U.S. Bank Basic Business Savings Account 2024 Review
A business savings account can provide a safe place for your company to set aside money for future goals. Often, you can earn interest on that money at the same time.
Almost every bank offers a business savings account, but they’re not all the same quality. Only the best business savings accounts offer high interest rates and a short fee schedule with low fees.
Here’s what you need to know about the U.S. Bank Basic Business Savings account to see if it’s a good fit for your business or if you should look elsewhere for a better option.
The U.S. Bank Basic Business Savings account offers FDIC insurance, but its interest rate is so close to zero that it isn’t worth mentioning.
Unless you’re already a U.S. Bank customer that wants to keep all of their company’s business with the bank, an online business savings account will likely provide a better option.
U.S. Bank Basic Business Savings Account Pros & Cons
$5 Monthly Service Fee
U.S. Bank’s Basic Business Savings account charges a $5 monthly fee unless you maintain a $500 minimum daily balance in the account.
40 Free Monthly Deposit Items
This account offers 40 free monthly deposits each month. After that, additional deposits cost $0.50 each.
$2,500 in Free Monthly Cash Deposits
You get $2,500 in free monthly deposits with this account. The bank refers to these as 25 units of $100. After that, you’re charged a $0.33 fee per $100 you deposit.
This savings account technically pays interest. Sadly, the interest rate is so close to zero that you may as well not earn any interest at all.
Some large traditional banks offer significantly better rates. However, the best interest rates are often found at online business savings accounts.
Other Account Fees to Consider
U.S. Bank does not publish a business fee schedule online. Additionally, they will not email you a document before opening an account.
The only way to learn about fees is to visit a branch or to call a representative and ask. Our research discovered the main fee to watch out for is listed below. Verify all fees with a banker before you open an account.
Other Service Fees - U.S. Bank Basic Business Savings Account
|Out-of-network ATM fee
|Returned deposit items
|Domestic incoming wire transfer
|Domestic outgoing wire transfer
|International incoming wire transfer
|International outgoing wire transfer
|$5 per month
The U.S. Bank Basic Business savings account is extremely basic. They list no additional features on their website.
U.S. Bank is an FDIC member. This means your accounts at the institution qualify for FDIC insurance coverage. This coverage is separate for business accounts and personal accounts as long as you aren’t a sole proprietorship.
How to Open
You have several options to open a U.S. Bank Basic Business savings account. You can schedule an appointment at a branch, request a call, call the bank yourself, walk into a branch, or apply online.
U.S. Bank states you’ll need the following information to process your applications:
- Social Security number
- Phone number
- Business’s taxpayer identification number
- Name, email, and phone number for 25% or greater owners of the company
Additionally, you may be asked to provide copies of documents such as:
- Articles of incorporation
- Company charter
- Partnership agreement
- Other identifying documents
How to Choose the Right Business Savings Account
Picking the right business savings account depends on your company’s priorities. Here are some factors you should consider to find the best savings account for your business.
The interest rate an account offers is often a major factor in choosing an account. It directly impacts how much money you earn from keeping your money in the account. In general, online business savings accounts tend to offer the best interest rates.
FDIC or NCUA insurance coverage
FDIC or NCUA insurance is essential. It offers protection for your money up to insurance limits should the bank fail. If your balance exceeds insurance coverage limits, strongly consider the financial strength of any bank you deposit funds in.
Monthly maintenance fees
It’s no surprise that business savings accounts often charge monthly maintenance fees. You should look for an account that has a maintenance fee waiver you can easily meet or an account that doesn’t have this fee at all.
Minimum balance requirements
Your bank will usually waive a maintenance fee if you maintain a minimum balance. The minimum balance can be calculated in different ways. Understand how the number is calculated so you can avoid surprise maintenance fees.
Transaction limits and excess transaction fees
Traditionally, all savings accounts have withdrawal limits. Most bank accounts also have deposit limits. Once you exceed the number of free deposits in a month, you may have to pay a fee per deposit.
Cash deposit limits and excess cash deposit fees
Your bank may limit the amount of cash deposits you can make for free each month. Additional deposits normally charge a small fee per $100 of cash deposits above those limits.
Physical bank locations and hours
If you choose a physical bank and plan to visit a branch, look for a bank with convenient locations and operating hours.
Business savings accounts are useful, but most businesses choose a bank based on checking accounts or loans. If you want to keep all of your banking at the same institution, a savings account’s features may not be the top priority.
Online Banks vs. Traditional Banks for Business Savings Accounts
U.S. Bank is a brick-and-mortar institution that offers several branches and ATMs to assist its customers. This physical building footprint is something online banks don’t have to maintain.
Without physical locations, online banks can save a significant amount of money. They can then pass on some of these cost savings to customers. In turn, this often results in a better business savings account product.
Typically, online business savings accounts come with higher interest rates, fewer fees, and lower fees than similar accounts from a traditional bank.
Compared to Other U.S. Bank Business Savings Accounts
In addition to the U.S. Bank Basic Business savings account, U.S. Bank offers three business money market accounts you may want to consider.
U.S. Bank Platinum Business Money Market account charges a $15 monthly maintenance fee unless you maintain a $10,000 daily minimum balance. Interest rates on this account are decent, but can still be beaten by the best online savings accounts.
You get 25 free monthly deposits before having to pay a $0.25 excess deposit fee per deposit. You also get $2,500 in free monthly cash deposits before incurring a $0.33 per $100 deposited cash deposit fee.
The U.S. Bank Preferred Business Money Market account charges a $10 monthly maintenance fee but can be waived with a $1,000 daily minimum balance.
Interest rates on this account are similar to the U.S. Bank Basic Business Savings account until your balance exceeds $50,000. Even still, the best online banks generally offer higher interest rates.
You get 40 free transactions each month. Then, each additional transaction comes with a $0.50 fee. Cash deposits result in a $0.33 fee per $100 deposited once you exceed the $2,500 free cash deposit limit each month.
The U.S. Bank Premium Business Money Market account doesn’t appear to be an option anyone should choose. The interest rate is currently the same as the U.S. Bank Basic Business Savings account, but this account charges higher fees.
It has a $24 monthly maintenance fee with no waiver possibility. Non-cash deposits cost $0.20 each and cash deposits charge a $0.37 fee for each $100 deposited.