Running a business comes with plenty of fiscal responsibilities. Fortunately, opening an account with one of the best banks for small business can help with everything from administering payroll to budgeting for office supplies—even if numbers aren’t your forte. For an entrepreneur, opening a bank account for business might seem like a hassle, but separating personal and professional finances is a move that will pay off. Setting up a small business bank account makes it easy to spot paid bills, expenses, and payments received; plus, you can establish business line of credit, which is important if you want to apply for a business credit card or a small business loan. (A 2018 Nav survey found that 70% of small business owners without a professional checking account were denied by lenders.)
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While many small business bank accounts have similarities, they can have nuances that may be better suited for your company’s needs. Ultimately, you’ll want to consider your company’s average account balance and number of transactions as well as logistical factors, like location, customer service, and mobile banking. While finding the right bank account for business can be challenging, AD PRO has assembled the tips below to help, as well as a list of the ultimate small business bank accounts.
Understanding small business bank account basics
Unless you have a background in banking services, researching small business bank accounts may feel overwhelming—but understanding the basics will help you make the best decisions for your company. Before you start your search for the best small business banking programs, consider a few of these FAQs.
What is a business checking account?
Think of a business checking account as the primary destination for all your company’s finances. When you open a business checking account, you can use it to pay invoices, bills, and employees, withdraw cash, and even receive payments from credit cards. So, how is that different from the checking account you already have? The main difference between a business checking account and a personal one is its intended purpose. Though you might be able to move funds into or out of it, a personal account isn’t set up with work in mind, and may have certain limitations. Meanwhile, a small business bank account is designed to support you as your business grows, which means you may be able to issue debit cards for employees or link finances up with your favorite bookkeeping software.
Since a business checking account is essential for most small businesses, you’ll want to open one immediately. But if you have even a small cash reserve, there’s value in opening a savings account too. Doing so can boost your line of credit, earn interest, and help you maintain minimum balance requirements.
How do you open a business bank account?
Once you find a bank that suits your small business needs, you’ll want to apply for an account promptly. Be ready to provide personal information like your social security number, mailing address, and a copy of your passport or driver’s license. Banks will also require you to submit your business’s name, address, an employer identification number (EIN), and any documentation to support the fact that your company is legitimate and you are the owner.
Some institutions may require deposits to open business bank accounts, but often that fee can be $100 or less. (If you opt for an option with no minimum opening balance, make sure to read the fine print to ensure you’re not compensating in monthly maintenance fees.) Some banks offer a sign-up bonus as a perk for opening an account; however, it’s important to prioritize whichever business checking account will be a good fit in the long run.
In most cases, you can quickly sign up for a business checking account online; however, approval may take a few business days.
How to choose a business bank account
No two companies are alike, which means your best small business banking match might be different from the rest of your network. But, if this is your very first time setting up a small business account, you may not even know what to look for in the first place.
Selecting the right small business bank account is a decision that should not be taken lightly. While some small business owners might want investing advice or great customer service, others might prioritize local knowledge or online convenience. To help, here are a few factors to consider.
Cost
Contrary to popular belief, a “free” business account isn’t always free. Although business banking accounts typically have higher fees than personal ones, some banks offer checking accounts with no monthly fees. However, account holders may need to maintain a minimum daily or monthly balance, or limit transactions to avoid fees. That said, free and low-cost accounts do exist. Read the fine print and choose wisely.
Monthly transactions
Unlike personal checking accounts, business bank accounts usually have limitations on monthly transactions (which include deposits, withdrawals, transfers, and electronic payments). Ranges vary, so it’s helpful to know where your small business falls on the spectrum, as well as the fees for exceeding the limit. There may also be a maximum to how many transactions you can make while still qualifying for a free account. Before applying, consider how your business operates on a monthly basis.
Average account balance
Many banks offer better rates to those small businesses that keep their balances above a certain amount, for either a daily or monthly average. Consider what yours will be and plan accordingly.
