We might receive compensation from the companies whose products we review. We are independently owned and the opinions here are our own. This post is meant as financial education, not advice. Consult a tax or financial advisor for tax or financial advice.
SHARE THIS POSTBusiness banking might sound complex, and being tasked with opening a business checking account might feel overwhelming. The more you know, the more you will be able to confidently select and open the right account for your business type and size.
If you are a small business, keeping all of your business funds in your personal checking account might be tempting. However, it is crucial that you open a business checking account to help manage your funds, process transactions, pay employees, and perform basic accounting. A business checking account offsets personal financial risk and works to effectively protect your own assets.
Additionally, if you plan to apply for a business loan in the future, you will need to have an established business checking account to qualify. Opening the right account will help lay the groundwork for future company growth.
Now, considering all of the metrics we have outlined above, let’s review the best checking accounts for small businesses.
Freelancers and entrepreneurs who want to separate their business banking and have integrated support for taxes and bookkeeping are best suited for this banking option.
You can set up a free account and receive:
Found marries online banking with small business accounting software. With it, you can easily track your income and expenses, send invoices, generate reports, and transfer your money to specialized sub-accounts, or “Pockets”, like one set up specifically for taxes.
For freelancers and those who run a small business, Found offers more than just online banking solutions. It’s a way to manage money, both personally and professionally. It has the tools owners need to run a business, and come tax time, you’ll have all the data you need to file quickly and efficiently.
Found has a variety of features that customers enjoy, including:
Disclaimer: Found is a financial technology company, not a bank. Business banking services are provided by Piermont Bank, Member FDIC. The funds in your account are FDIC-insured up to $250,000 per depositor for each account ownership category. The Found Mastercard Business debit card is issued by Piermont Bank pursuant to a license from Mastercard Inc. and may be used everywhere Mastercard debit cards are accepted. *Direct deposit funds may be available for use for up to two days before the scheduled payment date. Early availability is not guaranteed.
Relay is designed for small to mid-sized businesses looking to grow and streamline their operations.
All core banking features at Relay are free for businesses, which include up to 20 individual checking accounts and 50 Visa debit cards. These accounts have no overdraft, monthly, or wire transfer fees of only $5 to $10. AllPoint+ ATMs are also partnered with Relay for fee-free withdrawals and deposits.
Customers can also be part of Relay Pro, a paid tier for $30 per month per business, eliminating wire transfer fees. These users also have access to additional features and integrations.
Relay is a digital-only platform with no physical branches. However, any AllPoint+ ATM will allow fee-free deposits and transfers, and other ATMs can be used, though they may charge fees. Any business operating in the United States can bank with Relay. Business owners do not need to be United States citizens, however.
A series of integrations make Relay’s software network robust. Customers can integrate the tool with accounting software (Quickbooks Online and Xero) and back-office software (Gusto, Plaid, Yodlee).
Relay offers a range of features for both clients using the free service as well as Relay Pro.
Designed specifically for small businesses and startups, Mercury is an online-only bank that focuses on ease of banking as well as integrating fully with business operations. A fee-free model makes Mercury accessible to businesses, with unique features for VC-funded companies.
Mercury boasts a fee-free model, where almost nothing will cost customers additional money. There are no transaction fees, no monthly fees, overdraft fees, or minimum deposit to open an account. The only transactions that have a fee are currency exchanges, which have a 1% fee.
This model includes even their premium tier. Rather than paying into more capabilities, Mercury offers them to customers with large assets. When a business has over $250,000 in assets, they are eligible for the Mercury Treasury service, which is an automated cash management account that puts funds into the U.S. government securities and money market funds to earn a yield. The current rate is over 4%. Businesses with over $50,000 in their accounts are eligible for an IO Mastercard corporate credit card program through Mercury, which includes a 1.5% cash-back offer.
Mercury’s banking services are designed specifically for small businesses, especially startups and those in the technology industry. Sole proprietorships and trusts are not eligible to open accounts with Mercury, but all other businesses can benefit.
With almost no fees and an online-first model, Mercury is good for companies who want to keep overhead costs low and don’t need the presence of physical banks. With no cash deposit ability, Mercury will not be a good fit for a business that deals with a lot of cash.
