The best small business bank account is provided by Chase, with its Business Complete Checking Account. Axos, U.S. Bank, LendingClub, and Wells Fargo round out the rest of our top picks. They're easily accessible with relatively low fees and minimum balances, along with generous transaction limits. As of 2021, the most recent year for which there is census data, there were 33.2 million small businesses in the U.S., which amounted to 99.9% of all U.S. businesses. If you're one of those small business owners, a business bank account can help you separate your business and personal finances, which is essential for proper bookkeeping. The right accounts give you a way to deposit, hold, and spend money, and some account types enable you to accept credit and debit card payments. We chose the checking accounts below based on our research into the small business account landscape. We evaluated accounts on important factors, like fees, minimum balance and deposit requirements, and APYs, to recommend the best products for a variety of circ*mstances. Best Small Business Bank Accounts for September 2024 Best Small Business Bank Accounts for September 2024 The Bottom Line Compare Banks Why You Should Trust Us Guide to Small Business Bank Accounts How to Choose a Business Account How to Open an Account Alternatives FAQs Methodology Learn More Why We Chose It Chase Bank offers several types of business accounts geared to the size of your venture and incentives for signing up. New customers can often get a bonus for opening a business checking account and meeting certain requirements. Chase offers generous rewards-earning credit cards and a huge branch network, too. Pros & Cons Pros Generous new account bonuses Big bank features: rewards-earning credit cards, large branch network Advantages to linking personal accounts Chase mobile app offers convenience Cons Must meet balance requirement within 30 days for bonus Balances cannot dip below minimum for 60 days or bonus will be lost Low transaction limits before fees are charged Account holder must complete 5 qualifying transactions within 90 days Overview Chase Bank, based in New York City, is the consumer and banking arm of J.P. Morgan Chase, and it has over $2.6 trillion in assets and operations worldwide. It also provides an ATM network of 15,000 ATMs plus more than 4,700 branches. Chase business checking accounts offer big-bank features beneficial to small business owners, such as generous rewards and account bonuses, plus access to brick-and-mortar banks for in-person services around North America. Small business owners can also take advantage of Chase offerings such as small business loans, credit cards, and savings accounts in addition to checking. Chase offers several business checking accounts: Chase may offer special promotional offers for opening a new business account; check for available Chase Bank account bonuses before making a decision. Why We Chose It Axos Bank was designed as a digital bank from its inception in 2000. It's now a publicly traded company with over $18.4 billion in assets. Its Basic Business Checking account is "for the busy business ownerwithmodest checking needs." The account has no monthly service fees and unlimited domestic ATM fee reimbursem*nt. Pros & Cons Pros No monthly service charges Unlimited domestic ATM fee reimbursem*nt First set of 50 checks is free Cons No branches/in person interaction Some accounts, such as interest-bearing checking, come with a fee More than 50 checks will cost you Overview If you don't need a brick-and-mortar branch to do your banking, this leader in online operations may be a good choice, especially for customers on the go. Axos Bank has a robust mobile app that received4.4 stars from customers using Android and 4.7 stars from iOS users. You can deposit checks, pay your bills, manage accounts, and transfer funds right from your phone, and all domestic ATM fees are reimbursed. Axos Bank has headquarters in California, with offices and affiliate offices in several other states. Why We Chose It Small business customers are U.S. Bank's specialty. The Silver Business Checking Package has no monthly maintenance fees and allows for up to 125 transactions, which is adequate for many small businesses. Pros & Cons Pros No monthly fees No minimum balance requirements Up to 125 transactions allowed monthly Cons $0.50 charge for each transaction exceeding 125 monthly maximum Not located in every state No interest-earning accounts Overview U.S. Bank is America's fifth-largest bank, with nearly 77,000 employees and $587 billion in assets. Founded in 1863 and headquartered in Minnesota, it has over 2,000 branches in 26 states across the country. U.S. Bank has no minimum balance or monthly fees, and allotted monthly transactions go up to 125 for a Silver account. The bank offers gold, platinum, and premium business accounts with a larger allotment of free transactions and deposits, so as your business grows, so can your accounts. U.S. Bank typically offers promotions for opening certain new accounts. See if there are any available U.S. Bank bonuses if you're interested in a new business account. Why We Chose It The LendingClub Tailored Checking account offers an interest rate of 1.50% on balances up to $100,000. Customer benefits include unlimited transactions with no fees, including free ATM withdrawals (it rebates any incurred surcharge) and bill pay. Pros & Cons Pros Unlimited ATM surcharge rebates Pays interest (currently 