Location
Today, you can have a small business account without ever stepping foot in a branch. For entrepreneurs who track their finances through websites or mobile apps—or complete most transactions online—going digital might be the right move. But if you deal with lots of cash, prefer human interaction, or want to build a rapport with a professional who understands your region or local economy, you’ll want to use a bank account with a physical branch nearby.
The bank’s tools
If you use QuickBooks, payroll software, or another accounting tool, you may want to work with a bank that allows you to integrate the data from your software. It’ll be a lot more efficient to balance your books if withdrawals automatically show up in QuickBooks. If you use PayPal or Square, you may find it helpful to have those transactions show up in your checking account too.
The size of the bank
Small or large? As the business owner, the choice is yours. Having a close relationship with someone who works at a local bank (or a local branch of a national bank) can have its benefits. That person may have the ability to adjust fees or give you more wiggle room on a small business loan application. The downside of smaller banks is that information isn’t always clearly spelled out online, you may have to open an account in person, and the online banking tools may be lacking. By contrast, larger banks are likelier to outline fine print online and allow you to open an account digitally.
Convenience
If you like the bank you use for personal finances, and it has a business checking account option that matches your needs, there’s nothing wrong with opening an account there. Being able to access information from multiple accounts through one location, website, or mobile app is a nice bonus.
Professional goals
With so many options, it’s easy to select a bank account for business that caters to your needs. But first, consider where your business will be a few years down the road. If you’re looking to scale up, you might want to consider a program with more monthly transactions than you currently need. Or, if you want to add an e-commerce element to your business plan, you might want to explore accounts with merchant services.
Should you join a credit union?
A business bank account is one way to manage your professional finances, but it’s not the only option. Some small business owners might find themselves drawn to a credit union, which is typically a cooperative, member-owned organization. The main difference between the two is that a bank is a for-profit financial institution, and a credit union is generally a nonprofit service. Additionally, small business owners will have to become a member of a credit union to use their services, while a bank only requires an account.
Although many credit unions might offer similar services—such as administering loans as well as setting up checking and saving accounts—they might have fewer features than a typical bank.
The best banks for small businesses
There are more than 4,500 commercial banks in the US offering thousands of business checking account options. What busy entrepreneur has time to sort through it all? Instead, read the list below for the best banks for small businesses.
Best Bank Accounts for Small Businesses With Sole Proprietors or for Start-Ups
1. Wells Fargo Initiate Business Checking
This business bank account allows up to 100 transactions per fee period at no charge and cash deposits up to $5,000 per month. Although this account has a $10 monthly service fee, it can be avoided with a $500 daily balance. With a minimum opening deposit of just $25, this solution is excellent for a small business with limited cash-flow activity. The Initiate Business Checking account might be the simplest of Wells Fargo’s offerings, but it still offers a zero-liability debit card protection as well as fraud monitoring. And, as with all Wells Fargo business checking accounts, small business owners can apply online or in person, then send deposits and required documents later.
2. BlueVine Business
Sole proprietors with a lot of clients will find a lot to love about BlueVine’s business checking account. Unlike larger banks, BlueVine has unlimited transactions as well as no monthly service fees or minimum balances. What’s more, account holders can access over 37,000 MoneyPass ATMs with no additional fee. You’ll have some peace of mind knowing BlueVine does not charge overdraft fees. Small business owners can also earn 2.0% interest, or 50 times the national average, on balances up to $100,000. And, to make your banking even easier, sync up your BlueVine business checking account with payment platforms like Venmo and Square, or accounting tools like QuickBooks.
3. Comerica Basic Business Checking
At Comerica, a small $50 deposit can grant you a no-interest account without a monthly maintenance fee or minimum balance requirement. You can also waive your activity fees with deposits up to $2,500 per month, or 75 or fewer transactions. Comerica can sync with QuickBooks, making it possible to send digital payments or keep tabs on your accounting. Plus, as your business grows, you can upgrade to another account using the same account number. Comerica is not a nation-wide chain, but it does have locations in several states (though fees and conditions will vary).
