8 of the best banks for small businesses
Picking the right bank for your small business can make a big difference in your day-to-day operations. Discover top options offering low fees, high interest rates, and valuable tools to support your business growth.
Updated November 19, 2024, 4:17 PM EST
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Gabriela Walsh is a Certified Educator in Personal Finance® and a personal finance editor at Red Ventures. Her previous work experience includes various editorial positions at FinanceBuzz. She combines her understanding of language and literature with her commitment to delivering content that empowers others to build healthy money management skills.
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As a small business owner, you know that every financial decision matters. The bank you choose isn't just about where you store your money — it's about how your money can work for you. The right bank can offer perks like higher interest rates, lower fees, and tools that help your business grow.
In this guide, we'll explore the best banks for small businesses, breaking down their features, benefits, and potential drawbacks.
Best banks for small businesses
- Best for complete banking options: Chase Bank
- Best for money transfers: Capital One
- Best for money growth and earning interest: Bluevine
- Best for modern banking and no fees: Axos Bank
- Best for cash back: LendingClub Bank
- Best for local access: Wells Fargo
- Best for global business: Citibank
- Best for small business tools: Bank of America
Chase Bank: Best for complete banking options
Who it's best for
Small businesses that want a full-service banking experience with digital and in-person options.
Chase Bank, part of JP Morgan Chase, offers a robust suite of services for small businesses. With over 15,000 ATMs and 4,700 branches nationwide, Chase provides extensive accessibility for businesses that value both online and in-person banking.
Chase Business Complete Checking comes with a $15 monthly fee, but it can be waived by maintaining a $2,000 minimum daily balance. It also offers a welcome bonus for new account holders if you meet the requirements, giving your business a nice boost from the start.
Chase offers a comprehensive range of financial products and services, from business loans to credit cards. The account also features same-day deposits on credit and debit card transactions with Chase Quick Accept, which can be crucial for businesses that need quick access to their funds.
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Capital One: Best for money transfers
Who it's best for
Businesses that frequently use wire transfers and digital transactions and can maintain a high account balance.
Capital One's Enhanced Business Checking is designed for businesses that frequently deal with digital transactions and wire transfers. It offers free incoming domestic wire transfers and up to five free outgoing transfers each month.
The account comes with a $35 monthly fee, which is on the higher side, but it can be waived with a $25,000 minimum monthly balance. While this balance requirement might be steep for some small businesses, it could be worthwhile for those who frequently use wire transfers and digital transactions.
Capital One also offers some of the best credit cards for small businesses, making it a good choice for companies looking to maximize their rewards.
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Bluevine: Best for money growth and earning interest
Who it's best for
Tech-savvy businesses comfortable with online-only banking and looking to earn interest on their checking balance.
Bluevine's Business Checking account stands out in the fintech space by offering a high interest rate on your balance — 2.00% APY on balances up to $250,000.
The account comes with no monthly fees or minimum balance requirements, making it accessible to businesses of all sizes. Bluevine also offers unlimited transactions and free standard ACH transfers, which can be a significant cost-saver for many companies.
While Bluevine doesn't have physical locations, its modern, easy-to-use online platform and mobile app provide all the essential banking features most small businesses need. The bank also advertises loan products and credit cards for businesses needing additional capital.
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Axos Bank: Best for modern banking and no fees
Who it's best for
Small businesses looking for a fee-free checking account and comfortable with online-only banking.
Axos Bank's Basic Business Checking account is a standout option for businesses looking to minimize banking fees. This online-only bank offers a truly fee-free experience, with no monthly maintenance fees, no minimum balance requirements, and unlimited domestic ATM fee reimbursements.
The account doesn't earn interest, but the money saved on fees could more than make up for it. Axos also offers free incoming domestic wire transfers and unlimited transactions, which can result in significant savings for many businesses.
While Axos doesn't have physical branches, it compensates with 24/7 phone support, a virtual assistant chatbot, and a user-friendly mobile app.
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LendingClub: Best for cash back
Who it's best for
Businesses that frequently use debit cards and want to earn interest and cash back on their checking account.
LendingClub's Tailored Checking account offers unique features that could be very attractive for certain businesses. The account earns interest (1.50% APY on balances up to $100,000) and offers unlimited 1% cash back on qualifying debit card purchases.
The account comes with a $10 monthly fee, but it's easily waived by maintaining a $500 monthly minimum balance. LendingClub also offers unlimited ATM fee rebates, which can be a significant saving for businesses that frequently need cash.
While LendingClub doesn't have physical branches, its mobile app allows easy check deposits and account management. The account also integrates with popular accounting software, making keeping your books in order easier.
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Wells Fargo: Best for local access
Who it's best for
Businesses that prefer in-person banking and need access to a wide range of financial services.
Wells Fargo's Initiate Business Checking account is ideal for businesses that value in-person banking and local support. With 11,000 ATMs nationwide and 5,200 branches across 36 states, you're never far from face-to-face assistance or access to your cash.
The account comes with a $10 monthly fee, which can be waived by maintaining a $500 daily balance or a $1,000 average ledger balance. While there are some fees to be aware of, such as transaction fees after the first 100 per month, they're generally lower than other major banks.
As a large financial institution, Wells Fargo offers a comprehensive suite of products and services, including merchant services, making it a one-stop shop for many business banking needs.
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Citibank: Best for global businesses
Who it's best for
Businesses with international operations or those planning to expand globally.
Citibank stands out for its global reach, making it an excellent choice for businesses with international operations. Citibank's financial services network in 180 countries offers unparalleled access to global markets.