1.50% on balances up to $100,000) Unlimited no-fee transactions Cons No physical branches No interest on balances under $500 High minimum balance required to waive monthly fee Overview LendingClub offers the same FDIC insurance as traditional brick-and-mortar banks and has over $8 billion in assets. Its Tailored Checking account for small businesses is designed to allow accountholders to accrue interest, similar to a savings account. For the first 30 days after account opening, deposited funds will be made available within five business days. With unlimited no-fee transactions, unlimited ATM surcharge rebates, and attached cash-back rewards, this account also comes with a full mobile money management system for business on the go. LendingClub's corporate headquarters are in San Francisco, California. Why We Chose It The Wells Fargo Navigate Business Checking account is best for depositing cash because the first 250 transactions and $20,000 in cash deposits per month are included at no extra charge. The bank's wide network of branches and ATMs, plus its strong online and mobile app, allows for flexible and secure banking, and you won't pay fees for most business services. Pros & Cons Pros High number of monthly transactions allowed Large branch network No fees for stop payments, cashier’s checks, and other business services Cons High monthly service charge/high balance to waive fees $0.50 per item and $0.30 per $100 over transaction limits Overview Founded in 1852, Wells Fargo has grown into the third-largest bank in the U.S., with over $1.7 trillion in assets. It's based in San Francisco, California, and has approximately 4,900 locations and more than 12,000 ATMs across the United States. Wells Fargo's Navigate Business Checking account is suitable for small business owners looking to pay no to low fees and access a high number of monthly transactions. Its robust branch network means it is easy to speak in person to a representative about your account concerns, and its newly revamped online banking and mobile app allow you to handle your financial dealings from anywhere. As Navigate Business Checking customers grow their business, the bank offers a premium Optimized Business Checking account for larger, more experienced business owners. If you are new to the business world and just starting out, Wells Fargo offers Initiate Business Checking, an account geared towards fledgling small businesses needing digital tools and support. You can often find promotional offers to open new Wells Fargo accounts. Explore the current Wells Fargo bank bonuses to see what you could earn. Chase Bank is our top pick for small business banking. It offers many positive features, including a signing bonus, easy cash deposits, cash-back reward cards, and access to a global banking network. If the minimum balance is too high for you, we recommend Axos Bank Basic Business Checking or U.S. Bank Silver Business Checking for checking accounts with no minimum balance requirement. Investopedia collected key data points from banks to identify the most important factors for readers who want to open a business bank account. We used this data to review each account for minimum required balance, APY, fees, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their needs. Investopedia launched in 1999, and has been helping readers find the best small business bank accounts since 2020. A business bank account is a bank account designed to meet the needs of a business. Some are designed for self-employed people and small businesses, while others have features more suited to large corporations. And there are many basic, general-purpose accounts in between. Business bank accounts are used only for business finances, not personal finances. But you'll need to provide both personal and business information to open a business bank account. Depending on the account, you may need to show that you own a legitimate business; this could require your business name, Employee Identification Number (EIN), licenses, registration, formation documents, operating agreements, and more. Business bank accounts provide many benefits. They allow you to separate business and personal spending, which can protect your personal assets and simplify bookkeeping and tax preparation. Your business will need a certain type of account to accept credit and debit card payments. And a dedicated bank account can also help make your business look more professional. Business bank accounts don't usually come in specific "types" for certain kinds of businesses. There isn't a common, designated account type for LLCs, for example (although some banks may offer "LLC bank accounts"). But different business bank accounts come with different features and restrictions, making some better for certain businesses than others. Bank accounts that are most attractive to LLCs, for example, do more than just allow you to keep personal and business expenses separate. They also usually come with features to help you keep tabs on revenue and expenses, and tools to make tax season easier. Sole proprietors may be more interested in accounts that are as light as possible on fees, with features that can help save money. Pros: Cons: Thinking about starting a business? See the best LLC filing services to check prices and options. Compare business bank accounts based on these features to find an account that fits your financial situation. By the Numbers: The same 2023 McKinsey study mentioned above found that most