Businesses with some division of responsibility may be the best candidates for the tool’s digital structure. With role-based access that allows different employees different access, even a slightly fragmented team can work well with Mercury. It also allows for API integration alongside pre-built integrations, so a business with a wide network of partners and tools may also find it a good fit.
Lili is a completely online bank, aimed at helping small business owners manage their assets on the go. With an extensive network of ATMs, a low-to-no fee structure, and many available software integrations, businesses are able to bank confidently without large costs.
Lili is unique because it was designed exclusively for small business owners and freelancers who need sophisticated accounting solutions for a low cost. Regardless of their membership tier, all users enjoy a low fee structure, with fees only levied for cash deposits and out-of-network ATMs.
Though it does not offer a full suite of banking capabilities, like wire transfers, Lili stands out for its integrated model that includes expense reporting, tax planning, and other operational tools that small business owners can rely on.
Lili offers a web interface, but where it shines is the mobile application, which puts all of the financial management tools at a business owner’s fingertips. The app is dynamic, easy to use, and focuses on important information only.
Lili is designed specifically for freelancers, contractors, and small business owners. With a no-cost structure and no monthly fee necessary, Lili is aimed at businesses that need to manage expenses and taxes without incurring significant overhead.
To open a Lili account, a business must be one of the following:
No minimum deposit is required and no revenue limit to open an account, so businesses of any size can join Lili. There is also no fee for an account that is inactive, so businesses can maintain their account even during breaks or slow periods.
Most Lili customers are looking for a free or inexpensive solution that offers dynamic expense reporting, tax planning, and great rates for checking accounts. Those who enjoy the tools but want to expand can also choose a Lili Pro account to add even more functionality.
Novo is best for business owners looking for a no-cost business checking account and those who primarily want to bank online. They offer no-fee accounts and very generous terms but do not have in-person branches. Owners of cash-based businesses should look elsewhere, but for everyone else, Novo is a great option.
Novo has a straightforward pricing structure: It’s essentially all free. There are no monthly fees, minimum balances, ACH fees, or fees for anything, outside of an insufficient funds charge of $27.
There is currently no sign-up bonus or introductory offer from Novo. That said, this account’s value is in its simplicity and low-cost nature. For many, it’s worth signing up for Novo despite the lack of a bonus.
Novo doesn’t have a network, exactly. They have no physical branches and operate solely online. Novo is one of the newer business banking providers, and they have adapted to a low-cost, digital banking model. They focus on providing useful tech tools to help businesses conduct their banking remotely and, therefore, do not offer bank branches. While the lack of branches may seem like a downside, it’s also what enables Novo to offer such low-cost services.
Novo counters their lack of branches with one valuable benefit: Free ATM withdrawals at any ATM, worldwide. Even if the ATM charges you a fee, Novo will reimburse it.
With the ATM benefit, cash withdrawals are not a concern. However, other in-person banking activities, like cash deposits, are difficult, if not impossible, with this bank. If you run a cash-based business, Novo is not for you.
What sets Novo apart from others on this list? In part, a growing list of special features help:
Novo sets itself apart by offering a fee-free checking account, packed with powerful features and unique benefits. Visit Novo’s website to learn all the details of this new service.
This is the best bank account for established businesses with steady growth or small businesses with a big future ahead of them.
With their Business Advantage Relationship Rewards Program, you can reap the benefits of having a checking account, rather than just storing your money away to sit. The Relationship Rewards Program has many perks, including:
While there are monthly fees for each business checking account, you can skirt paying the fee if you meet the basic requirements for every statement cycle. Their overall fee schedule is quite competitive.
Bank of America is the second largest bank in the United States, and for this reason, it offers an impressive 4,400 offices that businesses can visit around the country. This makes assistance accessible. You can sit face-to-face with financial experts and discuss any issues you might have, or get help with managing your account services. Bank of America also offers approximately 16,000 ATM locations around the country, making it easy to bank on the go without having to pay out-of-network ATM fees. Bank of America is a premier choice if you want all the benefits of banking with a large network.
Bank of America offers a wide variety of Cash Management Tools for businesses like:
Chase is the largest bank in the country and is best for growing companies looking for the support of a big banking network.
