More people are launching small businesses than ever before in history. But there are many steps you should take when setting up your business to ensure your best positioned to succeed.
One of these steps is to make sure you separate your personal and business checking accounts. This will not only make it easier to manage your business but will also save you a ton of time when you need to file your taxes.
Opening a business bank account is an important milestone in your entrepreneurship journey. And, if you’re already running a business, you know how important it is to find a banking partner that aligns your day-to-day needs.
Whether you’re considering starting your own new business or if you are looking to switch banks, this post is for you.
Keep reading to learn about the best banks for small businesses, including the account types, features, and perks that come with each one.
Top Small Business Bank Accounts for 2021
Click to learn more about each of these 11 best small business banks:
- Axos Bank
- Bank of America
- Capital One
- Chase Bank
- Huntington Bank
- U.S. Bank
- Wells Fargo
1. Axos Bank
Axos Bank is an online-only bank that has been around since 1999. In the consumer banking space, Axos provides fee-free checking, high-yield savings accounts, and loans.
On the business side, Axos offers both small business and commercial banking services, with an emphasis on modern, evolved business banking solutions.
Best Axos Small Business Accounts
Axos is currently running a promotion for new business owners. Just open any one of these accounts, and you can get a $100 bonus deposited into your new account.
Axos Business Checking
For checking, Axos has two options for small businesses: Basic Business Checking and Business Interest Checking.
- Axos Basic Business Checking comes with no monthly maintenance fees and requires a deposit of at least $1,000 to open your account. The first set of 50 checks is free, as is up to 200 items — debits, credits, or other deposits — per month. Anything on top of that costs $.30 per item.
- Axos Business Interest Checking is an interest-bearing checking account with higher requirements and some added benefits. The minimum opening deposit is only $100, but a $5,000 average daily balance is required to waive the $10 monthly fee. The most significant benefit is the APY, which currently sits at 0.81% for the highest tier.
Axos Business Savings
Axos runs three small business savings accounts: Business Savings, Business Premium Savings, and Business Money Market.
- Axos Business Savings is a high-yield account with a current APY of 0.50% for any deposit amount. There’s no monthly fee with a $2,500 average daily balance and a minimum initial deposit of $1,000.
- Axos Business Premium is similar but has no monthly fees or daily balance requirements. It also comes with the same APY but has a higher threshold to open at $25,000. There doesn’t seem to be a major value add here when you compare it with Business Savings.
- Axos Business Money Market falls somewhere in between the other two options. Like Business Savings, there’s a $1,000 minimum initial deposit requirement, and the required average daily balance is $5,000 to avoid the monthly fee.
Axos Certificates of Deposit (CDs)
- Axos has one option for a Business CD, which has a tiered interest rate based on your term length. The minimum opening deposit is $1,000, and if you commit the funds for 12 months or more, you can max out the APY at 0.40%.
Novo is an online-only bank that serves small business owners, entrepreneurs, and freelancers.
Technically, Novo isn’t a bank itself. It’s an independent tech company that partners with Middlesex Federal Savings to provide online banking services. This means that even though Novo itself isn’t a bank, its accounts are still FDIC-insured.
Best Novo Small Business Accounts
Novo only offers one checking account and has no options for savings or CDs. The good news is that that one account comes flush with a ton of functionality and perks.
All that said, the main draw of working with a tech-driven banking option is the online functionality. Novo integrates seamlessly with tools like Shopify, Quickbooks, and Slack and has an easy-to-use, modern mobile app.
There is one thing to watch out for with Novo, though: If you plan to receive or send significant amounts of money, you might run into limitations. I’m hearing that the max ACH payment you can receive is $1,250, and the most you can send is $5,000.
That’s going to be a deal-breaker for many small businesses, but it’s probably not a concern if you’re just starting.
3. Bank of America
Bank of America (BoA) is one of the largest banks in the US, with over 10% of all American deposits coming through its doors. For small businesses, BoA offers deposit accounts, credit cards, loans, and financial services.
Best Bank of America Small Business Accounts
Bank of America Business Checking
BoA offers two small business checking accounts, both of which come with mobile and online banking, a business debit card, and a linked business savings account.
- Bank of America Cusiness Advantage Fundamentals Checking can serve all of your basic business banking needs. The $15 monthly fee is avoidable if you spend more than $250 each month on your business debit or credit card or maintain an average monthly balance of $5,000 or more.
- Bank of America Business Advantage Relationship Banking has the added features of easy QuickBooks integration, the ability to grant and customize account access for employees, and no fees on stop payments or incoming wire transfers. There $29.95 monthly fee is avoidable if you spend at least $2,500 on your business credit card or maintain an average monthly balance of at least $15,000.
