Best Free Business Checking for Freelancers and Side Hustlers
Which banks offer the best free business checking accounts for freelancers? Find the top interest rates and business perks for all 1099 employees.
 |
|
|
|
Most freelancers start off using just their personal bank accounts. And that's completely fine! But soon enough, it'll become a major pain to separate expenses during tax time.
Even if you just have a casual side hustle, having a separate business account can make your life easier. Plus, business accounts offer unique benefits that personal accounts don't.
Here are the top 10 best banks for freelancers, gig workers, contractors, and all self employed professionals in between.
| Bank | Best for |
|---|---|
| Found | Best overall for freelancers |
| Bluevine | Checking with interest |
| Novo | Digital integrations |
| Chase | Taking credit card payments |
| Lili | Best for simplifying finances |
| LendingClub | Cashback rewards |
| Axos | Unlimited ATM reimbursements |
| Wave Money | Integrated accounting |
| NorthOne | Savings sub-accounts |
| Oxygen | Digital nomads & travelers |
| NBKC | Free basic checking |
10 Best Business Bank Accounts for Freelancers
Luckily nowadays, freelancers have a lot more banking options. There are lots of innovative digital business banks specifically tailored to unique needs of self-employment.
And as an added plus, you can open an account completely online within just minutes.
If you file taxes using your Social Security number or are a sole proprietor, you aren't legally required to have a business bank account. However, it is recommended to simplify taxes and track your income and expenses.
🏆 Found: Overall Best for Freelancers
Doing taxes is one of the biggest challenges for freelancers and those newly self-employed. It's hard to do the accounting yourself and figure out how much you have to pay.
This is where Found comes in. We love its savings and tax planning features.
Free Business Banking for the Self-Employed
- Minimum Deposit to Open: $0
- Balance Requirement: $0
- Monthly Fee: $0
- APY: N/A
- ATMs: Any ATM that accepts Mastercard; No ATMs fees from Found, but the owner may have fees
Found has free powerful tax tools for freelancers. It categorizes your business expenses, so you can track write-offs and save as much as possible on taxes.
Every time you get paid or make a purchase, Found estimates your current tax bill in real-time. It also helps you save the correct amount in a safe tax account.
This way, when it's tax time, you already know how much to pay and have saved for it. No more being unprepared.
If you upgrade to Found Plus, it can even make those quarterly tax payments for you - directly to the IRS! You don't need to worry about missing deadlines or dealing with the process.
Because Found is designed for freelancers, the application process is very simple and doesn't require any proof of business.
|
|
If you do business under your own name and SSN, Found will likely be a favorite for artists. If you use an EIN to file taxes or have a large cash flow, check out Bluevine or LendingClub.
Free Business Banking for the Self-Employed
- $0 monthly service fees or minimums
- Automatically find tax write-offs and track expenses
- Auto-save for taxes
- Photo receipt capture
- Free unlimited custom invoices
- Easy sign up; no credit check
Bluevine: High Interest Rate
The Bluevine Business Checking account is very popular because of the high interest rate. It's free and offers one of the most balanced sets of benefits and features.
Business Checking - Up to 2.0% APY
- Minimum Deposit to Open: $0
- Balance Requirement: $0
- Monthly Fee: $0
- APY: 2.0% on balances up to $250,000 with monthly eligibility requirements; 0% APY on balances over $250,000
- ATMs: 37,000+ MoneyPass ATMs
- Perks: 2 free checkbooks per year; No non-sufficient funds fee
You can earn the high APY if you spend $500 per month with your Bluevine business debit card, OR if you receive $2,500 per month in customer payments.[1]
A lot of online services don't have cash deposit abilities, but Bluevine lets you do so at any of the 90,000+ GreenDot locations (though there is a deposit fee). Plus, you get 2 checkbooks for free every year.
You can also create 5 free subaccounts. And your funds in there are eligible to earn interest too (on up to $250k in combined balance across all your accounts).[2]
|
|
Business Checking - Up to 2.0% APY
- 2.0% APY on your balance up to $250,000 for customers that meet monthly eligibility requirements
- $0 minimum opening deposit
- $0 monthly service fee
Novo: Digital Integrations
If you use a lot of software to run your business, like QuickBooks, Slack, and Wise, Novo should be at the top of your list.
