Best Small Business Checking Account

Written by Merchant AlternativesSeptember 4, 2021
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If you're in the market for a business checking account for your small business, you're in luck!

There are some really great ones out there; it just depends on what you're looking for.

Don't worry; we've done the hard work for you.

As a small business, there are a couple of things you should be looking for in your business checking account:

  • Low monthly fees (or no fees at all)
  • The ability to make cash deposits
  • Online bill pay capability
  • Online and mobile banking
  • Annual percentage yield (APY)

What's the right bank for your business? Let's find out.

Our Top Picks for the Best Business Checking Accounts

Axos

Monthly Fee: $0

Minimum Deposit Required: $1,000

Type of Bank: Online only bank

Best Features: Unlimited domestic ATM fee reimbursements, first 50 checks free, and no minimum monthly balance requirements.

Our Verdict: If you're looking for a simple, no-nonsense way to get your business banking done, Axos is a great option. They offer two options for business checking accounts and one of them offers 0.81% APY. They even offer merchant services such as payment processing tools and POS terminals.

Website Link: https://merchantalternatives.com/go/axos-bank/

 

Bank of America

Monthly Fee: $16 (but this is waived with a minimum balance of $5,000 or more)

Minimum Deposit Required: $100

Type of Bank: Online and brick and mortar locations

Best Features: Unlimited, fee-free electronic transactions, Up to $7,500 in free cash deposits per month, and access to more than 17,000 ATMs and 4,300 branch locations.

Our Verdict: We like Bank of America because of the freedom it offers with business bank accounts. If you want to bank in person, you can do that, or you can keep it all online. Their Business Advantage 360 platform offers mobile banking, bill pay, and a cash-flow monitoring tool.

Website Link: https://merchantalternatives.com/go/bank-of-america/

 

BBVA

Monthly Fee: $0

Minimum Deposit Required: $100

Type of Bank: Online and brick and mortar locations

Best Features: Fee-free debit card, no fees when using BBVA, Allpoint or participating 7-11 ATMs, unlimited free digital transactions.

Our Verdict: We like BBVA for checking accounts for businesses because they offer three options, so you can pick which one works best for you. We also appreciate their free online and mobile banking and free bill pay features, no matter which account you choose.

Website Link: https://merchantalternatives.com/go/bbva-bank/

 

BlueVine

Monthly Fee: $0

Minimum Deposit Required: $0

Type of Bank: Online only bank

Best Features: 1% APY on checking account balances up to $100,000, unlimited transactions every month, no monthly balance requirements.

Our Verdict: In our opinion, BlueVine is about as good as it gets if you're looking for an online-only business account. You can make cash deposits through Green Dot ATMs, they offer high-yield APY, and they also have lots of online banking tools. What's not to love?

Website Link: https://merchantalternatives.com/go/bluevine/

 

Capital One

Monthly Fee: $35 (but this is waived with a 30 or 90-day account balance average of $25,000 or more)

Minimum Deposit Required: $250

Type of Bank: Online with some brick and mortar locations

Best Features: More than 40,000 Capital One and Allpoint ATMs, unlimited mobile check scanning ($50 per month), free mobile deposits.

Our Verdict: The Capital One name is well-known, but their checking accounts might not be as good a fit for small business owners. They don't offer free overdraft protection, and their monthly fee is a little high.

Website Link: https://merchantalternatives.com/go/capital-one/

 

Chase

Monthly Fee: $15 (but this is waived with a monthly balance of $2,000 or more)

Minimum Deposit Required: $0

Type of Bank: Online bank with some brick and mortar locations

Best Features: Streamlined business cash flow management tools, an easy-to-waive monthly fee, many ways to access their services, including online, in-person, ATMs, and mobile.

Our Verdict: The Chase Business Complete Banking account has a lot of the perks that small business owners are looking for. We wish it were possible to open an account online, and they do charge transaction fees if you have more than 20 paper checks or teller services every month. They also offer a $300 bonus as long as you meet their criteria.

Website Link: https://merchantalternatives.com/go/chase/

 

Citizens Bank

Monthly Fee: $0

Minimum Deposit Required: $0

Type of Bank: Brick and mortar locations with online banking capabilities

Best Features: Free business checking account, high transaction limits, interest-bearing accounts for non-profits.

Our Verdict: Banking at Citizens Bank will probably only work for you if you live in Michigan, Ohio, New Jersey, New York, Pennsylvania, Delaware, Massachusetts, Vermont, New Hampshire, Rhode Island, or Connecticut. But this is a great option if you don't mind doing a lot of your banking in person.

Website Link: https://merchantalternatives.com/go/citizens-bank/

 

First Citizens Bank

Monthly Fee: $0 (as long as you sign up for electronic statements)

Minimum Deposit Required: $100

Type of Bank: Brick and mortar locations with online banking capabilities

Best Features: Stellar online banking platform, 175 free transactions every month (0.50 each for every one after that), and 3 options for your business checking account.

Our Verdict: First Citizens Bank is pretty good, but they leave some things to be desired. They don't offer APY and many of their branches are in Georgia, Virginia, and North and South Carolina. For an extra $15 per month, you can access their Business Online Banking Advantage platform, which offers things like report generation and integration with QuickBooks and Quicken.