Bank of America Business Savings
As with business checking, BoA offers two types of business savings accounts. Both accounts must link to a corresponding checking account and have a $100 minimum opening deposit requirement. They also offer overdraft protection 0.01% APY on deposits.
- Bank of America Business Investment Savings is the entry-level option, which links to a Business Fundamentals Checking account. The $5 monthly fee is avoidable if you maintain a $2,500 minimum balance.
- Bank of America Business Advantage Savings links to a Business Advantage Checking account and has a $15 monthly fee. To avoid this fee, you must maintain a minimum balance of $5,000.
Bank of America Business Credit Cards
BoA offers several different business credit cards, which come with features like cash back and travel rewards.
- Bank of America Business Advantage Travel Rewards card is our top pick, which earns triple points on travel expenses and 1.5x on everything else. There is no annual fee, no international transaction fees, and a 0% intro APR for the first 9 billing cycles.
- Bank of America Business Advantage Cash Rewards card pays 3% cashback on one of six categories of your choice, 2% cashback on dining, and 1% cashback on all other purchases.
BBVA USA, formerly known as BBVA Compass, offers online and traditional banking options for small businesses and non-profits. Its small business offerings consist of checking and savings, credit cards, business loans. The bank even offers solutions for providing employees with financial benefits packages.
Best BBVA Small Business Accounts
BBVA Business Checking
BBVA has three options for checking accounts:
- BBVA Business Connect Checking should serve most of your basic business banking needs and is our top choice for small businesses. There are no minimum balance requirements or monthly fees. You’ll also have free non-BBVA ATM transactions and up to $5,000 in cash processing per month.
- BBVA Business Choice Checking comes with add-ons like additional cash processing, discounted checks, and overdraft protection. The $15 monthly fee gets waived if you maintain at least a $5,000 balance or process $5,000 or more with Merchant Services.
- BBVA Business Premium Checking offers the same features as Choice and comes with interest-earning and no fees on out-of-network ATM transactions. To avoid the $25 monthly service fee, you need to maintain a $25,000 minimum balance or process at least that amount through Merchant Services.
BBVA Business Savings
BBVA has two business savings accounts. Interest rates are pretty low across the board, with the APY maxing out at 0.05%.
- BBVA Business Savings is the staple account and has a minimum deposit requirement of $100, along with a $5 monthly service fee. The fee is avoidable if you maintain an average daily balance of $500 or more or make an automatic transfer of $25 or more from a BBVA checking account.
- BBVA Business Money Market has a minimum opening deposit requirement of $1,000 and comes with unlimited in-person transfers and withdrawals. If your business needs a money market account, this is a solid option.
BBVA Business Credit Cards
BBVA offers two different business credit cards: Business Rewards and Secured Visa Business.
- BBVA Business Rewards is a no annual fee card that earns 1.5x points on purchases and has a 0% intro APR for the first nine months. You can add employee cards at no additional cost.
- BBVA Secured Visa Business has an annual fee of $40, and your credit limit for the card is 90% of your available savings balance. So, if you have $1,000 saved, your limit is around $900. As with Business Rewards, this card offers 1.5x points and free employee cards.
Founded in 2013, BlueVine is a fintech company that provides online business banking services through its partner, Bancorp Bank. As a startup, BlueVine’s founder drew inspiration from his father’s cash flow problems as a small business owner.
Today, BlueVine aims to provide a simple, modern banking service, so you can effectively manage your business finances.
Best BlueVine Small Business Accounts
BlueVine Business Checking is BlueVine’s sole business account option and comes with a very impressive 1.0% APY on deposits up to $100,000.
There are no minimum deposit or monthly balance requirements, no monthly fees, and no overdraft fees. As a member of the MoneyPass network, BlueVine customers can access over 38,000 ATMs nationwide for free.
The real seller here is the interest rate of 1.0% APY, which makes BlueVine’s Business Checking one of the top-earning accounts out there.
6. Capital One
Capital One is a hybrid bank with over 750 physical branches and a highly functional online banking platform.
For small business banking, Capital One takes an advisory approach that’s built on personalized guidance and custom-tailored solutions for your business.
For businesses, the bank offers checking and savings, CDs, credit cards, and merchant services.
Best Capital One Small Business Accounts
Capital One Spark Business Checking
Spark Business Checking comes in two tiers: Basic and Unlimited. Both versions are solid and come with unlimited transactions.