small and medium-sized businesses prefer banks over credit unions and nonbanks. When asked about their top three reasons for choosing a primary bank (one that holds at least 40% of the business' deposits), 47% of businesses said "robust relationship management/servicing", 42% said "online and mobile tools available," and 35% said "integration with business operations software and SaaS." Physical proximity to the bank was relatively unimportant, except for businesses with less than $1 million in annual revenue; 50% of those businesses said physical proximity was one of their three most important considerations. Once you're ready to make a decision, you can follow these steps to open a business bank account. Federal credit unions and local credit unions might be a decent alternative to traditional banks for small business owners. Membership is required at credit unions, though it’s often relatively easy to become a member. A credit union’s small business accounts may offer lower fees on deposit accounts and pay higher interest, compared to a traditional bank, while also offering $250,000 in NCUA insurance. Around one-third of small businesses use fintechs and online lenders for borrowing. Online lenders may offer working capital loans and merchant cash advances. However, some businesses have reported frustration with understanding loan terms, as business lenders aren’t required to disclose loan terms in the same way as personal loan lenders. Neobanks aren't usually banks themselves—they're fintech organizations that partner with banks to provide banking services with lower costs and better APYs than you can typically get from big, traditional financial institutions. They're often completely digital, with no brick-and-mortar locations, and they may offer a relatively limited range of products and services. Neobanks tend to be well-suited for the unbanked and underbanked (by providing easier access to bank accounts), along with hourly workers, students, young adults, and people interesting in earning the highest return possible on their savings. Be aware that not all neobanks are affiliated with FDIC-insured banks. Business payment apps and devices like Stripe, Square, and Quickbooks Online Mobile process business transactions securely. However, many apps must still integrate with your current bank or work with underlying banks to provide FDIC protection, so these won't usually serve as a complete alternative to a bank account. But they can be useful supplementary tools. Not only does separating your business and personal finances help you stay organized, but it may make you appear more professional and established to your clients, as well. Clients will pay your business directly instead of sending payments to your personal account.This may also be a useful way to protect your personal assets from legal liability if your business is sued or faces debt problems. The Chase Business Complete Checking Account is our top-rated business bank account for rewards, since you can often find a hefty new account bonus as an incentive to sign up. While it does charge a monthly maintenance fee, Chase will waive this fee if you maintain an average daily balance of at least $2,000. Other top picks include the Axos Bank Basic Business Checking, if you’re looking for a purely online account; the LendingClub Tailored Checking account is excellent if you want to earn interest; and Wells Fargo’s Navigate Business Checking is good for cash deposits. Although business and personal bank accounts are similar in many ways, they have their differences. A business bank account has more requirements to open than a personal account; its fees and required balances are often higher, but its interest rates are lower than a personal account. Since a business bank account represents the business and not a person, authorized signers can be added or removed at any time without needing to close the account. Requirements to open a business bank account vary by the financial institution. However, most banks require the following: Account signers need to bring their personal identification to open the account. Most banks require an initial deposit to fund the account when it is opened; the minimum opening deposit requirements vary by the bank—and can be a key factor, along with ongoing minimum account balances, to consider when choosing one. Yes, there are many banks that allow you to open an account online in just a few minutes. Several of these banks are mentioned above. To open your business bank account online, the bank will require all of the same paperwork as if you opened the account in person. However, some business owners in high-risk industries or with newly formed businesses may find it difficult to open a business bank account online. If you apply for a business bank account and are denied, you may need to contact the bank and set up a meeting to show them that you run a legitimate organization and need a business bank account to run your business. You can use your personal bank account for a small business, like a sole proprietorship. However, it is best not to. Having a dedicated bank account for your business allows you to keep your business deposits and expenses separate from personal transactions. This is very important when it comes to filing taxes. You do not need a separate business account if you are operating your business under your own name. However, it is recommended that you have a dedicated, separate bank account to make it