Best business bank accounts of May 2024
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
BLUEPRINT
Published 11:32 a.m. UTC Jan. 30, 2024
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The banks with the best business bank accounts offer low fees, high yields and the ability to easily manage your finances so that you can turn your attention to the important work of growing your side hustle.
All annual percentage yields (APYs), rates and terms are accurate as of January 23, 2024.
Relay
Relay is a financial technology company, not a bank. Banking services and FDIC insurance are provided through Thread Bank2,3; Member FDIC. The Relay Visa® Debit Card is issued by Thread Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa® debit cards are accepted.
Best business bank accounts
Why trust our banking experts
Our team of experts evaluates hundreds of banking products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 300+ accounts from 120 financial institutions reviewed.
- 4 levels of fact checking.
- Nearly 60 data points analyzed.
Best for small businesses
Apple Federal Credit Union
Compare the best business bank accounts
If you’re ready to make the jump to getting a business bank account, compare your options first.
| BANK | TOP SAVINGS YIELD | MONTHLY FEE | MIN. DEPOSIT |
|---|---|---|---|
Axos Bank
| Up to 1.01%
| $0 to $10
| $0 to $100
|
First Internet Bank
| 3.45% to 5.46%
| $0
| $0
|
nbkc Bank
| 2.75%
| $0
| $0
|
EverBank
| 1.35% to 2.35%
| $0 to $14.95
| $1,500
|
Apple Federal Credit Union
| 1.00% to 5.00%
| $0 to $25
| $0 to $5,000
|
Methodology
In order to determine which banks offer the best suite of business bank accounts, we took a comprehensive look at the market, cataloging more than 160 banks and gathering roughly 70 data points per bank.
We wanted to reward those institutions which offer a wide array of products and services and charge little in the way of penalties. Hence we gave the following weightings:
Fees
- Checking account monthly fee: 5%
- Savings account monthly fee: 5%
- Money market account monthly fee: 5%
- Ability to waive monthly fee: 5%
- Excess transaction fees: 5%
- Overdraft fees: 5%
- Third-party ATM fees: 5%
- Deposit fees: 3%
Convenience
- Cash deposit limits: 3%
- Transaction limits: 3%
- Yields: 3%
- Minimum deposit to open: 3%
- Minimum balance: 3%
Accounts available
- Checking account: 5%
- Savings account: 5%
- CDs: 5%
- Money market account: 5%
Services
- ATM network: 3%
- Branches: 3%
- App Store rating: 3%
- Google Play rating: 3%
- Merchant services: 3%
- Integrations with accounting, etc..: 3%
- Better Business Bureau rating: 3%
- Trustpilot rating: 3%
- Live chat availability: 3%
What is a business bank account?
Business checking accounts, the main type of business bank accounts, are specifically designed for you to manage your business transactions. They allow you to deposit money, make ACH payments and make purchases and cash withdrawals using a debit card.
Depending on the institution and the account, you may have access to business-specific features that allow you to:
- Give other users — such as a bookkeeper or other employees — permission to manage the business funds.
- Create, submit and track invoices.
- Create financial statements, such as balance sheets.
- Receive different types of payments, such as direct deposit, credit card payments and debit card payments.
Business checking accounts typically charge monthly fees. But if you meet certain requirements — such as maintaining a minimum balance, receiving direct deposits each month or using your debit card — the bank may waive the fees.
Novo Business Checking
Types of business bank accounts
Businesses can choose to open a checking account, savings account or a merchant services account — or some combination of these options. Each account type offers different features and services.
Business checking account
Financial institutions typically offer several types of business checking accounts, which are ideal for everyday use. They may come with some of those business-friendly features like permission settings, the ability to create invoices and financial statements, and payment options.
Banks and credit unions may offer different types of checking accounts, and they generally fall into two main categories:
Standard business checking accounts are made for smaller businesses with a normal transactional volume. You may be able to waive monthly maintenance fees and receive a set number of free transactions each month. Once you hit that limit, you’ll typically pay a small amount, such as $0.25 to$ 0 50, per transaction.
