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Updated July 22, 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 our list of 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

Best Banks for Small Businesses

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Not only do business accounts serve as places to keep business funds, the right bank can also provide services to help you reach your business goals.

Here are the top picks for small business bank accounts, as well as any pros and cons to consider.

Wells Fargo: Best Overall Business Services

Wells Fargo is one of the "big four" banks in the nation with $2 trillion in assets. It has over 5,000 branches across the country.

We like Wells Fargo as the overall best bank for small business because of its comprehensive offerings. It's a good choice if you want everything in one place.

Wells Fargo offers a wide range of business banking services:

  • Four business accounts for different checking needs
  • Full-service payroll features and employee benefits
  • Customized merchant processing options
  • Tax programs
  • Business credit cards
  • Various business loan options
  • Small business insurance

Recommended: Business Choice Checking Account
This is one of the best checking accounts from a big bank. Wells Fargo's most popular business 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 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

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 has over 16,000 ATMs and nearly 4,900 physical locations. As one of the most popular card issuers, it's especially known for its excellent credit cards for small business.

Chase Bank offers business solutions including:

  • 3 small business checking accounts
  • Business credit cards
  • Business lending; term loan starting from $5,000
  • Commercial real estate loans
  • Merchant services
  • SBA 7(a), SBA 504, and SBA Express loans

Chase 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 low activity (read full review). There is no minimum opening deposit.

You get a low number of transactions, but unlimited electronic deposits. For this reason, it may be better for businesses that mostly deals electronically.

  • 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, 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. As your business grows, you can upgrade to one of the more premium accounts.

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 is known for their excellent credit cards with huge bonuses, both personal and business. Some of their most popular 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%.

Read our detailed comparison guide on the differences between the Chase Ink cards.

Be sure to read up on the Chase credit card application rules before you apply.

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 United States. This is a good option if you're looking for a bank with lots of branches and ATMs. Bank of America offers:

  • Business checking and savings products
  • Business credit cards
  • Small business financing, including equipment loans, real estate loans, vehicle loans and SBA loans
  • 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

Bank of America also offers built-in budgeting tools on their mobile banking app, to help you keep track of your expenses and spending.

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.

US Bank: Best National Bank With No Monthly Fees

If you're looking for a free account at a big financial institution, 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 United States.

U.S. Bank offers:

  • Five business checking options
  • Business savings, CDs, and money market accounts
  • Business credit cards
  • Small business loans, including SBA
  • SBA Express loans up to $250,000
  • Payment solutions, cash management tools, and payroll services

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

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

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
  • SBA 7(a) & SBA 504 Loans

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 you average a $2,000 minimum balance in the prior 30 or 90 days.

Capital One offers 2 Spark 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.

However, Capital One only has about 750 locations and 2,000 ATMs in the entire United States. So you may have trouble finding a branch near you.

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
  • Payment processing services
  • Specialty accounts for certain industries and non-profit
  • SBA 7(a) and SBA 504 loans

Recommended: BBVA Business Choice Checking
This account offers a high cash deposit allowance with reasonable requirements to waive monthly fees. A standout 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.

Azlo: 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 has backing from 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 required. It's as close to truly free as you can get.

One of the biggest advantages is that you get unlimited transactions per month - all free. So it's ideal if you do contract work or pay employees. You can pay others with digital checks or send invoices to clients directly from your account.

You also get surcharge-free ATM withdrawals at 55,000+ ATMs in the Allpoint ATM network. If you use an ATM outside the network, Azlo won't charge you, but it won't provide ATM fee reimbursement charged by the owner.

Other banking features include:

  • Free domestic bank-to-bank transfers
  • Free Visa card
  • No foreign transaction fees
  • No fee for incoming wires
  • No fee for stop payments
  • Mobile check deposit and online bill pay

You can also seamlessly integrate your Stripe, Square, and PayPal payment system, so it's great for e-commerce businesses. Azlo plans to add additional providers in the future.

Note that Azlo can only send and receive digital payments and money transfers. For these reasons, it's not ideal for businesses that deal in cash because it can't accept cash deposits.

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 have relationship managers that 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
  • Small business loans & equipment financing
  • Merchant services through First Data

Who can become members of 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 minimum balance requirements. It's ideal for very new businesses with low activity.

  • 100 free transaction items per month
  • Free Visa business card
  • Free online banking

Axos Bank: Best Business Interest Checking Account

Your choices 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 yields.

Axos Bank offers business checking and business 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 interest rates offered by traditional big banks.

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

  • $100 minimum opening deposit
  • 50 transaction items per 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 a Business Money Market account with competitive interest rates.

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

TD Bank: Best for East Coast

TD Bank has a large footprint on the East Coast with 1,300 locations. It's known for extended banking hours and 24/7 customer service, so it's a great option if you live in a location served by TD Bank.

