Where Tuition Deposits Sit
Ten banks that pay real interest on business savings, compared for a school holding fifty thousand dollars or less. Every one of them has a catch, and the catch is usually a minimum balance or a monthly fee.
Rates checked 2026-09-14. All rates variable. Not a recommendation.
The three things that decide it
Headline APY is the least useful number on a bank's page. For a school with modest reserves, these decide whether the account is worth opening.
What balance earns the headline rate
Several of these pay their advertised rate only above $20,000 or $50,000. Below that you drop to well under 1%.
The monthly fee and its waiver
A $25 monthly fee on a $5,000 balance costs more per year than the interest pays. Read the waiver before the rate.
Whether cash can get in
Most online banks take no cash at all. A school collecting cash tuition needs a local checking account feeding the savings.
Your reserve
What actually sits in the account, not your annual budget.
Ten months is a school year: deposits land before it opens and are spent across it.
What the gap is worth
$727
Axos Bank, Business Premium Savings pays about $729 on $25,000 over 10 months, net of fees. A large bank's standard business savings account at 0.01% pays about $2.
Simple interest on a flat balance, no compounding, minus any monthly fee this balance fails to waive. Compounding adds a few dollars; a fee subtracts more.
The ten
Ranked by what each one pays on your balance after fees. An account you cannot open at this balance sorts to the bottom and says so, rather than disappearing.
| Bank | APY | To open | To earn it | Monthly fee | Takes cash | On $25,000 for 10 months |
|---|---|---|---|---|---|---|
| Axos BankBusiness Premium Savings | 3.50% | $0 | $0.01 | None | No | $729 |
| Prime Alliance BankBusiness Savings | 3.35% | Not posted | $200,000 | None | No | $698 |
| Piermont BankBusiness Money Market | 3.25% | Not posted | $50,000 | $25/mo, waived at $1,000 | No | $677 |
| TAB BankBusiness Money Market | 3.25% | $25 | $0.01 | None | No | $677 |
| Grasshopper BankInnovator Savings | 3.00% | $100 | $25,000 | None | No | $625 |
| First Internet BankBusiness Money Market Savings | 2.94% | $100 | $0.01 | $5/mo, waived at $4,000 | No | $613 |
| Live Oak BankBusiness Savings | 2.85% | $0 | $0.01 | None | No | $594 |
| nbkc bankBusiness Money Market | 2.75% | $0 | $0.01 | None | Yes | $573 |
| Capital OneBusiness Advantage Savings | 3.50% | $250 | $10,000 | $3/mo, waived at $300 | Yes | $255 |
| U.S. BankPlatinum Business Money Market | Not posted | $25 | $50,000 | $15/mo, waived at $10,000 | Yes | Not eligible |
Simple interest, balance held flat, no compounding, fees deducted where the balance does not waive them. Rates are variable and several are promotional, so confirm the number on the bank's own rate page before opening.
If the school is a 501(c)(3), read the account name skeptically
Axos runs a Nonprofit Money Market that pays 0.20% APY, asks $1,000 to open, and charges $5 a month under a $2,500 average balance. Their Business Premium Savings pays 3.50% with no minimum and no fee, and nonprofits are eligible for it.
The account with the nonprofit label is the worse account. Ask every bank on this list which of their accounts a 501(c)(3) can actually open, rather than taking the one they steer you toward.
Two well-known names are not banks
- Bluevine pays up to 3.00% APY. Deposits sit at Coastal Community Bank. Tiered by paid plan. Advertises sweep coverage into the millions by spreading money across program banks.
- Relay pays up to 3.00% APY. Deposits sit at Thread Bank. Tiered by paid plan. Advertises sweep coverage into the millions by spreading money across program banks.
That structure is legal and common. It means the FDIC relationship runs through a partner, and the sweep network decides where the money sits. Worth knowing before a school parks its whole reserve there.
Notes on each
What matters about the account beyond its rate, for an operator deciding in an afternoon.
Axos Bank
Business Premium Savings
The strongest combination on the list: top rate, nothing to open, nothing to maintain. Free incoming wires, QuickBooks integration, and sweep coverage past the $250,000 FDIC limit.
Catch: The 3.60% needs a bundled checking account and a promo code, so the plain number is 3.50%.
Confirm the current ratePrime Alliance Bank
Business Savings
3.35% from the first dollar with no fee and no minimum balance, and the rate climbs at $100,000 and $200,000. A small bank with a plain product.
Catch: Six withdrawals or transfers per month. Fine for a reserve, wrong for an account payroll draws on.
Confirm the current rateTAB Bank
Business Money Market
3.25% on the first million, $25 to open, $1 to keep. The money market and the savings account are sold side by side.
