Other than a brief spike in 2018, it’s been 15 years since short-term rates were high enough for most small-to-medium-size businesses (SMB) to care about chasing yield on their parked cash. But that’s changed dramatically in the past 6 months. With “risk-free” rates pushing 5%, even a business with $50k in reserve (throwing off $200/mo) has the incentive to sweep that out of a non-interest checking account.

Are we about to see a rush of fintech startups serving the interest-sensitive small business market? Maybe, maybe not. It depends on whether VCs believe we’ll have a long-term run of rates higher than 3%. But what we will surely see is challenger banks dusting off their sweep features and emphasizing them in their marketing and branding.

Case in point: Just days after the Feds took over SVB, Mercury was in the market with Mercury Vault, offering $5 million in FDIC insurance by distributing balances across 20 insured banks. We’ve also seen the launch of QED-backed Meow, with an FDIC-deposit-aggregation service, Maximum Checking with up to $125 million of FDIC insurance (through the sweep network of FirstBank).

Looking for digital banks, lenders, payment providers, insurance or digital accounting for small businesses? Check out our latest lists: SMB online lenders (34) | SMB challenger banks (15) | SMB insurers (15) | SMB charge cards/expense management (18) | Billpay & invoicing (21)| Payment processors (7) | Subscription processors (7) | SMB digital accounting/bookkeeping (21)

The FAB Score Ranking (Fintech Attention Barometer) is a proxy for the size of a private fintech company.

Highest-Rate Online Savings Banks for Small Businesses

Rank Company FAB* APY (3 Oct24)** Min Balance** Founded HQ Funding $M*** Visits (Aug’24)
FDIC-insured deposits
1 Meow 27 4.02% None 2021 NYC $27 37,000
2 Live Oak Bank 49 4.5% None 2008 Wilmington, NC $157 170,000
3 Baselane 43 3.77% None 2020 NYC $7 170,000
4 Lili 70 3.65% None 2018 NYC $80 180,000
5 Grasshopper 49 3.30% $25k 2016 NYC $173 43,000
6 Relay 191 3.00% $1M 2018 Toronto $51 820,000
U.S. Treasuries
1 Meow 27 Unknown $1M 2021 NYC $27 39,000
2 Brex 553 4.52% Unknown 2017 SF $1,200 870,000
Other
1 Mercury 447 5.35% $20M 2017 SF $152 1,900,000

Source: FintechLabs, Crunchbase, SimilarWeb, 2 June 2024

 

FDIC-insured Deposits**

1. Meow
FAB Score: 27 (unchanged from July)
– HQ: NYC
– Founded: 2021
– Banking service providers: FirstBank, Grasshopper Bank, Third Coast Bank

Rates (APY)
Top: 4.02% FDIC-insured deposits (updated 3 Oct 2o24, requires payroll and accounting integration, otherwise 4.02%; also requires $100,000 balance otherwise rate is 1.7%)
Treasuries: Not disclosed
Minimum Balance: $100,000 for FDIC-insured deposits, $1M for Treasury

Traction
– Raised: $27 million (Crunchbase)
– Employees: 27 (Pitchbook), unchanged since May
– Website visits: 37,000 (SimilarWeb, Aug 2024)
– Linkedin: 7,000 followers

 

 

 

 

 

 

 

 

 

 

 

2. Live Oak Bank
FAB Score = 49 (down 2)
HQ: Wilmington, NC
Founded: 2008

Rates (APY)
Top: 3.90% (3 Oct 2024)
Minimum Balance: none

Traction
Raised: $152 million (Crunchbase)
Revenue (TTM): $468M (Yahoo)
Valuation: $2.1B (Public; 3 Oct 2024)
Website visits: 170,000 (Similarweb, Aug 2024)
Employees: 961 (Pitchbook), up 36 since July, up 36 since Feb, up 75 since October ’23

