At some point, you’re going to need a business checking account. It’s simply a reality of doing business: you need to keep your business finances and your personal finances separate. And to do that, you need to know the most business-friendly banks.
Why not pick any old bank account? There are a few problems:
- Cash deposits and requirements. Some banks will require that you keep cash deposits within the account to waive a fee. It helps to know these before you invest in a business bank account, because you don’t want to get lower than the requirements and find there are unexpected fees on your statements.
- Interest rates. These days, the impact of interest rates is minimal. Interest rates are so low that there’s not much you can do to optimize here—but if you have a lot of money to deposit, every little bit helps.
- Monthly fee concerns. It helps to know about monthly fees in advance of depositing with a certain bank.
So which is the best bank for a small business like yours? To answer that, we looked up the features of some of the top best business bank accounts. Here’s what we learned.
Chase
To measure how Chase performs, we looked at Chase’s Total Business Checking Account and its various features:
Transactions Per Month
100 per month at no additional charge
Unlimited electronic deposits
ATMs/Branches
16,000+ ATMs
4,900 branches
Monthly Service Fee
$15, but $0 with a minimum daily balance of $1,500.
Reduced to $12 if enrolled in paperless statements
Fees
“There will be a Transaction Fee of $0.40 for each debit and non-electronic deposit above 100”
Offers
$300 for opening a Total Business Checking Account, with “qualifying activities”
Small Business Loans
Yes; from $10,000 to $500,000
ATM fees if using out-of-network
$2.50
Credit cards
Yes
Waiting period on credit card
Yes, variable
Do they offer mobile banking
Yes
Minimum opening deposit
None
Chase is one of the most popular options here because of the widespread availability of its ATMs and branches. It also has one of the best mobile business apps, which makes it ideal for remote workers, digital nomads, and other people who simply want more convenience out of their business banking account.
Using Chase isn’t without its disadvantages. The monthly service fee can eat into your checking account if you aren’t careful to keep the minimum daily balance, and for some new businesses, that’s not always easy. There are also relatively small limits until transaction fees start kicking in, such as non-electronic deposits above 100.
Axos Bank
Axos Bank is one of the oldest when it comes to banks you can use digitally for your business. For this reason, their Small Business Banking account is one of the most popular. But how does it stack up against some of the other banks, and what will you need to know? For the purposes of this review, we’ll be using the “Basic Business Checking” account.
Transactions Per Month
200 per month at no additional charge
ATMs/Branches
Surcharge-free
Unlimited ATM refunds, making it possible to use any ATM
Monthly Service Fee
Zero, with a minimum balance of $0
Fees
“Up to 200 free items (debits, credits, or deposited items) per month, $.30 per item thereafter”
Offers
Unavailable, but only a $1,000 minimum deposit
Small Business Loans
Yes
ATM fees if using out-of-network
None on business checking account
Credit cards
Yes
Waiting period on credit card
7-10 days, variable
Do they offer mobile banking
Yes
Minimum opening deposit
$1,000
What’s so great about Axos Bank? It makes an ideal match for anyone with minimal business needs, with plenty of room to grow. Because it doesn’t have a minimum balance and it requires 200 transactions per month to start stacking up additional charges, and because of the unlimited ATM refunds, this may be the go-to business banking account for companies that need to make it on a shoestring.
Business owners can sometimes be worried about opening up a checking account, because they know that as their account grows, they can sometimes be subjected to more fees. But Axos Bank makes a good way for entrepreneurs to dip their toes into the water. In online reviews, customers seem happy with Axos’ customer service and responsiveness, while the lack of fees helps make it a good idea for any business with a tight bottom line.
Perhaps the most appealing aspect of Axos’ business checking is that it allows you to use any ATM you like without surcharges. This is great for the traveling businessperson who doesn’t have time to scout out the local branches or look for the best ATMs that won’t charge fees for your specific checking account.
Capital One
You may know Capital One from its credit card commercials, but thanks to its Small Business Account, it’s much more than that.
