Piermont Bank's Business Money Market Just Hit 3.75% APY — But Read the Fine Print

Business owners looking to squeeze more yield out of idle cash just got a reason to pay attention. Piermont Bank bumped the top rate on its High-Yield Business Money Market account to 3.75% APY, up from 3.50%. That's a solid number in today's rate environment — but it comes with a few strings you'll want to understand before moving your operating reserves over.

The Rate Tiers: Where You Actually Land

The headline 3.75% APY isn't automatic. It only kicks in once your balance hits $50,000 or more. Below that, the yield drops off quickly. Balances between $20,000 and $49,999 earn 3.25% APY, and anything under $20,000 earns just 0.75% APY.

That last tier is the one to watch. If your balance dips below $20K for any reason, your effective yield craters. For a business account, that's a meaningful swing — especially if you're used to moving money in and out for payroll or vendor payments.

• $50,000+ balance: 3.75% APY
• $20,000 to $49,999: 3.25% APY
• $0 to $19,999.99: 0.75% APY

What You Need to Open (and Keep) the Account

You'll need to open both a High-Yield Business Money Market account and a Classic Business Checking account. The opening deposit for the money market is $1,000.

There's a $25 monthly maintenance fee, but it's waived if you keep a $1,000 average monthly balance. That's a low bar — most businesses won't have trouble clearing it. No early termination fee is listed, which gives you some flexibility if you decide to move on.

• Open both a High-Yield Business Money Market and a Classic Business Checking account
• Opening deposit: $1,000
• $25 monthly fee waived with $1,000 average monthly balance
• No early termination fee listed

The Six-Transaction Cap Is Real

Money market accounts aren't checking accounts, and Piermont enforces that. You're limited to six debit transactions per monthly statement cycle — whether by check, debit card, online banking, or electronic transfer to a third party.

If your business runs on frequent outbound payments, this account works best as a parking spot for reserves you don't touch often. Use your checking account for the day-to-day flow.

• Maximum six debit transactions per statement cycle
• Applies to checks, debit card, online banking, and electronic transfers
• Best for funds you don't need to access regularly

Who This Bank Is — and Why That Matters

Piermont Bank holds a unique distinction: it's the first FDIC-designated multi-racial Minority Depository Institution in the country. Its leadership stands out too — it's the only bank with a female CEO, a female board chair, and a board that is 78% women.

For some business owners, that's a meaningful part of where they choose to bank. For others, it's simply a nice footnote. Either way, the account is FDIC-insured up to the maximum allowed by law, and extended coverage is available for enrollment if you need to protect larger balances.

• First FDIC-designated multi-racial Minority Depository Institution
• Female CEO, female board chair, 78% women on the board
• FDIC-insured up to legal maximum; extended coverage available

The Trade-Offs Worth Weighing

On the plus side, you can open the account entirely online, and you get 24/7 access to online and mobile banking. Interest rates are variable, and there's no cap on deposits — so you can park as much as you want.

But the tiered structure means you need to stay above $50,000 to get the advertised rate. And that six-transaction limit could trip you up if you're not careful. The 0.75% APY on smaller balances is also well below what you'd find at many other online business accounts.

• Pros: nationwide access, online opening, unlimited deposits, 24/7 banking
• Cons: tiered rates, six-debit limit, low yield under $20K

Bottom Line

• The 3.75% APY requires a $50,000+ balance — otherwise you earn 3.25% or as little as 0.75%.
• You must open a Classic Business Checking account alongside the money market account.
• The $25 monthly fee is easy to avoid with a $1,000 average balance.
• Six debit transactions per month is a hard cap — this isn't a replacement for your checking account.
• FDIC insurance covers up to the legal maximum, with extended coverage available.

Common Questions