Novo Business
Go to site
on Novo's secure site
- $0 monthly fees
- $0 minimum balance
- ATM fees refunded
- Invoicing & budgeting
- FDIC insured
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Best business checking accounts for March 2023
The right business checking account can help you manage and grow your small business.
Relay
Go to site
on Relay Financial's secure site
- $0 fees and minimum balances
- Up to 20 individual checking accounts
- QuickBooks Online and Xero integrations
- FDIC insured
Found
Go to site
on Found's secure site
- No hidden fees
- $0 minimum balance
- Invoicing and expense tracking
- Simplified taxes
- Member FDIC
9 best business checking accounts
Quick view
- Best for accountants and bookkeepers: Novo Business
- Best for team access: Relay
- Best for one-person businesses: Found
- Best for checking and savings combo: Live Oak Bank Small Business Checking Account
- Best for freelancers: Lili
- Best for signup bonus: Chase Business Complete Checking
- Best for small businesses: Axos Bank Basic Business Checking
- Best for Square sellers: Square
- Best overall: Bluevine Business Checking
Best for accountants and bookkeepers
Novo Business
Finder Rating: 4 / 5 ★★★★★
Novo carries no monthly fees and has no minimum deposit requirement to open. What makes it really shine is the number of software integrations supported. You can connect Novo to Slack, Stripe, Zapier, Venmo and more. This makes Novo an ideal choice for accountants, but also for other small businesses like restaurants or hair stylists that want to keep their business finances and information all in one place.
| APY | N/A |
|---|---|
| Fee | $0 per month |
| Minimum deposit to open | $0 |
verified_user FDIC Insured
Best for team access
Relay
Finder Rating: 4.2 / 5 ★★★★★
Relay is a flexible business checking account with a baseline of no minimum opening deposit and no monthly, foreign transaction or ATM fees. But the real draw is that businesses can create up to 20 checking accounts and customize them as needed, whether as a way to categorize finances or assign accounts to specific teams for their own needs. This business account also lets you assign up to 50 debit cards to employees, while maintaining control over daily spending and ATM withdrawals.
| Fee | $0 per month |
|---|---|
| Minimum deposit to open | $0 |
verified_user FDIC Insured
Best for one-person businesses
Found
Finder Rating: 4 / 5 ★★★★★
Found only services businesses operated by one person like gig workers and freelancers. As a result, Found offers some great specialized features useful for these business owners, including the ability to create invoices, track expenses and income, create basic reports, and calculate and save taxes in Found's savings account. Business owners can choose to subscribe to Found Plus for $14.99 a month to earn additional perks, such as a 1.5% APY on balances up to $20,000 and custom expense categories
| APY | 1.50% |
|---|---|
| Fee | From $0 per month |
| Minimum deposit to open | $0 |
verified_user FDIC Insured
Best for checking and savings combo
Live Oak Bank Small Business Checking Account
Finder Rating: 4.7 / 5★★★★★
Live Oak Bank's Small Business Checking account carries no monthly fees, requires a $100 minimum deposit to open and supports QuickBooks integration. The business checking account is no frills, but it is an ideal choice if you want to keep your savings account and checking account in one place as the Live Oak savings account offers a solid 3.50% APY, much larger than the national average, which is currently at 0.33% APY.
| APY | 4.00% |
|---|---|
| Fee | $0 per month |
| Minimum deposit to open | $100 |
verified_user FDIC Insured
Best for freelancers
Lili
Finder Rating: 4.6 / 5 ★★★★★
Lili is a checking account with no monthly fee, no minimum opening deposit, and no overdraft fees. It earns a spot on our list thanks to its freelancer-friendly features. For example, Lili automatically sets aside a portion of your paycheck for taxes and emergencies, and unlike many digital banks, Lili still supports cash deposits at Green Dot locations. While there are other accounts on our list that also cater to freelancers, Lili wins as it's able to set aside a percentage of revenue for taxes without needing to upgrade to a paid plan.
| APY | 1.50% |
|---|---|
| Fee | From $0 per month |
| Minimum deposit to open | $0 |
verified_user FDIC Insured
Best for signup bonus
Chase Business Complete Checking
Finder Rating: 2.8 / 5 ★★★★★
The Chase Business Complete Banking account keeps things simple. It offers free same-day deposits, unlimited transactions, free same-day deposits and an integrated system that allows for banking and payment processing from the same account. It is also one of the few business checking accounts on the market to offer a signup bonus: new customers earn a $300 bonus when they meet certain balance and transaction requirements.
