Most solo businesses run with just checking. Adding a business savings account becomes worthwhile at a specific inflection point.
The inflection point is when average business checking balance exceeds three months of typical expenses. Below that, keeping money accessible in checking makes sense. Above it, the opportunity cost of zero-percent checking becomes real.
Business savings accounts typically pay similar rates to personal high-yield savings accounts. Four to five percent APY is common in the current rate environment.
Use case one: parking cash reserves for slow months. Money kept in savings still earns interest while waiting.
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Use case two: setting aside estimated tax payments. The savings account keeps the money separate and earns interest until the quarterly payment is due.
Use case three: holding client deposits or prepayments that will not be used for months.
Use case four: separating funds for a specific business purpose. A hiring budget. A software renewal fund.
Business savings accounts are easy to open at the same bank as business checking, often in minutes. The interest earned across a year on ten thousand dollars is four to five hundred dollars, essentially free money for a small setup change.