The CitiBusiness® Streamlined Checking account has a $15 monthly fee, which can be waived with an average collected balance of $5,000 or more. While this might be steep for some small businesses, its global accessibility could make it worthwhile for companies doing business internationally.
Citibank’s vast network includes over 65,000 fee-free ATMs in the United States and 20 countries. The bank also offers a comprehensive suite of financial products, including loans and credit cards, to support your business growth.
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Bank of America: Best for small business tools
Who it's best for
Tech-savvy businesses that want advanced digital tools to manage their finances and value a mix of online and in-person banking services.
Bank of America's Business Advantage Fundamentals Banking account stands out for its robust digital tool suite to help small businesses manage their finances more effectively. The account offers access to cash flow monitoring tools, business credit score tracking, and digital debit cards.
The account has a $16 monthly fee, which can be waived by maintaining a $5,000 monthly balance or making $250 in qualified debit card purchases. You'll also get 200 free monthly transactions, which is generous compared to some competitors.
Bank of America also offers easy integration with various small business management software and provides access to a vast network of ATMs and financial centers for in-person banking needs.
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How to choose the best bank
When choosing a bank for your small business, consider these factors:
- APY: The higher the APY, the more your money grows.
- Fees: Evaluate all potential fees to ensure they don't eat into your profits.
- Minimum balance: Some banks charge if you fall below a certain balance.
- Integration with software: Keeping your accounting and payroll up-to-date is essential to building a small business. You'll want to ensure the small business bank you choose can easily integrate with your software.
- Business lending products available: Consider the available lending products a bank can offer your small business. Evaluate how easy the loan process would be and how many loans the bank offers its small business clients.
- Level of service offered: Evaluate the level of service you want when choosing a small business bank. Consider banks where you can speak with a representative or banker on the phone, meet with them at a branch, or have emergency options available.
- ATM and branch locations: Consider your cash withdrawals and in-person banking needs.
- Merchant services and payment processing options: A small business charges customers for its products and services through a payment processor. Look for competitive options compared to services like Stripe and PayPal.
Joe Lawrence, the founder of Business Credit Workshop, advises: “The biggest thing small businesses should consider is accessibility and flexibility. Accessibility could be if it's a regional bank or has branches nearby. Do they pick up the phone when they call? Can you reach customer service? Is the app easy to use? It is a simple process to do basic day-to-day things like depositing cash and paying vendors using services like Zelle?"
Lawrence adds, "Flexibility is why I lean towards regional banks and more credit unions and community banks. If you're an entrepreneur, you'll have some urgent matters you need a banker to help you with or take that phone call five minutes after they close. Or maybe you need to make a quick cash deposit cause you just had money come in. You’ll want flexibility where the bank is not so by the book, but they're more open to the small business owner's need — that’s number one for me.”
Alternatives to traditional business bank accounts
There are alternatives to traditional checking or savings accounts to consider.
- Online business checking accounts: In today's digital age, you don't need to visit a physical bank to manage your business finances. Online-only business checking accounts offer a convenient, often lower-cost alternative to traditional banks. However, remember that you'll sacrifice face-to-face interaction with a banker.
- Credit unions: There's something to be said about knowing your banker — that's the community aspect a credit union can bring small businesses. Credit unions typically offer lower fees and better interest rates than traditional banks, but they often have fewer branches and ATMs. Many are involved in their local communities, which can be a plus if you want to network or support local initiatives.
- Business brokerage account: Financial investment firms such as Charles Schwab, Fidelity, Vanguard, Etrade, and other brokerages offer small businesses the option to put their money into CDs, money market, retirement, and investment accounts. You might earn higher returns than you would with a traditional savings account, especially in a low-interest-rate environment.
- Fintech companies: Companies like Novo and Brex offer business checking accounts with a tech-forward twist. These accounts often come with powerful financial management tools built right in. You might get features like automatic expense categorization, cash flow forecasting, or integrations. You won’t have access to physical branches, but it could be a great fit if you’re looking for an innovative digital approach.
While these alternatives offer unique benefits, every business has different needs. Sometimes, the right choice combines elements from traditional banks and newer options.
Marshall Terrin, a small business owner of four businesses, says, "The biggest thing that makes me stay or leave a bank is the lack of a personalized support system. I recently moved to a bank with a dedicated business banker, a real person, and I have their cell phone number. I also want a bank with a robust online banking system. I look for how easy it is to set up payees, send wires, and process transactions with merchant services.”
Whether you choose a traditional or alternative bank, ensure it aligns with your business needs and preferences.
How we chose the best banks for small businesses
To determine the best banks for small businesses, we carefully evaluated various factors, including account types, interest rates, associated fees, minimum deposit and balance requirements, transaction limits, and the bank's financial products.
We analyzed numerous bank offers and selected the top contenders based on these key criteria. Here are some of the factors we considered:
- Monthly maintenance fees
- Minimum balance requirements
- Number of free transactions allowed per month
- Interest rates
- Integration with software
- Merchant services and payment processing availability
- Digital tools available
- Business lending products, such as lines of credit and loan types
- ATM access and brach availability
The bottom line
Choosing the right bank for your small business is a crucial decision that can significantly impact your business. Consider your specific needs, evaluate the features and factors that matter most to your business, and don't be afraid to shop around.
Remember, the best bank for your small business is the one that supports your growth, offers the services you need, and doesn't nickel-and-dime you with fees. Take your time, research, and choose wisely — your future self (and your business) will thank you.
As always, it's a good idea to consult a licensed financial professional before making significant financial decisions for your business. They can provide personalized advice based on your specific situation and goals.
Editorial disclosure: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.