The best small business bank accounts are provided by Chase, Axos, U.S. Bank, LendingClub, and Wells Fargo. They're easily accessible with relatively low fees and minimum balances, along with generous transaction limits. As of 2021, the most recent year for which there is census data, there were 33.2 million small businesses in the U.S., which amounted to 99.9% of all U.S. businesses. If you're one of those small business owners, a business bank account can help you separate your business and personal finances, which is essential for proper bookkeeping. The right accounts give you a way to deposit, hold, and spend money, and some account types enable you to accept credit and debit card payments. We chose the checking accounts below based on our research into the small business account landscape. We evaluated accounts on important factors, like fees, minimum balance and deposit requirements, and APYs, to recommend the best products for a variety of circ*mstances. Best Small Business Bank Accounts for June 2024 Best Small Business Bank Accounts for June 2024 Final Verdict Compare Banks What Is a Business Bank Account? Types of Business Bank Accounts Pros and Cons of Small Business Bank Accounts How to Choose a Business Bank Account How to Apply for a Business Bank Account Alternatives and Additions Why You Should Trust Us FAQs How We Picked the Best Business Bank Accounts Learn More Why We Chose It Chase Bank offers several types of business accounts geared to the size of your venture and incentives for signing up. New customers can often get a bonus for opening a business checking account and meeting certain requirements. Chase offers generous rewards-earning credit cards and a huge branch network, too. Pros & Cons Pros Generous new account bonuses Big bank features: rewards-earning credit cards, large branch network Advantages to linking personal accounts Cons Must meet balance requirement within 30 days for bonus Balances cannot dip below minimum for 60 days or bonus will be lost Low transaction limits before fees are charged Account holder must complete 5 qualifying transactions within 90 days Overview Chase Bank, based in New York City, is the consumer and banking arm of J.P. Morgan Chase, and it has over $2.6 trillion in assets and operations worldwide. It also provides an ATM network of 15,000 ATMs plus more than 4,700 branches. Its size alone provides big-bank features beneficial to small business owners, such as generous rewards and account bonuses, plus access to brick-and-mortar banks for in-person services around North America. Small business owners can also take advantage of Chase offerings such as small business loans, credit cards, and savings accounts in addition to checking. Why We Chose It Axos Bank was designed as a digital bank from its inception in 2000. It's now a publicly traded company with over $18.4 billion in assets. Its Basic Business Checking account is "for the busy business ownerwithmodest checking needs." The account has no monthly service fees and unlimited domestic ATM fee reimbursem*nt. Pros & Cons Pros No monthly service charges Unlimited domestic ATM fee reimbursem*nt First set of 50 checks is free Cons No branches/in person interaction Some accounts, such as interest-bearing checking, come with a fee More than 50 checks will cost you Overview If you don't need a brick-and-mortar branch to do your banking, this leader in online operations may be a good choice, especially for customers on the go. Axos Bank has a robust mobile app that received4.4 stars from customers using Android and 4.7 stars from iOS users. You can deposit checks, pay your bills, manage accounts, and transfer funds right from your phone, and all domestic ATM fees are reimbursed. Axos Bank has headquarters in California, with offices and affiliate offices in several other states. Why We Chose It Small business customers are U.S. Bank's specialty. The Silver Business Checking Package has no monthly maintenance fees and allows for up to 125 transactions, which is adequate for many small businesses. Pros & Cons Pros No monthly fees No minimum balance requirements Up to 125 transactions allowed monthly Cons $0.50 charge for each transaction exceeding 125 monthly maximum Not located in every state No interest-earning accounts Overview U.S. Bank is America's fifth-largest bank, with nearly 77,000 employees and $587 billion in assets. Founded in 1863 and headquartered in Minnesota, it has over 2,000 branches in 26 states across the country. It offers no minimum balance or monthly fees, and allotted monthly transactions go up to 125 for a Silver account. The bank offers gold, platinum, and premium business accounts with a larger allotment of free transactions and deposits, so as your business grows, so can your accounts. Why We Chose It The LendingClub Tailored Checking account offers an interest rate of 1.50% on balances up to $100,000. Customer benefits include unlimited transactions with no fees, including free ATM withdrawals (it rebates any incurred surcharge) and bill pay. Pros & Cons Pros Unlimited ATM surcharge rebates Pays interest (currently 1.50% on balances up to $100,000) Unlimited no-fee transactions