Social
Articles: 29 (Crunchbase)
LinkedIn: 21,000 followers (968 employees, down 7 since July, up 6 since May, up 43 since Feb and Oct ’23)
Trustpilot: 4.4 (904 reviews, up 121 since July)

 

3. Baselane
FAB Score: 43 (down 10)
HQ: NYC
Founded: 2020

Rates (APY)
Top APY: 3.77% (3 Oct 2024)
Minimum Balance: $50,000
Others: 1.75% under $10k, 2.64% between $10k to $25k, 3.06% $25k to $50k

Traction
– Raised: $7.9M in 2021 (Crunchbase)
– Website visits: 170,000 (SimilarWeb, June 2024)
– Employees: 44 (Pitchbook), up 3 since July, up 8 since May, up 13 since Feb, up 15 since Oct ’23

Social
– Articles: 5 (Crunchbase)
– Linkedin: 2,300 followers (44 employees, up 1 since July, up 3 since May, up 11 since Feb, up 15 since Oct ’23)

4. Lili
FAB Score = 70 (up 6)
HQ: NYC
Founded: 2018
Banking service provider: Choice Financial Group

Rates (APY)
Top: 3.65%
Minimum Balance: none
Maximum balance: $100,000 (no interest above $100,000)

Traction:
– Raised $80M including $55M in 2021 (Crunchbase)
– Website visits: 180,000 (SimilarWeb, Aug 2024)
– Employees: 89 (Pitchbook), up 1 since Sep, up 1 since June, down 16 since May, down 16 since Nov ’23

Social:
– Articles: 23 (Crunchbase)
– Linkedin: 14,000 followers (97 employees, up 7 since Sep, up 1 since Aug, up 11 from June, up 29 since Feb, down 144 since Feb)
– TikTok: 234,000 followers; 600,000 likes (unchanged for a year)
– Trustpilot: 4.7 (3,260 reviews,  up 40 since Sep)

5. Grasshopper Bank
FAB Score = 49 (unchanged)
HQ: NYC
Founded: 2016

Rates (APY)
Top: 3.30% (3 Oct 2024)
Minimum Balance: $25k

Traction:
– Raised $172M including $10M in Jan 2024, $30M Aug 2022 (Crunchbase)
– Assets: $620 million (12/31/22), 2.1x growth year over year (source: company)
– Deposits: $550 million (12/31/22), 2.2x growth year over year
– Loans: $450 million (12/31/22), 3.6x growth year over year
– Revenues: $17 million (2022), 2.4x growth year over year
– Website visits: 43,000 (SimilarWeb, Aug 2024)
– Employees: 119 (Pitchbook), unchanged since Feb, up 18 since August ’23

Social:
– Articles: 35 (Crunchbase)
– LinkedIn 26,000 followers (119 employees, unchanged since Sepm down 2 since Aug, unchanged since June, down 5 since Mar, unchanged since Jan, up 6 since Nov ’23)
– Trustpilot: 4.0 (180 reviews, up 16 since Sep)

6. Relay
FAB Score: 191 (down 18)
– HQ: Toronto
– Founded: 2018
– Partner bank: Thread

Rates (APY)
Top: 3.0% (3 Oct 2024)
Minimum Balance: $1 million
Maximum balance: NA
Other tiers:
<$50,000 = 1%
$50,000 to $250,000 = 1.5%
$250,000 to $1 million = 2.0%

Traction
– Raised $51.6 including $32M in 2024, $15M in 2021 (Crunchbase)
– Website visits: 820,000 (SimilarWeb, Aug 2024)
– Employees: 199 (Pitchbook), unchanged from July, up 47 since May, up 57 since Feb, up 71 since Nov ’23

Social
– LinkedIn: 10,000 followers (224 employees, up 24 since Sep, up 9 since Aug, up 28 since June, up 50 since May)
– Trustpilot: 4.6 (1,860 reviews, up 80 since Sep)
– iOS: 4.8 (1,500 reviews, up 100 since Sep)

