The best banks for small businesses do more than just offer a checking account. They provide extensive banking services and small business lending opportunities that you can use to grow your company.
Wondering which bank is right for you? In this guide, we’ll cover some of the best banks for small business owners and show you some of the features of each.
Why should I use a business bank account?
As an entrepreneur, opening a business bank account should be among your top priorities. For starters, a business account can provide you with an additional layer of professionalism when you conduct business with your clients. But having a dedicated business account offers an array of benefits, allowing you to do the following:
Keep your personal accounts separate
When you’re new to the world of business, it’s tempting to fund your projects from your personal checking account. But it can quickly become challenging to sort out your personal and business assets. This can make it harder to pay taxes. It could also leave you personally liable if your company should go under.
Keep your business and personal accounts separate by opening a dedicated business bank account.
Allow other employees to use your business checking account
A business checking account will give other authorized employees access to your company assets. This means that you won’t be the only one stuck making payments or managing the books, which can allow you to have the time to focus on your company’s bigger picture decisions.
Manages your finances
Typically, a personal bank account isn’t equipped to handle the kinds of income and expenses you’ll be regularly dealing with as a small business owner. Business bank accounts allow you to track your cash flow better and take advantage of payroll services to stay on top of your company’s finances.
Best banks for small business in 2022
What is the best bank for your small business? In many ways, this depends on the nature and needs of your company. The best banks have many features to choose from. Whether you’re looking for online banking or you prefer a brick-and-mortar bank, the following institutions represent some of the best banks for small businesses in 2021.
Best merchant services: Invoice2go
Invoice2go a Bill.com company provides business banking services with no fees. You can make rapid transfers to other banks directly through our mobile app. Members have access to a debit card that you can use for online and in-store payments anywhere in the U.S. They can even make fee-free cash withdrawals at one of 55,000 ATMs nationwide.
What stands out about Invoice2go is our ability to help you tackle many of the administrative tasks you deal with each month. This invoicing solution can help small business leaders to create and send invoices and get paid faster through next-day ACH bank transfers.
These features allow you to process unlimited transactions. Best of all, there are no additional monthly fees associated with increased payment volume. You can also match client payments with the original invoice, saving you time and energy for bookkeeping, payroll, and more. These features are available without the kinds of monthly maintenance fees associated with other banks and credit unions.
Best brick-and-mortar bank: Chase Bank
Retailers and restaurant owners can significantly benefit from a bank that serves brick-and-mortar locations. Account features from Chase Bank make it easier to handle frequent cash deposits, especially if your business operates in more than one physical location.
Chase operates over 4,700 branch locations nationwide. The bank also provides bundling services that many merchants find particularly attractive.
Chase Business Complete Banking is a relatively new service that combines the features of a business checking account with Chase QuickAccept. This means that Chase Business Complete Banking will allow you to process credit cards directly through your business bank account.
Chase offers many advantages, including:
- No minimum opening deposit
- A $15 monthly fee (waived if you meet minimum balance requirements)
- Free transactions for the first 20 deposits/withdrawals each month
- Mobile banking features including mobile check deposit
- Fee-free ATM deposits
- Free online bill pay
At the same time, there are a few things to watch out for when dealing with a business checking account from Chase Bank:
- Free cash deposits are limited to $5,000 per month
- Chase ATMs only allow you to withdraw $3,000 per day
- The Chase Business Complete Checking debit card has a $10,000 daily limit
These limits may be restrictive for businesses that deal in larger volumes. Chase does advertise additional packages for various types of business, though the fees for these business accounts might send some small business owners looking for an alternative.
Best bank for small business loans: Wells Fargo
Wells Fargo is also known for its extensive network of brick-and-mortar locations, making the institution attractive to businesses that deal in large or frequent cash deposits. But here, we’re highlighting Wells Fargo for its small business loans.
Specifically, Wells Fargo offers easy access to Small Business Administration (SBA) 7(a) loans. These loans can be used to fund your business or invest in new projects. It can be helpful to know you have access to a business loan when you need it.
Small business owners can also take advantage of three different business checking accounts:
- Initiate Business Checking account
- Navigate Business Checking account
- Optimum Business Checking account
Each business checking account is organized with a basic set of features, including:
- A minimum opening deposit of $25
- A monthly fee that ranges from $10 to $75, depending on your plan
- Between 100 and 250 fee-free transactions each month
- No fees at in-branch ATMs
- Text and mobile banking services
Again, the exact details will vary for each business checking account, but many business owners appreciate the flexibility offered by Wells Fargo.
