Running a small business can feel like juggling many moving parts. With so many balls in the air, finding a right banking partner to provide services tailored to your business needs, facilitate smooth transactions, and offer support when issues arise can make at least one aspect of business ownership a lot easier.
If you’re in the market to find a new bank for your small business, you’ve come to the right place. Here’s Remitly’s guide to help you narrow down your choices. We compare popular banks for small businesses and provide some tips on what factors to keep in mind when making your choice.
The importance of choosing the right business bank
If you’re starting a small business, knowing where to begin with banking can feel a bit overwhelming—there are so many choices available. Many banks offer similar features, which can make them all feel like a good fit. But there’s no one-size-fits-all solution, and understanding what you aren’t willing to compromise on can be a good place to start.
Key factors to consider in business banking
Some of these things—like the standard of customer service, for example—are only going to become clear over time, of course. So a recommendation from somebody you trust in a similar position is always valuable. That said, we’ve broken down what to consider and what you need to know to narrow your choices.
- Fees and costs
Fees can add up over time and affect your bottom line. Look for banks with minimal or waivable fees, including low or no monthly maintenance, transaction, and ATM charges.
- Account Features
It’s not just what services are offered but what services your small business requires most to succeed—especially when you’re first starting out. Consider creating a list of must-have features, such as online banking, mobile app functionality, and integration with accounting software.
- Branch and ATM accessibility
Depending on your business model, accessibility to branches and ATMs is something to consider when comparing against banks that have no physical branches.
- Customer service
As a business owner, you’ll understand how important customer service is, and why having access to service—no matter the time of day—can help when you’re faced with unexpected challenges.
- Additional services
What can they offer you that others don’t? Being able to get everything done from your phone or computer, for example, can make daily operations much easier. Or maybe some of the banks offer additional perks for business account holders—we’ll come back to that later.
How to choose a bank for your small business
Only you will know exactly what your small business requires. But a good place to start is assessing your finances.
You might also ask yourself whether you prefer a traditional, brick-and-mortar bank or an online-only institution. Another thing to consider is how often you’ll deal with cash transactions, if at all, and what that might mean if you choose to go with an online-only bank.
Choosing a bank is about finding one that aligns with your long-term business goals, not just your immediate needs. For instance, many small business owners choose to work with more than one bank, and while that can make things a bit more complex for everyday operations, it may also serve your business better if you branch out.
- Identify your business needs
Daily operations can indicate which services are non-negotiable—this might include wire transfers and cash transactions.
- Shop around and compare account options
It pays to look into a number of banks. Consider actually going to the branches and asking questions—but you can also see comparisons online or speak to a representative over the phone to see how it might work, if you don’t have a local branch.
- Consider the bank’s reputation
Is this a bank with a long-standing reputation like Chase Bank? Live Oak Bank, by contrast, opened in 2008. Of course that doesn’t mean it’s definitely not the right bank for you, but it may be a consideration. - Assess tech capabilities
Being able to streamline most of your business from your phone or computer can save you time and money as more and more of our daily lives move online.
Top banks for small businesses
Comparing the various options and offers of potential banking partners is a great way to help you understand what your small business might require to function every day—and help it grow in the future.
Overview of leading business banking options
The bank you choose for your small business will almost certainly offer checking, savings, business credit cards, merchant services, and a host of other options for you to ensure your business runs smoothly and securely. Many leading lenders offer special promotions and offers when you choose to open a business account with them.
Streamlining your business finances for tax season, being able to wire money safely, and ease of doing business internationally are all services you might need. If they don’t offer these, consider how that might impact your business.
Many leading banks, for example, offer ACH transactions as an easy option for transferring money. Would your business be impacted if this offer isn’t available?
Comparison of business checking accounts’ features and fees
The checking account is the foundation of your banking needs in a venture of any size. It’s often the first account to be opened when starting a new business.
A full list of banks for small business checking accounts would be very, very long. We’ve compiled 10 of the most popular bank accounts for new or small businesses, allowing you to see their main offers and how they all differ. We’ve included information on some of their features that might speak to your personal business requirements.
Offers for savings accounts, credit cards, and loans also vary, so be sure to check out each bank’s offer if you’re looking to have both a checking and savings account or you need a loan.