Cons No physical branches No interest on balances under $500 High minimum balance required to waive monthly fee Overview LendingClub offers the same FDIC insurance as traditional brick-and-mortar banks and has over $8 billion in assets. Its Tailored Checking account for small businesses is designed to allow accountholders to accrue interest, similar to a savings account. With unlimited no-fee transactions, unlimited ATM surcharge rebates, and attached cash-back rewards, this account also comes with a full mobile money management system for business on the go. LendingClub's corporate headquarters are in San Francisco, California. Why We Chose It The Wells Fargo Navigate Business Checking account is best for depositing cash because the first 250 transactions and $20,000 in cash deposits per month are included at no extra charge. The bank's wide network of branches and ATMs, plus its strong online and mobile app, allows for flexible and secure banking, and you won't pay fees for most business services. Pros & Cons Pros High number of monthly transactions allowed Large branch network No fees for stop payments, cashier’s checks, and other business services Cons High monthly service charge/high balance to waive fees $0.50 per item and $0.30 per $100 over transaction limits Overview Founded in 1852, Wells Fargo has grown into the third-largest bank in the U.S., with over $1.7 trillion in assets. It's based in San Francisco, California, and has approximately 4,900 locations and more than 12,000 ATMs across the United States. Its Navigate Business Checking account is suitable for small business owners looking to pay no to low fees and access a high number of monthly transactions. Its robust branch network means it is easy to speak in person to a representative about your account concerns, and its newly revamped online banking and mobile app allow you to handle your financial dealings from anywhere. As Navigate Business Checking customers grow their business, the bank offers a premium Optimized Business Checking account for larger, more experienced business owners. If you are new to the business world and just starting out, Wells Fargo offers Initiate Business Checking, an account geared towards fledgling small businesses needing digital tools and support. Chase Bank is our top pick for small business banking. It offers many positive features, including a signing bonus, easy cash deposits, cash-back reward cards, and access to a global banking network. If the minimum balance is too high for you, we recommend Axos Bank Basic Business Checking or U.S. Bank Silver Business Checking for checking accounts with no minimum balance requirement. A business bank account is a bank account designed to meet the needs of a business. Some are designed for self-employed people and small businesses, while others have features more suited to large corporations. And there are many basic, general-purpose accounts in between. Business bank accounts are used only for business finances, not personal finances. But you'll need to provide both personal and business information to open a business bank account. Depending on the account, you may need to show that you own a legitimate business; this could require your business name, Employee Identification Number (EIN), licenses, registration, formation documents, operating agreements, and more. Business bank accounts provide many benefits. They allow you to separate business and personal spending, which can protect your personal assets and simplify bookkeeping and tax preparation. Your business will need a certain type of account to accept credit and debit card payments. And a dedicated bank account can also help make your business look more professional. Business bank accounts don't usually come in specific "types" for certain kinds of businesses. There isn't a common, designated account type for LLCs, for example (although some banks may offer "LLC bank accounts"). But different business bank accounts come with different features and restrictions, making some better for certain businesses than others. Bank accounts that are most attractive to LLCs, for example, do more than just allow you to keep personal and business expenses separate. They also usually come with features to help you keep tabs on revenue and expenses, and tools to make tax season easier. Sole proprietors may be more interested in accounts that are as light as possible on fees, with features that can help save money. Thinking about starting a business? See the best LLC filing services to check prices and options. Compare business bank accounts based on these features to find an account that fits your financial situation. By the Numbers: The same 2023 McKinsey study mentioned above found that most small and medium-sized businesses prefer banks over credit unions and nonbanks. When asked about their top three reasons for choosing a primary bank (one that holds at least 40% of the business' deposits), 47% of businesses said "robust relationship management/servicing", 42% said "online and mobile tools available," and 35% said "integration with business operations software and SaaS." Physical proximity to the bank was