| Fee | $15 per month |
|---|---|
| Minimum deposit to open | $0 |
verified_user FDIC Insured
Best for cash deposits
Axos Bank Basic Business Checking
Finder Rating: 4.5 / 5★★★★★
Axos Bank's Basic Business Checking account is largely free: you will pay no monthly maintenance fee and there is no minimum opening deposit. Axos also offers unlimited domestic ATM fee reimbursements, while competitors tend to cap such reimbursements. This, along with hardy access to 91,000 ATMs, is why this Axos business account makes the cut as the best choice for cash deposits.
| APY | N/A |
|---|---|
| Fee | $0 per month |
| Minimum deposit to open | $0 |
verified_user FDIC Insured
Best for Square sellers
Square
Finder Rating: 4 / 5 ★★★★★
Square's popular point of sale software naturally works well with the optional Square checking account and debit card. Using the checking account eliminates the need for bank transfers for your business and there are no service fees, overdraft fees or ATM fees charged by overdrafts associated with the account or debit card. If you prefer using Square with your business and want a frictionless banking experience, Square checking is your best bet.
| Fee | $0 per month |
|---|---|
| Minimum deposit to open | $0 |
verified_user FDIC Insured
Best overall
Bluevine Business Checking
Finder Rating: 4.6 / 5 ★★★★★
With an attractive rate of up to 2% APY, no monthly fee or opening deposit requirement, unlimited transactions and more than 38,000 ATM locations nationwide, Bluevine lands as our best overall business checking account. Bluevine sports the highest interest rate available on a business checking account on balances up to $250,000, which is easily achieved by most small businesses.
| APY | 2.00% |
|---|---|
| Fee | $0 per month |
| Minimum deposit to open | $0 |
verified_user FDIC Insured
Compare business checking accounts
What is business banking?
Business banking refers to business-specific products and services offered by financial institutions, which are designed to help business owners better manage their money. It can encompass many different services, including checking and savings accounts, as well as business loans, lines of credit and merchant services.
Every business owner — regardless of the company’s size — needs a business bank account to keep their personal and professional finances separate. A business bank account can be used to pay bills, purchase new assets, set aside money for a rainy day and receive payments from customers. In addition, a business bank account can be used to track cash flow for legal and tax purposes.
3 types of business bank accounts
The most common types of business bank accounts include:
Business checking account
This allows businesses to deposit and withdraw cash through ATM cards, electronic debit cards and checks. Some business checking accounts may require a minimum deposit and others will require proof of business and identification. Banks have many different types of checking accounts, some with transaction limits and some without.
Business savings account
A savings account is an option if you want your money to accrue interest. It provides the business with a place to store liquid assets in order to save up for a big purchase or set aside money to get through slow times. A business savings account may require a minimum deposit amount, though it depends on the bank.
Business certificate of deposit
A certificate of deposit (CD) allows you to put aside money for a fixed amount of time with a fixed amount of interest. It provides a guaranteed return on your investment and can be useful for long-term savings, but there’s usually a penalty fee if you need to withdraw money early.
In addition to business bank accounts, business credit cards give entrepreneurs an easy way to pay for expenses. Many cards offer cashback rewards or points you can trade for travel. Compare today’s business credit cards to find out which one is be best for you.
5 common features of business bank accounts
Most business bank accounts have these features to help you manage your cash flow:
- Software integrations. Most business bank accounts offer integrations for accounting, payroll and taxes. For example, Bluevine syncs with popular business tools like QuickBooks Online, Wave, Freshbooks, Stripe, and PayPal.
- Online account management. In today’s digital age, it’s expected to be able to manage your account from your computer or smartphone, instantly freeze and unfreeze your debit card from your account and pay bills online.
- Payment processing services. Whether it’s included or offered for an additional charge, most business bank accounts offer merchant services to help you accept and process payments.
- Fraud protection. 24/7 fraud protection and account monitoring helps you spot any suspicious account activity so you can report them to your bank before you’re held liable.
- Accessible lines of credit. At some point, you may want to take out a line of credit to help grow your business. When that time comes, your bank may be more willing to lend to you as you already have an established business bank account with them.
How to compare business bank accounts
There are hundreds if not thousands of different business accounts out there. When choosing an account, factor in:
- Fees. Is the account a free business checking account or does it have monthly fees? If so, can they be waived by meeting achievable requirements? Also, look into ATM, transaction and overdraft fees.
- Interest. Choose an account that has a competitive interest rate.
- Features. Common features online banking, integrations with accounting software, overnight deposit boxes and lines of credit to maintain cash flow.
- Supported transactions. Some accounts don’t support cash deposits, while others put a limit on how much you can deposit each month. Choose an account that aligns with your cash flow.
