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Understanding the Benefits of High-Yield Business Accounts

Jul 11, 2023
Posted by: Stearns Bank
Young business owner working on her computer

As a small business owner, you know how important it is to make smart financial decisions. You want to maximize your profits, minimize your expenses, and grow your business. But how do you make the most of your business funds? One way is to consider opening a high-yield business account

These accounts offer many advantages over traditional business accounts and can have a positive impact on your business growth and profitability. Below are the basics and benefits of high-yield business accounts and how they can help you achieve your business goals. 

The Basics of High-Yield Business Accounts

A high-yield business account is a type of bank account that pays higher interest rates than regular business accounts.

Couple looking at high-yield graphic on laptop

They are similar to checking accounts in that they allow you to access your funds through debit cards, checks, or online transfers. However, they have some limitations on the number of transactions you can make per month and may require a minimum balance to open or maintain.

The main attraction of high-yield business accounts is their attractive interest rates. These rates are usually much higher than the national average for regular business accounts and can vary depending on the bank and the market conditions. 

Advantages of High-Yield Business Accounts

By opening a high-yield business account, you can enjoy several benefits that can boost your business performance and potential. Here are some of them:

Increased Earning Potential

One of the most obvious benefits of high-yield business accounts is that they can help you earn more money on your idle business funds. Instead of letting your money sit in a low-interest account or under your mattress, you can put it to work in a high-interest account and watch it grow over time. This can help you increase your cash flow and generate more income for your business.

Capital Preservation

Another benefit of high-yield business accounts is that they can help you protect your business capital against inflation and market fluctuations. Inflation is the general increase in prices over time, which reduces the purchasing power of your money. Market fluctuations are the changes in the value of stocks, bonds, or other investments due to supply and demand factors. 

Both inflation and market fluctuations can erode the value of your money and affect your business performance. By investing in a high-yield account, you can preserve the value of your money and earn interest that exceeds the inflation rate and market risk.


A third benefit of high-yield business accounts is that they offer liquidity, which means that you can access your funds easily and quickly when you need them. Unlike other investments that may lock up your money for a certain period or charge penalties for early withdrawals, high-yield accounts allow you to withdraw or transfer your money without any fees or restrictions (up to the monthly limit). This gives you flexibility and peace of mind that you can use your money for any business needs or opportunities that may arise.

Factors To Consider When Choosing a High-Yield Business Account

Dentist small business owner with financed equipment

Not all high-yield accounts are created equal. There are some factors you need to consider before choosing the best account for your business needs, including: 

Account Requirements and Fees

One of the first things you need to check is the account requirements and fees associated with the high-yield account. Some accounts may have a minimum balance requirement to open or maintain the account, while others may charge monthly fees or transaction fees. You need to weigh the costs and benefits of these requirements and fees and see if they fit your budget and cash flow.

FDIC Insurance

Another important factor to consider is the FDIC insurance coverage of the high-yield account. FDIC insurance protects your deposits up to $250,000 per depositor, per insured bank, for each account ownership category in case of bank failure. This means that if your bank goes out of business, you will not lose your money. 

However, some high-yield accounts may not offer FDIC insurance or may offer it only up to a certain limit. You need to make sure that your account is fully insured by the FDIC for added security and peace of mind. One way to do this is to check the Tangible Common Equity (TCE) ratio of your bank, which is a clear measure of its financial strength. A strong and stable bank will have a TCE of greater than 12%.

Stearns Bank has a TCE of 24%, which makes it a fortress of strength as a $2.2 billion asset-size bank. Stearns Bank also offers FDIC insurance above $250,000 for its high-balance depositors as an added service, as do other banks across the country.

Additional Benefits or Features

You also need to look at the additional benefits or features that the high-yield account may offer, such as online banking or mobile apps. These benefits or features can make your banking experience more convenient and efficient. 

For example, online banking can allow you to access your account anytime and anywhere, while mobile apps can enable you to deposit checks, transfer funds, or pay bills with a few taps on your phone. You need to choose an account that offers the benefits or features that suit your preferences and needs.

Stearns Bank's High-Yield Business Accounts

Experience the support you need at every stage of your business journey with Stearns Bank. Our wide range of business banking accounts, including checking and savings options, is tailored to meet the needs of entrepreneurs like you.

BusinessSmart™ Checking

Efficiently manage your finances with Stearns Bank's BusinessSmart Checking. Enjoy no monthly maintenance fees, free online banking and bill pay, free mobile banking with mobile deposit, and free eStatements. Simplify your banking experience while saving money.

BusinessSmart™ Market Savings

Grow your savings hassle-free with Stearns Bank's BusinessSmart Market Savings. Benefit from competitive interest rates, no monthly maintenance fees, and easy online account management. Rest easy knowing your savings are secure with FDIC insurance up to $250,000 per depositor. For larger deposits, Stearns Bank offers the ICS® and CDARS® programs for extended protection.*

*The Stearns Bank ICS program provides FDIC insurance coverage for up to $125 million in ICS, and up to $50 million for CDARS with a total combination limit of $150 million. Some limitations may apply.


Simplify your banking with Stearns Bank's BusinessEssentials Checking. Enjoy unlimited ACH transactions, unlimited incoming wires, and one free outgoing wire per day. Say goodbye to excessive transaction fees with free, unlimited mobile deposits, auto cash sweeps, unlimited free Bill Pay services and free eStatements. Plus, no hidden fees, maintenance fees, or inactivity fees.

Comparison Tool

To make sure you're choosing the best business banking option, take advantage of our comprehensive comparison tool. This valuable resource allows you to assess the difference in returns between high-yield accounts like BusinessSmart Checking and traditional business accounts offered by other institutions.

Grow Your Small Business With Stearns Bank

Whether you need expert guidance from our business banking specialists, competitive interest rates, or transparent fee structures, Stearns Bank has the business deposit products that can help you turn your small business dreams into reality.

Small business owner shaking hands with banker

Ready to Get Started? 

At Stearns Bank, we value your time and your trust. That’s why we always answer your calls on the first ring and help you compare business account options to find the best fit for your needs. Contact us today and let us show you the difference.

Business Banking Should Be Simple  Whether it's live support from helpful experts, full online banking  capabilities, or uncomplicated account options, everything you need is in one  place to help you reach your goals. Contact a business banking expert