Website Link: https://merchantalternatives.com/go/first-citizens/

 

First Internet Bank

Monthly Fee: $0

Minimum Deposit Required: $0

Type of Bank: Online bank only

Best Features: 0.30% APY on your business checking account, monthly ATM fee reimbursement (up to $10), lots of options for making deposits.

Our Verdict: First Internet Bank doesn't have an ATM network or any physical branches, which might bother you if you're used to having easy access to them. But we love the APY, and you can't really beat not having any monthly fees.

Website Link: https://merchantalternatives.com/go/first-internet-bank/

 

Huntington

Monthly Fee: $0

Minimum Deposit Required: $0

Type of Bank: Brick and mortar locations and online banking

Best Features: Unlimited transactions on two of their three business checking account options, bonuses available (either $200, $400 or $750, based on the account you choose), and excellent overdraft protection for free.

Our Verdict: Huntington Bank's overdraft protection has to be the best in the banking industry. They'll refund your overdraft fees if you make a deposit by midnight the next day to put your account back in good standing, and no fees are charged if you're overdrawn by less than $50. Their basic business checking account allows up to $5,000 in free cash deposits each month too.

Website Link: https://merchantalternatives.com/go/huntington-merchant-services/

 

Kabbage

Monthly Fee: $0

Minimum Deposit Required: $0

Type of Bank: Online bank only

Best Features: 1.10% APY, no minimum balance requirement, and unlimited transactions

Our Verdict: Kabbage has some great tools for business owners, including Kabbage Funding, Kabbage Insights and Kabbage Payments. If you make cash deposits, you're going to pay $4.95 for each one (ouch), and they don't integrate with third-party tools, like your accounting software. But the perks they offer kind of make up for that.

Website Link: https://merchantalternatives.com/go/kabbage/

 

LendingClub

Monthly Fee: $10 (but this is waived with a minimum balance of $5,000 or more)

Minimum Deposit Required: $100

Type of Bank: Online bank only

Best Features: 0.10% APY, cash back is available, and unlimited transactions with ATM fee rebates

Our Verdict: LendingClub is a great option if you're looking to open an online business checking account. You'll have access to digital invoicing and POS solutions if you need them, and their customer service is top-notch. You won't earn any interest unless your account balance is $5,000 a month or more.

Website Link: https://merchantalternatives.com/go/lendingclub/

 

Lili

Monthly Fee: $0

Minimum Deposit Required: $0

Type of Bank: Online only bank

Best Features: No minimum balance requirement, 32,000 fee-free ATMs, and a tax saving tool.

Our Verdict: If you're a freelancer, Lili is right up your alley. They're online only, so you won't be able to do any banking in person. We like that they have a feature called Emergency Bucket, which can help you set funds aside for emergencies. Also, they're mobile-friendly and they can integrate with some of the tools you probably use already.

Website Link: https://merchantalternatives.com/go/lili/

 

Mercury

Monthly Fee: $0

Minimum Deposit Required: $0

Type of Bank: Online only bank

Best Features: No minimum balances required, no overdraft fees, and an insightful mobile app.

Our Verdict: If you're a startup looking to open a business checking account, Mercury might be perfect for you. They keep their fees at a minimum, which is nice. Also, when you open your business bank account, you'll also get a small business savings account, debit cards and some great tools to help your business grow.

Website Link: https://merchantalternatives.com/go/mercury/

 

NBKC Bank

Monthly Fee: $0

Minimum Deposit Required: $0

Type of Bank: Mostly online, but some brick and mortar locations in Kansas and Missouri

Best Features: Unlimited transactions, no minimum balance requirement, no fees on incoming domestic wires, overdrafts or other incidental fees.

Our Verdict: We really like NBKC Bank. They have a lot of the features that small business owners are looking for, including hardly any fees. You can access more than 34,000 ATMs all over the U.S., and you can customize your account with their add-on services. We like that kind of more personal touch.

Website Link: https://merchantalternatives.com/go/nbkc-bank/

 

NorthOne

Monthly Fee: $10 (unable to be waived)

Minimum Deposit Required: $50

Type of Bank: Online only bank

Best Features: NorthOne Envelopes can be used to automatically budget money and expenses, mobile banking with check deposit capabilities, and unlimited transactions.

Our Verdict: If you want an online-only business checking account, NorthOne fits the bill. Their web banking is excellent and they offer free app integration with QuickBooks, PayPal, Venmo and other third-party tools. If you need to access cash, you can withdraw it for free at any MoneyPass ATM.

Website Link: https://merchantalternatives.com/go/northone/

 

Novo

Monthly Fee: $0

Minimum Deposit Required: $0 (but they're happier with at least $50)

Type of Bank: Online only bank

Best Features: A fantastic mobile app, easy integration with many business management tools, and all ATM fees are refunded.

Our Verdict: Novo Bank is a good choice for your business checking account, but they do have a few quirks. For example, to deposit cash, you have to get a money order first. They also charge a $27 fee for non-sufficient funds. But they're pretty much fee-free, which is often an important quality for small business owners.