Transactions Per Month
Free, unlimited transactions
Cash deposits are free up to $5,000
ATMs/Branches
39,000 free Capital One ATMs available across the world thanks to an agreement with Allpoint
Only 700 branches worldwide
Monthly service fee
Zero minimum balance
Fees
$1 per $1,000 in cash deposits, 0.1%
Offers
Spark Credit Cards available with signing up to Capital One
Small Business Loans
Yes
ATM fees if using out-of-network
$3.00
Credit cards
Yes
Waiting period on credit card
Variable
Do they offer mobile banking
Yes
Minimum opening deposit
None
Some people come to Capital One through the cards, and there’s nothing wrong with that. But given how easy it is to obtain business credit cards, that’s not the main benefit to highlight here. Capital One succeeds by offering plenty of free ATMs, as well as free unlimited transactions. And with cash deposits free up to $5,000, you might consider Capital One as one of the chief competitors to the best low-cost options on this list.
Capital One offers more than the above, however, including money market accounts that offer higher yields in an era where it’s difficult to put aside cash in savings. However, the lack of locations across the world—about 700—makes it more difficult to find a place where you can handle something in person. If you’re comfortable with a mostly digital presence, Capital One is an ideal way to do business.
First Home Bank
The idea behind “First Home Bank” is that it can be the first home for your business—a place for your company to plant roots, utilize its banking services, and maybe even secure a business loan. But is this bank more than just a good place to think about taking out a small business loan? Here’s what you’ll need to know.
Transactions Per Month
250 per month at no additional charge, up to $7,500 in cash deposits per statement cycle
ATMs/Branches
Full-service branches are mostly in Florida, although the bank does have national offerings
Monthly Service Fee
Zero, with a minimum balance of $0
Fees
$0 fees for maintaining a checking account, minimum balance of $0
Offers
With a Business Interest Checking account, First Home Bank offers more interest benefits on money maintained in the account
Small Business Loans
Yes
ATM fees if using out-of-network
$2.00
Credit cards
Yes; third-party
Waiting period on credit card
Up to three weeks
Do they offer mobile banking
Yes
Minimum opening deposit
$100
First Home Bank is an option with obvious positives and obvious drawbacks. On one hand, the 250 transactions per month with no additional charges outdoes even Axos Bank, one of the most small business friendly banks out there. On the other hand, the lack of nationwide branches means that any small business that wants a friendly touch will have to be located in Florida. That isn’t to say that First Home Bank is incapable of handling today’s digital world, but it’s something to be considered for anyone opening a small business account.
Where First Home does shine is in the reach of its small business loan program. It has loan officers all across the United States. And because its online presence and small business app are fully capable, you may not ever miss the lack of branches. This is, after all, the world of COVID and social distancing.
Bank Novo
Bank Novo’s business account advertises itself as business banking made simple.
Transactions Per Month
All transfers in and from account come without fees; however, there is no sending wire transfers through Novo. Inability to deposit cash, as the bank is online-only
ATMs/Branches
ATM reimbursement, along with widespread availability of ATMs
Novo is an online-only bank without branches
Monthly Service Fee
No recurring monthly service fees
Fees
Only fees are related to bounced checks, etc.
Offers
Unavailable
Small Business Loans
No
ATM fees if using out-of-network
None; reimbursed at end of month
Credit cards
No
Waiting period on credit card
N/A
Do they offer mobile banking
Yes; only mobile
Minimum opening deposit
$50
Novo, as an online-only bank, has both obvious benefits and clear drawbacks. On one hand, the almost total lack of fees is great for anyone who wants to get started in business on the right foot. With a new business, credit cards can eat up fees, cash deposits can create fees, a savings account often yields too little, and the end result is that you have more coming out in fees than you ever have coming in through the best bank for your particular situation.