easier to track business revenue and expenses. If you are operating your sole proprietorship under a fictitious business name or as a separate legal entity (e.g. C-Corp, S-Corp, LLC), you will want to have a separate business bank account. Some banks allow you (and, like Chase, even encourage you) to link your personal and business accounts and will allow your business and personal accounts to be viewed on the same online banking screen, making transfers between accounts simple and quick. If you plan to accept electronic payment card transactions, like credit cards and debit cards, you'll likely need a merchant account. Many businesses use them. Merchant accounts are a type of commercial bank account, and they play a role in authenticating card transactions. Merchant accounts come with a fee for every processed transaction, along with monthly fees and fees for special situations. It’s possible to open a business bank account with an Employer Identification Number (EIN), though you’ll need to provide additional information to prove you’re operating a real business. For instance, your bank may ask for your business name and email, as well as some personal information like your name and phone number. Research for this article encompassed business bank accounts from across the U.S. We evaluated the benefits offered, transaction limits, fees charged, and customer service of each business bank account reviewed to determine the "best of" designation for each category. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. U.S. Chamber of Commerce. "The State of Small Business Now." Federal Reserve Board. "Large Commercial Banks." Lending Club. "Press Release: LendingClub Reports Fourth Quarter and Full Year 2022 Results." Federal Reserve Board. "Large Commercial Banks." U.S. Small Business Administration. "Open a Business Bank Account." University of Houston Small Business Development Center. "What to Look for in a Small Business Bank Account." McKinsey & Company. "Five ways for banks to better serve small-business clients." NCUA. "Share Insurance Fund Overview." Board of Governors of the Federal Reserve System. "Access to Financial Services Matters to Small Businesses." Related Terms Schedule K-1 Federal Tax Form: What Is It and Who Is It For? IRS Schedule K-1 is a document used to describe the incomes, losses, and dividends of a business's partners or an S corporation's shareholders. more Bonus Depreciation: What It Is and How It Works Bonus depreciation is a tax break that allows businesses to immediately deduct a large percentage of the purchase price of eligible assets. more Multiple Employer Plan: Meaning, Overview, Different Types A multiple employer plan (MEP) is a retirement savings plan that covers two or more employers. It enables small companies to offer big-company benefits. more Media Kit: Meaning, Components, and Examples A media kit is a package of information a company assembles to provide reporters or other interested parties with basic information about itself. more Enterprise Investment Scheme (EIS): Meaning, Qualification The Enterprise Investment Scheme (EIS) is a UK program that helps smaller, riskier companies to raise capital by giving their external shareholders federal tax relief. more What Is Inside Sales? Definition, How It Works, and Advantages An inside sale happens when customers are sold products and services through the phone or online rather than at the vendor's physical location. moreBest Small Business Bank Accounts for September 2024
Best for Rewards : Chase Business Complete Checking®
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Best Online Business Checking Account : Axos Bank Basic Business Checking
Best Brick-and-Mortar Bank : U.S. Bank Silver Business Checking
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Best Interest-Bearing Business Checking Account : LendingClub Tailored Checking
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Best for Cash Deposits : Wells Fargo Navigate Business Checking
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The Bottom Line
Compare the Best Small Business Bank Accounts
Bank Minimum Balance APY Transaction Limits Fees Best for Rewards Chase Business Complete Checking® $0 0% Unlimited $15 or $0, depending on activities Best Online Account Axos Bank Basic Business Checking $0 $0 Unlimited None Best Brick-and-Mortar Bank U.S. Bank Silver Business Checking Package $0 $0 125 per month, including 25 free cash deposits $2 paper statement fee Best Interest-Bearing Account LendingClub Tailored Checking $100 opening deposit, no minimum balance 1.50% on up to $100,000 Unlimited $10 per month with less than $500 balance Best for Cash Deposits Wells Fargo Navigate Business Checking $25 opening deposit, no minimum balance N/A 250 per month $25 depending on balances Why You Should Trust Us
Guide to Small Business Bank Accounts
What Is a Business Bank Account?
Types of Business Bank Accounts
Pros and Cons of Small Business Bank Accounts
How to Choose a Small Business Bank Account
By the Numbers
How to Open a Business Bank Account
Alternatives to Small Business Bank Accounts
Credit Unions
Online Lenders
Neobanks
Business Payment Apps
Frequently Asked Questions
Which Bank Is Best to Open a Business Account?
What Is the Difference Between a Business and a Personal Bank Account?
What Do You Need to Open a Small Business Bank Account?
Can I Open a Small Business Bank Account Online?
Can I Use My Personal Bank Account for My Small Business?
