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Updated June 29, 2020

Best Bank for Small Business

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The right bank account can make or break your business. Narrow down your options and find the best fit with this guide.

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Being your own boss is tough but it's rewarding to build something of your own. And as a small business owner, the last thing you need is a bank eating into profits.

The best business checking accounts offer low fees/minimum balance, and a personal relationship.

But they're not one-size-fits-all. Restaurants need to deposit cash at a physical branch. While a tech startup may prefer an online bank.

Take a look at the best banks to open a business account.

Here are the best banks for small businesses:

    Chase

    Chase Total Business Checking®

    • Get $300 as a new Chase business checking customer, when you open a Chase Total Business Checking® account with qualifying activities
    • Access to 16,000 ATMs and nearly 4,900 Chase branches
    • Chase has business specialists at your local branch to help with your business needs
    • Account Alerts are a great way to stay on top of your account's activity and enhance security
    • Unlimited electronic deposits at no charge, including Chase QuickDeposit℠, ACH and ATM

Wells Fargo: Best Overall Business Services

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Wells Fargo is one of the "big four" banks in the US with over 5,000 branches across the country. We like Wells Fargo as the overall best bank for small business because of their added benefits for small business accounts.

Wells Fargo offers a wide range of business banking services:

  • 4 business checking accounts for different sized businesses
  • Full-service payroll features and employee benefits
  • Customized merchant processing options
  • Tax programs
  • Business credit cards
  • Unsecured business loans up to $100,000
  • Small business insurance

Recommended: Business Choice Checking Account
This is one of the best checking accounts from a big bank. Well Fargo's most popular business checking account is ideal for growing small businesses. It's pretty easy to waive the monthly fee. The opening minimum deposit is just $25.

  • 200 free transactions per month ($0.50/item after that)
  • $7,500 in free cash deposits per month
  • Free text and mobile banking
  • Custom debit card to include your business logo
  • Zero Liability protection

There are many ways to waive the $14 monthly maintenance fee:

  • Post 10 or more business debit card transactions each statement cycle
  • Maintain a linked Direct Pay service
  • Qualifying transactions from a linked Wells Fargo Merchant Services account
  • Qualifying transactions from a linked Wells Fargo Business Payroll Services account
  • Maintain $7,500 average balance

Business Credit Cards
Wells Fargo offers three business credit card options. For all three cards, you can choose to either earn 1.5% cash back OR 1 reward point for every $1 spent.

  • Business Platinum: This is the basic business card. There is no annual fee and no foreign transaction fees.
  • Business Secured: A secured credit card allows you to get credit when you have poor or limited credit history. There is a $25 annual fee.
  • Business Elite: This offers more rewards and purchasing power to businesses with over $1M in annual sales. You get $100 travel incidentals fee reimbursement per year. There is an annual fee of $125 ($0 the first year).

Small Business Loans
Wells Fargo offers many loan options for a variety of small businesses, including:

  • Business lines of credit with no collateral required
  • Unsecured business loans up to $100,000
  • Equipment express loans up to $100,000
  • Commercial real estate loans up to $1M
  • Small Business Administration (SBA) loans
  • Healthcare Practice Financing

Well Fargo offers a comprehensive search tool on their website to find the exact loan for your small business needs. You can fill in what you need the loan for, how you want to access your funds, and whether you plan to put up collateral.

Merchant Services
Wells Fargo offers comprehensive payment processing features, including:

  • In-person and online card processing
  • Mobile payments through Apple Pay, Google Pay, and Samsung Pay
  • Virtual terminal for phone orders
  • Access to your funds as soon as the next business day
  • Variety of Clover POS devices
  • Customer rewards program

You can apply online if you have a Wells Fargo business checking account and have less than $500,000 in annual sales.

Payroll and HR Services
Wells Fargo is partnered with ADP to provide payroll and HR solutions. If you have a larger business with employees, this allows you to handle tasks like:

  • Sending direct deposits to employees
  • Keeping track of time and attendance
  • Background checks when hiring new employees
  • Staying on top of employment law compliance

Chase: Best for Small Business Credit Cards

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Chase Bank is another large national bank offering a variety of services for small businesses. It's especially known for its excellent business credit cards. Chase Bank offers business solutions including:

  • 3 small business checking accounts
  • Business credit cards
  • Business loans
  • Merchant services

Chase Bank is also known for a great mobile app and excellent 24/7 customer service with real reps.

Chase often offers a sign-up bonus to new account holders for opening new business bank accounts, so make sure you check out the current promotions.

