Best Banks for Small Business - 2023 Picks
Are you looking for the best bank for your small business? Look no further. We’ve compiled a list of the top banks in the US, analyzed their offer, and reviewed their services. The focus will primarily be on business checking accounts, but we’ll also briefly mention the rest of their offer. Finally, we’ll talk a little about the factors you should consider when choosing a business bank. Let’s get started, shall we?
- Five different business checking accounts
- 100% insured deposits
- Excellent account security features
Axos BankLearn More
- $0 monthly and balance fees on a Basic Business Checking account
- Unlimited ATM fee refunds and cash deposits
- Welcome bonus for new business checking accounts
- Best-in-class APY offer on the checking account
- Unlimited monthly transactions
- Two-factor authentication for all accounts
- No monthly, transaction, ACH transfer, or incoming wire fees
- Refundable ATM charges
- Excellent business app integrations and well-designed mobile app
Chase for BusinessLearn More
Chase for Business
- $300 for opening a new Chase Business Complete Checking℠ account with qualifying activities
- Excellent selection of business cards
- Waivable monthly checking fee
Wells FargoLearn More
- $25 to open any of the checking accounts
- Nearly 5,000 branches and more than 12,000 ATMs across the US
- Excellent online and mobile banking services
Capital OneLearn More
- Free debit cards and online bill payment
- Unlimited digital transactions
- Access to over 70,000 ATMs across the US
How To Choose a Good Bank for Your Small Business
There are many factors to consider when looking for banks to open a business account at. Larger ones typically have several checking accounts and offer a variety of business credit cards, so their offer may initially seem a bit overwhelming. And that’s without getting into savings accounts, various business loans, or merchant services such as cash advances.
To simplify things, we’ve made a checklist of factors you should look into when picking a bank for your small business. You should consider all of these before making a decision.
Annual Percentage Yield
As per Investopedia’s definition, the annual percentage yield (APY) refers to the rate of return earned on deposited funds while factoring in compounded interest. While this feature is rare on checking accounts, you’ll often find it on business savings accounts. It’s worth considering if you are looking to earn some money on your business account but expect to see much better deals on dedicated savings accounts.
Opening and Ongoing Costs
There are plenty of costs associated with opening and maintaining a bank account. Some common charges on business checking accounts include overdraft fees, monthly maintenance fees, minimum balance fees, and transaction fees.
Many banks also charge stop payments, wire transfers, and returned checks, though there are often ways to avoid these fees. Finally, you’ll often be required to have an opening deposit and keep a certain balance at the end of each month to avoid paying penalties.
That said, you don’t always have to pay for a business checking account. Understanding the fees associated with your chosen banking services allows you to keep more of that hard-earned money in your pocket.
Bank Type and Branch/ATM Availability
When opening a bank account for a small business, you may want to think about what type of bank will work best for you. Online banks typically have faster transactions but generally don’t support cash deposits.
This ties into the number of branches and ATMs across the country. If your business mainly operates online, chances are you won’t need to visit your bank often, but it’s still handy to know that’s an option.
The same goes for ATMs: larger brick-and-mortar bank chains have thousands of them you can use fee-free across all major cities, while online banks might partner up with traditional operators or give cash back on ATM fees under certain conditions.
Fund and Account Security
Here’s another essential factor to consider in small business banking: how secure is your account from hacking, and how protected are your funds?
Modern banks typically use advanced encryption techniques and multi-factor authentication, with internet-only banks typically having more sophisticated online security measures. As for fund insurance, the FDIC covers deposits up to $250,000, but some banks offer fund insurance beyond that.
Think about the amount you want to insure and the type of transactions your company will mainly conduct to choose the best option for your business.
Customer Service and Reputation
When picking a bank for your business, it’s essential to know that you’re dealing with a reputable company that offers high-quality customer support. Whether it’s a proven bank with centuries of experience like Chase or an online-only fintech company such as Novo, you’ll want to hear what people say about their offer.
Check out the BBB website and Trustpilot to get an idea about the bank’s reputation.
More importantly, you’ll want to be clear on the methods for contacting your financial institution of choice in case of an emergency or if you need to clear something up about accounts or services. 24/7 customer support is ideal, as is having live agents to talk to, whether through a toll-free phone line or live chat on the website.
Failing everything else, the bank should at least have a dedicated email response team so that you don’t have to wait for more than a few hours on a reply.
Additional Features and Services
Small company owners will primarily be interested in a business interest checking or business savings account.
You may also want to check out the bank’s loans, mortgages, or business credit cards. Many small business banks incentivize their users to use several banking services at once, so it’s worth checking out the benefits of doing so.
You should also look into the quality-of-life features of your chosen bank. Does it offer mobile and online banking? Are there special rewards for signing up or linking several bank accounts? While not a priority, these bonus perks can often tip the scales when choosing between banks with similar offers.
7 Best Banks for Small Business in 2023:
BankProv - Best for unlimited deposit insurance
Axos Bank - Best for fee-free money deposits
BlueVine - Best for checking account APY
Novo - Best for fee-free banking
Chase for Business - Best for an account-opening bonus
Wells Fargo - Best for in-person banking
Capital One - Best for ATM access
What kind of bank account should I open for a small business?
Depending on your needs, small business bank accounts come in many shapes and forms. Our article focuses primarily on business checking accounts, as those are the most commonly used and valuable account types to set up for a business.
That said, you can also look into merchant accounts if your company does a lot of B2B operations or savings/investment accounts if you’re looking for better APY or a chance to re-invest your company’s earnings.
Which bank has the best offer for a business account?
This will largely depend on what you consider the best offer to be. Some banks focus on low entry requirements and easy-to-meet monthly balances, while others may offer special rewards or larger monthly transaction and deposit caps.
Check out our guide above and think about what your priorities are when picking a bank account. For example, consider Chase or Wells Fargo if you want access to numerous branches and ATMs. If you’re more interested in online-only dealings with your account provider, perhaps Novo or BankProv would be a better option.
Can you open a business account without an LLC?
Absolutely. Business banking can be tricky, but you should know that you’re under no obligation to have an LLC to open a business account. That said, you will need to have some sort of formally registered business entity; otherwise, you won’t be able to open a traditional business account.
Is Chase good for a small business?
Absolutely. Chase is one of America’s oldest and most respected banks and offers plenty of excellent banking and merchant services, credit cards, and checking/savings accounts. Check out our review to better understand what the bank offers to US small business owners.
What bank do most small businesses use?
This is a tricky question to answer, as there are numerous business owners with very different demands and dozens of banks focus on meeting those specific needs. The best bank for your small business might be one that offers crypto trades, while someone else may look for banks that provide unlimited monthly transactions or large deposit limits.
Our article covers some of the best options in the business. Whether you’re looking for an industry veteran like WellsFargo, or a crypto-friendly modern institution like BankProv, any of our picks are an excellent choice.