With Novo, you can wipe away most of those worries. The online-only approach is ideal for entrepreneurs and digital nomads who want to keep business moving and don’t have to deal with much cash. With ATM reimbursement, it’s easy to use Novo anywhere you go—as long as you don’t need to go into a branch.
Radius Bank
Radius Bank already has a solid reputation as an online bank, and their more recent offering of small business accounts has earned some attention. Here’s what you’ll need to know about business banking through Radius:
Transactions Per Month
Unlimited; free transactions
ATMs/Branches
ATMs have no fees, which includes rebates on third-party ATMs, worldwide
Monthly Service Fee
No minimum balance requirement
$10 monthly maintenance fee
Fees
After $5,000, monthly maintenance fee is waived
Offers
0.10% APY on your ongoing account balance
Small Business Loans
No
ATM fees if using out-of-network
All fees reimbursed
Credit cards
No
Waiting period on credit card
N/A
Do they offer mobile banking
Yes, all-online bank
Minimum opening deposit
$100 (Tailored Business Checking)
Think of Radius Bank as similar to many of the benefits and drawbacks of Novo. There are some great benefits here: unlimited transactions per month, for example, means that this is a business banking account that you can grow with. While a bank account like Chase might make sense for a business that already has a lot of money coming in, Radius Bank is more ideal for business owners who are okay with a minimalistic setup and favorable fee structures.
The debit card offered by Radius Bank also comes with benefits, which incentivizes you to use their no-fee ATM policy. There are rebates on third-party ATMs, which means that you can immediately start using the bank account for cash expenses without having to worry about where to find the ATM. Like mostly or all online banks like Capital One or Novo, Radius Bank is ideal for the business traveler.
U.S. Bank
U.S. Bank’s Silver Business Account is one of the most popular options that people explore. But how does it stack up with the other options on this list?
Transactions Per Month
125 free transactions per cycle
ATMs/Branches
Over 3,000 physical branches across the United States
Monthly Service Fee
25 free cash deposits per cycle
Fees
No monthly maintenance fees
Offers
50% discount on first check order up to $50
$200 credit on payroll services
Small Business Loans
Yes
ATM fees if using out-of-network
$2.50
Credit cards
Yes
Waiting period on credit card
14-15 days estimated
Do they offer mobile banking
Yes
Minimum opening deposit
Unavailable
If you’re looking beyond free transactions for a small business checking account that feels a little bit more personal and traditional, the U.S. Bank Silver Business Account may be more your speed. Although small business owners may not like that there are more fees here—and it’s easier to trigger these fees—the personal touch that comes with the physical branches is something that some small business owners are willing to pay for.
U.S. Bank also does well in other areas. They pride themselves in keeping their account holders safe with security features that are robust. That’s great for anyone that has a lot of money to protect. In looking for the best banks for small business, you may find that it can be hard to compare some account types with others because they clearly target different types of small business owners. U.S. Bank is no exception.
Bank of America Business
Bank of America’s Small Business checking account isn’t just one monolith, so we’ll use the Business Interest Checking account for our purposes here.
Transactions Per Month
150 transactions free, then $0.45 per transaction after 150
ATMs/Branches
Massive ATM presence, including 16,000 ATMs and thousands of branches across the U.S.
Monthly Service Fee
$5,000 minimum daily balance to eliminate monthly maintenance fees
Fees
Cash deposit fees free for the first $7,500 per statement cycle, then $0.30 per $100 thereafter
Offers
Unavailable
Small Business Loans
Yes
ATM fees if using out-of-network
$2.50
Credit cards
Yes
Waiting period on credit card
Variable
Do they offer mobile banking
Yes
Minimum opening deposit
$100
Although you might look at the variables above and conclude that Bank of America charges heavy fees, including after the first 150 transactions, it’s also important to note that these small business accounts are generally designed for businesses with a larger amount of money available. For example, after $5,000 in daily balance is achieved, the monthly service fee is waived. And if you process up to $7,500 in cash deposit fees per statement cycle, you don’t yet trigger the fees of $0.30 per $100 that come after reaching this minimum.
