Business bank accounts are a must-have if you’re looking to start up a new business. Everything you do for your business will come in and out of that account, so it’s crucial that you pick a bank that will work for your needs. Below we will compare ten of the best banks for small business, so you don’t have to hunt them down yourself.

Product FAQ

1. Why Do I Need a Separate Business Bank Account?

Every business should have a separate banking account for a few reasons. The first is that if you ever need a small business loan, the lenders will want to see a history of financial records to measure expenses versus profit. This gets hard to do if everything is mixed in with a personal account. The same goes for tax time—you will thank yourself later!

2. How Is a Business Bank Account Different?

Business bank accounts have a lot of the same features that regular bank accounts do, but there are differences. For instance, business bank accounts have higher monthly fees and, depending on the account, can charge excess transaction fees and excess cash deposit fees; these are all important considerations for a business.

3. How Do I Know What Kind of Account I Need?

Unfortunately, no two businesses are alike, so there isn’t a single, straightforward answer. There are things you should consider, however. If you are a business that requires frequent cash deposits, beware of banks that have excess cash deposit fees. Or, if you think in-person customer service would be helpful, see what kind of help the bank gives their customers. Want to deposit checks from your phone? Many banks have mobile apps that will allow you to do just that. Assess your banking needs and see which bank lines up the best.v

4. How Do I Sign Up for a Business Bank Account?

Once you have chosen the bank you wish to sign up with, make sure you have all your other legal documents ready. Particularly if this is a startup, bring whatever you need (and whatever the bank needs you to bring) to their office. If you are running a business that has a name other than your own, you will need documentation showing you’ve obtained your business name. This also goes for your Employer Identification Number. This is what you will want to use for taxes—not your social security number. Then, make an appointment with your bank.

5. How Do I Accept Payments Once I Have an Account?

Once you have set up your bank account, you will want to set up a merchant account. A credit card’s merchant account will be necessary if you wish to receive credit card payments. Depending on whether your business is e-commerce based or in-store, you would either go with an online system such as PayPal or you could go with a POS machine/tablet with Square or Stripe set up to receive payments. These are just a few examples, though, so choose the one that best suits your needs.

How We Reviewed

We know that finding the best banks for small business can be tough, so we created a list of unbiased pros and cons of the banks listed below. Many of these banks can be found nationwide, so most of these options should be available to our readers.

We took the time to research different banks to figure out their best features, fees involved, and what benefits they would present a small business owner. Instead of having to look up each bank individually, we pared down the information for you.

Best Banks for Small Business: Fees

Some banks will require a specific amount of money to open up a business account, but primarily small business owners will have to worry about monthly fees. This includes maintenance/service fees, excess transaction fees, and excess deposit fees. Sometimes these costs can be avoided, and the number of fees charged by the banks will vary depending on their policies and how much is in your account at a given time.

What We Reviewed

  • Chase
  • Bank of America
  • Capital One
  • Azlo
  • Wells Fargo
  • Navy Federal Credit Union
  • M&T Bank
  • US Bank
chase_logo

Features

Chase is considered one of the best banks for small business because there are locations around the country, they do not have service fees with a $1,500 balance, and they have an excellent online/mobile banking system. Chase has three different business checking accounts—Total Business Checking, Performance Business Checking, and Platinum Business Checking. However, the Total Business account is best for small businesses.

If you sign up for paperless statements, the monthly fee is $12 ($15 for paper statements). It also offers 200 free transactions per month, and you can deposit up to $7,500 in cash each month with no fee. As a bonus, Chase provides HR and payroll programs for any size business, allowing you to manage payroll online.

Advantages for Small Businesses

This is one of the best banks for small business because of all the extra features that come along with the banking.

Pros

  • HR/Payroll programs
  • Free debit business cards for you and your employees
  • Access to merchant services
  • 5,300 branches and 15,500 ATM’s country-wide
  • Small business credit cards available

Cons

  • Minimum balances required to avoid fees
  • Only 200 free transactions a month
bankofamerica

Features

Bank of America has two checking options: the Business Fundamentals Account and the Business Advantage Account. However, the Fundamentals account is suggested for small businesses. They have an $18 monthly fee, but it can be waived if you A) charge at least $250/month on a business debit/credit card, B) maintain an average monthly balance above $5,000, C) have a combined average linked Bank of America accounts of $15,000, or D) keep a minimum daily balance of $3,000.

Up to $10,000 in deposits is free per month, along with free mobile and online banking. If your business deals mainly in cash, it might be better to go with a Bank of America business account. Here you can link your account with Intuit tax and payroll services to streamline that process. They also offer Clover Solutions. This is their point-of-sale devices and they can help with payments, inventory management, and employee scheduling.

Fees

For the Business Fundamentals Account, the fees include an $18 monthly service fee (which can be waived); $0.45 for each transaction over 200; $0.35 for every $100 in cash you deposit beyond $7,500; and $15-$45 for electronic wires. For the Business Advantage Account, the fees include a $29.95 monthly service fee (which can also be waived); $0.45 for every transaction over 500; $0.30 for every $100 deposited over $20,000 a month; and $30-$45 for every electronic wire.

Advantages for Small Businesses

Bank of America offers two different business checking accounts, which gives business owners options depending on the size of the business and other banking needs.

