Early last year I formed an LLC for my online business. 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 well under 1%, 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
The 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 Direct 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 360Business Savings Account, you need to have a business entity in any of the following categories:
- Sole Proprietorships
- Limited Liability Companies (LLCs)
- 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 Preprinted
- 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