Chase has a straightforward fee structure that’s affordable for checking and savings account users, but it’s important to take the time to understand the fees, otherwise, you could get hit with costs that are completely avoidable.
Chase is currently offering a $200 bonus for its Chase Total Business Checking account customers. To qualify, you must meet the following requirements:
Chase is one of the largest banks in the United States and has an impressive 5,100 branches throughout the country and 16,000 ATM locations. This makes it very easy to find a location wherever you are, though Chase does not waive out-of-network non-Chase ATM fees for small business checking accounts, and offers to waive up to four fees for larger accounts.
Chase offers a range of nice features for business checking account holders that make life easier and more efficient.
Visit Chase’s website to find out the perks and special features for Premier Plus checking and Sapphire checking accounts for larger businesses, such as specially designed checks and multiple free checking accounts.
Wells Fargo‘s business checking accounts are best for businesses that need the flexibility to accommodate growth.
There are no introductory offers for business checking accounts at this time.
Wells Fargo has standard business checking account fees if specific account minimums and averages are met relative to the checking account type.
The Wells Fargo banking network has more than 6,300 locations across the United States with over 13,000 ATMs. Wells Fargo has more nearby branches than almost any bank in the country. If you are a business looking to receive face-to-face financial customer service, then the Wells Fargo network is one of the largest.
When you sign up for a Wells Fargo checking account, they will include the following bonus features to personalize your business account.
This business checking account is best for small companies that want low monthly maintenance fees for their checking account in the U.S. or Canada.
TD Bank is offering to waive monthly fees for upgraded small business checking accounts on the premise that you take out a small business loan. This isn’t necessarily an introductory offer as much as it is an incentive to sign up for an upgraded small business checking account and get your business loan from TD Bank.
TD Bank has some of the higher fees when compared with other top ten banks. Here are some fees to be aware of:
TD Bank has a smaller physical network compared to the other top ten largest banks in the country, with just 1,250 branches and 2,500 ATMs across the U.S. and Canada. TD customers can also access accounts using out-of-network ATMs for an additional fee. Their branch locations are also open longer than most other banks, seven days a week.
TD Bank offers the standard special features that come with most business checking accounts, like mobile deposit apps, overdraft protection, and ACH transaction options.
Citibank is best for high transaction business checking and businesses that anticipate a lot of growth.
There are no introductory offers currently at Citibank for business checking accounts.
Citibank has competitive fees for wire transfers and avoidable monthly maintenance fees. The biggest fees at Citibank are the overdraft fees and out-of-network ATM fees. However, Citibank has many fee-free ATM locations, over 60,000 to be exact.
Citibank is a comprehensive bank that spans over 2,649 locations in 19 different countries and 723 branches throughout the United States and also has 60,000 ATM locations for you to make use of. Whenever and wherever you need money, you should be able to find a place to access it, without paying a fee. Citibank is one of the largest banks in the country, ranking 3rd, just below Bank of America.
Citibank checking accounts all come with a myriad of special features. Citibank has quite the offerings for checking account clients, without much added expense:
Please note: Applications for the Spark Business Checking and Savings line of products have been temporarily removed as of early 2019, as Capital One is currently working on improving the overall product experience before adding new customers. With that in mind, do consider their class-leading checking and savings products for business owners.
First, their Business Unlimited Checking and Basic Checking deserve small business owners’ attention. Second, their industry-leading, 2.0% APY Savings Account is a product worthy of being at the top of one’s list.
Nevertheless, our Capital One Spark Business Checking account info follows below, but please note that as of the Summer of 2019, it is currently still not open to new applicants.
Capital One Spark Business Checking accounts are best for those small business owners who want unlimited transactions and can maintain a $2,000 average monthly balance.
The Spark Business Savings account offers a promotional Annual Percentage Yield of 1.75% for the first year. This applies to up to $1 million in savings balances for business owners. After $1 million there will be a non-promotional APY applied. After the first year of banking through the Spark Business promotion, the rate will lower to .40%, earning interest at Capital One’s standard rate. The promotion is limited to one account per business.