Free Business Checking
- Minimum Deposit to Open: $50
- Balance Requirement: $0
- Monthly Fee: $0
- APY: N/A
- ATMs: Unlimited ATM fee rebates each month worldwide
- Perks: Thousands of dollars in exclusive perks from popular business services
Novo is a high-tech account that integrates banking with hundreds of business software. You can manage your business all on one platform. No more running around on dozens of different apps.
You can create up to 10 "reserves", which act like savings accounts. This makes it easy to set aside funds for things like taxes or big business expenses.
Another cool feature is that you can send invoices through the app. Clients can pay you through ACH transfer or credit card payment via Stripe. You can also request for Novo to mail checks on your behalf for free.
Novo also offers a huge list of discounts and offers from the most popular business products and services, like Gusto and Stripe.
One downside to note is that you cannot deposit cash with Novo.
|
|
Free Business Checking
- $0 monthly service fee
- $50 deposit to unlock all features
- Unlimited ATM fee rebates
Chase: Built-in Credit Card Processing
Chase offers the best business checking option for freelancers among the traditional brick-and-mortar banks. With over 4,700 branches, it's great if you also want to do in-person banking.
Chase Business Complete Banking® - $300 Bonus
- Earn $300 when you open a new Chase Business Complete Checking® account. For new Chase business checking customers with qualifying activities.
- Multiple ways to waive the Monthly Service Fee, including maintaining a minimum daily balance or purchases on your Chase Ink® Business credit card.
- Full-service business banking. Convenient access to all your business banking services in one place -- lending, checking, credit card and payment solutions.
- Your choice of payment types. Choose from a full range of options for accepting payments and making deposits that include Zelle®, Online Bill Pay, wire transfers and ACH payments.
- Convenient access to payment processing. Process all major debit and credit cards with QuickAccept®. It's a built-in feature with your Business Complete Checking account.
- Helping you save money. Multiple ways to waive service fees and unlimited digital transactions helps you keep more of your money.
- Full-featured banking online and on-the-go. Manage your business' finances on your terms with the latest online and mobile banking technology.
- Trusted and secure financial partner. We're committed to helping you grow and protect your business.
The Chase Business Complete Banking account is a unique checking account with built-in payment processing. It comes with a mobile card reader so you can accept payments anywhere.
It's a convenient option if you accept credit cards from clients or, say, if you have a side hustle selling cookies.
As a self-employed individual, you only need an official ID and SSN to apply (and DBA if you operate under another name).
|
|
Lili: Best for Simplifying Finances
Lili is a mixed-use business and personal account created for freelancers and small businesses.
It's good if you just want to use one account for all your finances, instead of dealing with a separate business account.
Free Checking Account for Sole Proprietors and Single-Member LLC
- Minimum Deposit to Open: $0
- Balance Requirement: $0
- Monthly Fee: $0
- APY: N/A
- ATMs: 38,000+ MoneyPass ATMs
- Perks: Get direct deposits up to 2 days earlier
The free account lets you receive direct deposits up to 2 days early. And it includes an Emergency Bucket with auto savings to help you build a rainy day fund.
However, the best features are only available with their paid plans (that start from $9.00 per month). If you upgrade to the Pro plan, you can sort transactions as "personal" or "business" so you can track your business write-offs.
You'll also get a Tax Bucket subaccount. Lili will automatically transfer a percentage of every deposit to save for your quarterly estimated tax payments.
Lili does not offer checkbooks and it only supports incoming domestic wires (no international wires or outgoing).
|
|
You can sign up if you are 18 or older with a Social Security number, US-based address, and mobile phone number. You can't apply with a virtual phone number or VoIP number. Depending on your business type, Lili may require additional information such as IRS EIN number.
