Top Small Business Checking Accounts – The best banks for small businesses have one thing in common: They make it cheap and easy to open and use a small business checking account.
So why are we reviewing not one but seven banks? Because the best checking account for you will depend on your needs. e-commerce store versus brick and mortar store, sole proprietor versus multiple-member LLC.
Top Small Business Checking Accounts
First, we’ll take a look at the general-purpose banks that are best for small businesses — then narrow them down to more specific needs.
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Before choosing a bank, make sure you have all the documents you need to apply – the bank will want to know more about your financial situation and check your credit score. If you’re not sure whether you’re ready to get started, check out our article on How to Open a Small Business Checking Account.
When it comes to general small business banking, you don’t get much better than Chase. With a vast network—nearly 5,000 physical locations and 16,000 ATMs worldwide—you’re never far from a bank. Plus, with their mobile app, you can deposit checks, pay bills, make transfers, and check your balance online.
Overall, a Chase account is a good choice for most new small businesses – especially if needing to deposit cash, use free ATMs, or visit a physical store is important to you. If you expect to do more than 200 transactions per month, Chase is not a good option.
While Chase has a relatively low minimum balance, the only way to waive the account maintenance fee is by maintaining a minimum balance. So if you expect your balance to drop below $1,500 regularly, don’t choose Chase.
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If you plan to use your credit card for most business purchases, Chase is the bank for you. Their wide range of credit cards offer very competitive interest rates, points, cash back and rewards programs.
Consumer credit unions are one of the easier credit unions to join. To become a member and account holder, you must:
Credit unions are unique financial institutions. They are not-for-profit (so the minimum deposit is low), and when you join, you will be entitled to vote in board elections.
While credit unions typically offer limited financial products, CCUs have a wide range of loans to choose from. They also have a no fee Visa Business Platinum Credit Card that also offers merchant services. The minimum monthly balance for their checking account is much lower than most banks.
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If the nonprofit mission of a credit union reflects your values, and you also want to take advantage of low checking account minimums, CCU is a good choice. It’s easy to sign up, has low fees, and offers more options than most credit unions.
On the other hand, if it’s important to you that you have plenty of financing options and credit cards to choose from, and maintaining a high minimum balance won’t be an issue, you’d be better off opening an account with a bank.
Most e-commerce small business owners handle all transactions digitally and receive payments in the same way. In this case, having a brick-and-mortar location where you can deposit cash may not be a top priority. Enter Online Banking only.
Exos is the oldest and most established online bank in the United States. Their Basic Business Checking account has no minimum balance and offers a wide range of loan options. Plus, while Axos doesn’t have a physical location, you can access your Axos checking account for free from any ATM in the US.
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If you run an online business, you’re already comfortable with online banking, and you want to do fewer than 200 transactions per month, then Axos is a smart choice. You are not required to maintain a high minimum balance, which can be a relief when your business is just starting out and your cash flow is tight. If your business needs financing, you have several options.
Known for its loans, lines of credit and factoring services, BlueVine has expanded into the banking industry. These online-only accounts are easy to open, have no minimum balance requirements, and no fees for wire transfers, insufficient funds, or receiving ACH payments. BlueVine Bank accounts come with a debit card for free ATM usage at MoneyPass ATMs.
The only fees account holders need to consider are cash deposits ($4.95 per deposit) and wire transfers ($15 per transfer). For businesses that handle cash or send money abroad, these fees can add up.
If you’re a freelancer and need an account to collect payments online and help you control your business expenses, BlueVine is for you. This is a completely free bank account if you don’t take cash or send wire transfers. Plus, if you decide to scale your business, BlueVine can help you quickly secure a loan or line of credit for a quick flow of cash.
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Based in Florida but serving customers nationwide, First Home Bank is regularly ranked as one of the top 10 most active SBA lenders in the country. It also offers small businesses a wide range of other banking services, including checking and savings accounts and non-SBA loans.
The SBA has selected First Home Bank as a preferred lender. This means that if you apply for an SBA loan through First Home, the approval process will be faster than elsewhere.
New businesses and start-ups need quick access to capital. If your top priority is getting approved for an SBA loan as quickly as possible, First Home is the bank for you. However, if you’re interested in a business checking account or want multiple brick-and-mortar locations, or if small business loans aren’t your top priority, you’re better off taking your banking needs elsewhere.
Capital One is the only bank on this list that offers free, unlimited transaction checking with no minimum account balance. It also offers five different small business credit cards.
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Does the idea of counting monthly transactions to avoid commission shudder you? If you live near a Capital One bank, process a large volume of transactions each month, and pay mostly by card or bank transfer, then Capital One may be the right fit for your business. However, it is best if your business is already established and you can easily maintain a minimum balance of $2,000.
With 4,300 branches and 16,000 ATMs, Bank of America is everywhere. Plus, they offer some great introductory offers for new business checking accounts. That being said, you don’t get unlimited free transactions like with Chase, and the free cash deposits are limited as well.
If you have easy access to Bank of America’s introductory offer and don’t expect to have any trouble getting your checking fees waived each month, opening a new business bank account is a great way to earn extra income while your business is young. Could be a great way.
However, if you choose Bank of America primarily because your business needs to deposit large amounts of cash each month, consider the $7,500 no-fee deposit limit and the cost after that amount.
Best Bank For Small Business • Top Business Checking Accounts
Once you have a bank in mind, you can begin preparing the documents required to apply for a business bank account. When you’re ready to take the next step in separating your business and personal finances, find the small business credit card that best suits your needs.
This article is for informational purposes only and does not constitute legal, business or tax advice. Each person should consult with his or her own attorney, business advisor or tax advisor regarding the matters described in this article. No responsibility is assumed for actions taken based on the information contained herein.
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