Are you looking for a business bank account but unsure which is the best bank for small business owners? We’ve got you covered!

We’ll analyze over two dozen banks and whether we agree or disagree with their reviews. Between a literature review and our own experiences, we’ll help you understand which business bank accounts are the best and why we like them.

We’ll also provide you with loan data for you to study in greater detail and explain more about what you can do with the right business checking account. You can either keep reading or click on any of the links below to jump to the section that interests you:

How We Choose the Best Business Bank Accounts

Business bank accounts are necessary for you to keep your business funds separate from your personal bank accounts. We reviewed competitors’ blogs to see which bank they recommend for small business banking. Then we reviewed the U.S. Small Business Administration (SBA) lender reports to establish which is the best bank for small business loans.

We then reviewed the list of banks based on the following criteria for a business checking account:

• Monthly maintenance fees
• Services
• Customer support
• Financing options
• Interest rates

Note: When I have personal experience with a business bank account or have spent a long time researching the company, I may add or subtract bonus points for positive or negative experiences.

Monthly Maintenance Fees

Most banks will have monthly maintenance fees or transaction fees for a small business checking account. The monthly fee may be waived under certain conditions such as maintaining a minimum balance or staying under a maximum number of transactions per month. Until your business meets those conditions, the monthly fees cost you money and eat into your profits.

When you first start a business, the transaction fees can easily add up. For instance, a $10 monthly fee is equal to 1% of your earnings if you only make $1,000 monthly. Some of the higher monthly fees exceed $100 per month.

Services

Business banking services involve more than just holding your money and paying bills. A business banking service might also offer:

• Payroll services: Payroll includes the software and hardware necessary to pay your employees and keep track of payroll taxes.
• Merchant services: These banking services help you accept payments, track inventory, and work with suppliers.
• Intrafi network: Some banking services help businesses protect their assets beyond the standard $250K Federal Deposit Insurance Corporation coverage per bank.
• Financing: Many businesses will need loans at some point. Banks that offer more loans in terms of both quantity and dollar amount are better for building a long-term relationship. They should offer Small Business Administration loans and equipment financing.
• Mobile check deposit: This has become fairly standard, but if you accept checks, you’ll want to make sure your bank offers this feature.
• Transaction limits: Many business checking accounts will have free transactions, but there may be a limit to the number of business transactions before they charge a fee.
• Free cash deposits: Companies like restaurants and retailers still accept cash and will need to make daily cash deposits. Make sure your bank doesn’t have fees for account holders if you deposit cash.
• Business credit cards: At some point, you’ll probably want a business credit card in addition to a business debit card. Check to see what business card options are available.

Customer Support

You’ll want a bank that offers personalized customer service. Every business is different, and your financial institution should focus on helping you achieve your individual business goals.

Given that you may pay monthly service fees for quite a while, make sure that your bank is a trusted partner. It’s not enough to just hold your money and collect the monthly service fees.

Think about the hours the branches are open, the time it takes to work with them, and the way phone support works. These considerations will all impact your business. The banks should earn your monthly service fee.

Financing Options

Most businesses will need financing at some point in their life cycle. You’ll want to consider the likelihood of getting approved when you choose a business checking account.

The more business banking you do with the bank, the more they will consider you a client. Maintaining the following accounts and services will usually improve your relationship:

• Small business checking account
• Savings account
• Money market account
• Business credit card
• Payroll services
• Merchant services

Look at the different services they offer when opening a business bank account to see whether you need any of their other small business banking services.

Interest Rates

When you’re looking at business accounts, you’ll want to earn money on the funds you leave sitting in there. Business checking accounts typically don’t pay much, but even 0.25% is more than 0%. When you’re talking about $1 million, that’s a difference of $2,500 per year.

Some of the top business saving accounts and money market accounts pay up to 5.48%. That’s an extra $54,800 on $1 million. A money market account can definitely come in handy if you aren’t already using one.

Next, let’s look at the different types of accounts available to small business owners.

Types of Business Bank Accounts

There are four main types of bank accounts for small business owners who are looking to open an account with a bank or credit union:

1. Business checking account
2. Business savings account
3. Money market account
4. Business interest checking

Let’s look at each of these and how you might use them for small business banking.

Business Checking Accounts

Most small businesses use small business checking accounts for their daily transactions. These typically include checks and debit cards while allowing for a high number of transactions.

A small business checking account has its benefits, but it typically earns little to no interest. If you regularly have thousands of dollars sitting in the bank, you could be earning higher returns.