Free Checking Account for Sole Proprietors and Single-Member LLC
- Sign up in 3 minutes; no credit check
- No account fees - $0 monthly fee, overdraft fee, foreign transaction fee, or ATM fees at 38,000+ locations
- Automatic Savings
- Get paid up to 2 days early
LendingClub: Cashback Rewards
LendingClub Tailored Business Checking is best for self-employed individuals and freelancers that can maintain a minimum balance of $500 to waive the monthly maintenance fee.
Tailored Checking - Business Banking
- Minimum Deposit to Open: $100
- Balance Requirement: $0
- Monthly Fee: $10 (can be waived by maintaining a $500 balance)
- APY: 1.50% APY on balances up to $100,000.00 and 0.10% APY on the portion of the balance that is $100,000.00 and greater
- ATMs: Unlimited ATM fee rebates worldwide
- Perks: Unlimited 1% cashback on debit card purchases (for accounts with at least $500 balance)
If you can, you'll earn cashback on debit card purchases and interest on balances over $500.[4] Plus, you get free ATM access worldwide.
This account also integrates with Mint, QuickBooks, Quicken, and Autobooks.
Note that you must have an online website or social media presence to apply for an account.
|
|
Axos Bank: ATM Reimbursements
Known for its high APY on personal accounts, Axos Bank also offers different business checking and business savings accounts.
Business Interest Checking - 1.01% APY
- Minimum Deposit to Open: $100
- Balance Requirement: $5,000 minimum average daily balance requirement to waive the monthly service fee
- Monthly Fee: $10 (can be waived)
- APY: 1.01% APY on balances $0 - $49,999.99; 0.20% APY on balances $50,000 - $249,999.99; 0.10% APY on balance $250k+
- ATMs: Unlimited domestic ATM fee reimbursements
- Perks: First set of 50 checks free
They have a Basic Business Checking Account, which has no monthly maintenance fees but does not pay interest. It also comes with a free debit card and 50 free checks.
However, Axos stands out for their interest-bearing Business Interest Account, which offers a high APY on balances below $50,000.
Axos has no ATM network, but it will reimburse all domestic ATM fees. You can use any machine you want.
|
|
Wave Money: Integrated Accounting
Wave Money is a new business account from the same family of the popular Wave Accounting software. It's created just for freelancers and single-owner businesses.
Wave Money Business Banking
- Minimum Deposit to Open: $0
- Balance Requirement: $0
- Monthly Fee: $0
- APY: N/A
- ATMs: 55,000+ fee-free ATMs
- Perks: Instant Payouts (based on eligibility)
It integrates seamlessly with the rest of Wave's services (Accounting, Invoicing, and Payments). This makes it easy to track expenses in real-time, send invoices, and make and receive payments. Everything is automatically synced to your bookkeeping.
You can also be eligible for free Instant Payouts, which gives you access to money as soon as you're paid. There is a 1% fee for this service.[5]
|
|
NorthOne: Savings Sub-accounts
NorthOne caters specifically to freelancers and startups and offers some of the best budgeting tools we've seen.
NorthOne Business Banking
- Minimum Deposit to Open: $50
- Balance Requirement: $0
- Monthly Fee: $10 (cannot be waived)
- APY: N/A
- ATMs: 2 million MoneyPass and Cirrus® ATMs worldwide
While there is an unavoidable $10 monthly fee,[6] it offers well-rounded features. It has free unlimited transactions, invoice maker, and dozens of business app integrations. You can also deposit cash via GreenDot.
NorthOne lets you create unlimited "envelopes" for things like taxes, rent, etc. You can automatically budget for necessary expenses by moving a set amount or percentage of every payment into your envelopes.
|
|
Get 3 months of free business banking
- Unlimited envelopes for all your business budgets
- Integrations with popular accounting and payment processing apps
- Free invoice maker
For a good deal on business checking, look to newer "challengers" like Novo, Lili, and Bluevine. Smaller, fintech like these hope to compete with big traditional banks by offering better-tailored services and special promos. However, several traditional banks also offer free accounts if you meet minimum balance requirements.
Oxygen: Travel Benefits
Oxygen was made for the rebels and freethinkers that like to do things differently. It's perfect for on-the-go freelancers.