TD Bank offers these business banking services:

  • Checking and savings accounts
  • TD Business Solutions Credit Card
  • Loans and lines of credit

Recommended: TD Business Convenience Checking Plus
This is the mid-tier checking account. The minimum deposit to open is just $100. Features include:

  • 500 free items per month ($0.50 per item after that)
  • $5,000 in free cash deposits per month
  • Mobile check deposits
  • Online bill pay

The $25 monthly maintenance charge can be waived by maintaining a minimum balance of $1,500 (can be combined with a TD personal checking account).

Other Small Business Banking Accounts to Consider

Here are some other good options if none of the ones above fit your needs.

Huntington Bank
Offers three business checking tiers depending on the size of your business, including a free product with no minimum balance. All accounts come with a suite of digital tools to help you manage income, expenses, and forecast cash flow. This bank has a large presence in the Midwest.

Navy Federal Credit Union
Offers various checking, savings, and business CDs. Also has a basic checking with no monthly fees. However, membership is only open to those in the armed forces or DoD, veterans, or family members.

Radius Bank
Radius is online-only bank offering an array of small business banking solutions. The Tailored Checking account includes perks like 1% cash back, free ATM access world wide, and unlimited transactions.

Novo
Novo is another online business bank built for small entrepreneurs, individuals, and startups. There is no monthly service fees, and it refunds ATM fees from everywhere. It integrates with other small business tools like Stripe, Xero, and Slack.

What Experts Say

CreditDonkey assembled a team 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?
  • How can business owners make sure they are prepared for an uncertain future?

Here's what they said:

Why Have a Business Bank Account

All professional businesses, no matter the size or field, should have a separate business account. Not only does it make you look more legit, it'll also make your life easier when it's time to pay taxes.

It's an important practice to keep personal and business expenses separate. This keeps your accounting clean and leaves a clear record for the IRS. Even a side hustle will require you to pay income tax.

Having a separate business bank account will also allow you to perform daily operations, such as pay bills, write checks, purchase items, and pay employees and vendors from your business account.

In fact, a business bank account is necessary if you plan to fill out business lending applications in the future.

How to Choose the Right Bank for Your Business

When choosing the best business bank account for your needs, think about what perk or features you'd like. Consider these things:

Fees and account 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? Pay attention to the maximum number of free monthly transactions you get, and the transaction fee for each one beyond that. High volume businesses will want an account with unlimited or higher number of transactions.

Transaction items include debits, credits, ACH bank transfer, and deposit checks.

Cash deposit
Do you need to deposit cash payments? If your business deposits large amounts 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. On the other hand, 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
Are you the kind to bank in person? Does your bank have physical locations and ATM access 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're okay with a completely online banking experience, then going with an online bank can help you save. Online banks have less overhead costs so they often have less fees. You can bank from anywhere on your mobile device.

Additional banking services and benefits
This is an important factor to consider. Will you potentially want a small business loan in the future? Or payment services and employee programs? If so, look for a bank that offers a spectrum of 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).

Additionally, check that your bank is a lender for SBA loans (Small Business Administration loans). These federally subsidized loans give financing opportunity to businesses that cannot get a traditional bank loan.

Software Integration
If your small business uses accounting software like QuickBooks or Quicken, consider whether they will integrate with your new checking account. This matters because it could make your life easier.

Types of accounts
Do you want to handle your business and personal finances under one roof? If you do, look for bank that also offers personal checking and savings accounts, as well as business accounts.

Customer support
Will you be able to get help from a real person when you have a problem? Always do your research on potential banks. Read other customers' bank reviews to get an idea of how good the customer service is.

Introductory Offers
Does the bank offer a signup bonus for opening an account? For example, Chase has a great small business credit card for rewards.

Documents You Need To Open A Small Business Bank Account

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

To open an account, the first steps is the gather 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.

Sole proprietors can usually open an business account online and get approval. In cases of an LLC, partnership, or corporation, you and any partners most likely will need to sit down with a banker in person. Be sure to know the criteria.

Do banks check your credit score when opening a business checking account?
Banks may run a soft inquiry on your credit, which will not affect your credit score. But most banks do run your banking history through the ChexSystem. So if you have had overdrafts or other bad marks, that may affect your ability to open an account.

Bottom Line

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

In summary, consider all your options to see what makes most sense for your small business banking needs. Pay attention to restrictions and read the fine print before getting on board with one.

If you're unhappy with your choice or your business situation changes, you can switch to elsewhere 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. This site may be compensated through the Advertiser's affiliate programs.

More from CreditDonkey:


Ink Business Cash Credit Card
Apply for Ink Business Cash Credit Card
At Chase's Secure Site
  • 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
  • 0% introductory APR for 12 months on purchases
  • Employee cards at no additional cost
  • No Annual Fee
  • Go to issuer's official application, terms, and details
Intro APR for PurchasesIntro APR for Balance TransferRegular APRAnnual Fee
0% for 12 months
N/A
13.24% - 19.24% Variable
$0

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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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