Baselane is introducing a new account type for Baselane Banking accounts — a Savings account! Baselane now offers Checking and Savings accounts, all under the same Business Entity (or Sole Proprietor) account. This change will not impact any of your existing accounts, as all existing Baselane Banking accounts are currently business Checking accounts.
The benefits that Savings accounts bring to your Baselane accounts
This new banking account structure will give you greater flexibility to manage your finances. Some of the benefits can be highlighted below:
- Checking accounts: Keep your property operating expenses, profits, security deposits, and projects organized with unlimited Checking accounts for each entity
- Savings accounts: Make your money work for you by earning up to 3.77% APY. That is 60x the national average
- Accounts for all entity types: Manage all your entities under one roof — from LLCs to Corporations, Partnerships, and individuals
- Compliant accounts for security deposits: Use separate Checking or Savings accounts to hold security deposits compliantly
- FDIC-insured: FDIC insurance up to $3M on funds deposited via Thread Bank; Member FDIC
The main differences between Savings and Checking accounts
While Checking accounts may not earn interest, they will continue functioning as fully operational accounts. You will continue to be able to submit and receive transfers (ACH and Wire), send checks, order a checkbook, collect rent, and open additional Checking accounts and virtual cards. Since Savings accounts are meant for you to hold and save your money, below are the outlined limitations of Checking vs. Savings accounts:
- No minimum balances or monthly fees (applies to both Checking and Savings accounts)
- Unlimited instant internal transfers between Checking and Savings accounts
- Can only fund a Savings account through internal transfers from Checking accounts (main and additional Checking accounts)
- Can not collect rent in a Savings account
- Can collect security deposits, from our Rent Collection tool, in a Savings and/or Checking account
- Can not submit ACH or Wire transfers, send checks, or order a checkbook for a Savings account
- Can not receive a physical debit card or open a virtual card for a Savings account
What will the impact be on the APY interest rate for my accounts?
Due to recent rate cuts, the APY for Baselane Savings accounts has been adjusted. Moving forward, you can earn interest through your Savings account, allowing you to maximize your savings while continuing to use your Checking account for daily transactions.
The APY tier is determined by the combined balance of all your Baselane Banking accounts (Checking and Savings). Once your APY tier is determined, interest will be deposited into your Savings account(s).
For example, if you have $10,000 in your Checking accounts and $25,000 in your Savings account, the APY tier will be calculated based on the total $35,000. The APY interest rate will be Tier 5 (3.06%, or Tier 6 at 3.49% if you're collecting rent into your Checking account(s)), but interest will only apply to the $25,000 in your Savings account.
[See here for more information on the APY for your accounts and how it is calculated.]
How to open a Savings account
You can easily and instantly create Savings accounts with one click and transfer funds to continue earning the same APY you earn today. To open a Savings account, please follow the steps below:
- Navigate to the Baselane Banking tab
- Scroll down to the 'Accounts' section, and select the Baselane Banking account you'd like to open a Savings account under
- To the right of the blue 'Move Money' button at the top, select the 'Add Account' button
- Select 'Savings account' from the two options
- Add an account nickname
- You have the option to toggle the 'Auto-tag' option so that all of the transactions in this account auto-tag to a specific property/unit
- Agree to the terms and conditions and select 'Create account'
How to fund your Savings account
The only way to fund your Baselane Banking Savings account is through an internal transfer from either your main or an additional Checking account under the same Baselane profile. See here, for more details on how to submit transfers between Baselane Banking accounts.
Frequently Asked Questions (FAQs)
Do both Checking and Savings accounts still have the same FDIC insurance coverage?
Yes, all of your Baselane Banking Checking and Savings accounts are insured up to $3M (combined) with Thread Bank, Member FDIC. See here, for more details on the FDIC insurance for your accounts.
Can I close the main checking account in my Baselane Banking account?
No, you must keep your main checking account open, since it is only possible to fund your Savings account through your Checking account(s).
When applying for a Baselane Banking account, which type of account will it be?
Once your application for a Baselane Banking account has been approved, the account will be opened with the main Checking account only. You will have to manually open a Savings account and/or additional Checking accounts afterwards.
Can I create recurring internal transfers from my Checking to my Savings account or vice versa?
No, not yet. However, this feature is currently being worked on.
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