- Spark Business Basic Checking has a $15 monthly fee, which you can avoid with a $2,000 average daily balance. The account allows for free cash deposits of up to $5,000 each month, and then it costs $1 for every $1,000 in cash deposits after.
- Spark Business Unlimited Checking, as you might expect, offers a little more. Cash deposits are always fee-free, as incoming domestic wire transfers. There’s a higher monthly service fee of $35, and you need an average daily balance of $25,000 or more to get around it.
Capital One Business Advantage Savings
- Business Advantage Savings account is Capital One’s only option for business savings accounts. A $250 deposit is required to get started, and the $3 monthly service charge is waived if you keep a balance of at least $300.
At the moment, there’s a promotional APY of 0.20% for the first 12 months after opening a new account.
Capital One Business CDs
- Capital One’s Business CD is designed for longer-term savings. It takes $1,000 to open up and the interest rates and minimum balance requirements vary based on your term length and account balance.
Capital One Business Credit Cards
Capital One is a big player in the credit card space. For small businesses, it has several different options, including;
- Spark 2% Cash is our top pick, which gives you a $500 bonus if you spend at least $4,500 in the first three months of account opening. After that, you can earn an unlimited 2% cashback on all purchases.
- Spark 1% Classic has no annual fee and only requires a fair credit score. While the majority of Capital One’s cards require a good credit score, Spark 1% Classic gives you the ability to build your credit back up while still earning cashback.
7. Chase Bank
Chase is the largest bank in the US, with more than 4,700 branches nationwide. The bank offers a full suite of business banking products, from accounts and credit cards to business and merchant services.
It’s also one of the bigger small business lenders, offering financing, lines of credit, and small-business loans.
Best Chase Small Business Accounts
Chase Business Checking
Chase has three business checking accounts, as follows:
- Chase Business Complete Banking is the best bet for small businesses, with built-in mobile card payment processing from Chase QuickAccept. The account has a $15 monthly fee, which you can avoid with a $2,000 daily balance, $2,000 in purchases on your Chase Business credit card, or $2,000 in deposits from QuickAccept.
- Chase Performance Business Checking offers higher transaction limits and comes with a $30 monthly fee, which you need $35,000 in qualifying deposits to avoid.
- Chase Platinum Business Checking is the bank’s top-tier account and comes with the highest transaction limits. For example, you can deposit up to $25,000 in cash each month with no fee. You also get special benefits on personal accounts and Private Client accounts. The steep $95 monthly fee is only avoidable if you maintain at least $100,000 in qualifying balances.
For most small businesses, Complete Banking is going to be the way to go.
Chase Business Savings
Chase offers two types of business savings accounts, both of which offer mobile banking and easy linking with a comparable checking account.
- Chase Business Total Savings has a low 0.01% APY on deposits and a $10 monthly fee, which you can avoid by linking your business checking account.
- Chase Business Premier Savings pays up to 0.05% APY on deposits and has a $20 monthly fee, which you can avoid by linking your business checking account. However, you need to maintain a balance of at least $250,000 to hit the top APY rate. For most small businesses, this high barrier of entry probably isn’t worth it.
Chase Business CDs
- Chase Business CDs require $1,000 to open and come with term lengths that range from one month to 10 years. Currently, the available APYs are either 0.02% or 0.05%.
To hit the highest (but still quite low) interest rate of 0.05%, you’ll need to commit funds for at least 6 months and hold an account balance of at least $10,000.
Chase Business Credit Cards
Chase is one of the best in the business when it comes to consumer credit cards, and its small business cards are no different. With Chase business cards, you can expect best-in-class sign-up bonuses and high rewards earning ability.
- Ink Business Cash is likely the most appealing for small businesses. There is no annual fee and 1.5% cashback on all purchases. If you spend $7,500 or more within the first three months of account opening, a $750 intro bonus could be yours.
- Ink Business Unlimited also has no annual fee and a $750 sign-up bonus. The main difference between this card and Ink Cash is that Unlimited pays up 5% back in select purchase categories.
- Ink Business Preferred is the premium option and is the best bet if you’re looking to rack up Ultimate Rewards points, which can be very valuable when booking travel. The current sign-up bonus is 100,000 points (worth about $1,500) if you spend at least $15,000 on your card within the first three months.
8. Huntington Bank
Huntington is a regional bank with a presence in seven states: Ohio, Illinois, Indiana, Kentucky, Michigan, Pennsylvania, and West Virginia.
Huntington Bank’s business offerings are comprehensive, with checking, savings, and CDs. The bank also offers a business credit card and provides lending and merchant services.
