Business Savings

Peoples Bank offers two business savings products: the Business Savings Account and the Business Money Market Account. The Business Savings Account is a straightforward, interest-earning savings account suitable for businesses looking to set aside extra funds and earn competitive monthly interest. The Business Money Market Account is a higher-yield option with tiered interest rates that rewards businesses maintaining larger balances, while still providing more liquidity than other high-interest instruments like CDs. Both accounts are FDIC insured, include free online banking, free mobile banking, free e-statements, and free phone banking, and can be opened with just a $25 minimum deposit.

 

The Peoples Bank Business Savings Account requires a minimum opening deposit of $25. To avoid a $5 monthly service charge, businesses must maintain a minimum daily balance of $100. The account earns interest paid monthly and includes unlimited in-person transfers and withdrawals. Online debits are capped at six per month. If your balance falls below $100 on any day during the statement cycle, the $5 service charge will apply for that month.

The Peoples Bank Business Money Market Account is an interest-bearing account with tiered interest rates, meaning the higher your daily balance, the higher the rate you earn. Interest compounds daily and is credited to the account regularly. The account requires a $25 minimum opening deposit and a $1,500 minimum daily balance to avoid a $10 monthly service charge. It allows unlimited in-person transfers and withdrawals, with online debits capped at six per month. It provides more liquidity than a CD while still offering meaningfully higher yields than a standard business savings account, making it an effective home for operating reserves or short-term business funds.

 

The primary differences are the minimum balance requirements, the interest structure, and the yield potential. The Business Savings Account has a lower minimum daily balance threshold ($100 to avoid a $5 monthly fee) and earns a standard competitive interest rate paid monthly. The Business Money Market Account has a higher minimum balance threshold ($1,500 to avoid a $10 monthly fee), but rewards that higher balance with tiered interest rates, meaning your rate increases as your balance grows. Interest on the Money Market account compounds daily rather than being paid at month-end, which results in slightly greater long-term growth. For businesses with sufficient cash reserves, the Money Market Account is the higher-earning choice.

Both Peoples Bank business savings products, the Business Savings Account and the Business Money Market Account, require a minimum opening deposit of just $25. This low entry threshold makes it easy for businesses of any size to open a dedicated savings account and begin earning interest on idle funds. After opening, the Business Savings Account requires a $100 minimum daily balance to avoid the $5 monthly fee, and the Business Money Market requires a $1,500 daily balance to avoid the $10 monthly fee.

The simplest way to avoid monthly fees is to maintain the required minimum daily balance. For the Business Savings Account, keep at least $100 in the account daily to avoid the $5 monthly service charge. For the Business Money Market Account, maintain at least $1,500 daily to avoid the $10 monthly fee. For businesses that experience fluctuating cash levels, it may be worth keeping a buffer above the minimum to account for seasonal dips. Reviewing your cash flow patterns before choosing between the two accounts can help you select the one whose minimum aligns best with your typical balance.

 

Yes. Both the Business Savings Account and the Business Money Market Account allow unlimited in-person transfers and withdrawals at Peoples Bank locations. However, online debits for both accounts are capped at six per month. This transaction structure is common among savings-type accounts and is consistent with how business savings products are generally designed, to serve as a holding place for reserve funds rather than a daily-use transaction account. For day-to-day operational payments, a Peoples Bank business checking account is the appropriate complement to a business savings or money market account.

If your Peoples Bank business savings account has a daily balance below $1,000 for 12 or more consecutive months without activity, it may be classified as dormant and subject to a $2.50 monthly dormancy fee. To avoid this, ensure your account maintains at least $1,000 in daily balance or has regular activity. If your business no longer needs a separate savings account, speak with a Peoples Bank banker about your options, including closing the account or consolidating funds into an active account.

 

Yes. Peoples Bank is a Member FDIC, and all business deposit accounts, including Business Savings and Business Money Market Accounts, are insured by the Federal Deposit Insurance Corporation up to $250,000 per depositor, per ownership category. Your business funds at Peoples Bank are backed by the full faith and credit of the U.S. Government. For businesses with balances exceeding $250,000, ask a Peoples Bank banker about strategies for maximizing FDIC coverage across multiple accounts or ownership categories.