Do I Need a Business Account If I Am Self-employed?
Do You Need a Merchant Account?
Can You Open a Bank Account With Just an EIN?
How We Picked the Best Business Bank Accounts
Learn More About Small Business Bank Accounts
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FAQs
Which bank account is best for a small business? ›
Best Small Business Bank Accounts for September 2024
- Best for Rewards: Chase Business Complete Checking®
- Best Online Business Checking Account: Axos Bank Basic Business Checking.
- Best Brick-and-Mortar Bank: U.S. Bank Silver Business Checking.
- Best Interest-Bearing Business Checking Account: LendingClub Tailored Checking.
Quick View on the Best Business Bank Accounts for LLCs
- Capital One – Best for Unlimited Transactions.
- Bank of America – Best for Traditional Banking.
- Axos – Best Full-service Online Bank.
- US Bank – Best for Lending Options.
- Oxygen – Best for Freelancers.
- Chase – Best for Cash Deposits.
Sep 11, 2024
HDFC Bank is a private bank in India that offers one of the best business banking accounts to startups, small businesses, and large corporations. The bank has various account options and services, including cash deposits, cheque collection and payments, and debit cards.
What bank do most startups use? ›Best Banks for Startups
| Best for | NerdWallet rating▼ | Monthly fee▼ |
|---|---|---|
| Business savings accounts and SBA loans Live Oak Bank Business Savings Learn more at Live Oak Bank, Member FDIC | 5.0/5 | $0 |
| Expense management platform with financing options Mercury Business Bank Account Learn more at Mercury, Deposits are FDIC Insured | 4.1/5 | $0 |
Sep 6, 2024
Consider having one account for receiving money (income) and another for paying your bills (business expenses). It's more difficult to stay on top of your business budget and cash flow with only one bank account. Multiple accounts will give you more clarity into your business's financial situation.
How much should a small business have in bank account? ›How Much Should You Have In Your Business Savings Account? Aim to save at least 10% of your monthly profits, with 3-6 months' operating expenses in reserve.
How do I choose a business bank account? ›Here are things to consider when you're opening a business checking or savings account:
- Introductory offers.
- Interest rates for savings and checking.
- Interest rates for lines of credit.
- Transaction fees.
- Early termination fees.
- Minimum account balance fees.
May 19, 2023
Business Current Account
Run your business with a business bank account that lets you manage your money and transact 24/7 from your Banking App or Internet Banking.
Chase business checking is best for business owners who deal with high cash deposit amounts and process many transactions each month. It's also ideal for account holders with larger balances, which are needed to easily waive the account's steep monthly fees and make the most of its features.
What bank do most rich people use? ›The Most Popular Banks for Millionaires
- JP Morgan Private Bank. “J.P. Morgan Private Bank is known for its investment services, which makes them a great option for those with millionaire status,” Kullberg said. “ ...
- Bank of America Private Bank. ...
- Citi Private Bank. ...
- Chase Private Client.
Jan 29, 2024
Which bank is best for current account for startups? ›
- Yes Bank Current Account. Yes Bank has emerged as a new-age bank offering a range of current accounts designed to cater to diverse business needs. ...
- HSBC Current Account. ...
- ICICI Current Account. ...
- RazorpayX Current Account. ...
- IDFC Bank Current Account.
May 28, 2024
High-yield savings accounts—typically found at online banks, neobanks and online credit unions—are savings accounts that offer a higher APY compared to regular savings accounts. This is one of the best types of savings accounts to maximize your money's growth.
What type of account do you need for a small business? ›As soon as you start accepting or spending money as your business, you should open a business bank account. Common business accounts include a checking account, savings account, credit card account, and a merchant services account.
Do I have to use a business bank account for my small business? ›The IRS recommends that all small business owners have separate bank accounts. While a sole proprietor—an individual who owns a business and is personally responsible for its debts—is not legally required to use a business checking account, it's still a good idea from a tax perspective.
How do I choose a bank for my business? ›7 Tips for Choosing a Business Bank Account
- Location. You should consider the bank's location and how important that will be to you. ...
- The fees. ...
- Minimum balance requirements. ...
- Introductory offers. ...
- Account features. ...
- Interest rates. ...
- Integrations.
Jun 6, 2022