4. Truist Simple Business Checking
If your business bank account needs are fairly simple, and you require few monthly transactions, Truist Simple Business Checking account could be a good option. With no monthly maintenance fee or minimum balance requirement, this small business bank account can be a great option for entrepreneurs who are just starting out. The account includes 50 transactions and $2,000 in cash processing per month. Stipulations and rules are laid out in further detail on its website.
5. PNC Business Checking
With no monthly account maintenance fee for the first three months and a digital cash flow platform that helps you operate your business finances, this competitive account may be a good fit if you need checking but not a lot of transactions (150 or fewer per month). Once the $12 monthly fee kicks in, avoid it by maintaining a $500 average monthly collected balance.
Best Bank Accounts for Small Businesses Experiencing Growth
6. Wells Fargo Navigate Business Checking
With 250 transactions and $20,000 in cash deposits per pay period, Wells Fargo’s Navigate Business Checking account can be a great option for entrepreneurs whose businesses are growing quickly. Avoid the $25 monthly service fee by keeping a $10,000 minimum daily balance or $15,000 in combined balances across Wells Fargo accounts. (You can also make qualifying transactions from a linked payroll services account.) Small business owners with a Navigate Business Checking account pay no fees for incoming wire transfers, overdraft protection transfers, stop payments, cashier’s checks, or money orders. Plus, receive two complimentary outgoing domestic wire transfers and two non-Wells Fargo ATM cash withdrawals per fee period. Applying requires a minimum opening deposit of $25.
7. First Citizens Bank Basic Business Checking
For a monthly maintenance fee-free checking account with no minimum balance, consider a First Citizens’ basic business bank account. The bank offers free transactions for up to 100 items and $5,000 each month. First Citizens has a robust digital banking program, but if you want to handle your finances in person, visit 500-plus branches in states such as California, North Carolina, Virginia, and more. At a minimum deposit of $100, this bank account for business is a little pricier upfront than some other affordable options, but there’s definitely a payoff with its perks.
8. Bank of America Business Advantage Fundamentals Banking
This Bank of America account is great for the growing small business. Avoid the $16 monthly fee by spending $250 on net-qualified debit card purchases, maintaining a combined monthly average balance of $5,000, or becoming a Preferred Rewards Business member. Not only is Bank of America’s small business account equipped with small fraud protection and security—giving you some extra peace of mind—but it’s also linked to Zelle so you can easily send and receive money. Bank of America also has a handful of tools like Cash Flow Monitor and mobile check deposit so you can stay dialed into your day-to-day finances. You can apply online, but note that Bank of America outlets don’t exist everywhere.
9. Chase Business Complete Banking
This straightforward business checking account offers unlimited debit card purchases and transactions within the Chase ATM network, plus up to $5,000 in free cash deposits per statement cycle. The $15-per-month fee is waived when you maintain a $2,000 minimum daily balance or link a Chase private checking account. Apply online, or visit one of Chase’s many US locations to get started. Plus, earn $300 when you open a Business Complete Checking account with qualifying activities.
10. Comerica Small Business Checking
Conduct up to 300 transactions per month and deposit up to $5,000 in cash with Comerica’s Small Business Checking account, which waives monthly fees with monthly balances of $7,500 or more. Fees and conditions vary by location, so ask a Comerica representative before you apply. Like the company’s Basic Business Checking account, you’ll receive a year of bill-pay service free. This platform also offers specialized services such as an automated bill payment schedule and payroll activities.
11. CitiBusiness Streamlined Checking Account
This basic business checking account is ideal for businesses that make fewer than 250 transactions and less than $5,000 or $10,000 (depending on the state) in deposits. Maintain the minimum monthly balance of $5,000 to avoid the monthly fee of $15. One caveat: You must apply at a physical branch, but, once you have your small business account, you can receive text and email notifications and stay up-to-date with the brand’s mobile app.
Best Bank Accounts for Small Businesses that Are Established
12. Bank of America Business Advantage Checking
With Business Advantage Savings, you’ll pay no fees for stop payments, incoming wire transfers, or electronic deposits. You’ll also receive up to 500 transactions per month. Though fees are comparatively steep at $29.95 per cycle, you can avoid them in a number of flexible ways, such as spending with a business credit card or maintaining a monthly balance of $15,000. Bank of America also offers merchant and payroll services.