Recommended: Chase Total Business Checking
This is Chase's most basic business checking account. It's best for a budding small business with limited activity (read full review). You get a small number of transactions, but unlimited electronic deposits, so it may be better for businesses that mostly deals electronically. There is no minimum opening deposit.

  • 100 transactions per month ($0.40/item after that)
  • $5,000 in free cash deposits per month
  • Unlimited electronic deposits
  • Domestic and international wire transfers (fees apply)
  • Free online banking, online bill pay, and mobile deposits
  • Free Chase Business Debit Card
  • Set up multiple business account users

This simple account does not have advanced features, like linking business sub-accounts and waiving non-Chase ATM fees.

You can waive the $15 monthly maintenance fee ($12 if you enroll in paperless statements) by:

    Chase

    Chase Total Business Checking®

    • Get $300 as a new Chase business checking customer, when you open a Chase Total Business Checking® account with qualifying activities
    • Access to 16,000 ATMs and nearly 4,900 Chase branches
    • Chase has business specialists at your local branch to help with your business needs
    • Account Alerts are a great way to stay on top of your account's activity and enhance security
    • Unlimited electronic deposits at no charge, including Chase QuickDeposit℠, ACH and ATM

Chase Business Credit Cards
Chase Bank is known for their excellent credit cards, both personal and business. Some of their best business credit cards include:

  • Ink Business Preferred lets you earn 100,000 bonus points after you spend $15,000 on purchases in the first 3 months from account opening. 100,000 points is worth $1,250 toward travel when you redeem via Chase Ultimate Rewards. Earn 3 points per $1 on the first $150,000 spent in combined purchases on travel, shipping purchases, Internet, cable and phone services, advertising purchases made with social media sites and search engines each account anniversary year. Earn 1 point per $1 on all other purchases - with no limit to the amount you can earn. There are no foreign transaction fees. There is a $95 annual fee.

  • Ink Business Cash lets you earn $500 bonus cash back after you spend $3,000 on purchases in the first 3 months from account opening. Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year. Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other card purchases with no limit to the amount you can earn. There is no annual fee.

    Plus, there is a 0% introductory APR on purchases for 12 months. After the intro period, a variable APR applies, currently 13.24% - 19.24%.

  • Ink Business Unlimited lets you earn $500 bonus cash back after you spend $3,000 on purchases in the first 3 months from account opening. Earn unlimited 1.5% cash back on every purchase. There is no annual fee.

    Plus, there is a 0% introductory APR on purchases for 12 months. After the intro period, a variable APR applies, currently 13.24% - 19.24%.

Read our detailed comparison guide on the differences between these three cards.

Small Business Loans
Chase offers business financing solutions, including:

  • Small business term loans starting from $5,000
  • Business lines of credit up to $500,000
  • Commercial real estate loans starting from $50,000
  • SBA 7(a), SBA 504, and SBA Express loans
  • Equipment loans

Merchant Services
Chase's payment processing services processes over $1 trillion in annual volume, serving both world-renowned companies and tiny startups.

  • Solutions to process credit cards in-person and online
  • Mobile reader, standalone terminal, and tablet POS
  • Virtual terminal for phone orders
  • Works with a variety of business software providers

Bank of America: Best Low-Cost Small Business Checking

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Bank of America is one of the largest physical banks in the US. This is a good bank if you're looking for convenience and lots of branches and ATMs. Bank of America offers:

  • Business checking and savings accounts
  • Business credit cards
  • Small business financing
  • Credit card processing solutions
  • Payroll processing

While digital solutions are important to the convenience of today's bank customers, there is still need for the human touch. The best organizations can balance between digital and human-to-human interactions to create the strongest customer relationships.

Shep Hyken, customer service/experience expert, keynote speaker and New York Times bestselling author

Recommended: Business Fundamentals Checking
Out of the 2 BofA checking account options, this is the best account for small businesses. It's easy to waive the monthly fee and it offers a decent number of free transactions and deposits.

  • 200 free transactions per month ($0.45/item after that)
  • $7,500 in free cash deposits each month
  • Free online and mobile banking
  • Free online bill pay and mobile check deposit
  • Business and employee debit cards
  • Business Investment Savings account for no additional monthly fee

Several ways to avoid the $16 monthly service charge include:

  • Spend $250 in new net purchases on a business credit or debit card.
  • Maintain a $5,000 average monthly balance.
  • Maintain a $3,000 daily balance.
  • Enroll in the Business Advantage Relationship Rewards program.