relatively unimportant, except for businesses with less than $1 million in annual revenue; 50% of those businesses said physical proximity was one of their three most important considerations. Once you're ready to make a decision, you can follow these steps to open a business bank account. Federal credit unions and local credit unions might be a decent alternative to traditional banks for small business owners. Membership is required at credit unions, though it’s often relatively easy to become a member. A credit union’s small business accounts may offer lower fees on deposit accounts and pay higher interest, compared to a traditional bank, while also offering $250,000 in NCUA insurance. Business payment apps and devices like Stripe, Square, Quickbooks Online Mobile, and Google Pay for Business process business transactions securely. However, many apps must still integrate with your current bank or work with underlying banks to provide FDIC protection. Not only does separating your business and personal finances help you stay organized, but it may also make you appear more professional and established to your clients. Clients will pay your business directly instead of sending payments to your personal account. Around one-third of small businesses use fintechs and online lenders for borrowing. Online lenders may offer working capital loans and merchant cash advances. However, some businesses have reported frustration with understanding loan terms, as business lenders aren’t required to disclose loan terms in the same way as personal loan lenders. Investopedia collected key data points from banks to identify the most important factors for readers who want to open a business bank account. We used this data to review each account for minimum required balance, APY, fees, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their needs. Investopedia launched in 1999, and has been helping readers find the best small business bank accounts since 2020. The Chase Business Complete Checking Account is our top-rated business bank account for rewards, since you can often find a hefty new account bonus as an incentive to sign up. While it does charge a monthly maintenance fee, Chase will waive this fee if you maintain an average daily balance of at least $2,000. Other top picks include the Axos Bank Basic Business Checking, if you’re looking for a purely online account; the LendingClub Tailored Checking account is excellent if you want to earn interest; and Wells Fargo’s Navigate Business Checking is good for cash deposits. Although business and personal bank accounts are similar in many ways, they have their differences. A business bank account has more requirements to open than a personal account; its fees and required balances are often higher, but its interest rates are lower than a personal account. Since a business bank account represents the business and not a person, authorized signers can be added or removed at any time without needing to close the account. Requirements to open a business bank account vary by the financial institution. However, most banks require the following: Account signers need to bring their personal identification to open the account. Most banks require an initial deposit to fund the account when it is opened; the minimum opening deposit requirements vary by the bank—and can be a key factor, along with ongoing minimum account balances, to consider when choosing one. Yes, there are many banks that allow you to open an account online in just a few minutes. Several of these banks are mentioned above. To open your business bank account online, the bank will require all of the same paperwork as if you opened the account in person. You can use your personal bank account for a small business, like a sole proprietorship. However, it is best not to. Having a dedicated bank account for your business allows you to keep your business deposits and expenses separate from personal transactions. This is very important when it comes to filing taxes. You do not need a separate business account if you are operating your business under your own name. However, it is recommended that you have a dedicated, separate bank account to make it easier to track business revenue and expenses. If you are operating your sole proprietorship under a fictitious business name or as a separate legal entity (e.g. C-Corp, S-Corp, LLC), you will want to have a separate business bank account. Some banks allow you (and, like Chase, even encourage you) to link your personal and business accounts and will allow your business and personal accounts to be viewed on the same online banking screen, making transfers between accounts simple and quick. If you plan to accept electronic payment card transactions, like credit cards and debit cards, you'll likely need a merchant account. Many businesses use them. Merchant accounts are a type of commercial bank account, and they play a role in authenticating card transactions. Merchant accounts come with a fee for every processed transaction, along with monthly fees and fees for special situations. It’s possible to open a business bank account with an Employer Identification Number (EIN), though you’ll need to provide additional information to prove you’re operating a real business. For instance, your bank may ask for your business name and email, as well as some personal information like your name and phone number. Research for this article encompassed business bank accounts from across the U.S. We evaluated the benefits offered, transaction limits, fees charged, and customer service of each business bank account reviewed to determine the "best of" designation for each category. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. U.S. Chamber of Commerce. "The State of Small Business Now." Federal Reserve Board. "Large Commercial Banks." Lending Club. "Press Release: LendingClub Reports Fourth Quarter and Full Year 2022 Results." Federal Reserve Board. "Large Commercial Banks." U.S. Small Business Administration. "Open a Business Bank Account." University of Houston Small Business Development Center. "What to Look for in a Small Business Bank Account." McKinsey & Company. "Five ways for banks to better serve small-business clients." NCUA. "Share Insurance Fund Overview." Board of Governors of the Federal Reserve System. "Access to Financial Services Matters to Small Businesses." Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. U.S. Chamber of Commerce. "The State of Small Business Now." Federal Reserve Board. "Large Commercial Banks." Lending Club. "Press Release: LendingClub Reports Fourth Quarter and Full Year 2022 Results." Federal Reserve Board. "Large Commercial Banks." U.S. Small Business Administration. "Open a Business Bank Account." University of Houston Small Business Development Center. "What to Look for in a Small Business Bank Account." McKinsey & Company. "Five ways for banks to better serve small-business clients." NCUA. "Share Insurance Fund Overview." Board of Governors of the Federal Reserve System. "Access to Financial Services Matters to Small Businesses." Related Terms What Is a Merchant Account? How Accounts and Processing Works A merchant account is a business bank account allowing companies to accept payments and pay bills. more What Is a Checking Account? Here's Everything You Need To Know A checking account is an account held at a financial institution that allows deposits and withdrawals. Learn how checking accounts work and how to get one. more What Is a High-Yield Checking Account? A high-yield checking account provides interest at an above-average rate, in some cases above 5% or 6% APY. But these accounts usually come with stringent requirements. more What Is a Deposit? Definition, Meaning, Types, and Example A deposit is a transfer of funds to another party, such as a bank, for safekeeping or funds used as collateral for a loan. Here's how it works. more What Is a Student Bank Account? Student bank accounts are accounts designed for teens and young adults. Learn about the features of a typical student bank account and how to compare them. more How Do Commercial Banks Work, and Why Do They Matter? A commercial bank is a financial institution that accepts deposits, offers checking and savings account services, and makes loans. moreBest Small Business Bank Accounts for June 2024
Best for Rewards : Chase Business Complete Checking®
Best Online Business Checking Account : Axos Bank Basic Business Checking
Best Brick-and-Mortar Bank : U.S. Bank Silver Business Checking
Best Interest-Bearing Business Checking Account : LendingClub Tailored Checking
Best for Cash Deposits : Wells Fargo Navigate Business Checking
Final Verdict
Compare the Best Small Business Bank Accounts
Bank Minimum Balance APY Transaction Limits Fees Best for Rewards Chase Business Complete Checking® $0 0% Unlimited $15 or $0, depending on activities Best Online Account Axos Bank Basic Business Checking $0 $0 Unlimited None Best Brick-and-Mortar Bank U.S. Bank Silver Business Checking Package $0 $0 125 per month, including 25 free cash deposits $2 paper statement fee Best Interest-Bearing Account LendingClub Tailored Checking $100 opening deposit, no minimum balance 1.50% on up to $100,000 Unlimited $10 per month with less than $500 balance Best for Cash Deposits Wells Fargo Navigate Business Checking $25 opening deposit, no minimum balance N/A 250 per month $25 depending on balances What Is a Business Bank Account?
Types of Business Bank Accounts
Pros and Cons of Small Business Bank Accounts
Pros
Cons
How to Choose a Business Bank Account
By the Numbers
How to Apply for a Business Bank Account
Alternatives/Additions to Small Business Bank Accounts
Credit Unions
Business Payment Apps
Online Lenders
Why You Should Trust Us
Frequently Asked Questions
Which Bank Is Best to Open a Business Account?
What Is the Difference Between a Business and a Personal Bank Account?
What Do You Need to Open a Small Business Bank Account?
Can I Open a Small Business Bank Account Online?
Can I Use My Personal Bank Account for My Small Business?
Do I Need a Business Account If I Am Self-employed?
Do You Need a Merchant Account?
Can You Open a Bank Account With Just an EIN?
How We Picked the Best Business Bank Accounts
Learn More About Small Business Bank Accounts
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