Yes, you can have multiple business bank accounts. In fact, there's no limit on how many business accounts you can have. To find the right number for you, determine which types of business bank accounts you need — business checking, savings, CDs or even cash management — and why.
For instance, using multiple accounts is often a smart way to save for different goals or separate expenses. And opening accounts at different small-business banks can help shield your company from fraud or bank failures. Here’s what to consider if you want to have two or more business bank accounts.
» MORE: Best business checking accounts
advertisem*nt
American Express National Bank
American Express® Business Checking
NerdWallet Rating
5.0
APY
1.30%
When to open multiple business bank accounts
Each business account you open should serve a distinct purpose, especially if opening it means keeping track of multiple financial institutions’ account requirements and fees.
You want to separate certain expenses
Say you want to better track payroll and incoming client payments — you could have a dedicated business checking account for each.
Businesses that pay quarterly estimated taxes may also benefit from having one or more checking accounts, as they can put the money necessary for those tax payments into a separate account. You can also opt for an account that automatically sets money aside for taxes and helps you track write-offs, like Found Small Business Banking.
You want to earn interest
Interest rates have soared in recent years, making high-yield business accounts an attractive option again. You can earn as much as 2.00% APY with a high-yield business checking account, or double that with a business savings account. Live Oak Bank, for example, offers a free high-yield savings account that earns 4.00% with no minimum balance requirement.
Companies with substantial cash reserves may also want a business cash management account, like Arc, Brex or Mercury. These accounts give you the option to invest funds across money market accounts and Treasury bills, earning as much as 5.00% APY or higher, depending on the account and the investments you choose.
» MORE: Best business cash management accounts
You want to save for different goals
Opening more than one savings account could make sense to set aside cash for distinct purposes. For example, putting money aside for a short-term goal like upgrading equipment versus a long-term need like saving for an emergency.
While a high-yield savings or business money market account makes sense for emergencies and purchases that are 6-12 months out, a business certificate of deposit might be a better vehicle to save for goals that are a few years down the road. Business CDs earn higher rates — you can earn more than 5.00% with some 1-year business CDs — but keep your money locked up until the CD hits its maturity date, typically anywhere from six months to five years.
You want to protect your assets
Deposits at an FDIC-insured bank are protected in the event of a bank failure — up to $250,000 per deposit, per institution and per ownership category. But that coverage isn't sufficient for many small businesses, a fact that became clear when Silicon Valley Bank and several others collapsed in 2023.
Having accounts across multiple business banks can shield your business from major disruptions if one of those banks fails. Keeping funds at different banks can also protect your operations if access to an account is frozen due to suspected fraud or disrupted for any other reason. At a minimum, aim to keep your operating and savings accounts at different banks.
» MORE: How to protect your business from bank failures
Advertisem*nt
American Express® Business Checking Member FDIC | Bluevine Business Checking Deposits are FDIC Insured | Grasshopper Business Checking Account Member FDIC |
|---|---|---|
NerdWallet rating 5.0/5 | NerdWallet rating 4.7/5 | NerdWallet rating 4.5/5 |
Monthly fee $0 | Monthly fee $0 | Monthly fee $0 |
APY 1.30% With $0 min. balance for APY | APY 2.00% With $0 min. balance for APY | APY 2.25% With $0 min. balance for APY |
Bonus $0 Requirements to qualify | Bonus N/A | Bonus N/A |
Learn More at American Express National Bank, Member FDIC | Learn More at Bluevine, Deposits are FDIC Insured | Learn More at Grasshopper Bank, Member FDIC |
What to watch for with multiple business bank accounts
Juggling several business bank accounts can not only make bookkeeping more challenging. Managing the accounts themselves can be tricky, too. If you opt for multiple business checking accounts, for example, you’ll have to know details like the minimum balance and transaction limit for each to avoid unnecessary fees.
Shop around to compare features across different types of accounts, like checking and savings, too. Business savings accounts typically limit withdrawals and transfers to six per month, which won’t work for all businesses. But you can earn a high APY and make unlimited withdrawals with an interest-bearing checking account like Bluevine Business Checking, which earns 2.00% APY.
How to set up multiple business bank accounts
Every business has unique financial needs, but there are a few essential steps to take if you want multiple business bank accounts:
Register for an employer identification number from the IRS. EINs are free to file for, and the majority of financial institutions ask for your EIN when you apply for an account. You’ll likely need additional documentation as well, such as a government-issued photo ID, to open a business bank account.
Apply for a business checking account. This should be the first business account you get, for practical reasons: A business checking account makes it easier for you to pay bills, manage payroll and get paid by clients. It also helps establish your business and provides a solid foundation for the rest of your banking needs.
Examine your existing account features. Some business checking accounts have built-in features that may minimize the need for a second (or third) account. QuickBooks Money, for example, lets you move money into "envelopes" earmarked for specific expenses, like payroll and taxes (and those envelopes earn interest). And several banks, including Bluevine, Mercury and Relay, include access to Insured Cash Sweep programs that offer increased FDIC insurance coverage.
Decide what other accounts your business needs. Take stock of your business goals to determine what type of account you need. Want a dedicated account for payroll? Consider a second business checking account. Need a place to stash your emergency fund? Look at a business savings account or business CD. Looking for a solution to manage large deposit volumes and multiple account types? A cash management account may be the best move.
