For a small business owner, managing business finances is the top priority.
An important aspect of your financial management is to keep your personal and business finances separate using a business checking account.
However, choosing the best small business checking account is not easy given the plethora of options.
But don’t worry, we’ve got you covered.
Go through this list to pick the best small business checking account that meets your needs.
But first, let’s understand what a business checking account is and why small businesses need it.
A business checking account is an account that a business can use to deposit its earnings and make payments.
You can open such accounts at banks or credit unions.
A business checking account differs from a personal checking account in terms of:
For instance, you can open a personal checking account with just $1, while you may need to deposit $500 to $1,000 (or more) to open a business checking account.
The balance you need to maintain in your business checking account is also higher than what is required for a personal checking account.
While the fees and deposits are higher for a business checking account, this type of account offers multiple benefits for small businesses like:
That’s not all. With a business checking account you can:
To derive these benefits, you’ll need to choose the best small business checking account.
However, that’s easier said than done. Even the best business checking accounts are not created equal. Some offer unlimited daily transactions while others offer a higher interest rate.
The best small business checking account is also the one that offers the features you need for your small business.
Take a look at the different options we have listed here to zero in on the best business checking account. But first, let’s understand the difference between personal and business accounts in more detail.
While there are some similarities between personal bank accounts and business bank accounts or checking accounts, they are different in many ways.
The main difference is that business bank accounts are used for business-related transactions, while personal bank accounts are used for personal transactions.
Here are the differences between the two types of bank accounts.
Before you can open a business checking account, there are some documents that you will need to provide.
The documents required to open a business checking account vary from bank to bank. However, the following documents are usually needed:
On the other hand, a personal bank account can be opened by anyone over the age of 18 who has either a US Social Security number or taxpayer ID number.
The minimum deposit required for a personal bank account varies depending on the bank and the type of account.
To open a personal savings bank account, most financial institutions require between $25 and $100 as an initial deposit. Some banks may also require that you have a direct deposit set up with your employer to qualify for this type of account.
The minimum account balance you need to maintain ranges from $300 to $500 for personal savings accounts.
However, many banks offer free checking accounts with a passbook, which means you don’t have to worry about fees or minimum balances.
Similarly, for business checking accounts, you can find banks that require no minimum deposit. Some banks require $25 while some others require $250 as an initial deposit. Having a higher balance can also mean a higher APY in some cases.
You’ll read about this in the section on the best small business checking account.
Typically, personal savings accounts offer higher interest rates than business checking accounts because savings accounts are designed to help you save.
Checking accounts are designed to make it easy for businesses to manage regular transactions including bill payments, payroll, and purchases.
Most banks offer an interest rate of 0.01% on personal bank accounts, while the national average is 0.17%. Some personal bank accounts, however, do offer a higher APY at 3%.
Many business checking accounts earn zero interest rates and most APYs vary from 0.10% to 0.20%.
Businesses typically need to maintain a large balance in order to generate enough revenue from the interest.
Regulation D is the law that governs the availability of funds in US savings accounts. It requires savings deposits to be limited to a total of six transfers per month.
When it comes to business checking accounts, most banks impose a monthly limit of 100 to 200 transactions. Any transaction above this limit will incur a charge.
Now that you know why you need a business checking account, it’s time to talk about how to find the best small business checking account.
Let’s get started.
There are many contenders for the title of the best small business checking account. Each comes with its own features and benefits that can help your business succeed.
Here are our top picks to get you started with your search for the best small business checking account.
Image via Chase
Let’s start your search for the best small business checking account with Chase. The well-known bank offers three different types of business checking accounts.
Of these, the Complete Banking account is the best small business checking account in terms of the monthly service fee.
The best part is you can waive the service fee of $15 if you ensure a daily balance of $2000.
The other reason to call it the best small business checking account is that it offers a chance to earn interest on your balance.
Read on to know if it is the best small business checking account for your business.
Key Features
Pros
Cons
Image via Novo
If you own an ecommerce business, Novo is the best small business checking account for you. Technically, Novo is not a bank but partners with Middlesex Federal Savings to offer these services.