Catch: The account labeled Business Savings pays 0.25%, thirteen times less. Open the money market.
Confirm the current rateLive Oak Bank
Business Savings
Unlimited transactions, no minimum, no fee, interest compounded daily, up to five authorized signers. An SBA lender that knows small-business credit, which matters if the school will borrow later.
Catch: No debit card, no ATM access, no cash deposits, and no weekend support.
Confirm the current ratenbkc bank
Business Money Market
The one on this list that solves cash. Free cash deposits up to $2,500 a day at compatible ATMs, $0 to open, no overdraft or NSF fees.
Catch: 2.75% is mid-pack. You are paying about $150 a year on $25,000 for the cash access.
Confirm the current ratePiermont Bank
Business Money Market
Ten-minute online application, IntraFi coverage past $250,000, and 3.75% if the school keeps $50,000 here alongside a checking account.
Catch: $25 a month unless the average balance clears $1,000, and 0.75% below $20,000. New customers only.
Confirm the current rateGrasshopper Bank
Innovator Savings
A chartered national bank, not a fintech, despite the branding. No monthly fee, $100 to open, ICS sweep coverage.
Catch: The cliff at $25,000. Below it the rate is 1.55%, under half what the top of this list pays on any balance.
Confirm the current rateFirst Internet Bank
Business Money Market Savings
2.94% on any balance up to $5 million, weekend support, and short-term CDs in the same place if some of the reserve can be locked up.
Catch: $5 a month unless the average daily balance holds $4,000, and no check writing on the account.
Confirm the current rateCapital One
Business Advantage Savings
Branches in some markets, 70,000 fee-free ATMs, and a $3 fee that a $300 balance waives. The easiest of the branch options to qualify for.
Catch: The 3.50% runs 92 days and needs $10,000. After that it is 0.25%, which is where most of this account's money ends up.
Confirm the current rateU.S. Bank
Platinum Business Money Market
A large branch bank that will take cash, handle a school's full relationship, and lend against a facility. Worth it for the relationship, not the rate.
Catch: The special rate needs $50,000 deposited within 30 days and held. Standard tiers run 0.05% to 1.14%, and the $15 fee needs $10,000 to waive.
Confirm the current rateQuestions to ask before opening
- Can this entity type open the account? LLC, sole proprietor, and 501(c)(3) get different answers at the same bank.
- What happens to the rate when the promotional period ends, and does the bank notify you?
- How many withdrawals per month before a fee, and does an internal transfer to checking count as one?
- Can the school deposit cash, and if not, which checking account will feed this one?
- How long is the hold on the first deposit? Live Oak holds new funds five business days; others run longer.
- What does the bank do with balances over $250,000, and is the sweep network automatic or opt-in?
Common questions
- What is the best business savings account for a small school?
- For a school holding $50,000 or less, the accounts worth opening pay their advertised rate from the first dollar and charge no monthly fee. Several accounts advertise a higher headline rate that only applies above $20,000 or $50,000, and drop to well under 1% below it. Compare on interest after fees at the balance you will actually hold, which is what this tool ranks on.
- Can a 501(c)(3) school open a business savings account?
- Usually yes, and often the account with the nonprofit label is the worse one. Axos runs a Nonprofit Money Market paying 0.20% APY with a $1,000 minimum and a $5 monthly fee under $2,500; their Business Premium Savings pays 3.50% with no minimum and no fee, and nonprofits are eligible for it. Ask every bank which of their accounts a 501(c)(3) can actually open rather than taking the one they steer you toward.
- How much interest does $25,000 earn over a school year?
- About $729 in the top account on this list, against roughly $2 in a large bank's standard business savings account at 0.01% APY. For most small schools that gap is a month of a part-time aide, and it comes from filling out one application.
- Can my school deposit cash into these accounts?
- Mostly no. Most online banks take no cash at all. A school collecting cash tuition needs a local checking account feeding the savings, or one of the few accounts that accepts cash deposits.
- Are Bluevine and Relay banks?
- No. Bluevine's deposits sit at Coastal Community Bank and Relay's at Thread Bank. Both advertise sweep coverage into the millions by spreading money across program banks. The structure is legal and common, and it means the FDIC relationship runs through a partner and the sweep network decides where the money sits.
Rates and terms taken from each bank's own published pages on 2026-09-14, except the Prime Alliance and Piermont opening minimums, which are not posted. Rates on all of these accounts are variable and change without notice. This compares publicly posted terms and is not financial advice; confirm current figures with the bank before opening an account.
Building the budget these reserves back up? Start with the school budget template.