Pros

  • Business/employee debit cards
  • Solid lending program
  • Numerous ways to waive fees
  • Clover Solutions

Cons

  • Significant electronic wire fees
  • Higher monthly fees for Advantage Checking account
  • Better suited for medium to large-sized companies
capitalone

Features

Sometimes the best banks for small business are online. If you deposit little cash, this might be the option for you. Capital One’s Spark Business accounts do not have any monthly fees or minimum balances. This works well for small businesses, freelancers, and those who transact businesses from anywhere in the world. You can get Basic Checking or Unlimited checking.

The basic checking has unlimited transactions, a deposit cap of $5,000 a month with no fees, and $15 monthly service fee (which can be waived with a 30- or 90-day average monthly balance of $2,000 or if you have two other Capital One products open). Their Spark Business program helps you do all your banking online and gives you access to flow management tools.

Advantages for Small Businesses

The best banks for small business will largely depend on how the business is conducted, and this bank is perfect for those who do not deal in a lot of cash.

Pros

  • Free business debit card, online bill pay, and online and mobile checking
  • Easily sign up for business credit cards
  • Spark Business IQ—helps entrepreneurs manage business operations

Cons

  • Only a handful of in-person locations
azlo

Features

Nothing says “best bank for small business” like a bank that is fee-free! Azlo Business Checking was created for freelancers, self-employed workers, and those with side jobs. Azlo was recently launched with the backing of BBVA Compass Bank, keeping deposits FDIC-insured. Their app has free bank-to-bank ACH transfers for domestic banks, free debit card with free AllPoint ATM access, mobile check deposit, no minimum balance requirement, and a connection to Stripe’s payment processing system.

Advantages for Small Businesses

Depending on just how small your business is, an online bank might be one of the best banks for small business. This is one of the few options available that are truly fee-free, with no waiver options needed. It is a simple and easy way for certain types of businesses to store and access their money.

Pros

  • Domestic and foreign wires are free
  • Pay others via mail with digital checks
  • Straightforward, digital option for the smallest of businesses

Cons

  • Checking Account is the only option available from Azlo
  • No face-to-face customer service
  • Not ideal for cash transactions
1200px-Wells_Fargo_Bank.svg

Features

Because of the size of Wells Fargo, it can offer just about any financial service you need. It has four different checking accounts. They have monthly fees but these can be avoided with minimum balances (the Simple Business Checking is $500). If you deal in cash, WF has an extensive network of fee-free ATMs for withdrawals. Of the four accounts, the Business Choice Checking is the best option for small businesses. Per month, it includes 50 transactions, $3,000 in cash deposits ($0.30 for every $100 over that), the ability to waive text/mobile banking, and a $14 monthly service fee (that can be waived).

Advantages for Small Businesses

If you wish to bank online and deal in cash, this might be one of the best banks for small business.

Pros

  • Payroll, HR, benefits, and tax programs
  • Variety of merchant services and payment technologies available
  • Bank easily online or in person
  • Integrates easily with QuickBooks
  • Different options depending on size and needs

Cons

  • Only 50 transactions per month
  • Need $25 to get started
  • Low-interest rates for checking accounts—.03-.06%
  • iOS integration isn’t great; app problems have been reported
nfcu-logo-bluegrad-800

Features

While not technically a bank, NFCU has options that could make it one of the best banks for small business. Because it is a credit union, they have lower monthly fees. For the basic checking option there are no monthly service or electronic transaction fees, but for non-electric transactions, the first 30 are free every month. After that, it is a charge of $0.25 for each transaction. The plus and premium accounts have service fees, but they can be waived with balances of $5,000 or more.

Advantages for Small Businesses

Credit unions have a lot of advantages in general, so applying these advantages to your business would help you save a lot of money in the long run.

Pros

  • Lower rates
  • Offers a wide range of business and payment processing options
  • Retirement and insurance options for you and your employees

Cons

  • Must be a member first, with a $100 opening deposit
  • Usually geared toward consumers
  • Daily cash limit is $600
  • Daily transaction limit for purchases is $5,000
M&TBank

Features

M&T has branches in NY, PA, MD, Washington D.C., VA, WV, and FL. M&T Bank has relationship managers that review your finances and help you better achieve success as a small business. They offer a range of banking accounts. Five of these options would be great for small businesses. Some of them are even profession-specific.

Advantages for Small Businesses

The wide range of checking options is a nice feature and allows you to choose based on what most closely fits your business needs.

Pros

  • Many options for small businesses
  • Use Account Selector Tool to decide which account is right for you
  • Customer service is available by phone, in person, and via chat

Cons

  • Need large average monthly balances to avoid fees
  • Have to live on the east coast
usbank_logo

Features

US Bank isn’t as large or well-known as some of its competitors, but they have a Silver Business Account that offers checking services without a monthly maintenance fee. Smaller businesses with less than 150 transactions per month won’t get a fee (but will pay $0.50 for additional items). Up to 20 mobile checks can be deposited each month, with the same fee for additional deposits. This bank gives you 25 free cash deposits and offers credit card processing, payroll servicing, and invoicing.

Advantages for Small Businesses

There are few fees with this bank, and the ones that are there are all $0.50 a piece. This makes it easy to keep up with and makes it less for you to have to remember!

Pros

  • No monthly maintenance fee
  • Online and mobile banking available
  • Check fraud prevention available
  • EZ Switch Kit makes it easy to switch over to this

Cons

  • In-person locations limited to the State of Tennessee

The Verdict

When it comes to the best banks for small business, there is indeed a lot to consider. However, out of these options, we think the Wells Fargo bank is our top pick for small businesses. You can do your banking online, in person, or handle your finances with cash and Wells Fargo has solutions that will work for everyone.

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