Lili Bank is a growing fintech company that provides online banking services for small business owners.
Founded in 2018, the New York-based fintech aims to give entrepreneurs one platform for their business finances.
With more and more workers branching out on their own, Lili’s platform serves the needs of LLCs and sole proprietors with a user experience that saves time and money.
Lili Account
Lili keeps it simple with one checking account and four levels of service to choose from. Here’s a closer look at each.
Lili Basic
Lili’s Business Checking Account is available with the Lili Basic Plan. The free business checking account provides a Visa business debit card, which you can use for everyday purchases and link to your digital wallet for Apple Pay or Google Pay.
There are no monthly fees or overdraft fees and no minimum balance requirements.
For the most part, the Lili bank account is a standard online checking account, with mobile-driven banking, digital deposits, 2-day early pay, and modern features like automatic transfers and push notifications.
Lili Pro
At $9 per month, Lili Pro offers an Advanced Business Checking Account that comes with all the perks of the basic account, and then some.
Lili customers get a Pro debit card that offers cashback rewards and 2.00% APY (annual percentage yield) on savings. High-yield savings accounts and some business savings accounts offer more competitive APY, but this rate is higher than the industry average.
You could also get up to $200 of fee-free overdraft protection.
Additionally, the Pro account gives you access to automatic tax savings and bookkeeping tools like expense tracking with tax categorization, receipt uploads, and monthly expense reports.
You can also easily link your Lili account to accounting software like Quickbooks for more comprehensive tax planning.
The account has a $0 minimum deposit requirement and you can try it free with a 30-day trial.
Lili Smart
Adding to the benefits of Lili Pro, Lili Smart provides additional business management resources for account holders.
That includes tools like cash flow statements, unlimited invoices and payments, and pre-filled business tax documents.
The Smart account costs $20 per month, but there’s a 30-day free trial if you’re interested in trying it out but don’t want to commit to the account just yet.
Similar to the other Lili account options, the Smart account doesn’t require a minimum deposit to get started.
Lili Premium
Lili’s most elite account, Lili Premium costs $35 per month, and its primary perks are related to customer support.
Along with all the expense management tools and banking features of the Smart account, business owners get a dedicated account specialist and priority customer service.
The account also gives you a metal Visa rewards card.
Similar to Lili’s other accounts, you can try out Lili Premium with a 30-day free trial and get started with no minimum deposit requirement.
Lili Bank Features
Mobile-Only Banking
Lili doesn’t have any physical locations or banking features built into its website.
Everything is handled through its user-friendly mobile app, which is designed to serve all of your banking needs, including funds transfers, remote deposits, access to financial insights, and more.
Lili – Mobile Banking App
The Lili app is available on both Android and IOs and allows you to deposit checks, set up account notifications, and monitor your balance from your smartphone.
The mobile banking app has done well with its current customers and has a 4.3-star rating (out of 5) in the Google Play Store and an impressive 4.7 stars (out of 5) in the App Store.
38,000 Free ATMs
Lili is part of the MoneyPass network, so customers can make ATM withdrawals with their Lili debit card at its 38,000 ATMs throughout the US for free so you won’t have to worry about getting hit with ATM fees.
You’ll get hit with a fee for any out-of-network ATM use along with international ATMs, but you can easily track down a MoneyPass ATM location through the mobile app.
Tax and Savings Tools
Account-holders can store money in tax and emergency buckets in preparation for upcoming tax payments or unforeseen expenses.
You can set a percentage of your balance or a specific amount to enter each bucket as frequently as you’d like, automatically.
Even small businesses should have an emergency fund stashed away, so this is a pretty cool feature.
Lili also helps you keep personal and business expenses separate, with a helpful tool that allows you to move each transaction into its corresponding category.
Early Direct Deposit
One of the most convenient Lili features is its two days early pay feature that lets you get paid two business days ahead of schedule with direct deposits.
Even though many freelancers don’t have the option for payroll direct deposit from an employer, this feature also applies to peer-to-peer payment apps like Venmo, Cash App, and Paypal.
Cash Deposits
Though most online bank accounts don’t allow for cash deposits, you’ll have the option to get cash directly into your Lili account by visiting select retailers like Walmart, CVS, Walgreens, and 7-Eleven.
All you have to do is head to the register, swipe your card, and hand over the cash.
The deposit will credit to your account right away. You can easily find cash deposit locations near you on the Lili app or website.
Check Deposit and ACH Transfers
Lili allows you to deposit checks in the app, but there’s a limit of $10,000 per check, and you can deposit up to $50,000 of checks each month.
You can execute unlimited ACH transfers but are limited to $1,000 per day and $5,000 per month of inbound ACH transfers to linked accounts.
Fees
Lili’s pricing structure is one of its greatest strengths, and it’s about as close to a free bank account as you can find.
Lili has incredibly few account fees, and the ones that do exist are mostly avoidable.
Here’s a look at all the fees you won’t pay with a Lili account:
- No monthly fee
- No minimum balance fees
- No overdraft fees*
- No foreign transaction fees
- No foreign exchange rate adjustment
- No returned item or stop-payment fees
- No ACH transfer fees
While you can see that the Lili Account is mostly free, there are a few fees that you might run into.
Card Replacement Fee – $20
If you misplace your debit card, the first replacement is free. After that, there’s a $5 fee to get a new one, and if you need it ASAP, it’ll cost an additional $20 for express mail.
