The best Business Banks of 2023
Compare and choose the business bank best suited to your needs. Learn about your obligations and how to choose the right bank account for your business with our step-by-step guide.
Compare Business Banks
Bluevine allows entrepreneurs and SMB’s to quickly and easily set up a bank account which has no monthly fees, no transaction fees, no ACH payment fees, as well as no minimum opening deposit. Read our review of Bluevine.
- No monthly maintenance fee
- Earn up to 1.50% annual percentage yield (APY)
- Integrate with PayPal, Stripe and Expensify
Novo is a business banking platform founded in 2016 in New York for small business owners, freelancers, startup founders and solopreneurs, allowing them to open business checking accounts in minutes. Read our review of Novo.
- No monthly fee and few other fees
- Mobile app is well rated
- Integrates with tools including Stripe, QuickBooks, Shopify and PayPal
Relay Financial is a digital banking platform designed with small businesses in mind based out of Toronto, Canada, allowing them to rapidly open business checking accounts and manage bills and expenses. Read our review of Relay.
- No fees or minimum balances
- No overdraft fees and unlimited transactions, free wire transfers
- Up to 20 checking accounts
Kabbage’s providing various lending and checking services for SMB’s using various data-driven solutions to help small businesses grow. The fintech was launched in 2008 and is based out of Atlanta, Georgia. Read our review of Kabbage.
- No monthly fees, minimum balance requirement or minimum opening deposit
- No transaction limits
- Access to Kabbage Funding™ and Kabbage Payments™
Brex is a U.S. based Fintech and cash management account provided by Brex Treasury LLC. In the simplest terms, Brex offers banking in the cloud with zero incoming and outgoing ACH fees. Read our opinion on Brex.
- No monthly fees, opening balance or minimum balance required
- Unlimited ACH and wire transfers (no international wire fees)
- Unlimited fee-free transactions
Chase is the largest bank in the U.S. providing a wide variety of financial products for small businesses including checking accounts, loans, business savings, credit cards and payment solutions from its New York HQ. Read our opinion on Chase.
- Unlimited electronic, ATM, and debit card transactions
- Easy to avoid the monthly maintenance fee
- Simple mobile check deposit
Bank of America is one of the world’s largest financial organizations, serving small businesses with a range of banking, asset management and other services. Read our opinion on Bank of America.
- Branches across the country
- Range of business banking solutions
- Financing solutions specific to some industries
Capital One is a U.S. bank based out of Virginia since 1994 that helps small businesses grow with their range of banking, credit cards and savings account solutions. Read our opinion on Capital One.
- Unlimited fee-free transactions
- Cash deposits at branches and ATMs
- Five free domestic outgoing wires monthly
Business banks: Your guide to choosing the right one
What is a business bank?
Business banking refers to banking transactions that are specific to business clients. These bank accounts help entrepreneurs and companies to stay legally compliant and protected, whilst providing loans, credit and bank accounts solely to business clients.
An update on the business banking market in 2022
For years, entrepreneurs and professionals had little choice. Indeed, the professional offer was offered only by traditional banks, often at very high prices.
In recent years, things have changed, and new online professional banks and professional bank accounts have appeared on the U.S. market with offers specifically designed for the needs of entrepreneurs.
The advantage for entrepreneurs is that their rates are now much more affordable with tailor-made services per the needs of your business.
Who are business banks for?
Business banks are aimed at companies, entrepreneurs, freelancers and professionals who have a need for banking services. This can include small and large business owners with banks offering different competing products and services that may be of most relevance to your business.
Is it mandatory to have a business bank account?
Obligations can differ according to the company statutes
Having a business bank is not mandatory. However, it is important to remember that your obligations in terms of a business bank account may depend on your company status.
The IRS recommends that all small business owners have separate bank accounts. Whilst a sole proprietor i.e. an individual who owns a business and is personally responsible for its debts is not legally required to use a business checking account, it’s still a good idea from a tax perspective.
Advantages of business accounts
Business banks mean customers benefit from:
- Protection: Company banking provides some measure of personal indemnification by separating your personal and business cash. This helps to reduce the damage that may be caused by personal responsibility claims.
- As a sign of your professionalism, you will accept credit card payments from customers and ask that they make checks payable to your company rather than directly to you. The owners of businesses have the ability to delegate staff to take care of day-to-day banking responsibilities on the company’s behalf.
- In the event that your firm need a credit line in the case of an emergency, the options for obtaining one are available to you.
- Buying power: Credit card profiles may assist your company in making substantial first purchases and assist in the establishment of a credit record for your company.
What services do business banks offer professionals?
- You may make withdrawals and deposits.
- Write a check
- Handle payments sent via the automated clearing house (ACH).
- For financial operations pertaining to your company, you may use a debit card or an ATM card to make purchases and withdrawals of cash.
This is where business banks differ from traditional bank accounts for individuals with various services including:
- Corporate cards: Take advantage of high-end business cards with high withdrawals and payments
- Virtual cards: Manage the limits and lifespan of these cards to pay securely on the internet. Facilitate the management of expense reports.
- Credit Card Readers: Get paid from your customers in-store or on the move, receiving the money directly to your account.
- Authorized overdraft facilities: This is crucial for some businesses with the overdraft working like short-term financing.
- Savings solutions: Make your cash flow grow with savings solutions dedicated to businesses.
- Financing solutions: Finance your activity in the short and long term thanks to different credit products and services.
- Online collection: Collect fees and dues from your customers directly online through the integration of payment links or electronic payment solutions.