13. U.S. Bank Gold Business Checking Package
U.S. Bank’s Gold Business Checking Package can manage cash flow with 300 free transactions and $10,000 cash deposits per statement cycle. Small business owners can also get a 50% discount on their first check order up to $100. U.S. Bank offers fraud and overdraft protection and an EZ-Switch Kit to help you conveniently transfer a new business account. And, thanks to U.S. Bank’s SinglePoint Essentials, you can keep tabs on check, wire, and ACH accounts in one place.
14. Wells Fargo Optimize Business Checking
Best for larger organizations with high transaction volume and complex cash management needs. After opening with a $25+ deposit, you’ll have up to 250 free transactions per statement period, with no fees for stop payments, cashier’s checks, wire transfers, or money orders. This offering is supported by Wells Fargo’s Commercial Electronic Office, which offers treasury information reporting, customized reports, ACH origination, and online banking services like wire transfers.
Best Bank Accounts for Small Businesses With High Transaction Volume
15. CitiBusiness Flexible Checking Account
If your small business exceeds 500 transactions monthly and averages a monthly balance of at least $10,000, this business bank account may be for you. You’ll pay no fees if you meet the monthly minimum balance (otherwise, fees run between $22 and $30), and you can deposit up to $20,000 each month. And, thanks to CitiBusiness’s Safety Check, your small business checking account will cover overdrafts by transferring funds for your linked CitiBusiness IMMA or CitiBusiness business savings account.
16. PNC Business Checking Plus
With this PNC business bank account, there’s no charge for up to 500 combined transactions per month. Though the $22 monthly maintenance fee is waived for the first three statement cycles, this small business bank account offers more opportunities to offset that regular charge than the company’s Business Checking option. There’s also cash-flow insight and analysis and a business debit card no charge. Earn cash back on everyday expenses with PNC’s Purchase Payback program, and the bank’s Quick Switch Kit makes it easy to change banks.
17. Citizens Bank Business Advisor Checking
If your business is expanding quickly, this Citizens account may give you a nice boost. Perks include 500 free check transactions per statement period and 30 cents for each additional charge. Waive the monthly $25 fee by maintaining a $10,000 average daily balance or $35,000 monthly combined balance. Apply for an account in person at one of the bank’s 1,000-plus branch locations.
18. Capital One Business Checking
The Unlimited Checking option of Capital One’s small business banking platform has online banking options like bill pay and mobile banking, as well as perks like unlimited no-fee digital transactions. Account holders can send out up to five domestic wires each month for no charge. The $35 monthly fee can be waived with a $25,000 minimum 30- or 90-day average balance. And like other Capital One banking offerings, accounts are FDIC-insured.
Best Online-Only Bank Accounts for Small Businesses
19. Novo Business Banking
A standout among online-only business bank accounts, Novo offers free business checking with no hidden fees. (Novo will even refund ATM fees.) Novo also no longer requires a minimum balance to open an account. ACH transfers are a breeze, but if you need to issue a physical check, they’ve also got you covered. Digital entrepreneurs will appreciate Novo’s easy-to-understand analysis and human-powered customer service department, and, as a digital native, this bank also takes integration seriously, too, interfacing with Shopify, Stripe, Amazon, and Xero.
20. Varo
If you are a small business owner who lives paycheck to paycheck, Varo’s proactive platform might be for you. The online bank prides itself on having no hidden costs, as well as waiving monthly maintenance fees, required minimum balance, foreign transaction fees, and ATM fees within the Allpoint network. Depending on the timing, Varo claims that its direct deposit feature can help you get paid up to two days earlier than other banks. And if you want to focus on growing your business’s wealth, opt into Varo’s Save Your Change and Save Your Pay programs.
21. Axos Bank Basic Business Checking
Designed for small businesses with moderate account activity, Axos Bank charges no monthly maintenance fees and offers unlimited domestic ATM fee reimbursements. You’ll get your first set of 50 checks free, QuickBooks compatibility, up to 60 items per month through Axos’s Remote Deposit Anywhere program. Not only does this small business bank account require no initial deposit or minimum balance requirements, new business owners are also eligible for a $200 welcome bonus.