Website Link: https://merchantalternatives.com/go/novo/

 

Oxygen

Monthly Fees: $0

Minimum Deposit Required: $0

Type of Bank: Online only bank

Best Features: No minimum balance requirements, unlimited transactions, and cash back is available when using the Oxygen business debit card.

Our Verdict: If you do most of your banking through a mobile app, Oxygen might be perfect for your business checking account. You will pay almost $5 for every cash deposit you make, but they have a way for you to form an LLC for your business right through their app. We think that's a cool feature all on its own.

Website Link: https://merchantalternatives.com/go/oxygen/

 

Relay

Monthly Fees: $0

Minimum Deposit Required: $0

Type of Bank: Online only

Best Features: No minimum balances, integrates with Xero and QuickBooks Online, business debit cards are available with the ability to set spending limits.

Our Verdict: If you want to open a business checking account that does a lot of the work for you, Relay is it. They also have a system that allows you to pay your bills automatically, which is great for busy business owners without a lot of time. If you have a team of people you want to have access to your business bank account, that can be set up too.

Website Link: https://merchantalternatives.com/go/relay/

 

TIAA Bank

Monthly Fees: $14.95 (waived with a minimum $5,000 monthly balance)

Minimum Deposit Required: $1,500

Type of Bank: Online and brick and mortar locations in Florida only

Best Features: Several different options available for business checking accounts, 0.10% APY, and

Our Verdict: Unless you live in Florida, you'll be doing your business banking online with TIAA Bank. We like that they offer fee-free ATM access with AllPoint or MoneyPass ATMs, and if you do a moderate amount of business, you can opt for their Business Checking account, which gives you 200 free transactions every month.

Website Link: https://merchantalternatives.com/go/tiaa-bank/

 

US Bank

Monthly Fees: $0

Minimum Deposit Required: $100

Type of Bank: Brick and mortar locations and online banking

Best Features: 3 business checking account options, easily open your account online, over the phone or at one of their branches, and some awesome merchant services are available, like POS systems and payment processing.

Our Verdict: US Bank is a nice bank for your small business checking account. But if you make a lot of cash deposits every month, you may want to keep shopping around. They do offer APY on U.S. Bank Gold Business Checking, but you get a minimal amount of transactions every month for free.

Website Link: https://merchantalternatives.com/go/us-bank/

 

Wells Fargo

Monthly Fees: $10 (but this can be waived with a minimum balance of $500 or more)

Minimum Deposit Required: $25

Type of Bank: Brick and mortar locations and online banking

Best Features: 3 options for your business bank account, online and mobile banking, 13,000 fee-free ATMs and 5,200 branches.

Our Verdict: Wells Fargo is a name everyone knows, which is why it's a popular option for people wanting to open a checking account for their businesses. We don't love their transaction limits, and they do charge monthly service fees that are hard for some business owners to waive. But their customer service is among the best in the business.

Website Link: https://merchantalternatives.com/go/wells-fargo/

Honorable Mention: The Best Credit Unions for Small Business Checking Accounts

As you get ready to open your business bank account, it's always a good idea to consider credit unions.

There are several we like:

  • Navy Federal Credit Union
  • Bethpage Federal Credit Union
  • Security Service Federal Credit Union
  • VyStar Credit Union
  • Digital Federal Credit Union

There are definitely some pros and cons to choosing a credit union for your small business accounts.

Pros:

  • Many offer free checking accounts for businesses.
  • Many have unlimited fee-free transactions.
  • Many don't make you pay a monthly service fee.
  • Many offer savings accounts for businesses too.
  • Many offer the same types of perks that banks do, such as mobile check deposit and generous limits on cash deposits.

Cons:

  • You may have to have a personal checking account with them first.
  • Their mobile and online banking capabilities may be limits.
  • They might not have business tools you can incorporate into your day-to-day operations.
  • They may have limits on monthly transactions.

Our Buyer's Guide for Small Business Owners

To wrap up, here's what you want to keep an eye out for when you're shopping for business checking accounts:

  • A monthly maintenance fee - No one likes them. And there are plenty of good accounts out there that don't require them.
  • Monthly transactions - What are the limits? What happens if you go over those limits? These are the questions you need to be asking.
  • Limits on cash deposits - Make sure you can afford any fees that you incur if you go over a certain amount in cash deposits per month.
  • Type of bank - There are all different types of banks out there - online only, brick and mortar banks, credit unions, etc. Choose the type that will work best for you and your banking habits.
  • Minimum opening deposit - If your business is just getting started, you may want to look for a bank that requires nothing for an opening deposit. They're out there.
  • ATM access - You'll need a small business debit card, so make sure that's included. Also, find out if there are fees, if they're reimbursed, and where you can use an ATM for free.
  • Interest - A little free money never hurt anybody, right? If APY is important to you, there are plenty of good banks that offer it.

Which Small Business Checking Account is Right for You?

We wish we could tell you, but that's something that you have to figure out on your own.

Keep our buyer's guide close at hand and look through our top picks. We're sure you'll find a bank that fits your needs perfectly.

Written by 

Merchant Alternatives