Best Huntington Bank Small Business Accounts
Huntington Bank Business Checking
Huntington has four account options for business checking. All accounts include electronic ACH transfers, merchant and payroll services, online bill pay, and a 24 hour grace period for correcting any overdrafts.
- Huntington Business Checking 100 is ideal for new businesses with lower account balances. There’s no monthly fee, but there are limits on how much money you can move in and out of the account.
- Huntington Business Analyzed Checking is ideal for large companies that make complex financial transactions. Earnings credits can offset the $20 monthly service fee.
- Huntington Unlimited Business Checking is for businesses that frequently receive deposits and make outbound payments. The account comes with unlimited monthly transactions, 10% off payroll services through Paycheck, and a $20 monthly fee that you can avoid with a $10,000 balance across linked accounts.
- Huntington Unlimited Plus Business Checking is for larger businesses that make many transactions and might need to tap into treasury management services. The account pays interest on deposits and allows for unlimited transactions. The $40 monthly service fee is avoidable with at least $50,000 in combined balances.
Huntington Bank Business Savings
Huntington Bank has two business savings options:
- Huntington Business Premier Plus Money Market is designed to house cash that you don’t need regular access to. It’s recommended for businesses that can maintain an average balance of $10,000 or more (which avoids the $10 monthly fee). You’ll have to reach out to Huntington for specific rates, but the bank promises an increased rate if you have a linked business checking account.
- Huntington Business Premier Savings is for account holders with an average balance of less than $10,000. There $4 monthly fee is avoidable by maintaining a balance of $300 or more.
Huntington Bank Business Credit Cards
Voice Business Credit Card is Huntington’s only option and comes with 4% cashback in one spending category of your choice. There are 10 categories to pick from (e.g., gas, travel, and restaurants), and you can switch your selection every quarter.
This card an attractive option for small businesses that have a high spending amount in a particular area. There is no annual fee and no foreign transaction fees.
NorthOne is an online-only bank that focuses entirely on banking solutions for freelancers and small business owners.
The bank’s product offerings are lean, with just one bank account and the ability to apply for an SBA PPP loan.
Best NorthOne Small Business Accounts
NorthOne’s Business Banking offers a level of efficiency that you might not experience with bigger banks. You can sign up online and have your account going in as little as three minutes. The account comes with 24/7 in-app support, free accounting integrations, and a mobile app engineered for busy small business owners.
There is a $10 monthly fee here that you can’t get around, but NorthOne is pretty transparent about its pricing model. There are additional small fees for overdrafts, ACH returns, and wire transfers, but you’ll have access to over 300,000 in-network, fee-free ATMs, and unlimited payments, deposits, and transfers.
10. U.S. Bank
U.S. Bank is the fifth-largest bank in the US in terms of assets under management. Based out of Minneapolis, the bank operates entirely in the Midwest and West regions.
When it comes to business banking, U.S. Bank boasts a wide range of products, including checking and savings accounts, credit cards, loans, and more.
Best U.S. Bank Small Business Accounts
U.S. Bank Business Checking
U.S. Bank has one business checking account with four different tiers: Silver, Gold, Platinum, and Premium. All four accounts come with a debit card, online and mobile banking, card payment processing, and bill pay.
- U.S. Bank Silver Business Checking has no monthly maintenance fee and includes 125 transactions each month.
- U.S. Bank Gold Business Checking gives you 300 free transactions, 100 free cash deposits, and the option to earn interest. The monthly fee is $20, and you need a $10,000 average daily balance to get around it.
- U.S. Bank Platinum Business Checking is for businesses with higher balances and comes with a $30 monthly fee. You need to maintain at least a $25,000 checking account balance to avoid this fee.
The Silver and Gold account tiers are probably the best picks for most small businesses.
U.S. Bank Business Savings
U.S. Bank offers two types of business savings accounts.
- U.S. Bank Business Money Market has three tiers — Premium, Preferred, and Platinum — and all three earn interest at a paltry 0.01%, no matter your balance.
- U.S. Bank Basic Business Savings comes with the same APY and serves as a run-of-the-mill business savings account. You’ll have to link your U.S. Bank checking account to avoid the monthly fee.
U.S. Bank Business CDs
If you want to earn interest with U.S. Bank, a CD is your best bet. However, you need to have some serious funds available that you don’t need access to any time soon. The only term length option is 47 months, and the APY is 0.40% on deposits from $1,000 to $249,999.
U.S. Bank Business Credit Cards
U.S. Bank has three primary business credit cards, with options for cash back, travel rewards, and 0% APR.