Business Elements Banking
- Minimum Deposit to Open: $0
- Balance Requirement: $0
- Monthly Fee: $0
- APY: Starts from 0.50% APY for savings (on balances of $20,000 or less)
- ATMs: 40,000+ fee-free Allpoint ATMs
- Perks: Cell phone protection, extended warranty, auto rental collision damage waiver, lost and delayed luggage protection, hotel theft protection
It has 4 different checking tiers. The basic tier is free. The higher tiers have an annual fee (waivable after the first year) and offer more benefits, rewards, and interest.
You get cashback at approved partners on things like gas, rideshare, and shipping. Plus, you can create savings goals and earn interest on money you have saved.
Your banking account also comes with a ton of other benefits like cell phone protection, lost luggage protection, and car rental waiver. Upper tiers even get certain months of Netflix reimbursement and airport lounge passes.
|
|
NBKC Bank: Basic Free Checking
NBKC (National Bank of Kansas City) offers digital banking services to freelancers and small business owners nationwide.
Business Checking
- Minimum Deposit to Open: $0
- Balance Requirement: $0
- Monthly Fee: $0
- APY: N/A
- ATMs: 37,000+ MoneyPass ATMs
The NBKC business checking account is as fee-free as you can get. In addition to $0 monthly fees, there are no overdraft, incoming domestic wires, or stop payments fees.
But this account is very basic. There are no digital integrations or interest. It's good if you just want a simple free account that gets the job done.
|
|
Other Business Banking Alternatives
If you're not ready to open a new business checking account, there are some other non-traditional solutions too. These alternatives are good for freelancers who just need a way to receive payments.
PayPal Business Account
You can upgrade your personal PayPal account to a business account. This lets you create invoices and clients can pay with credit cards. PayPal does take transaction fees for processing payments.[7]
You can even get a PayPal Business Debit Mastercard. This gives you fast access to the money in your PayPal account. You can make purchases and withdraw cash from ATMs.
Just like a traditional bank, you can do mobile check deposit and pay bills from your PayPal account.
Venmo for Business
Venmo also lets you create a Business Profile for free (read Venmo for Business review) to receive payments. You can even send the QR code directly to clients via email or text. This is good for freelancers who may not personally meet with clients.
Note that Venmo is currently only available within the US.
Wise Business
Wise is a platform for sending money internationally. It also offers a business account.
Wise always gives you the real exchange rate with low transaction fees. It can convert over 140 currencies and usually sends money in just seconds.[8] It's a great option if you work with international clients and contractors.
Freelancer vs. Side Hustler vs. Entrepreneur
 |
There are so many different terms to describe self-employment nowadays. What exactly is the difference between freelancers, side hustlers, gig workers, and entrepreneurs?
All of these give you control over how much money you make and how much you work. But there are some key differences.
- Freelancer: Someone who works (usually alone) on individual projects to create an income stream. Income is dependent on the number of projects that person works. Examples include freelance writers, designers, and business consultants.
- Side-hustler: More open to interpretation. Side hustlers have a main job, but make money on the side by freelancing, getting a second job (such as bartending), or finding a source of passive income (such as renting property).
- Gig worker: This usually refers to someone in the gig economy that works on demand, on their own time. Examples include Uber drivers, food deliverers, and handymen.
- Independent contractor: This is someone who provides work for another business without being on payroll. You do not receive employee health or retirement benefits. For tax purposes, you receive a 1099 form.
- Entrepreneur: Also called a business owner. Entrepreneurs create a business that provide passive income, hire employees, and create an entity bigger than themselves.
Do You Need a Business Bank Account if You're a Freelancer?
Freelancers aren't required to have a separate bank account. But if you make money with any kind of side job (even if it's just a small side hustle), it's smart to separate personal and business finances.
If you have everything together, it's a big pain to pick out your work expenses come tax time. By having a dedicated business checking account, it's easier for financial management. This will make doing taxes so much less stressful.
You'll be able to know exactly how much you're making and spending. Knowing these metrics will also allow you to make smarter decisions.
Even if you're just casually freelancing, it could turn into something more. You can plan for future growth by setting up a business account now.
