

If you need a high yield business savings account to earn extra money on your business funds, then I recommend the Capital One 360 Business Savings Account. Keep in mind that you can only link one external account and there will be a 2-3 day delay when transferring funds. As long as you plan around your transactions, you can earn much more interest than you would in most business savings accounts.

Capital One 360 Business Savings Account $25 sign up bonus. You can receive a $25 bonus if you open a new Capital One 360 Business Savings Account with a minimum of $250. Visit the $25 Capital One 360 Business Savings Account Sign up Bonus page for more details. Offer also available for individual savings or checking accounts


Published or updated May 21, 2013.
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{ 8 comments… read them below or add one }

1 Craig

Good review, I know you always recommend the ING for personal use, nice to see you find them useful for business as well. I’ll keep that in mind if I ever need to open a business acount.

Reply

2 Ryan

Thanks, Craig. I’m happy with my ING Business Savings Account so far. Just keep in mind there are some limitations regarding liquidity, if that is a concern of yours. (for example, you can only link it to one external checking account, and it takes 2-3 days to complete a transfer). However, that APY makes it worth it to me for my business.

Reply

3 SimplyForties

Unfortunately for me, I opened my ING business account before they actually had separate business accounts. I tried to shift my account over and make it a “business account” and they would have none of it. Oh well. I haven’t decided it I care enough to call them and discuss it.

Reply

4 Ryan

You may still be able to open another account under an EIN or under your SSN as a Sole Proprietor. I prefer to have my accounts separate for tracking purposes.

Reply

5 Andy

Totally agree with you on ING – simple and easy to use. Just recently opened up one myself. Plus they have a decent yield. I also liked that I was able to link my personal and business savings account through one Cust ID. However getting more than 1% in today’s market is hard.

Reply

6 jfgrissom

Hi Ryan,

Thanks for posting the information on opening another account with a different EIN or social…

That is pretty interesting… It would have never occured to me to do something like that…

I wonder when 1.5% became high yeild? If you’re a load shark (or credit card company) 11% is the menchmark for low right? LOL

I guess it depends on what side of the fence your sitting on…

Either way thanks for the post!

Sincerely,
Jay

Reply

7 Ryan

It’s only high yield because the other options are basically no yield! :)

Reply

8 jfgrissom

LOL…

Agreed!

Zero does set the bar pretty low…

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