Business analysis checking accounts are designed for larger businesses with high transaction volume and large balances. The key difference is that fees can’t be waived — instead, you can offset those fees with credits earned based on your balance. At the end of the billing cycle, the bank applies your credits toward any fees you’re responsible for paying.
Merchant services accounts
A merchant services account allows you to accept many types of payments from your vendors and customers. Depending on the account, you may be able to accept:
- Online payments from credit cards and debit cards.
- Card reader payments.
- Point-of-sale (POS) system payments.
You’ll need a checking account first. Then you can set up a merchant services account with merchant services providers such as banks, independent sales organizations (ISO) and fintech companies like Square. They’re a good fit for businesses that regularly accept payments — such as retail businesses, e-commerce companies and service providers.
Business savings accounts
A business savings account is a type of account where you can keep cash reserves for a longer period of time. For instance, you might stash away money for upcoming tax payments, unexpected business expenses or a large future purchase.
Savings accounts may have minimum opening deposit requirements, monthly maintenance fees and transaction limits. You typically earn interest on your balance, putting your funds to work instead of sitting in a low-yield checking account.
“They’re ideal for excess funds that are not regularly needed for everyday operational expenses,” said Adam McDiarmid, president of small to medium business at UMB Bank.
Business owners may have the option of opening different types of savings accounts, including:
- Money market accounts blend some of the features of a checking and savings account. You typically earn a higher yield compared to a checking account, and you can write checks and use a debit card to withdraw your funds, within limits.
- Certificates of deposit, or CDs, require you to lock away your cash for a prespecified period, such as 12 months. In return, you typically get a higher interest rate on your funds.
Choosing the best business bank account
When you’re looking for the best business bank account, first consider your needs. Small businesses that make fewer than 100 transactions a month may decide to open a standard business checking account. Larger businesses, with high balances, may be a good fit for business analysis checking accounts.
A savings account can be a good option if the business owner wants to set away excess funds. And a merchant services account becomes necessary when you need to accept several forms of payment.
Here are some factors to consider:
Fees. Recurring fees eat into your profits, so it’s important to find the bank’s fee disclosure and check which ones apply to your business. Look for ways to get those fees waived when you meet requirements.
Transaction limits. Many business bank accounts limit the number of transactions you can make — typically anywhere from 100 to 500 transactions per month.
Services. When comparing accounts, check what each bank offers and whether your business will use those services. You might get access to tax-planning tools, easy integration with business software, online and mobile banking and cash management tools. If the account comes with a fee, the services can make the fee worthwhile.
Customer service. Choose a bank that offers excellent customer service, with accessible and responsive support options.
Location. Consider the bank or credit union’s physical locations and whether they align with your business needs. Do they have branches near your business, or are they accessible online or through mobile banking?
Reputation. Research the bank’s reputation and stability, looking for a bank with a strong track record and good reviews.
Frequently asked questions (FAQs)
“It’s never a bad idea to have a savings account to hold excess liquidity and generate a better return on cash you don’t need on a day-to-day basis,” McDiarmid said.
To open a business bank account, you’ll typically need:
- The business name and address.
- Business type and legal structure.
- Business formation documents, such as articles of incorporation or partnership agreement.
- A valid identity card, such as a driver’s license, for the person opening the account.
- Information and ID for other authorized users, if you plan to add them.
- Social Security number, Employer Identification Number (EIN) or Tax Identification Number (TIN).
- Business licenses or permits, if applicable.
The short answer is no, because “banks do not typically conduct a personal credit check to open a business bank account,” said Amy Dinkar-Patel, head of small business bank and commercial distribution at TD Bank.
But financial institutions typically pull a ChexSystems report when you open a bank account, McDiarmid says. ChexSystems is a consumer reporting agency that gathers information about checking and savings accounts you’ve held in your name. Reports include information about applications, openings and closures, along with account difficulties such as check-writing fraud and negative balances.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
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