How to Choose the Best Freelancer Bank Account
Freelancers need flexibility and low fees. Consider these factors when picking the right business account for you:
Eligibility
First of all, it's important to pick an account that accepts freelancers. Some business accounts are more strict and require an EIN and/or proof of business. As a freelancer or gig worker, you may not have those documents.
The banks on our list all accept applications with just your SSN. However, each has their own requirements too. Be sure to choose the one that makes most sense for you.
Monthly fee
You work hard for your earnings. The last thing you want is losing it to bank fees. We prefer bank accounts with no monthly fees, so you don't need to worry about keeping a minimum balance.
However, there are some very good accounts with monthly fees. Don't dismiss them if you like the features and can meet the minimum balance requirements.
ATM access
If you need to withdraw cash, make sure there are convenient ATM locations. A lot of online banks use nationwide ATM networks like Allpoint and Moneypass.
Cash deposits
Not all online bank accounts allow for cash deposits. Some bank accounts let you deposit cash at GreenDot (with a fee). Or they may have ATMs that take cash.
Features
Nowadays, it's standard for banks to offer mobile check deposit and online bill pay. Do you want other features like Quickbooks integration, digital invoices, or cashback rewards? Think about which features are must-haves for your business and look for an account that meets those needs.
Savings
Freelancers need to set aside money for taxes. You may want a separate business savings account so you don't accidentally touch the funds. Or some like Lili, Novo, and NorthOne include savings sub-accounts.
Common Questions
What's the difference between a business and personal account?
A business checking account will offer more features to help run your business. Things like invoicing services, accounting integrations, and expense reports. A personal checking account is just for your daily life transactions.
Can a freelancer qualify for a business bank account?
This depends on the bank. Some banks (especially the modern digital banks) are more generous when defining a "business owner." They'll pretty much accept anyone who earns income outside of traditional employment.
Some accounts, like Lili and Wave Money, are even designed for freelancers. So the application is less stringent.
How long does it take to open a business bank account
If all your information is in order, it can take just a few minutes to open a business checking account online.
What type of bank account is best for freelancers?
We recommend starting with a free business bank account with no monthly fees. Freelancers often have irregular income. So you don't want to worry about having to maintain a minimum balance.
Do freelancers need a business license?
This depends on where you live and your field of work. You may need a license to operate in your city/state. Certain kinds of work may need a professional license (such as an accountant).
If you're doing work under a different name, you'll need a Doing Business As (DBA). If you're using your own name, you don't need one.
How We Choose the Best Business Checking Accounts for Freelancers
First, we looked for business checking accounts that are friendly to freelancers. Not all freelancers have business documents, so we made sure to find accounts that don't require them.
Freelancers also often have unpredictable income. So we looked for free business accounts with no (or very low) monthly fee and no minimum balance requirements.
We also considered the different types of self-employment to include options for all needs. Whether you're a freelancing nomad, sell things at fairs, or are expanding into a larger business, you're sure to find an account right for you.
Bottom Line
Opening a business bank account can be helpful even if you're a freelancer just starting out. It simplifies tax season and helps you stay organized.
Fortunately, freelancers and small business owners have more options today beyond the banking giants like Bank of America, which charge fees for virtually every business banking transaction.
To find the best business banking account for you, think about what tools and features you need. It's best to find an account with no or low minimum balance requirements and other fees.
References
- ^ BlueVine. How you can earn interest on your Bluevine Business Checking account, Retrieved 8/16/2022
- ^ BlueVine. Sub-accounts, Retrieved 8/16/2022
- ^ Novo. Does Novo charge overdraft fees?, Retrieved 3/12/2022
- ^ LendingClub Bank. Cash back rewards, Retrieved 8/16/2022
- ^ Wave. Instant Payouts, Retrieved 3/12/2022
- ^ NorthOne. Pricing, Retrieved 3/12/2022
- ^ PayPal. PayPal Merchant Fees, Retrieved 4/4/2022
- ^ Wise US. Currency Converter, Retrieved 8/16/2022
Write to Justin Barnard at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
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.
|
|
| ||||||
|
|
|