Capital One considers itself to be a lower-fee bank. Here are some of the fees that you might incur as a business checking account customer:
Capital One Network is smaller as far as physical locations are concerned. They only have 700 branches nationwide and are not located in many states. They are partnered with Allpoint to provide customers with more fee-free ATM access with over 39,000 ATMs in the U.S. Capital One relies heavily on its web portal and mobile banking app to give customers the 24/7 support and service they require. Most, if not all, account issues can be resolved on the website or over the phone.
This business checking account is best for those small businesses with less than 200 transactions monthly.
There are no special offers at this time for Citizens Bank‘s business checking accounts.
Citizens Bank’s fees are competitive with other business checking account fees, and the free Clearly Better Business Checking account is a plus.
Here are some of the fees you might encounter banking with Citizens Bank:
The Citizens Bank Network expands across 11 states in the following regions: Northeast, Mid-Atlantic, and Midwest. It is a small bank network when compared with financial giants like Bank of America or Citigroup. However, they do have 1,150 physical locations and 3,300 ATMs. Citizens Bank was originally a Rhode Island-based bank, but now it offers services nationwide to over five million customers.
The Citizens Bank business checking accounts have money management features that are standard to most basic business checking accounts and then have payment solutions, eBill autopay, and overdraft solutions beyond the norm.
This business checking account is best for a small business that has a high number of monthly transactions.
New Business checking accounts can earn a cash bonus reward by opening an account.
The fees can be waived for the first three months’ businesses start checking with PNC while they figure out the requirement structure. To continue not paying the monthly fee, you must meet the following requirements:
Here are the following fees to be aware of:
PNC is the 9th largest bank in the US, and its network spans 2,800 banking locations in 19 different states with over 6,000 PNC ATMs. Its network’s downside is the lack of physical locations, but with so many ATMs and ATM reimbursement programs, if you are a business looking to either go primarily online or are located near a PNC bank, the network could accommodate your needs.
U.S. Bank is best for newer, smaller businesses or businesses with moderate cash flow and transactions.
U.S. Bank gives its business checking customers a special 50 percent discount on their first check order up to $50 even if you wait months to order the checks. If you sign up at a branch, you can get a discounted price on a mobile card reader for just $49 or a full terminal for $399. This is only when you sign up for its clear and simple pricing program.
U.S. Bank offers a competitive fee schedule when compared with other top banks for business checking account customers. Here are some of the fees you might encounter while banking at U.S. Bank:
The U.S. Bank network is in the top five biggest banks in America. It has 3,200 physical branch locations and 5,000 ATMs where you can receive free financial services. Using the branch locator on the web portal or mobile app, you can find the nearest branch or feeless ATM. U.S. Bank has
This business checking account is best for micro-businesses or small businesses looking for free mobile and online banking solutions.
Small Business Bank offers a free business checking account geared towards micro businesses. There are no limits, monthly fees, or minimum balances when you get a micro-business checking account at Small Business Bank. This isn’t so much promotion or offer, it is how their business checking is designed.
Small Business Bank is a low-fee, micro-business checking option that has the most competitive fee schedule of any online bank for very small businesses. Here are some of the fees you might encounter when banking with Small Business Bank:
Small Business Bank used to be called Gardner Bank and is a member of the Federal Reserve System. It started as a Kansas headquartered bank serving the city in 1984. Despite having its roots in Kansas, now Lenexa, Kansas specifically, the bank now services small businesses in all 50 states across the nation. The customer support team is not 24/7 but ready to assist with financial needs during business hours. Small Business Bank is part of the Shazam ATM network and no fees apply at those ATMs for Small Business Bank account holders.
There are very few special features and now cash flow management solutions at Small Business Bank. Here are the basic features that do come standard with the Micro Business Checking Account:
To help guide your business checking account process, we have listed a few categories for you to consider before choosing a bank.
Every business makes at least one transaction monthly. You will need to review the monthly transaction allotment for each account advertised. Every business checking account lists the number of transactions it supports per month for free (or at least covered by the monthly maintenance fee) and then lists a fee that applies to each and every transaction that exceeds that specified limit. Normally, every single transaction over that limit gets charged individually thereafter, which can become extraordinarily expensive. Try to calculate ahead of time to see your monthly average and plan ahead, considering potential growth spurts.