Customers will also receive access to the National Business Banking Center, which provides customer service to customers who operate a small business.
Wells Fargo also offers business savings accounts, though the interest rates on these accounts tend to be lower than the savings accounts offered by competing institutions.
Best credit union: Navy Federal Credit Union
Current or retired members of the U.S. military can open a business bank account through the Navy Federal Credit Union. However, to open a business checking account, you’ll first have to have a personal checking account at the same institution.
Still, this can be an advantage. Generally speaking, credit unions offer better interest rates and lower monthly fees when compared to banks. Thus, opening an account at a credit union is a smart move if you meet the eligibility requirements.
When you open a business checking account through the Navy Federal Credit Union, you’ll experience the following features:
- No monthly service fees
- Free transactions for the first 30 non-electronic transactions
- 0.05% interest rate, even on their low-tier business checking account
- Free online bill pay
This credit union also provides business loans and business credit cards. You can even access 30,000 ATMs nationwide with no fees for cash withdrawals.
However, you may discover that credit unions have fewer physical locations than other banking centers. This can be a dealbreaker for those who need to make frequent cash deposits, so you might consider your geographic location before opening a small business checking account.
Best online free checking account: NBKC
NBKC allows users to open a business bank account online with just a few clicks. Customers appreciate the option to enjoy a free business checking account, free transactions, and mobile banking features offered by this digital business banking service.
Among the features offered by NBKC, you’ll find:
- No minimum balance
- Unlimited free monthly transactions
- Online banking
- Mobile banking
- Free check deposits
- Business loan options
Additionally, NBKC will refund the ATM fees charged by other banks (up to $12 each month), which means customers can potentially take advantage of other ATM networks.
The online business checking account is free with NBKC, though you can add ACH payments and deposits for a modest fee.
NBKC provides an option for a business savings account with no minimum deposit and no monthly maintenance fees. This makes NBKC an excellent choice among modern small business bank accounts providers.
Best bank for high-volume deposits: Capital One
Capital One is an excellent choice for those who make frequent cash deposits. With numerous branch locations throughout the U.S., Capital One easily ranks as one of the best banks for small business owners.
Capital One offers two different levels of business checking accounts. Their initial product is known as Spark Business Basic Checking. This account provides the following features:
- Unlimited transactions every month
- Free cash deposits each month (up to $5,000)
- $15 monthly service fee (waived if you meet the minimum balance requirement)
- Online bill pay
- Free online and mobile banking
- Free business debit cards
The unlimited plan offers the same features as the Spark Business Basic Checking account, though there are no limits for free cash deposits.
In addition to a business checking account, small businesses can also rely on Capital One for other services, including:
- Small business credit cards
- Merchant services
- Business loans
- Fee-free ATMs
The banking services offered by Capital One can enable businesses to accept credit cards and to establish working capital lines of credit that you can use to expand your business.
Best interest-generating checking account: Axos Bank
Axos Bank provides digital banking solutions that include business checking accounts, business savings accounts, and small business lending services. But most small business owners will appreciate their interest-generating business checking account.
Technically, Axos offers two different business checking accounts. Their Basic Business Checking account requires a higher opening deposit ($1,000), making it less affordable than their Business Interest Checking Account.
Customers who use the Business Interest Checking Account receive the following benefits:
- Earning up to 0.81% APY on the account balance
- $100 minimum opening deposit
- Free online banking and bill pay
- 50 free transactions each month
In addition to a business checking account, users can also open a business savings account and earn up to 0.20% APY.
Small business owners can also take advantage of merchant services that include lines of credit, loans, and other financing options.
Frequently asked questions
The best business bank account to use will depend on the needs of your small business. If you still have questions about business banking services and features, you can find additional information below.
Most banks charge a monthly service fee for a small business checking account. NBKC, however, offers a free business checking account. Customers can also accept ACH payments for a modest monthly fee.
Of course, it’s worth mentioning that Invoice2go also allows you to accept ACH payments without an additional monthly fee. Combined with our other merchant services, our services are an attractive option for entrepreneurs.
Most banks for small businesses offer savings accounts for their clients. Two stand out as particularly helpful. Axos Bank provides a business savings account that generates 0.20% APY. Capital One also offers a Business Advantage Savings account that provides 0.20% APY for the first 12 months.
A business credit card can give you access to lines of credit, allowing you to make purchases before your funds are available.
Some business credit cards also offer rewards for their use, attracting more users. Unlike a business credit card, a debit card will only grant you access to your current funds.