 

U.S. Treasuries

 

1. Meow
FAB Score: 27 (up 5)
– HQ: NYC
– Founded: 2021
– Banking service providers: FirstBank, Grasshopper Bank, Third Coast Bank

Rates (APY)
Top: 4.02% FDIC-insured deposits (updated 3 Oct 2o24, requires payroll and accounting integration, otherwise 4.02%; also requires $100,000 balance otherwise rate is 1.7%)
Treasuries: Not disclosed
Minimum Balance: $100,000 for FDIC-insured deposits, $1M for Treasury

Traction
– Raised: $27 million (Crunchbase)
– Employees: 27 (Pitchbook), unchanged since May
– Website visits: 37,000 (SimilarWeb, Aug 2024)
– Linkedin: 7,000 followers

 

Non-treasury securities

1. Mercury Technologies
FAB Score = 447 (down 137)
HQ: San Francisco Bay Area
Founded: 2017
Partner banks: Choice Financial Group, Evolve Bank & Trust, and a network of 20 banks to hold excess deposits; Patriot Bank (IO card issuer)

Rates (Yield)
Top: 5.14% (NOT US Treasuries)
Minimum Balance: $20 million

Traction
– More than 200,000 customers (Techcrunch, May 2024)
– Current run rate of $4B in payments per month (Techcrunch, May 2024); $50B processed in 2022, double the $23B in 2021
– Raised $152M (Crunchbase) including $120M in 2021
– Valuation: $1.7B (based on July 2021 round); $1.6B based on Q3 ’23 secondary market sales
– Website visits: 2.0 million (Aug. 2024; SimilarWeb)  <<<< Most website traffic
– Employees: 882 (Pitchbook), unchanged since Aug, up 154 since March, up 201 since January, up 213 since August ’23

Social
– Articles: 20 (Crunchbase)
– LinkedIn 50,000 followers (981 employees, up 29 since Sep, up 87 since Aug, up 175 since May)
– iOS app: 4.9 (5,300 reviews, up 200 since Sep)
– Trustpilot: 3.5 (1,110 reviews, up 40 since Sep)

Notes:
* The FAB score, Fintech Attention Barometer, is a proxy for the overall size of a private company since they typically do not release traditional metrics (# customers, deposits, AUM, etc). The score is based on VC funding, website traffic, mobile downloads, and the number of employees. It’s a work in progress, so expect changes in the formula.
**APY: Rate observed on each bank’s website on publication date. Consult the bank’s website for current APY.
***Funding: Includes equity and debt funding per Crunchbase.

Disclaimer:
Our business model depends on revenue from referrals and sponsors. When you see a referral link in the URL, we may earn a fee when a new account is started (thanks!). This can improve visibility on our website, but does not impact the company’s FAB score.

 

No longer listed

Mayfair (NOTE: Website down 3 OCt 2024, 11am Pacific Time)
FAB Score = 13 (unchanged)
Founded: 2021
HQ: San Francisco

Rates (APY)
Top APY: 4.72%
Minimum balance: $2,500

Traction
Funding: $14M (Crunchbase)
Employees: 120 (Linkedin), up 11 since Oct
Website traffic: 1,700 (Aug 2024, SimilarWeb)
Articles: 1 (Crunchbase)
Linkedin: 1,000 followers (206 employees, up 47 since July, up 59 since May, up 86 since Feb, up 97 since Oct ’23)

 

Zamp (appears to have pivoted to cash management only)
FAB Score = 21 (down 3 since Feb)
Founded: 2022
HQ: India

Rates (Yield)
Top: Not disclosed
Minimum Balance: Not disclosed

Traction
Funding: $25M (Crunchbase)
Employees: 28 employees (Linkedin)
Website traffic: 6,600 (Aug 2024, SimilarWeb)
LinkedIn: 7,000 followers (53 employees, up 2 since July, up 5 since May, up 15 since April, up 17 since Oct ’23)