The average daily account balance is important to weigh heavily in your decision for two reasons:
You will often need to make an initial deposit to even open a checking account. These can range anywhere from $20-$1500. If you don’t have enough money to make the initial deposit, then you are automatically ineligible for the business checking account. While these initial deposits are normally within the financial means of the average small business owner, you might want to find a bank with a lower initial deposit, especially if you are simply moving money from your personal account into your business checking as a sole proprietor.
As businesses become increasingly virtual, more and more banks are moving their services online. There are fewer and fewer physical branches each year, even at the largest banks. Some banks are region-specific and might not be located where your business is headquartered. If you need a physical banking location, you must use a branch locator and do some research to see which bank branches are closest to you. This also extends to ATMs. Online banking and mobile deposit apps help to circumvent the need for banking at a physical location. Weigh the pros and cons of banking without a nearby bank branch or try to make a shortlist of banks that are closest to you for in-person financial services.
There are pros and cons when banking with either larger or smaller banks. Bigger banks often have more branch locations, more ATMs in-network, fee coverage for ATMs outside of the network, and 24/7 chat and phone support. Large banks can also better accommodate business growth over time, ensuring you won’t have to switch banks if you don’t want to. Smaller banks offer a more personal touch. You can get the individual attention you need at a small bank, which may be good for starting a small business.
If you like face-to-face customer service or hand-delivering cash deposits, then a bank in your community could be a great choice. Use branch locators on different bank websites to see if there is a bank right in your neighborhood. Small brick-and-mortar businesses or local retailers might need the in-person support a regional bank has to offer. At a community bank, you can build relationships with business banking representatives. They will be more available to you to answer your questions, address your concerns, and help you apply for loans. Plus, you’ll have the opportunity to speak directly with the person who will be approving your loan.
A small business is defined as a for-profit business that is owned and operated independently. Small businesses have somewhere between five and five hundred employees working on a daily basis. There are over 22 million official small businesses in the U.S. Banks offer many different business checking accounts to accommodate businesses of all shapes, sizes, and industries. Here are some of the different types of businesses that might require unique checking accounts to match the way they operate:
If you are a business with less than $1,500, you qualify as a micro business. Microbusinesses usually have less than five employees and make up a staggering 92% of all businesses in the U.S. There are also plenty of options for microbusinesses that don’t require high minimum opening deposits or minimum deposits at all. When applying at a bank or credit union with multiple business checking options, you should pick the smallest, simplest option as you likely won’t need the features of a bigger account with a higher monthly maintenance fee that accommodates a large number of transactions.
Are you a more established business? There are accounts that allow for more transactions per month without additional fees. You also might want to find a checking account that has a high interest rate so your larger balances can accrue value over time. There are different features that your business could benefit from, like cash flow management or Quickbooks integration for easy accounting. A more established business has higher cash flow, bigger account balances, more employees, might be eligible for credit lines or loans, and needs a business checking account to match their size. Several banks have four tiers of business checking options so that even more established businesses have room to grow without having to switch banks.
If you are a business with high transaction volumes, you will need an account offering a low monthly service fee and, ideally, a list of easy-to-meet requirements to help waive that fee. You will also want strong merchant service features to create a link between your business checking account and your customers with cash management solutions to help track and manage profits. The main thing you will be looking for, if your business has high transaction volumes, will be transactions offered per month without high fees for every transaction thereafter.
If your business operates online, your checking account may follow suit. There are now online banks that have lower fees and associated costs. Online banks don’t have the overhead of a physical location to worry about, and for this reason, they are able to offer cheaper financial services. Many even offer free small business checking accounts. You can bank from your phone or laptop anywhere in the world and get online customer support. As more and more businesses operate online exclusively, there are more online banks with lower overheads and more affordable on-demand Internet banking services.
International companies require international banking services. Use an international bank if your business decides to break through the borders. You could also find a domestic checking account that has low ingoing and outgoing wire transfer fees and international cash flow solutions. A bank with a robust online portal, mobile app, and 24/7 customer support could also work to support international banking needs.