Bank of America might be looking for a high average daily balance, for example, but it also has a massive ATM presence. It’s not hard to find a Bank of America branch in the U.S., and customer service is readily available. Bank of America also makes it possible to easily hook in to their other accounts, which means that businesses that have further financial needs will find it easy to access that infrastructure.
Huntington Bank
Huntington Bank’s Business Checking 100 advertises itself as ideal for startups and small businesses—let’s see how it stacks up.
Transactions Per Month
100 monthly transactions before charges kick in
ATMs/Branches
700 branches, similar to Capital One, with widespread availability of ATM use
Monthly Service Fee
None
Fees
Any deposit up to $5,000 in cash has no charge, but there is $0.30 per $100 after
Offers
Bonus service trial: 120 days of its anti-fraud tool
Small Business Loans
Yes
ATM fees if using out-of-network
$3.00
Credit cards
Yes
Waiting period on credit card
Approved within a few days—up to two weeks
Do they offer mobile banking
Yes
Minimum opening deposit
None
Huntington Bank may be last on our list, but they have enough features and simplicity that it may be worth checking out. The amount of branches is similar to Capital One’s, which means that you might view Huntington more as an “online” bank, depending on availability in your area. The limited amount of monthly transactions might be difficult for some businesses, but generally, you can handle plenty of money without having to pay large amounts in fees to Huntington Bank.
Wells Fargo
Wells Fargo business checking may vary depending on your location, but given how ubiquitous the bank accounts there are, they are worth researching. Although the out-of-network ATM fees might seem like a lot to some, Wells Fargo ATMs and ATMs in their network will not be difficult to find. With a small minimum opening deposit and a low amount of monthly transactions before charges kick in, Wells Fargo may be only slightly more expensive than some other options, especially if you plan on using the business account with great regularity.
Transactions Per Month
100 monthly transactions before charges kick in
ATMs/Branches
700 branches, similar to Capital One, with widespread availability of ATM use
Monthly service fee
None
Fees
Any deposit up to $5,000 in cash has no charge, but there is $0.30 per $100 after
Offers
Bonus service trial: 120 days of its anti-fraud tool
Small business loans?
Yes
ATM fees if using out-of-network
$2.50
Credit cards
Yes
Waiting period on credit card
2-5 business days to receive notification, may be different due to COVID
Do they offer mobile banking
Yes
Minimum opening deposit
$25
America First Credit Union
America First is a good consideration if you want to work with a credit union instead, and their business checking offers plenty of features worth checking out. You’ll find details for the Business Basic account below; this advertises itself as being particularly good for businesses looking for minimal fees, with minimal transactions. You can find that reflected in the 250 free transactions per month. And although there are ATM fees for out-of-network ATMs, you likely won’t find it difficult to find CO-OP Network ATMs.
Transactions Per Month
250 free transactions per month, $0.15 per transaction thereafter.
ATMs/Branches
“Multiple locations” regionally, including Utah, Nevada, Arizona, and Idaho. No fees for Access 24 or CO-OP Network ATMs.
Monthly service fee
The Business Basic account is free.
Fees
Inactive account fees of $2.50 monthly if account is inactive for 12 months or more.
Offers
No
Small business loans?
Yes
ATM fees if using out-of-network
$1.50
Credit cards
Yes
Waiting period on credit card
24-48 hours, variable; may be delayed due to COVID.
Do they offer mobile banking
Yes
Minimum opening deposit
$1
Why It’s Worth Getting the Best Bank for Small Business
There are plenty of banks on this list that make it easier for you to handle transactions like cash deposits and billing online as a business. But you’ll also notice that having a separate business checking account makes it easier to handle bookkeeping for a growing business. This makes it possible to automate expenses, easily track income, and get a bird’s-eye view of what’s going on in your business. And it also makes it easier to incorporate a virtual bookkeeping assistant who can help you manage an account to maximize savings within your bank’s rules.