- Invoicing software: Issue quotes and invoices directly from your professional bank account.
- Accounting access: Make accounting easier thanks to dedicated access to your accountant with formatted exports.
- Expense report software: Easily manage expense reports by allowing your employees to send receipts directly.
- International transfers: Pay and get paid abroad if your business activities require it.
What exactly is the distinction between business banking & commercial banking?
The majority of financial institutions are organized into commercial and corporate departments. The majority of clients of a commercial bank are people and proprietors of small businesses, as opposed to huge organizations, which is one of the key differences between commercial and corporate banking.
Merchant services, business loans, international trade services, and treasury services are examples of the types of services that are offered by commercial banks. They provide checking and savings accounts, much like traditional retail banks.
Corporate banking is indeed a specialist sector of a business bank that provides big, small, and medium-sized firms with loans, cash, and asset management, as well as business insurance.
Banking on corporations often results in greater earnings for the financial institution because of the significant amounts of funds and interest that are associated with corporate loans.
Although the two divisions’ services may sometimes overlap in certain respects, the primary distinction between them lies in the types of customers served by each and the revenues they generate.
How much does a business bank account cost?
Do free business bank accounts exist?
Some professional bank accounts are still advertised as “free”. In reality, some costs are effectively free, but others are chargeable, and/or limited.
Business banks are never 100% free as banks have to make money in some way to cover their costs. However, many business bank accounts do not charge an annual or monthly fee.
They may charge fees for some services including wire transfers, or in certain events, such as overdrafting or if transaction limits are reached.
Here is the list of fees offered most of the time in a “free” business bank account:
- Opening fees
- Management fees (no monthly subscription)
- Bank card (most of the time)
- Access to online banking and/or mobile banking
- Transfers sent to certain destinations
- Permanent transfers
Depending on the bank, some free services are also limited on a monthly basis (withdrawals for example). Other costs still need to be paid including:
- Foreign transaction costs (withdrawals, exchange rate)
- Ooverdraft (when authorized)
- Withdrawals (beyond a certain number)
- Penalty costs (checks that bounce)
Average rates for a business bank account
The price of your business bank account can depend on your company and size (i.e. a bank account for small business owners is more affordable than accounts dedicated to large corporates with wider banking service requirements).
The price also depends on the services chosen, and the financial institution in which you open your account.
Traditional banks have higher average rates (particularly because of transaction fees), but a more complete service offer (savings, authorized overdraft, payment terminals, etc.) than smaller banks.
The following is a summary of the prices observed for some of the U.S. business bank offers:
|Business bank||Monthly rate (average)|
|Chase||$15; waivable if conditions are met|
|First Internet Bank||None|
|Bank of America||$16; waivable if conditions are met|
|Capital One||$15; waivable if conditions are met|
How to choose a pro bank in 2022?
There is no best business bank for everyone. Business owners need to ask the right questions and analyze various criteria to choose the best offer for their activity.
It is useful to firstly clearly define your banking requirements based on these criteria:
- Means of payment (business cards, check, bank transfer)
- Means of collection (transfer, check, cash, electronic payment terminal, online collection)
- Personal adviser required (or not)
- Insurance and/or savings product requirements
- Professional credit requirements (short term, medium term or long term);
- Accounting features needed
- Specific needs (payments abroad, transfers from abroad, currency exchange)
- Capital deposit (in case of business creation)
- Authorized overdrafts requirements (may only be available in some banks)
Once these requirements have been defined, you can choose your business needs and review further based upon the monthly/annual pricing of each business bank.
Thanks to our price comparison table above, you’ll quickly realize that business banks charge some services for free whilst other charge a monthly fee if certain conditions are not met each month.
We recommend customers always read the fee terms and conditions in detail to understand the standard fees, but also and especially any additional fees, which may depend on your use of the account.
Choosing a bank: Traditional bank or online bank for professionals?
Whilst most entrepreneurs may have previously appreciated the presence and advice of a physical bank advisor, more and more professionals and companies are turning to an online business bank account.
Why? Simply because the costs of traditional banks are very high compared to online banks or payment institutions.
We thus go from an entrepreneur with simple needs who can pay very little per month to bigger companies with high fees using a high street bank.
Therefore one of the main reasons that still pushes entrepreneurs to keep their business bank account with a traditional high street bank often remains credit, which may be unavailable with some FinTech players.
How to open an account in a business bank?
When you’ve decided on a bank to work with, opening a bank account for your company is a breeze. You may start the procedure by going online or visiting a branch in your area.
When opening a bank account for a company, the following papers are among the most often requested by financial institutions. Certain banks might ask for extra.
- Employer ID No. (EIN) or, if you operate as a solo business, a Social Security Number
- Personal identification
- The documentation need to establish your company.
- Agreements about ownership
- Business license
- Documentation documenting the use of a different name
How to close your account when changing business banks?
If our comparison has convinced you to change your business bank, then you will have to close your current bank account. It’s quite simple and typically involves contacting your bank either at the bank branch, online, sending a letter or calling your bank’s customer care line.
What is the best bank for professionals?
There is no best bank for all professionals. Bluevine is the best overall for free business checking whilst Chase offers the best free checking with a traditional bank. Mercury is popular with online businesses.
What is the cheapest bank for professionals?
This depends on your requirements and use of the banking services. Bluevine offers no monthly or transaction fees and 1.50% APY on balances up to $100,000 whilst Chase offers a $300 cash bonus and $0 opening deposit with easy-to-waive monthly fees.