Workforce management system Rippling has launched Business Banking, a business checking account directly in Rippling that the company says pays an annual percentage yield of 2.25% (32 times more than average).
It also makes same-day payroll possible through Rippling Payroll.
Businesses that already have a bank account can use Rippling’s alongside it, then consolidate later if it makes sense, Kat Kim, product lead at Rippling, wrote in a blog post on June 22.
“Either way, you’ll enable same-day payroll and earn more on your operating cash—no more running payroll days before it’s due, no more off-cycle runs when something changes at the last minute, and no more waiting days to correct a payroll mistake,” she said.
No bank account? You can set up a Rippling business checking account in less than 10 minutes, the company says.
Kim reiterated that with Business Banking, users automatically earn 2.25% APY on the cash in their checking account—32x higher than the national average of 0.07% APY. On $500,000, that’s roughly $11,250/year in interest instead of approximately $350, she added.
“You might be wondering how we can offer rates this good. The truth is, Business Banking is a loss leader for us,” Kim wrote. “Most of our revenue comes from non-financial products, like our HR and IT software, so we can afford to subsidize the financial ones. We want businesses to start and grow on Rippling. But even if you never use another Rippling product besides Business Banking, that’s OK. You win either way.”
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With Business Banking, users also get up to $200 million in FDIC-insured deposit coverage on funds in their checking account, Kim says.
“We also built controls that make it easy to manage your money safely: like money sweeps, custom approval workflows, and granular permissions,” she wrote. “Plus essential accounting integrations, with ERPs like QuickBooks and NetSuite, so your month-end doesn’t look like a crime scene.”
More information about Business Banking can be found here.
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