- U.S. Bank Business Leverage Visa Signature is our top pick overall, which has a welcome bonus of 75,000 points (worth about $750 in cash) if you spend $7,500 or more in the first four months. You can also earn 2% cashback (or double points) in two categories, and there’s no guesswork on your part. The two categories where you spend the most automatically get the bonus. The bank waives the $95 annual fee during the first year.
- U.S. Bank Business Cash Rewards World Elite Mastercard has no annual fee and currently comes with a bonus of $500 if you spend at least $3000 within the first 90 days of account opening. This card also pays 3% cash back on cell phone, internet, gas station, and office supply store purchases.
- U.S. Bank Business Platinum Card is a standard business credit card that has no annual fee and comes with a 0% introductory APR for the first 15 months after opening your account.
11. Wells Fargo
Wells Fargo is one of the largest banks in the US, which more physical locations than any other bank (over 8,000 nationwide).
For small business owners, Wells Fargo offers bank accounts, credit cards, loans, and merchant and payroll services.
Best Wells Fargo Small Business Accounts
Wells Fargo Business Checking
Wells Fargo runs three different business checking accounts called Initiate, Navigate, and Optimize. Each option has a $25 minimum opening deposit requirement and caters to small business owners at various stages of their entrepreneurial journey.
- Wells Fargo Initiate Business Checking is for business owners building their foundation. The account provides all of your necessary business checking options. The $10 monthly fee is avoidable if you maintain a $500 minimum daily balance.
- Wells Fargo Navigate Business Checking offers higher transaction amounts than Initiate for evolving businesses. You need a $10,000 minimum daily balance to avoid the $25 monthly fee.
- Wells Fargo Optimize Business Checking is for seasoned businesses that are doing higher volume. You can offset the $75 monthly service fee with an Earnings Allowance, but it’s not exactly clear on the bank’s website what that means. Either way, a monthly cost of $75 seems steep and is most likely not in-line with most small business owners’ needs.
Wells Fargo Business Savings
Wells Fargo has two types of business savings accounts, both of which require a minimum deposit of $25 to open and come with a current APY of 0.01%.
- Wells Fargo Business Market Rate Savings is best for small business owners with a lower balance who are working to build up their savings. There is a $5 monthly fee, which is avoidable with a minimum daily balance of $300.
- Wells Fargo Business Platinum Savings is best for established businesses with plenty of cash on hand. The $15 monthly fee is avoidable if you maintain a $10,000 minimum daily balance.
Wells Fargo Business Credit Cards
Wells Fargo offers three basic business credit cards.
- Wells Fargo Business Platinum is a solid, everyday business credit card that pays 1.5% cashback on all purchases. There is currently a $300 bonus for new cardholders that spend $3,000 within the first 90 days of account opening.
- Wells Fargo Business Secured is few businesses that are looking to rebuild or establish credit. There is no annual fee, and you can earn either 1.5% cash back on purchases or one reward point for each $1 spent.
- Wells Fargo Business Elite is ideal for businesses that earn more than $1 million in annual sales. It currently comes with a $500 cash back bonus for spending $15,000 in the first three months. You can also earn 5,000 additional bonus points if you spend more than $10,000 per billing period. The annual fee of $125 is waived during the first year.
Frequently Asked Questions
What’s the difference between a personal account and a business account?
Personal accounts cater to an individual’s needs, while business accounts come with features that businesses tend to use (e.g., invoicing and more accessible payment options).
As a rule of thumb, it’s advisable to keep your personal and business bank accounts separate for both accounting and liability purposes.
Do I really need a business bank account?
Yes. You might not need one when you’re first starting, but it becomes essential as your business grows. Business bank accounts make everything easier in terms of taxes and legal protections, and it’s critical to separate your personal finances from your business’s finances.
What documents do I need to get a business bank account?
You usually need to submit articles of incorporation, an employer ID or Tax ID number, and personal ID documents. From there, it’s relatively similar to the application process for a personal bank account.
With some banks, especially smaller regional banks, you may need to visit a branch to open a business account. It all depends on the bank.
The Final Word
A good business bank account can make the day-to-day operations of running your business easier. Simply put, the relationship you have with your bank or credit union can impact your overall success and hopefully in a good way.
Consider what it is you need to run your business as effectively as you can. Maybe you’re looking for an efficient and free business account option from an online bank. Or, you might feel most comfortable with a big national bank.
Whatever you decide, be sure to keep your business goals at the front of your mind, and don’t be afraid to switch banks if your current provider isn’t cutting it. Here’s to finding the business bank account that helps your business grow without charging unnecessary fees in the process.