Business cash management accounts are a combination of multiple business bank accounts offered by one financial institution, allowing you to easily manage and move funds between accounts. Most business cash management accounts include the following:
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Operating account: Used for day-to-day operating expenses, this account functions similar to a business checking account. Some cash management accounts allow for multiple operating accounts, so you may have one for payroll and another for vendor payments, for instance.
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Reserve account: This is essentially a savings account. However, unlike traditional savings accounts, these may not earn interest. Instead, the primary value for these accounts is often increased FDIC insurance.
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Treasury account: Most business cash management accounts let you allocate funds in your treasury account across high-yield savings, business money market accounts and treasury bills. Money in treasury accounts can earn 4% APY or more, depending on the account and where you allot your money.
Personal cash management accounts are usually offered by brokerages. However, business cash accounts are typically available through fintech companies like Brex and Arc, which offer business banking services through an FDIC-insured bank or investment broker.
NerdWallet’s editorial picks: Best business cash management accounts
ProductMonthly feeAPYBonusMin. opening depositLearn more
Brex Business Account
NerdWallet Rating
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$0 N/AN/A N/A
Rho Business Checking
NerdWallet Rating
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$0 N/A$350
$350 statement credit for depositing and maintaining a balance of $10,000 for the first 90 days. Use promo code NERDWALLET at sign up.
N/A
Mercury Business Bank Account
NerdWallet Rating
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$0 N/A$300
$300 bonus to users on deposits $10K or more in their first 90 days.
N/A
Arc Cash Management Account
$0 5.44%
Earn 4.00% APY with Arc Reserve and up to 5.44% with Arc Treasury. Funds held in Arc Operating accounts do not earn interest.
N/A N/A
250+ small-business products reviewed and rated by our team of experts.
80+ years of combined experience covering small-business and personal finance.
60+ business bank accounts rated with our objective, comprehensive business bank account rubrics (Methodology).
NerdWallet’s business banking content — including our ratings, reviews and recommendations — is produced by a team of writers and editors who specialize in small-business finances. Their journalism has appeared in The Associated Press, Washington Post, MarketWatch, Nasdaq, Entrepreneur, ABC News, MSN and other national and local media outlets. Each writer and editor follows NerdWallet’s strict editorial guidelines to ensure fairness and accuracy in our coverage.
Brex
Brex’s business account has no monthly fees or minimum opening deposit. You can open up to 240 checking accounts under one employer identification number, allowing you to have separate operating accounts for different business functions, like payroll and accounts payable.
Account holders can designate a portion of their balance to be invested in a treasury account with up to 3.96% yield as of this writing. Or you can deposit it in Brex’s savings account (known as your “vault”) to get up to $6 million in FDIC insurance. Savings accounts do not earn interest.
You cannot deposit or withdraw cash from a Brex business account. Instead, you can add or move funds via check, ACH or wire transfer. Read our full review.
Mercury
Mercury’s free business checking and savings accounts are eligible for up to $5 million in FDIC coverage through its partner banks, which participate in sweep networks to maximize coverage. These accounts do not earn interest, but eligible businesses can apply for a Mercury Treasury account to unlock the higher yields characteristic of a cash management account.
Mercury Treasury accounts tap into low-risk investments, like Treasury bills and money market accounts, and earn up to 4.44% yield as of this writing. Investments made through your Treasury account are insured by the Securities Investor Protection Corp. (SIPC) for up to $500,000 — not the $5 million in FDIC insurance.
You need at least $500,000 in your Mercury checking and savings accounts to open a Mercury Treasury account. Monthly fees for Mercury Treasury start at 0.15% and are based on your total deposits held across all Mercury accounts. Read our full review.
Arc
Arc’s cash management account is comprised of Business (operating) and Wallet (reserve) accounts. The company also offers Arc Treasury. There’s no monthly fee for operating and reserve accounts; Arc Treasury has a monthly fee that starts at 0.02% and is based on your account’s value.
Arc’s treasury account boasts a yield of up to 4.51%, as of this writing. The actual yield on Arc Treasury accounts will depend on how you divvy up funds between money market and Treasury bills.
Money held in Arc Treasury accounts is insured one of two ways: Funds in cash sweep accounts are FDIC insured up to $5 million through sweep networks and partner banks. Money put into Treasury bills, which offer a higher APY, are covered up to $500,000 via SIPC insurance. Operating and Reserve accounts are FDIC insured up to the standard $250,000 per depositor, per account. Read our full review.
Rho
Rho offers business checking, savings and treasury accounts, as well as corporate cards and accounts payable services, for incorporated businesses.
Treasury accounts earn up to 4.33% APY, as of this writing, but your net yield may be lower depending on your investment selections and Rho fees, which are based on your total deposits and can be up to 0.60% annually.
Rho Checking accounts have no monthly fee, but do not include ATM access. That means you can’t withdraw cash, but there are no fees for ACH or wire transfers. Checking accounts are FDIC insured up to $250,000. You can get greater coverage (up to $75 million) with Rho’s savings account. That account does not earn interest.
Benefits of a business cash management account
Potentially high APY. The best business cash management accounts advertise rates of 4.00% APY or higher. But what you actually earn depends on the account you choose and how you allocate your funds.
Streamlined money management. Business cash management accounts may consist of multiple accounts, with funds spread across varying investments. But you can easily view and manage everything from one dashboard.
No transaction limits. Brick-and-mortar business banks typically limit how many transactions you can process each month. And some business savings accounts only allow six transfers or withdrawals per month. But business cash accounts have no such limits. Account holders can move money in and out of accounts as needed, though some withdrawals may be delayed — more on that below.
Increased FDIC coverage. Deposit accounts are typically insured by the FDIC for up to $250,000 per depositor, per account. But business cash management accounts often partner with a network of banks to spread funds across multiple institutions. These Insured Cash Sweep accounts allow you to unlock greater FDIC insurance coverage while only dealing with one financial institution.
That extended FDIC coverage may not apply to all of the funds in your cash management account, though. With Arc, for example, funds allocated to the Treasury account can be FDIC insured up to $5 million, but money held in your operating or reserve accounts is subject to the standard FDIC coverage limit.
Drawbacks of a business cash management account
Substantial cash flow needed. While some business cash management accounts don’t have a minimum balance requirement, you do need a large operating budget and a chunk of idle cash to reap the benefits of this type of account. Companies with smaller cash reserves can achieve similar benefits with separate business checking and high-yield business savings accounts.
Limited access to cash. Cash management accounts are generous with free ACH and wire transfers, but cash is less accessible. Most business cash accounts don’t allow cash deposits, and some, like Brex, do not allow you to withdraw money at an ATM.
Lack of banking diversity. While business cash management accounts do leverage a network of banks to extend FDIC insurance coverage, you’re still dealing with a singular entity — typically a financial technology company. Should the fintech or its banking partner fail, your funds, while insured, may be unavailable for a time. Using separate accounts across multiple business banks can help minimize the disruption to your operations should any one of those banks collapse.
