Businesses of every size and type often find themselves with treasury assets that could be generating a return, but that must still be accessible in the event of an emergency (or global pandemic, even). In this case, they may seek a business account that will offer a decent return as well as flexibility and convenience. 

The last decade has, however, witnessed a massive and ongoing disruption in the financial sector, and business investors are faced with new decisions. Digital assets are no longer the preserve of tech specialists, but fast becoming a FinTech sector that is challenging traditional banking. So the next question for business investors should be: how do digital asset business accounts compare to traditional alternatives?

Crypto business accounts

Below is listed a selection of the best crypto business accounts on the market today including the rates, features and services that potential clients will likely be most interested in.

Yield App

  • Allocations to USDT, USDC, DAI, ETH and BTC portfolios can earn up to 18% p.a.
  • Quick and easy to use, with an in-house insurance pool to protect deposits and platform-wide insurance coming soon
  • No fees on deposits and minimal fees on withdrawals
  • A referral rewards program in the near future

Nexo

  • Earn up to 10% p.a. on 18 different cryptocurrencies, with a 2% bonus for earnings on Nexo
  • Ledger Vault used to insure crypto assets up to $150 million
  • Up to five free withdrawals per month can be made, then gas fees are applied
  • No additional bonuses are currently offered

BlockFi

  • Annual interest up to 9.5% on BTC, ETH, LTC, USDC, GUSD, and PAX
  • One free withdrawal can be made per month
  • Withdrawal fees charged are 0.0025 BTC, 0.0015 ETH, 0.0025 LTC, and 0.25 USD
  • Sign-up bonus of $10, referral bonus of $25, and Bitcoin credit card sign-up bonus up to $250

Celsius

  • Investments in over 30 digital assets for up to 18% p.a.
  • No minimum balance and payouts are made every week
  • Assets are insured by PrimeBlocks and FireBlocks
  • No fees are charged and there are loyalty reward bonuses

Ledn

  • Interest rates up to 11% p.a. on USDC and BTC
  • Withdraw assets at any time 
  • Interest payments are made on a monthly basis
  • $10 fee for withdrawing USDC

Traditional business accounts

Here we are using “traditional” to mean accounts holding fiat, or “real world” cash currency rather than digital assets, so these types of business accounts could include those provided by online banks and not just brick-and-mortar banks.  

Tab Bank

  • 0.25% p.a. for Business Money Market Accounts and Business Savings Accounts
  • No bank cards or checkbooks are offered
  • Minimum deposit of $25 and minimum balance of $1
  • FDIC insured up to $250,000
  • No fees are charged

Live Oak Business Savings

  • 0.50% p.a. for business savings accounts
  • Convenient to open and manage accounts online and make use of the mobile app
  • No minimum deposit or balance
  • FDIC insured up to $250,000
  • No monthly or maintenance fees are charged

Axos Business Savings

  • 0.20% p.a. for business savings accounts
  • Online, mobile banking, and remote deposit, with minimum deposit of $1,000
  • Deposit accounts are FDIC insured
  • Monthly fees of $5 unless average daily balance exceeds $2,500
  • Welcome bonus of $100

Prime Alliance Bank Business Savings

  • Annual interest up to 0.50% for balances from $200,000
  • Online banking and mobile banking
  • Six withdrawals per month are permitted
  • All accounts are FDIC insured
  • No fees are charged

First Internet Bank Money Market Savings

  • 0.40% p.a. for business savings accounts
  • One bank card is available
  • Six transactions permitted per month
  • All accounts are FDIC insured
  • Monthly fees of $5 unless average daily balance exceeds $4,000

How they match up 

When deciding where to hold a business account, a firm should consider its main objectives. Below are some of the main factors that may affect a decision.

Interest

The huge difference here is plain to see – even the best interest rate offerings of traditional banks pale in comparison to digital asset business accounts. The sad truth is that business accounts that offer just a half percent in annual interest are doing much better than the US national average, which is currently just 0.05%. While traditional accounts compete to offer the best decimal rates, though, returns on digital asset accounts mean that businesses can actually generate a yield on their assets, instead of watching inflation slowly eat away at their value.

Convenience and accessibility

At this point in the digital revolution, users expect all their services to be online and mobile, but just how easily and immediately finances are at our fingertips varies. With traditional business accounts, some higher-yield accounts lock away funds for 12 months as the price for higher rates, while others may limit the number of monthly withdrawals allowed. 

Some digital asset business accounts also limit access to assets for periods of time, though this is recognized as a drawback for clients. With all types of savings accounts, access to assets and usability depends on the particular service.  

Security

Many traditional banks are keen to emphasize the benefits of FDIC insurance on their savings accounts because they are only too aware that this is generally not provided by their challengers in digital asset. There are certainly risks involved with digital assets, but when you hold your assets with a trusted digital wealth platform that takes the right security measures, these can be reduced considerably. 

There are also other insurance schemes that can be applied to digital asset accounts to secure deposits, and assets can be held in secure custodian wallets. Assets can also be ring fenced or switched between hot and cold (online and offline) wallets for extra protection. 

Fees

This is another factor that can apply to both traditional and digital asset business accounts so business clients need to check what fees will apply to their savings and whether these are offset by the higher interest rates. Many traditional banks and digital wealth platforms do not charge any fees, though charges may be found in other areas. However, even low fees could have a noticeable impact when transactions are made regularly.  

Extra incentives

Although bonuses and promotions are not the most central concern, they are not unwelcome and may even offset any fees incurred initially. Welcome bonuses and referral bonuses are common with crypto business accounts, and clients can earn higher rewards by making larger allocations. Bonuses are not as common with traditional accounts, possibly because traditional banks are less able to adapt to changing expectations in the financial services industry. 

It doesn’t take an accredited financial advisor to see that the annual interest rates offered by traditional business savings accounts with even the highest interest rates are simply no longer generating a real return. Indeed, when inflation is taken into account, businesses are losing money in fiat cash accounts every year. 

Although there are other factors involved – security being chief among them – there are ways of managing risk and keeping it to a minimum. You can find out more about securing your digital assets here.

For businesses that are concerned with increasing profits and maximizing growth, though, digital asset corporate accounts are worth considering as an option for storing and ultimately growing their assets with a reliable passive income.

Are you interested in a business account that can pay a secure and sustainable yield? Sign up for a Yield App account today!