- Accessibility. Check if you can access your account online or through a mobile app and if there are branches near you. If there’s no in-person support, is customer service available at convenient hours? Also consider if you’re able to easily transfer money between your checking and savings accounts.
- Introductory offers. If a bank gives an enticing bonus or introductory APY for signing up, check the fine print to see what happens once it expires. The account may not be worth the offer if it has high fees or low APYs.
- FDIC insured. Is your money safe with the bank? As a rule of thumb, never deposit your funds in an account that isn’t back by the Federal Deposit Insurance Corporation, which protects balances up to $250,000.
Pros and cons of a business bank account
Business bank accounts have quite a few benefits, but there are also some drawbacks to be aware of.
Pros
- Creates a central place for funds. A business bank account can keep all of your funds in one central place so they’re easy to track and manage.
- Separates your personal and business funds. Separating your business and personal expenses helps keep you from getting into trouble for making the wrong deductions come tax time and can help protect you from facing personal liability if your business gets into trouble.
- Looks professional. A business bank account can help establish the business’ credibility with customers and creditors.
- Helps with accountability. Regular statements from your business accounts help keep you accountable for your finances and are useful at tax time. You can also easily report earnings to your board or shareholders.
Cons
- Fees. Banks can charge monthly fees, plus fees for not maintaining a minimum balance and for exceeding a certain number of transactions.
- May not be able to open online. Although more and more banks are starting to support online applications, many business accounts still need to be opened in-person at a local branch.
Is it safe to open a business bank account?
Yes, most business bank accounts are perfectly safe. But before you move your company’s money to a new financial institution, check that they have these three factors:
- FDIC insured. If the bank or credit union is backed by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), your funds are safe if the bank fails.
- Clear terms and conditions. Are the bank’s terms and conditions up-to-date and easy to understand? Read all the fine print and ask questions about anything that seems suspicious or unclear.
- Secure website. Check that the bank’s website is encrypted and if it requires two-factor authentication to log in to your account. If you don’t see an “https” at the beginning of its website address and you can log in with a simple username and password, you might want to think twice before making a significant deposit.
Can I use a personal bank account for business banking purposes?
Depending on your business structure, you may be required to open a business bank account. But even if it’s not a requirement, it’s considered best practice to do it anyway. Here are three reasons why:
- Saves you time during tax season. Keeping your work and personal finances separate ensures you don’t spend countless hours sorting through transactions come tax time and makes it easier to spot what tax deductions and credits you qualify for.
- Protects your liability. If you keep your money in a personal account, the courts could come after your personal assets during a lawsuit — even if you’re established as an LLC or corporation. That’s why it’s recommended to open a business account as soon as possible, even if you’re not legally required to have one.
- Gives you a clearer picture of your performance. If you use a personal account, it’s difficult to separate your income from your spouse’s income, your personal bills from your business bills and so on. But with a business account, you automatically know if your company is on the right track financially.
How to apply for a business bank account
Applying for a business account is a lot like applying for a personal account, but there are a few extra steps you need to take:
- Choose a bank. Research financial institutions and choose one that supports your business entity and transaction types and has the features you’re looking for.
- Apply for your account. Once you gather all the required information, apply for your business bank account online, by phone or in-person at a local branch. If you’re opening up an account with a business partner, make sure they’re present when you open the business bank account. The bank will need their information too.
- Start using it. Once your account is approved, activate any debit or ATM cards and get ready to start accepting payments from clients and customers.
Four things to do before opening a business bank account
If you’re planning on opening a new business account:
- Determine if your business needs a savings account and its savings goals.
- Determine if the business needs another income stream or more financial stability.
- Decide how the business account will be accessed and by whom. If there’s more than one account owner, it’s recommended that legal advice is given to make the rules and purposes of the account is clear.
- Consider whether or not you want to link your business’ savings and checking accounts.
Can you get denied a business bank account?
Yes. A bank can refuse to open a business bank account for numerous reasons. Financial institutions evaluate your business, your credit profile and your previous banking history depending on the financial product you’re applying for. Banks and credit unions generally look to make sure that your business is in good standing and you have all your paperwork in order. You might also be denied a business bank account if your company is considered high-risk, such as operating in the gambling or cannabis industry.
When opening an account, banks will also consider your ChexSystems Report, which is a record of previous banking history. Your report includes any previous problems you may have had with checking and savings accounts, including unpaid negative balances, bounced checks and overdrafts and involuntary account closures.
They may also take a peek at your personal credit score, especially if your business is a single-member LLC and you’re opening up a business credit card, loan, etc. Having poor credit or red flags like outstanding collections may cause banks to categorize you as a risky customer and refuse to do business with you.
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