APY
A business bank account is where you keep your money for the company. It’s an account used specifically for the business — so, separate from your personal checking or savings accounts — where you hold your earnings, pay for related expenses (supplies, vendor services, utilities, etc.) and more. There are several angles you could take to determine the best banks for small businesses, depending on the business needs of your company. To help you choose the best for your business, we focused on three banking services: Small business checking account and business savings account options; small business lending, and business credit cards.
Startups tend to benefit from lean and nimble financial services. Look for an institution that makes it easy to upgrade your account as your business grows and rewards you for it. You likely also need access to loans, credit cards and lines of credit to support cash flow as you grow, so look for banks with favorable loan terms, lines of credit and rewards credit cards.
Minimum deposit requirement
BlueVine is an honorable mention in this list, because it doesn’t offer a full suite of business banking services. But its 0.60% APY on your business checking account balance makes it stand out among even modern banks for businesses, so it’s worth mentioning. With the account, you can pay vendors and bills by ACH, wire or check and set up recurring payments. You can also apply for credit lines up to 0,000 with rates as low as 4.8%. If a brick-and-mortar location isn’t a top priority, add this one to your list.
Minimum Opening Deposit
Dana Sitar is a Certified Educator in Personal Finance and has been writing and editing for online audiences since 2011, covering personal finance, careers and digital media. She is a former staffer at The Penny Hoarder. Her work has appeared in the New York Times, CNBC, The Motley Fool, Inc. and more. Information from former contributor Jake Batemen is included in this review.
Like with personal accounts, you have many options when it comes to choosing a business bank account. Here are the basics when it comes to business banking:
Wells Fargo
Your needs may be more complicated, but they likely include these basic merchant services. So here’s how the best small business banks stack up.
APY
Best Overall Bank for Small-Business Owners
100 fee-free transactions
$5,000 in free cash deposits/month
$25 minimum deposit
Best Overall Bank for Small-Business Owners
4,700 brick-and-mortar branches
Fee waivers for accounts with minimum balances
$300 sign-up bonus
Best Overall Bank for Small-Business Owners
Free cash deposits up to $5,000/month
0.20% APY guarantee for 12 months
$0 monthly fee with minimum balance
Best Overall Bank for Small-Business Owners
Online-only bank
Up to 0.81% APY
$100 bonus for new business owners
Best Overall Bank for Small-Business Owners
No monthly service fee
30 free non-electronic transactions
Member-owned nonprofit institution
Best Overall Bank for Small-Business Owners
0.60%% APY on balances up to $100,000
No monthly fees or minimum balance requirements
No overdraft or NSF fees
APY
Fees
Fees
Promotions
What Is a Business Bank Account and Why Do You Need One?
0 bonus when you deposit ,000+ in first 30 days, plus more requirements
Fees
Key Features
Banks for Small-Business Owners
There are three main ways you can borrow money for your business. We compared what banks offered across these three categories:
ATM access
Axos Business Savings requires a ,000 initial deposit and pays 0.20% APY. The monthly fee is waived with an average daily balance of ,500. The bank offers lines of credit and commercial loans starting at 0,000 to businesses at least two years old. It doesn’t offer any credit cards.
Common Types of Business Checking and Savings Accounts
BlueVine
Business Checking Account
You have many options when it comes to small business bank accounts. And your mileage with different banks and business checking accounts will vary depending on your wants and needs.
Business Savings Account
30,000 Navy Federal and co-op ATMs
Business High-Yield Business Savings Account
Promotions
Some banks, specifically larger ones, may offer a variety of business checking accounts. Depending on factors such as your daily minimum balance, the number of transactions performed in a month and the amount of services you need, you can choose a checking account to fit your needs and budget.
With this type of account, you have an opportunity to earn higher interest rates on your money. Typically, there is a higher minimum deposit required and tighter restrictions around the number of monthly transactions allowed for this account.
What to Look for in Business Banking
The right bank for your business and personal finances is out there. You’ve just got to hunt it down.
Small-Business Checking Account and Business Savings Account Options
Promotions
ATM access
A low minimum balance requirement
A low monthly maintenance fee (or one that can be easily waived)
Minimum monthly service fees (bonus for no monthly fees!)
Free business checking
A business debit card
Free cash deposits (at least up to a point)
Online banking
Mobile banking (an app)
Online bill pay
Payroll services
0.01%–0.45%
Small-Business Lending
Chase
If you’re a qualified small business owner, you can take out SBA loans, which are backed by the Small Business Administration and, as a result, come with lower interest rates.
You can also secure a business term loan, which operates in the same way as a personal loan.
You can secure a business line of credit, which can provide you with flexibility if you’re not sure how much money you need.
Business Credit Cards
Fees
Capital One
Find the Best Bank for Your Small Business
None
ATM access
APY
Key Features
None
3 out of 5 Overall
Frequently Asked Questions (FAQs) About Small-Business Banks
Many banks offer business loans and business credit cards (more on those next) and certificate of deposit (CDs). You also want to keep an eye out for new-business-account bonuses (usually in the form of a couple hundred dollars) for owners just opening their account.
The perks of this (or any) credit union aren’t going to match the big four. Membership is also not available to everyone. Only veterans, active-duty military, employees of qualified government agencies and immediate family of Navy Federal members can apply to this credit union.
Key Features
We’ve rounded up and answered some of the most common questions about small business banks.
Along with an affordable bank account, Capital One offers three business credit cards and includes information upfront about the credit score you need to qualify for each one. Its cards offer between 1% and 2% cash back, free employee cards with spending limits and options for no annual fee. It also offers equipment loans, business installment loans and lines of credit that start at ,000. Loan term lengths and repayment terms vary.
With over 4,900 brick-and-mortar locations and 13,000 ATMs across the country, Wells Fargo’s big appeal is convenience. Customer service is around the clock, and you can handle all your business banking needs in one location.
3 out of 5 Overall
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3 out of 5 Overall
With Capital One Spark Business Basic Checking, you get unlimited business transactions and free cash deposits up to ,000 a month. The monthly fee is waived with a ,000 90-day balance. With Business Advantage Savings, you need a 0 opening deposit, and you get a promotional interest rate guarantee for the first year. The monthly fee is waived with a 0 balance.
No matter what’s on your checklist, the options listed here should give you an idea of where to look next. If Wells Fargo and Chase were catching your eye, for instance, it might be worth comparing offerings from other big banks like Bank of America and Citibank as well.
70,000+ Capital One ATMs
And if you like the idea of Navy Federal, search for credit unions in your area to compare. If your small business is location-based and caters to a local cliente, working with a neighborhood credit union might benefit you in other ways a bigger bank cannot. You have lots of options when it comes to banks for small business, so do some research.