At Relay, you can open up to 2 savings accounts per business account. Savings accounts earn 1-3% APY (Annual Percentage Yield)1. More information on this can be found throughout this article.
For more information on how to open a savings account please see Adding and editing savings accounts.
How do these accounts work?
Relay customers will earn between 1% and 3% APY (Annual Percentage Yield)1 on the balance kept in their savings account.
Each business can open up to 2 savings accounts. Customers who joined Relay on or after July 24, 2023 will have one savings account automatically created for them when their account is approved. If you have two savings accounts, then we’ll add up the balance in both savings accounts and use the total to determine which rate to apply to both of your savings accounts.
The APY you can earn is dependent on the balance in your savings accounts at the end of every day. The APY rate bands are as follows:
- 1% for balances under $50k
- 1.5% for balances between $50k and $250k
- 2% for balances between $250k and $1M
- 3% for balances over $1M
Interest is paid out monthly.
Account limitations
Savings accounts have deposit and payment limitations. More specifically:
- Savings accounts cannot hold debit cards. We want you to be able to optimize interest earnings, so as a result, savings accounts have limitations that prevent money from being moved out of them (like card purchases).
- Savings accounts cannot send payments to external accounts or vendors. Money can be transferred out of a savings account into another Relay checking account within the same business account but not to an external account or vendor.
- Savings accounts cannot be used as deposit accounts for tools like Stripe or Shopify, and they cannot receive payments via ACH, wire, check deposit, or cash deposit.
- The only way to fund a savings account is through an internal transfer from a Relay checking account within the same business account.
How many savings accounts can I open?
One business can open up to 2 savings accounts.
Please note: The maximum amount of total accounts per business is still 20. One business can create 18 checking accounts and 2 savings accounts, for example.
Can I convert one of my checking accounts to a savings account?
No, an existing checking account cannot be converted into a savings account (and vice versa). Instead, you will need to create a brand new savings account following the steps outlined here.
When is interest paid out?
Interest will be paid out within the first three days of the month (for the previous month). Please also note the following:
- APY earnings will be calculated at the end of every day based on your end-of-day balance but will be paid out monthly.
- APY is compounding, meaning APY will be earned on the principal balance plus interest earnings in your savings accounts.
- Daily APY earnings will be calculated every day using [EOD balance x 0.01] ÷ 365 (using a 1% APY as an example). The daily interest earnings will be added up for every day in a month, and the total amount will be deposited into each savings account within the first three days of the following month.
1 The interest rates and annual percentage yield on your account are accurate as of 05/16/23 and are variable and subject to change based on the target range of the Federal Funds rate. APY will vary between 1-3% depending on the balances held. Earn 1% APY on savings balances of less than $50,000, 1.5% APY on savings between $50,000 and $250,000, 2% APY on savings balances between $250,000 and $1,000,000 and 3% APY on savings balances of more than $1,000,000. There are no minimum balances or minimum deposits required to earn interest on your account.