You can transfer and receive funds online with ease while managing the other banking tasks with a few swipes.
It has all the features that you would expect from the best small business checking account including unlimited free transactions, zero incoming wire fees, ATM reimbursements, etc.
Integration with Xero, QuickBooks, and Shopify is the other highlight of Novo.
Here are all the features that make it the best small business checking account.
Key Features
Pros
Cons
Image via Lili
While we’ve listed Lili in this post on the best small business checking account, it isn’t a bank, but a fin-tech (financial technology) company. The banking services are through Choice Financial Group.
Lili is ideal for you if you are comfortable with digital-only banking and don’t need checkbooks.
There are also other useful business tools such as a tax tracker, automated savings, and an expense tracker. What’s more, with its built-in invoicing, you don’t need to invest in separate invoicing software.
And, there are the perks of zero opening deposits and account fees.
But is it the best small business checking account for you?
Find out.
Key Features
Pros
Cons
Image via Bluevine
Bluevine business checking account is the best small business checking account in terms of its digital-only banking services.
It is also the best small business checking account on the basis of zero monthly service fee, lack of minimum deposit requirement, and an option to earn a high interest rate on deposits.
Bluevine offers many features to help your business thrive. One of these is the ability to create multiple sub-accounts to categorize your business income and expenses.
Key Features
Pros
Cons
Image via Axos
Axos Bank has been around since 2000. It offers two types of business checking accounts, a Business Interest Checking account and a Basic Business Checking account.
Like its competitors, Axos offers all the features that make it one of the best small business checking accounts.
Check out its features to learn more.
Key Features
Pros
Cons
Image via Relay
Relay easily meets the criteria for the best small business checking account thanks to the freebies it offers.
Apart from zero minimum balance requirements, Relay offers unlimited transactions.
The best part is that it allows you to consolidate your payments and income in one place to get a quick overview of your finances.
Read on to know what else makes it the best small business checking account.
Key Features
Pros
Cons
Image via NorthOne Business Banking
Next option in your search for the best small business checking account is NorthOne. Like most of its competitors, the bank offers the benefit of free ATM access within the network, free transactions, and digital banking tools.
Easy integration with a wide range of point-of-sales, ecommerce, and accounting software is an added bonus.
And, if you need to open multiple sub-accounts, this is the best small business checking account.
However, there is a minimum opening deposit as well as a monthly service fee that cannot be waived.
Key Features
Pros
Cons
Image via nbkc
If your business is located in Kansas or Missouri, the best small business checking account may be the one offered by nbkc Bank.
With four physical branches in these two states, the bank’s checking account comes with a range of benefits.
Let’s see what they are.
Key Features
Pros
Cons
Image via U.S. Bank
U.S. Bank’s small business checking account offers a variety of features to help your business grow.
It offers both a free Silver Business Checking account and a Gold Business Checking account that yields interest.
It is the best small business checking account if you want a bank with a strong physical presence in addition to online and mobile banking features.
Let’s see what else it has to offer.
Key Features
Pros
Cons
Image via Capital One
Next contender in your search to find the best small business checking account is Capital One. This bank is known for its “Spark for Business” suite, which consists of a range of online tools that help small business owners to manage their finances.
The suite offers various benefits to make it easier for SMBs to manage their finances.
The Business Basic Checking account and Business Unlimited Checking are part of this suite.
One of the features that makes Capital One qualify for the title of the best small business checking account is the access it offers to 330 branch locations.
Let’s check out its other important features.
Key Features
Pros
Cons
Image via Mercury
Next up in this post on the best small business checking account is Mercury. Zero balance and deposit requirements in addition to customizable features make Mercury an ideal option for ecommerce start-ups and small business owners.
One of the stand-out features that VC-funded businesses can leverage is the ability to apply for VC funding via the platform.
If you want a digital-only business checking account that offers free transactions, Mercury is the best small business checking account for you.
Key Features
Pros
Cons
Image via Navy Federal Credit Union
The Navy Federal credit union is a financial institution that is dedicated to serving the members of the United States military and their families.