Business Credit Cards
Bank of America offers several business credit cards. These cards have no annual fee:

  • Business Advantage Cash Rewards: Earn 3% cash back on a category of your choice and 2% cash back on dining (on the first $50,000 in combined category/dining purchases each calendar year).
  • Business Advantage Travel Rewards: Earn unlimited 1.5 points for every $1 spent, and 3 points per $1 on travel purchases booked through the Bank of America Travel Center.
  • Platinum Plus Mastercard: This card offers lower interest rates, though it has no rewards.

Small Business Lending
Bank of America offers a wide range of small business financing options:

  • Unsecured line of credit up to $100,000
  • Unsecured term loan amounts up to $100,000
  • Secured lines of credit and loans
  • Commercial real estate loans
  • Business auto loans
  • Equipment loan amounts from $25,000
  • SBA loans and more

Small business owners will automatically be able to apply for an unsecured business loan and unsecured business line of credit online. Most other loans require businesses to be in operation for at least two years.

For businesses with less than 2 years of operation, look into SBA-backed loans.

Merchant Services
Bank of America's payment processing services offers:

  • Card readers, terminals, and full POS systems
  • E-commerce payment gateway system
  • Virtual terminal for phone orders
  • Reporting and insights

US Bank: Best National Bank With No Monthly Fees

It's hard to find free business checking accounts at big banks. US Bank is one of the few large brick-and-mortar banks with a no-fee business checking option. US Bank has large branch network of over 3,000 physical branches across the US.

U.S. Bank offers:

  • Several business checking, savings, CDs, and money market accounts
  • Business credit cards
  • Small business loans
  • Other business services including payment solutions, cash management tools, and payroll services

Recommended: Silver Business Checking Package
This checking account has no monthly service fee or account minimum. It's ideal for new small businesses looking to save money on bank fees.

  • 150 transactions per month ($0.50/item after that)
  • 25 free cash deposits each month
  • 50% discount on first check order up to $50
  • No fee at non-US Bank ATMs
  • Online mobile deposits and bill payments
  • Protect against overdrafts with a Business Reserve Line

Business Credit Cards
US Bank offers several business credit cards, including options for cash back, travel rewards, no annual fee, and low interest.

Small Business Loans
US Bank offers these lending options:

  • Traditional fixed rate loans up to $250,000
  • Term loans up to $1 million
  • Equipment loans up to $500,000
  • Business lines of credit
  • Healthcare practice loans
  • SBA Express loans up to $250,000

Capital One: Best for High Volume Businesses

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For businesses with a lot of transactions, Capital One is worth looking into. Its checking options allow for an unlimited number of transactions for no additional fees. Capital One offers business services such as:

  • Business checking and savings accounts
  • Small business credit cards
  • Small business loans
  • Merchant services through Worldpay
  • Cash flow management solutions

Recommended: Spark Business Basic Checking
This simple business checking account offers an affordable solution for businesses with high transaction volume. The minimum opening deposit is $250.

  • Unlimited transactions at no charge
  • $5,000 in cash deposits per month ($1 for every $1,000 deposited after that)
  • Free business debit card
  • Free online banking and bill payments
  • Free Overdraft Protection with a linked small business deposit account

The Spark Business Basic Checking has a $15 monthly maintenance fee that can be waived if your prior 30- or 90-day account balance averages at least $2,000.

Capital One offers 2 Spark business checking options: Basic and Unlimited. The main difference is that the Spark Business Unlimited account has no fee for cash deposits and offers a few free wires each month. And it has a higher minimum balance requirement.

Business Credit Cards
Capital One Spark business credit cards are also popular. You can choose from cash back and travel rewards. All Capital One cards have no foreign transaction fees and free employee cards.

  • Capital One Spark Cash offers $500 cash bonus after you spend $4,500 on purchases within the first 3 months. This card earns 2% cash back on every purchase. There is a $95 annual fee ($0 intro annual fee for the first year).

  • Capital One Spark Miles offers a one-time bonus of 50,000 miles after you spend $4,500 on purchases within the first 3 months. This card earns 2 miles per $1 on every purchase. There is a $95 annual fee ($0 intro annual fee for the first year).

  • Capital One Spark Classic offers 1% cash back on every purchase. This card is for business owners with average credit. There is no annual fee.

Read more in detail about Capital One business cards.

