The first 2,500 transactions (including deposits, paid items and ACH transfers) and $50,000 in cash deposits are free each month. Clients can write checks out to the business, rather than to a personal account. Having a professional account may also mean securing better deals for your business, not the least of which is being approved for a business loan. Opening a bank account for a small business is an essential step to help manage the business and keep its finances in order.

Best Small Business Bank Accounts for October 2024

Federal credit unions and local credit unions might be a decent alternative to traditional banks for small business owners. home equity loans and equity lines of credit heloc 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. Investopedia collected key data points from banks to identify the most important factors for readers who want to open a business bank account.

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 accounts receivable aging report 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. The best free business checking accounts should have either no or easily waivable monthly fees. Banks that don’t charge monthly fees include Bluevine, U.S. Bank, Novo, Mercury, Grasshopper, Found, and Relay.

Whether you do the bookkeeping yourself or hire someone to do it, certain elements are fundamental to properly maintaining the books. Some of these elements are done more regularly than others to ensure that the books are always up to date. Other elements are completed at certain time periods as necessary to complete a business task. Products and services may not be available in all areas and may require a physical bank branch location or a designated banker to sign up.

When to Choose Bluevine Standard Checking

Of course, the convenience of being able to bank from anywhere, anytime, can also be a huge draw, especially for busy small business owners. Axos offers impressive business banking rewards, including up to 1.0% APY and a competitive cash welcome bonus (currently valued at $400). This type of APY is unheard of for a checking account and normally requires a high-yield savings account. The Standard account offers 2.0% on up to $250k, the Plus account offers 3.0% on up to $250k, and the Premier account offers 4.25% on up to $3M. Low fees, rewards, and high APY are some of the the perks you should expect from your business checking account. Enhanced Checking customers aren’t charged a fee for making cash deposits.

Pros and Cons of Business Bank Accounts

1. If you have any negative marks on your ChexSystems report, like unpaid fees, bounced checks or overdrafts, this could impact your business account application.
2. For business owners who don’t mind doing the data entry, accounting software helps to simplify the process.
3. Having your business’s revenue and expenses clearly separated into a business bank account may also help you qualify for business loans.
4. Business bank accounts don’t usually come in specific “types” for certain kinds of businesses.
5. Remember that each transaction is assigned to a specific account that is later posted to the general ledger.
6. The LendingClub Tailored Checking account offers an interest rate of 1.50% on balances up to $100,000.

Though banks may not check your credit as part of the business checking account application, they may pull accounts receivable and bad debts expense your ChexSystems report to see how you’ve managed bank accounts in the past. Limited liability companies (LLCs), sole proprietors, corporations and partnerships can all open business checking accounts. A business as small as a one-person consulting firm or as large as a 10,000-employee software company can set up a business checking account. We like Brex for it’s low fees — no maintenance fees, $0 wires and no account minimums.

More on our top online business checking accounts

Blulevine takes the cake for the highest checking APY for businesses, with rates up to 4.25%. On the personal side, you’ll need a valid ID like a driver’s license as well as your Social Security number. Check with the specific bank for its list of required business documents. This account also permits unlimited fee-free transactions and requires an opening deposit of just $100. ATM withdrawals are free at any TD Bank location, with around 2,600 available in the U.S. (primarily on the East Coast).

For Basic Checking customers, monthly cash deposits above $5,000 at Capital One branches, Cafés, and ATMs subject to cash transaction fee of $1 per $1,000. Basic Checking and Enhanced Checking customers can deposit cash at select Allpoint® ATMs, which are not subject to any fees. Cash deposits at select Allpoint® ATMs depend on your geographical location. Find ATMs near you that accept cash deposits using Capital One’s Location Finder. Enhanced Checking is designed for businesses with cash deposit needs under $40,000 per month. If your business does not qualify, please talk to your banker/branch about alternatives to Enhanced Checking, such as our commercial services, that may better suit your business needs.

What got Novo onto our list are the features that make it well-suited for e-commerce, including integration to Stripe, Square, Gusto and Etsy. The $50 monthly account maintenance fee can be waived by maintaining a $30,000 average monthly collected balance between the primary and all beneficiary business checking accounts. Entrepreneurs might choose Chase for its nationwide presence and its ATMs that can accept both large cash deposits and up to 30 checks at a time. A Chase Complete Business Checking account also provides access to Chase’s QuickAccept payment processing and same-day deposits.

Also, your account may have extra features not found with personal accounts, like cash management tools. TD Bank’s Business Savings account has low monthly fees, overdraft protection for linked TD Bank business checking accounts and low deposit and balance requirements working in its favor. However, yields vary by state, and you may be able to qualify for an adjusted rate by speaking to your branch manager. This account is recommended for businesses with smaller balances that value customer service.