The company offers a variety of products and services including business checking accounts, money market accounts, savings accounts, certificates of deposits, mortgages, home equity loans, and auto loans.
Navy Federal Credit Union has three types of business checking accounts on offer. These include Business Checking, Business Premium, and Business Plus Checking.
Find out what else makes it the best small business checking account.
Key Features
Pros
Cons
Image via Wells Fargo
Apart from being one of the most recognized banks in the U.S., Wells Fargo also offers one of the best small business checking accounts.
In fact, there are three key business checking accounts on offer including Initiate Business Checking Optimize, Business Checking, and Navigate Business Checking.
In addition to its business loan products, Wells Fargo business checking accounts are also preferred for easy access to both digital banking and brick-and-mortar banks.
Check out its features, pros, and cons to see if it is indeed the best small business checking account.
Key Features
Pros
Cons
Image via Regions Bank
Regions Bank offers most of the features you would expect from the best small business checking account.
You can pick from different business checking accounts based on your banking needs.
For instance, those with limited transactions can opt for the Business Simple Checking account. The Advantage Business Checking account is ideal for small businesses with a moderate number of transactions.
These accounts come with expected benefits such as overdraft protection and ways to avoid a monthly service fee.
To compare it with others in the best small business checking accounts list, go through its features, pros, and cons.
Key Features
Pros
Cons
Image via Grasshopper
If you are looking for an interest-earning, online fee-free checking account, Grasshopper offers the best small business checking account.
You also get a cashback offer for designated purchases in addition to a free debit card.
Other notable features include free payment transfers and unlimited transactions. Let’s see what else makes it the best small business checking account.
Key Features
Pros
Cons
Image via Security Service Federal Credit Union
Looking for the best small business checking account that provides access to attorneys for your business?
The right choice is Security Service Federal Credit Union (SSFCU).
You can choose from Not-For-Profit Checking, Premium Checking, and Classic Business Checking accounts, each of which come with certain perks.
In addition to different business checking accounts, SSFCU offers unique advantages that include legal services, data breach protection, and telehealth services with the Premium Checking account.
Like others in this list of the best small business checking accounts, SSFCU offers some freebies along with a good APY.
Here are the features of SSFCU’s business checking account.
Key Features
Pros
Cons
Image via Bethpage Federal Credit Union
Founded in 1941, Bethpage Federal Credit Union is known for its low minimum balance and competitive interest rates.
That’s not all. At an APY of 0.20%, Bethpage offers one of the highest interest rates among credit unions.
Unlike most credit unions, Bethpage doesn’t restrict membership. While it is based in New York, anyone can open a savings account at Bethpage.
It supports digital banking in addition to offering investment advisory services.
These are some of the features that make Bethpage the best small business checking account.
Take a look at the other features to make an informed decision.
Key Features
Pros
Cons
Image via LendingClub
The best small business checking account for businesses with a huge volume of transactions is LendingClub.
Unlike most others in this list of the best small business checking accounts, LendingClub offers cashbacks and a good interest rate.
What’s more, the FDIC insurance offered by LendingClub is the same as what traditional banks offer.
Key features
Pros
Cons
Image via Comerica
Comerica’s 170-year-plus wealth of experience makes it one of the best options for you to open a small business checking account.
Comerica offers 3 types of bank accounts suitable for small businesses: Basic Business Checking, Small Business Checking, and Small Business Interest Checking.
For this post, we’ll place the spotlight on their Small Business Checking and Small Business Interest Checking accounts. Here’re some stand-out features, pros, and cons for you to consider.
Key features
Pros
Cons
Image via Truist
Truist was formed through the merger of BB&T Corporation and SunTrust Banks, Inc. in 2019. It’s now one of the largest financial institutions in the United States.
Right now, Truist’s Simple Business Checking is one of the best small business checking accounts available for business owners.
If you complete fewer than 50 business transactions a month and have under $2000 per month in cash deposits, then Truist is the best bank for you.
Key features
Pros
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Image via PNC
Headquartered in Pittsburgh, Pennsylvania, PNC operates in 21 states and the District of Columbia, serving millions of customers.
