Why do US savings accounts for businesses offer less yield than bank accounts for individuals? For example, Synchrony, Ally, Barclays all offer +1% for an individual savings account, but don't offer business accounts.

  • 4
    I think what you mean to ask is why do these savings banks exclude businesses from opening accounts.
    – quid
    Commented Sep 6, 2016 at 19:22
  • 1
    I assume this is UK based question? Can you tag it appropriately?
    – ventsyv
    Commented Sep 6, 2016 at 20:01
  • @ventsyv why on earth do you assume this is a UK based question when two of the three banks mentioned are US and Barclays has a US savings?
    – quid
    Commented Sep 6, 2016 at 20:28
  • @ventsyv I've added "US", but I think this situation is global.
    – brt
    Commented Sep 8, 2016 at 20:05

2 Answers 2


Why do savings accounts for businesses offer less yield than bank accounts for individuals?

The money held in savings account on a collective average substantial amount stays with the Bank. The Bank is better able to predict and thus invest this money in individual savings account in market to make more money.

Money held in Business accounts are unpredictable and can get withdrawn, the Bank is thus not able to predict the behaviour and hence not able to invest this better to get good returns, hence the interest offered is low. Most Banks have special products for Businesses that would give better return but come with some kind of lock-in or minimum balances.

  • But then, why don't they offer CDs?
    – brt
    Commented Sep 8, 2016 at 20:06
  • @brt You'll need to be a bit more specific here. Banks do offer CDs.
    – iheanyi
    Commented Feb 9, 2017 at 0:36

I have always assumed that there is a regulation that either prohibits, or makes noncompetitive, internet bank business accounts. All of the 1%+ savings accounts offered at the banks listed are internet only. If you broaden the search to include other internet only banks like Capital One 360, American Express Savings, Goldman Sachs Savings, Discover Savings, you'll find they all also only offer accounts to individuals (some may allow a trust to own the account) not businesses.

  • That's what I noticed as well. I also assume it's a regulation or so.
    – brt
    Commented Sep 8, 2016 at 21:06

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