22. TIAA Small Business Checking Account
Created exclusively for sole proprietors and single-owner LLCs, TIAA’s Small Business Checking Account offers no monthly maintenance fees and competitive APYs on balances. Opening a business checking account through TIAA isn’t cheap—the bank requires a $1,500 deposit—but you will be reimbursed for ATM fees, and you’ll receive overdraft protection. Other services include domestic and foreign wire transfers, comprehensive bill pay solutions, ACH transfers, and thorough financial reporting and analysis.
23. Axos Business Interest Checking
If you’re a growing business with some cash reserves, this Axos business bank account offers competitive interest rates and no monthly maintenance fee with an average daily balance of $5,000 (it’s $10 monthly). Like the bank’s Basic Business Checking account, you’ll receive unlimited domestic ATM fee reimbursements and your first 50 checks free. With the account you’ll get up to 100 combined items per month (it costs 50 cents for each one thereafter) and 60 remote deposits.
Best Bank Accounts for Small Businesses for Local Banking
24. Citizens Bank Clearly Better Business Checking
Among regional options, Citizens Bank Clearly Better Business Checking offering is one of the best small business bank accounts in its field, with no maintenance fees and no minimum monthly balance. This small business account includes coverage of 200 check transactions per statement period. Apply in person at one of the bank’s 1,000-plus branches throughout New England, the Mid-Atlantic, and Midwest.
25. TD Bank Business Convenience Checking Plus
TD is a great option for the small business owner who wants a local bank and has moderate to high monthly transaction volume (meaning up to 500 of them) and cash deposits up to $5,000. Though monthly maintenance fees are $25, they can be waived by meeting a $1,500 minimum balance and a personal checking account can be bundled to meet the requirement. It’s also an ideal choice for those doing regular business with Canada as it’s a subsidiary of the Canadian Toronto-Dominion Bank. One downside: You might be charged a small fee when you use non-TD ATMs.
26. Bank OZK Small Business Checking
Start-ups and sole proprietors located in the Southeast with light transaction volume who want great customer service may find just what they’re looking for at Bank OZK. This Little Rock, Arkansas, establishment offers small business bank accounts with 250 combined transactions per calendar month (there’s a fee of 50 cents after that) with no minimum balance and no monthly service fees. Only $100 is required to open this non-interest-bearing account, but you will need to visit a physical branch to apply.
27. Popular Bank Popular Primary Business Checking
Located in Florida, New York, and New Jersey, Popular Bank’s Popular Checking account is a good fit for small businesses with moderate transaction volume, offering 100 items per month at no cost as well as $5,000 in monthly cash deposits (35 cents per hundred dollars deposited after). This business checking account will waive the monthly $15 fee with an average monthly balance of $15,000 or more.
Best Bank Accounts for Small Businesses Through a Credit Union
28. Navy Federal Credit Union Business Plus Checking
Veterans and military service members (as well as their immediate family) who join this national credit union and sign up for the Business Plus Checking program have access to 50 free transactions per month (a fee of 25 cents per item applies after that), a competitive dividend rate (earned daily), and a 0.01% APY. This specific tier has a low $8 monthly maintenance fee and allows unlimited signers on your account. While this program is a great deal for sole proprietors, it allows for unlimited signers, making this a great option for smaller startup too.
29. American First Credit Union Totally Free Business Checking
With no minimum balance requirement and no monthly service charge, American First offers its members an astounding 1,000 free monthly transactions and up to $10,000 cash deposits per month through its Totally Free Business Checking account. You’ll also get a free detailed analysis of your account activity, which makes it even easier to keep tabs on your finances. Bring your completed application into an AmericanFirst Credit Union branch to open your small business account, with just $50 as an opening deposit. Though there are only a few American First branches—all located in California—you can conduct routine transactions at any of 5,000 cooperative credit unions across the nation and have access to 30,000 no-fee ATMs.