Small Business Loans
Capital One offers:

  • Lines of credit; No financial statement required for $50,000 and less
  • Business term loan amounts starting from $10,000
  • Equipment financing starting from $10,000
  • Real estate loans up to five million
  • SBA 7(a) & 504 Loans

BBVA USA: Best for Cash Deposits

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BBVA is one of the best banks for small businesses that deal with a lot of cash. It also offers other business services including:

  • Several business checking and savings accounts
  • Small business credit cards
  • Small business lending
  • Merchant services
  • Specialty programs for certain industries and non-profit

Recommended: BBVA Business Choice Checking
This account offers a high cash deposit allowance with reasonable requirements to waive monthly fees. A very unique feature is that you can build a customized account for your needs. You can pick two 2 premium features to suit your business:

  • Additional 250 free transactions every month
  • Additional $5,000 per month in cash processing
  • One free wire each month
  • One overdraft fee forgiveness refund per year
  • Unlimited returned deposit items each month at no additional charge
  • 50% discounted checks

Other account features include:

  • Pick two premium features - no additional fees
  • 250 transactions per month ($0.50/item after that)
  • $10,000 in free cash processing per month
  • Three free customized business Visa cards
  • Free unlimited online bill payments
  • Free online banking and mobile banking
  • $100 minimum opening deposit

The $15 monthly service fee can be waived by one of the following each statement period:

  • Maintain a $5,000 average daily balance
  • Process at least $5,000 a month through Merchant Services
  • Enroll in the BBVA For Your Cause Program

The downside is that BBVA only has branch locations in AL, AZ, CA, CO, FL, NM, TX. If you need to deposit cash, make sure there's a branch near you.

Business Credit Cards
BBVA offers 2 small business credit card options:

  • BBVA Visa Business Rewards: Earn bonus points at office supply stores, gas, and restaurants. No annual fee.
  • BBVA Secured Visa Business: This option is for those with limited or poor credit history.

Small Business Lending
BBVA offers:

  • Unsecured lines of credit up to $100,000
  • Secured lines of credit starting from $10,000
  • Business term loan amounts up to $100,000
  • Commercial real estate financing from $25,000
  • SBA 7(a) and SBA 504 loans

Merchant Services
You can use your current compatible POS system or sign up for Clover equipment through BBVA.

Azlo (by BBVA): Best for Small E-Commerce Businesses

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Azlo is an online-only bank specifically for freelancers and entrepreneurs. If you don't need to visit a physical bank, you can keep your business banking affordable by considering online banks. Azlo is backed by BBVA and is under FDIC insurance.

Recommended: The Small Business Checking Account
This account has no checking account fees whatsoever. There are also no monthly maintenance fees or minimum balance requirements. It's as close to truly free business checking as you can get.

  • Unlimited transactions - all free
  • Free domestic bank-to-bank transfers
  • Free Visa card
  • Free access at 55,000+ ATMs in the Allpoint ATM network
  • No foreign transaction fees
  • No fee for incoming wires
  • Mobile check deposit and online bill pay
  • Pay others with digital checks
  • Send digital invoices directly from your account
  • Square and Stripe integrations

Azlo is ideal for small e-commerce businesses because it can only send and receive digital payments and transfers. It's not ideal for businesses that deal in cash because it can't accept cash deposits.

You can also seamlessly integrate your Stripe, Square, and PayPal payment system. Azlo plans to add additional providers in the future.

The Azlo Bank business account does have a few downsides:

  • No small business lending
  • No business credit cards
  • No cash deposits or check writing

Consumers Credit Union: Best Credit Union Option

Consider a credit union if you don't like the idea of a big bank. Credit unions are often more affordable and can offer more personalized service.

We picked Consumers Credit Union as the top choice for small business owners because anyone can be eligible to join. You don't have to live or work in a certain region or industry. In addition, it offers great businesses services, such as:

  • Multiple business checking accounts (including a free checking and one for non-profits)
  • No minimum balance for Business Savings account if you have a business checking account
  • Business financing
  • Merchant services through First Data

How to join Consumers Credit Union?
Anyone can join by simply becoming a member of the Consumers Cooperative Association for a one-time $5.00 membership fee.

Recommended: Freedom Checking
This basic business checking account has no monthly maintenance fees or balance requirements. It's ideal for very new businesses with limited activity.

  • 100 free transactions each month
  • Free Visa business card
  • Free online banking

Small Business Loans
Consumers Credit Union offers these types of business loans:

  • Commercial mortgages up to 25 years
  • Equipment financing
  • Small business lines of credit
  • Business Construction and Development Loans

Axos Bank: Best Business Interest Checking Account

Your options are rather limited if you're looking for a business interest checking account. It's best to look to online banks in this case. Axos Bank is one of the few small business bank accounts that offer interest.