The bank traces its roots back to the Pittsburgh Trust and Savings Company, which was founded in 1852.
Over the years, it went through several mergers and acquisitions and eventually became PNC Bank in 1983. The name “PNC” stands for Pittsburgh National Corporation.
PNC offers a comprehensive range of banking products and services for individuals, businesses, and corporate clients including a basic Business Checking Account.
Key features
Pros
Cons
Image via First Citizens Bank
First Citizens Bank is one of the largest family-controlled banks in the country and operates in multiple states, primarily in the South-East. It serves customers in over 19 states, including North Carolina, South Carolina, Virginia, Maryland, West Virginia, Tennessee, Georgia, Florida, and others.
The bank has a long history that dates back to 1898 when it was founded as The Bank of Smithfield in Smithfield, North Carolina. Over the years, the bank expanded its presence through mergers and acquisitions, eventually becoming First Citizens Bank in 1986.
It offers 4 types of business checking accounts for small businesses. They include Business Banking, Business Banking I, Business II, and Business III.
Key features
Pros
Cons
Image Citibank
Citibank is a global financial institution and one of the largest banks in the United States.
It operates as a subsidiary of Citigroup, offering a wide range of banking and financial services to individuals, businesses, and institutional clients.
The global bank offers CitiBusiness® Streamlined Checking, one of the best small business checking accounts you can get.
Key features
Pros
Cons
Image via Citizens Bank
Citizens Bank is a prominent financial institution operating primarily in the United States.
With a history dating back over 190 years, Citizens Bank offers a wide range of banking and financial services.
These services include one of the best business checking accounts—the Business Advisor Checking account.
This small business checking account comes with a range of benefits. Let’s see what they are.
Key features
Pros
Cons
Image via WaFD Bank
Previously known as Washington Federal, WaFD Bank is a full-service commercial bank that provides a range of banking services to individuals, businesses, and commercial clients.
It has branches in eight western states of the US including Washington, Oregon, Idaho, Utah, Nevada, Arizona, Texas, and New Mexico.
WaFD Bank offers tailored banking solutions to small businesses including three specialized Business Checking accounts.
These include Business Checking, Business Interest Checking, and Business Analyzed Checking.
Key features
Pros
Cons
Image via TD Bank
TD Bank, also known as TD Bank, N.A., is a prominent financial institution operating in the United States. It’s a subsidiary of the Canadian multinational Toronto-Dominion Bank.
TD Bank prides itself as America’s most convenient bank. No doubt, as its business convenience checking plus account is one of the best business checking accounts for small businesses.
Let’s look at the bank’s key features, pros, and cons.
Key features
Pros
Cons
Image via Bank OZK
Bank OZK was founded in 1903 and initially operated as a community bank in Jasper, Arkansas. Over the years, it expanded through acquisitions and organic growth to become one of the largest banks in the state.
OZK offers two business bank accounts that are suitable for small-scale entrepreneurs. OZK business checking and OZK Interest+ business checking.
Compare its key features, pros and cons below.
Key features
Pros
Cons
Image via Popular Bank
Popular Bank was established in 1893 as Banco Popular de Puerto Rico. It initially focused on serving the local community in Puerto Rico.
Over time, it expanded its operations and established a presence in various regions, including the mainland United States.
Popular Bank offers essential business solutions for small and growing enterprises including Popular Primary Business Checking, Popular Preferred Business Checking, and Popular Platinum Business Checking.
Key features
Pros
Cons
Image via Webster Bank
If your small business conducts fewer than 300 transactions a month, then Webster Bank’s Basic Business Checking might just be the right account for you.
Webster Bank is a regional bank based in Waterbury, Connecticut, United States. The bank was established in 1935 and initially operated as the First Federal Savings and Loan Association of Waterbury.
Over the years, it grew through acquisitions and expansions to become one of the largest banks in Connecticut.
While Webster Bank is headquartered in Connecticut, it has expanded its operations into neighboring states. It has a presence in Connecticut, Massachusetts, New York, Rhode Island, and Pennsylvania, serving customers through a network of branches and ATMs.