| Bank | Monthly Fee | APY | Minimum
Balance to Open a Checking Account |
Features |
| American Express | $0 | 1.30% on balances up to $500,000 | $0 | Pros: 24/7 customer service, ATM withdrawals, no monthly maintenance fees
Cons: No cash deposits, no outgoing international wire transfers |
| Chase for Business | $15
waivable |
N/A | $0, or $2,000 to qualify for bonuses | Pros: Fee-free transactions with ACH and other payment processes, accessible in 48 US statesCons: Monthly fees |
| US Bank | $0 | N/A | $100 | Pros: Large sign-up bonus offers, loans, and positive customer service reputation
Cons: Fees for exceeding monthly transaction limits |
| Key Bank | $5-$25
waivable |
N/A | $25 | Pros: Low monthly fees for Business Basic Checking, reasonable transaction limits for growing businesses
Cons: Limited fee transactions, fees if minimum requirements are not met, high overdraft charges |
| Bank of America | $16, $0 if certain requirements are met |
N/A | $100 | Pros: Rewards, large ATM and branch network, multiple ways to waive fees
Cons: Fees and limits on cash deposits |
| Live Oak Bank | $10-$100
waivable |
N/A | $0 | Pros: No transaction limits, high-interest savings account options, human customer support
Cons: No physical branches, high balance requirements to waive fees |
| Bluevine | $0 | 1.5%
on balances up to $250,000 |
$0 | Pros: Wide network of no-fee ATM access, 1.5% APY can be upgraded to 3.7%
Cons: No physical branches, no weekend phone support, no joint business accounts |
| Navy Federal | $0-$20
waivable |
0.01%-
0.45% |
$250-$255 | Pros: No monthly fees, 24/7 customer service, unlimited free online transactionsCons: Membership is limited to certain individuals with military or Department of Defence connections |
| Capital One | $15-$35
waivable |
N/A | N/A | Pros: Extensive network for ATMs, overdraft protection, unlimited free transactions
Cons: Limited branch location, high fees if requirements aren’t met |
| Wells Fargo | $10
waivable |
N/A | $25 | Pros: Large network, 24/7 fraud monitoring, no transaction fees for first 100 transactions
Cons: High fees for things like overdrafts, returned items, stopped payments etc. |
Specialized business banking services
Most banks offer services that reflect the different needs of personal and business account holders.
Business credit cards and loans
If you’re running a small business, credit cards and loans are great tools to help cover unexpected expenses or manage cash flow. Many banks like Capital One or Bank of America offer rewards each time you use their business credit card, too.
Need to take a client out for dinner? Earn 2% cash back when you use your Bank of America card, for example. Not only can you use the card to cover business expenses, you also help your credit record with the bank at the same time—providing you stay on top of payments.
Loans might feel scary, but they’re beneficial in the same way—giving you the capital needed to make investments and improvements so your business continues to grow.
Savings accounts and overdraft protection
Saving for a rainy day isn’t just something to consider for your personal expenses—having a reserve in a business savings account provides a financial cushion for emergencies or future investments and expansion. For example, Live Oak Bank offers a generous APY of 3.6% on funds sitting in their small business savings account.
Many businesses experience cash-flow challenges in their early days, so overdraft protection can be a valuable service, covering your account if it falls into the red for any reason. Being prepared for any scenario will help you protect your small business, providing it with the stability it needs to succeed.
Local vs. online banks: which is better?
The world of banking has changed, with physical branches disappearing and much more done online, for both personal and business customers.
Pros and cons of local business banks
If you can find a brick-and-mortar branch, often provide a personalized service that online banks may struggle to match. Sometimes you may just want to speak to a person to resolve any issues you encounter. Banks with in-person services in your area will also know the local market and conditions better as they’re physically based within your community.
On the flip side, many local banks tend to have higher fees and lower Annual Percentage Yields. It’s not always the case, but it can make a difference over time.
Advantages of online banking for small business
With online banking, you can’t just head to a branch in an emergency, or handle cash deposits without a third-party service, and that’s assuming this service is provided. However, there are still many advantages to choosing an online-only bank for your business.
- Lower fees
With lower costs for things like rent and staff, digital banks can translate these savings into lower fees for their customers. - Great for startups and entrepreneurs
The application process is often seen as more straightforward than traditional banks, with no minimum deposit required and new accounts processed within minutes.
Only you know what your small business needs, and luckily, most banking options will serve you well. Remember to keep certain key factors in mind and have a list ready when shopping around for business accounts. No monthly fees, competitive interest rates, and credit cards that give cash back are assets when running a small company or startup. Being firm in what your small business helps you choose a bank that makes sense for your small business.
FAQs
What’s a great bank to use for an LLC?
American Express Business Checking and Bluevine often make the list of best options to consider when choosing a business banking account.
Which bank offers the most cost-effective solutions?
Both Live Oak Bank and Bluevine offer no-fee accounts with high interest, making them two of the top cost-effective choices for small businesses.
Which banks are best for business banking?
Large financial institutions with long-standing reputations for business banking like Chase, Bank of America, and Capital One are often seen as top picks to meet your small business needs. They offer a variety of options and services that smaller or online-only banks often can’t provide.
Is Amex good for small businesses?
If you’re in the market for business credit cards that offer rewards and cashback, Amex is a great choice. Along with credit card perks, they offer multiple financing options, such as business loans or lines of credit.
What’s the cheapest business bank account?
The size of your business and the services you need will determine which business account is the cheapest.
Is a local bank better for small businesses?
If you’re looking for a more personalized service, local banks and branches might be the better option. Local banks have the ability to offer more flexibility, but they may have limited online tools. It comes down to what your business values or requires more.