Axos Bank offers small business checking and savings accounts with interest on all balances, so you can grow your money a little.

Recommended: Axos Business Interest Checking Account
The APY isn't the highest, but it still beats out those offered by traditional big banks.

You get a very limited number of free items each month, so this simple business checking account may be best for freelancer-type folks who only need a place to receive their earnings.

  • $100 minimum opening deposit
  • 50 transactions each month ($0.50/item after that)
  • Unlimited domestic ATM fee reimbursements
  • Up to 60 remote check deposit items monthly
  • First set of 50 checks free

You can waive the $10 monthly maintenance fee by maintaining a $5,000 minimum average daily balance.

It also has Business Savings and Money Market accounts with a competitive APY.

Axos Bank also offers a Basic Business Checking with no monthly service fees or account minimum requirements. However, that account does not offer interest.

What Experts Say

CreditDonkey assembled a panel of industry experts to answer readers' most pressing questions:

  • How should a small business owner choose a bank?
  • What should a business owner look for in a bank when opening a new account?
  • Should people look past a bank's promotions when they are considering opening an account?

Here's what they said:

How to Choose the Right Bank for Your Business

Consider these things when choosing the best business bank account for your needs.

Fees and balance requirements
What is the initial deposit? In addition, many banks have a minimum balance requirement to waive the monthly service fee. Can your business comfortably meet that requirement?

Transaction limits
How many transactions do you expect each month? Most banks offer a limited amount of free monthly transactions, and charge a small transaction fee for each one beyond that. High volume businesses will want an account with unlimited or higher number of transactions.

Cash deposit
Do you need to deposit cash payments? If your business deals with a lot of cash, its best to look for an account that allows for a higher amount of free cash deposits. Take note of the cash deposit fees over the free limit.

Size of bank
Large national banks are more convenient and may have more options. But small business banks or local credit unions offer more personalized service, and may be able to get you get a better deal on a loan or aid you financially if something happens.

Availability and convenience
Do you want to bank in person? Does your bank have branches and ATMs near your area of business? If you make a lot of deposits and withdrawals, you may want the convenience of a physical branch.

If you don't need in-person banking, then consider online business bank accounts. Online banks have less overhead costs so they often have less fees.

Additional banking services and benefits
Will you potentially want a loan in the future? Or payment services and employee programs? If so, look for a bank that offers these services to small business owners. Having a personal relationship with someone at your bank may help you obtain these resources (for example, getting a loan with a better interest rate).

Software Integration
If your small business uses accounting software like QuickBooks or Quicken, consider whether they will integrate with your new business checking account.

Types of accounts
Do you want all your business finances under one roof? Some banks offer small business checking accounts but may not have a savings account or lending possibilities.

Customer support
The bank's customer service will affect your experience. You want to be able to get help when you have a problem. Always do your research on potential banks. Other customers will offer tips on their experiences and give you an idea of how responsive the bank is.

Documents You Need To Open A Small Business Bank Account

Whether you plan to open your small business checking account online or in person, there are several documents you will need.

To open a business account, you will need the following things:

  • An employer identification number (EIN) or Social Security number, if you're a sole proprietor
  • The business formation documents
  • Ownership agreements
  • Business license
  • Business tax ID
  • Name, address, and state of your business and business owners

Keep in mind that these are some of the most common files that banks request. Some banks may ask for additional information.

Bottom Line

As a small business owner, picking the best bank for your business is important to your success. You'll need it to manage your business finances, as well as potentially apply for lending or other services. The right bank can help open more opportunities for your business.

Consider all your options and your small business banking needs before committing to one bank. Your choice doesn't have to be permanent. If you're unhappy with your choice, you can switch your bank at any time.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. This site may be compensated through the Advertiser's affiliate programs.

Editorial Note: This content is not provided by Chase. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by Chase.

Editorial Note: This content is not provided by Capital One. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by Capital One.

Disclaimer: The information for the Ink Business Cash Credit Card, Ink Business Preferred® Credit Card, Ink Business Unlimited Credit Card, Capital One® Spark® Classic for Business, Capital One® Spark® Cash for Business, and Capital One® Spark® Miles for Business has been collected independently by CreditDonkey. The card details on this page have not been reviewed or provided by the card issuer.

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How to Choose a Small Business Credit Card

For small business owners, credit is vital. But with so many credit cards available designed for businesses, how can you decide which one is right for you and your company? These two factors can help narrow down your selection ...

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