Here are its key features, pros and cons.
Key features
Pros
Cons
Image via KeyBank
KeyBank traces its roots back to 1825 with the establishment of the Commercial Bank of Albany in New York. Over time, through mergers and acquisitions, it evolved into KeyBank and became one of the largest banks in the United States.
The bank operates across a significant area of the United States. It caters to the commercial banking needs of 15 states, primarily in the Midwest, Northeast, and Northwest regions.
KeyBank offers 3 of the best business checking accounts suitable for early-stage entrepreneurs. They include KeyBank Basic Business Checking, KeyBank Business Interest Checking, and Key Business Reward Checking.
Key features
Pros
Cons
Image via Fifth Third Bank
Fifth Third Bank was established in 1858 as the Bank of the Ohio Valley. It went through several mergers and acquisitions to become the Fifth Third Bank in 1968. The name “Fifth Third” originated from the merger of the Third National Bank and the Fifth National Bank in 1908.
Fifth Third Bank operates in ten states primarily in the Midwest and Southeast regions of the United States. Its primary markets include Ohio, Florida, Illinois, Indiana, Kentucky, Michigan, North Carolina, Georgia, Tennessee, and West Virginia.
Fifth Third has some of the best small business checking accounts including. These include Fifth Third Business Checking Account and Fifth Third Business Premium Checking Account.
Key features
Pros
Cons
Image via United Bank
United Bank has a history that spans over 150 years. It was established in 1858 as the United Bank of West Springfield in Massachusetts.
Since 1858, United Bank has expanded to serve several states in America, including Connecticut, Massachusetts, Rhode Island, and Vermont.
United Bank offers an impressive zero-cost business bank account appropriately named: Free Business Checking Account. This account is perfect for small business owners that need to cut costs.
Key Features
Pros
Cons
Choosing a business checking account is not an easy task. There are many things to consider and the following list should help you find the best option.
Start by asking yourself these questions to zero in on the best small business checking account:
To make it easy for you to pick the best small business checking account, here’s a table that lists the best accounts for each criterion.
Criteria | The best small business checking account |
Zero deposit, monthly fee, and balance requirements |
|
High APY |
|
VC funding |
|
Digital only/ Online business checking account |
|
Convenient ways of opening an account (online, phone, in-person) |
|
Integration with accounting software |
|
Access to physical branches |
|
Cash and check deposits |
|
Safe deposit box |
|
Invoice and payment processing |
|
Frequent wire transfers |
|
Of course, you may have more than one criteria. In this case, list all the features that are important to you, and go through the list to see which one meets your requirements.
1. Which bank is best suited for small businesses?
The best small business checking account is one that is tailored to the needs of your business. This includes how much money is needed in the account, the interest your account earns, and other charges you incur.
Some of the most popular providers are Chase, Wells Fargo, Capital One, Bluevine, and Bank of America. These banks offer a variety of accounts and services that can help you grow your business.
2. What bank doesn’t charge monthly fees for a business account?
Many banks don’t charge a monthly fee. Some examples are:
3. Do any banks pay interest on business checking accounts?
Yes. The most competitive rates of interest are offered by these banks:
4. Which account is best for business?
The best small business checking account for your business will depend on the features and benefits it offers. For example, if you are a startup, you may want to look for an account with zero monthly fees and deposits.
If you are looking for full-service banking, choose an account that offers loans, funding, retirement plans, and so on.
5. Is Chase Business Account good?
Chase is a good option if you’re looking for free ATM transactions, cash deposits, and easy ways to transfer money.
We hope this blog post made it easy for you to find the best small business checking account for your business.
The best way to go about it if you are a startup is to choose an account with zero monthly charges, deposit, and balance requirements.
As your business grows, you can consider switching to an account that offers comprehensive banking services.
Compare the checking accounts we have listed here to select the one that is as closely aligned with your needs as possible.
Do you have your own thoughts on what features the best small business checking account should have?
Share your thoughts by commenting below.
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