ATM Fees – Out-of-network fees vary
MoneyPass ATMs are completely fee-free with Lili, but if you have to use an out-of-network ATM, you may be on the hook for an ATM fee. You will not be reimbursed for these charges.
Cash Deposit Fee – up to $4.95
The ability to deposit cash is a nice feature, but it’ll cost you. The fee varies based on the specific retailer that you use for your deposit, but Lili promises a maximum fee of $4.95.
An easy workaround is to opt to deposit cash into a linked account and transfer it into your account.
Getting Started
You can open a new Lili account in as little as three minutes. Just head to the Lili website, fill out an application, download the app, and you’re good to go.
To apply, all you’ll need is your Social Security Number, name, address, date of birth, and contact information. You can fund your account through direct deposit, ACH transfer, a linked bank account, or a mobile check deposit.
Also, it’s important to note that your application doesn’t require a hard credit pull, so there’s no need to worry about losing any points on your credit score when you sign up.
Security
Like most digital banking platforms, Lili keeps online and financial security at the front of mind.
Here are some ways that Lili keeps your account secure:
- FDIC Insurance: Lili partners with Choice Financial Group, a member-FDIC institution that provides its account. This means that all of your deposits are protected up to $250,000.
- Multi-Layer Security: Lili ensures that your sensitive information is kept safe on both the app and website with industry-standard encryption, biometric authentication, and real-time account updates.
- Debit Card Security: If your card is lost or stolen, you can instantly freeze any transactions directly from the app. If you happen to find your card before you order a new one, you can easily unfreeze it and use it as normal.
Customer Service
When you need support, Lili’s online help center offers a host of FAQs on both the website and app to help you troubleshoot.
If you need to talk to someone, the customer service line (855-545-4380) is available Monday through Friday from 9 am to 7 pm Eastern Time, and from 9 am to 6 pm Eastern Time on Saturdays and Sundays. You can also reach out via email.
In its relatively short time on the market, Lili has accrued positive ratings from customers, with an average rating of 4.7/5 stars from over 2,200 reviewers on Trustpilot.
Pros & Cons
Pros
- Great for small business owners
- Extremely few fees
- Intuitive tax and budgeting tools
- Fee-free ATM access through the MoneyPass network
Cons
- $1,000 daily cash deposit limit
- Low monthly limits on check deposits
Alternatives
If you’re a small business owner or building a startup, there are a couple of other online banks with similar offerings.
Here are a few of our top banks for small businesses:
If you’re planning to use Lili as your main account but want to add an HYSA to earn more interest, take a look at Ally, Axos, or CIT.
Each of these online banks offers savings accounts with APYs that sit well above the national average.
For those who need in-person branch access or who want more services, it’s not a bad idea to look into a more traditional business banking option such as:
Frequently Asked Questions
Is Lili a real business bank account?
Lili is a neobank that is backed by Choice Financial Group, a legitimate FDIC-insured bank. When you open a business bank account with Lili, up to $250,000 of your funds are protected by FDIC insurance.
Lili’s business bank account offers a lot of the features you would expect from a traditional bank, with the additional perks of being an online bank.
What bank owns Lili?
No bank owns Lili. However, Lili partners with Choice Financial Group, Member FDIC to offer business bank accounts.
How do I put money on my Lili card?
Lili has several options for deposits. You can make mobile deposits, cash deposits, transfer money via ACH transfer or linked bank account, receive direct payments, or use peer-to-peer payment apps.
Is Lili a business checking account?
Technically, Lili is a business bank account because it’s designed for small business owners. It also has enough functionality to serve as a personal account.
That said, the Lili Account doesn’t make sense as a traditional business checking account, primarily due to its limits on transactions, which might be too low for a business with many expenses. You also can’t write checks.
What is the mobile deposit limit for Lili business?
The mobile deposit limit for Lili business bank accounts is currently $10,000 per day and $50,000 per month.
Does Lili check credit?
Lili does not check your credit when you apply to open an account. Your personal credit score doesn’t impact your chances of approval, and opening an account won’t affect your individual credit.
Can I overdraft my Lili card?
Lili’s Balanceup program lets you overdraft your account up to $200 without an overdraft fee. This feature is available for eligible Lili Pro, Lili Smart, and Lili Premium account holders.
Can Lili accept Zelle?
Lili cannot currently accept payments from Zelle. However, it’s compatible with Venmo, PayPal, and Cash App. Clients can also pay you via check, ACH transfer, debit, or credit card.
Meet the Woman Behind the FinTech
Our mission at BankBonus is to help you find the best bank for your needs, and we think meeting the people behind the tech can help. Listen to the interview now!
BankBonus Podcast
Interview with Lilac Bar David
In this episode, Grant Sabatier chats with Lilac Bar David, the Founder and CEO of Lili.
Hear why Lilac founded the platform, how Lili aims to make life easier for freelancers, the security and backing behind the FinTech, along with insight into the platform’s features and future direction.
In Conclusion
Overall, Lili is an interesting option for small business owners.
There’s a lot to like in the lack of fees, mobile functionality, and its lean, easy-to-use platform. However, the account trails behind in other areas and has limitations that count out more established entrepreneurs.
If nothing else, it’s unique in its approach, and it’s completely free, so you don’t have anything to lose.
Whether or not it’s the right bank for you over the long term depends on your unique needs and how much money you are bringing in.
Here’s to finding a business bank account that helps your side hustle grow into a full-time operation!