Business Savings Accounts

A small business savings account typically has higher interest rates than a checking account, but it also has limitations on the number of monthly transactions. You might have a savings account for payroll taxes or paying net-30 vendors.

Some banks offer a free small business savings account with a business checking account, while others charge extra to have a savings account.

Money Market Accounts

Money market accounts typically offer the highest interest rates and may have features from both business checking accounts and savings accounts. You’ll need to review the terms for each.

Business Interest Checking

Business checking accounts don’t normally have interest rates, but some banks offer a business interest checking account. Those banks fall into two categories:

• Actual interest: Banks in this category offer a meaningful business interest checking account with interest that falls between 1% and 4%.
• SEO accounts: These checking accounts offer 0.25% or less. These banks are just trying to meet an SEO search term and should be ashamed of themselves.

Best Bank for Small Business

Live Oak Bank

Live Oak Bank is the best small business bank account primarily because it lends more than any other bank. Plus, it has the second-highest average loan amount among banks with more than 100 loans.

Live Oak Bank also offers a 4% savings account and free checking if you meet the $1,000 minimum balance.

Best Large Bank for Small Business

This category is reserved for the biggest banks with a major footing in today’s economy. We’ll review top institutions such as U.S. Bank, American Express, Bank of America, Chase, Capital One, and Wells Fargo.

#1. U.S. Bank

U.S. Bank offers a checking account with a $0 maintenance fee if you make under 125 monthly transactions. Last year, they offered 2,264 business loans, making them the fourth most frequent lender. However, their loan amounts were smaller with an average of $179.7K per loan.

I didn’t particularly like them when I banked with them, but that doesn’t mean they aren’t good compared to the other big banks.

#2. American Express

American Express is more of an online bank, but given its size, I’m including it in the large bank category. They’re best known for their credit cards, but they also offer a business checking account with a 1.3% interest rate, which is extremely high for a checking account. Meanwhile, their savings accounts and CDs have competitive interest rates that reach up to 4.5%.

They also offer business lines of credit up to $250K. It doesn’t appear that they offer SBA loans. Still, assuming the business lines of credit are competitive, I would consider this ideal for most small businesses because they’re revolving credit lines instead of fixed-term loans.

#3. Bank Of America

I know many people don’t like Bank of America, but I believe they have a competitive advantage over other banks. They’ve had fewer problems with their bank accounts than Wells Fargo. Plus, they’re ranked as number six among SBA lenders when measured by total lending.

I view Bank of America as the best judge of creditworthiness, which means that having business bank accounts with them can be highly beneficial. They also have the best data because of all their purchases during the 2008–2009 financial crisis.

Bank of America has several accounts that can be free, but many new businesses may have difficulty meeting their requirements. They offer two Business Advantage checking accounts: Business Advantage Fundamentals Banking and Business Advantage Relationship Banking.

Business Advantage Fundamentals Banking is best as long as you have less than 200 monthly teller transactions or checks and at least $250 in debit card purchases. However, there are additional fees for more checking accounts or savings accounts.

Business Advantage Relationship Banking is better for most people who need a savings account, multiple checking accounts, or more than 200 teller transactions or checks.

#4. Chase

The Chase Business Complete Checking account costs $15 monthly, but there are five ways to make it free, most of which only require $2K of activity. Chase business checking customers get savings rates that are an abysmal 0.01% to 0.02%. CDs can be as high as 4.16% for two-month and nine-month CDs with automatic renewal.

They provided 1,545 small business loans last year at an average of $216.2K per loan, making them the eighth-best lender on the list.

#5. Capital One

Capital One is most known for its credit cards, but it provided 75 business loans last year with an average value of $908.5K. You’ll pay $15 monthly, but the fee is waived if you hold more than $2K in your account.

Capital One also offers savings accounts with an introductory 4.1% interest rate, which is comparable to many online banks.

#6. Wells Fargo

I’m hesitant to include Wells Fargo on this list. I was a long-term Wells Fargo customer before they started having fraud problems. I loved banking with them, but after their fraudulent account problems drained my account multiple times, I had to go elsewhere.

Wells Fargo processes more small business loans than Bank of America or Chase. They also have banks in most locations, so if you’re willing to accept the risks, it’s a beneficial banking relationship.

Best Regional and Local Banks for Small Businesses

Honestly, banks in this group are the real stars of the show. Combined with Live Oak Bank, they originate 29.2% of all SBA loans and 17.2% of all dollars loaned to small businesses. That’s 10 out of 1,510 banks providing a substantial amount of all loans to small business owners.

These are the banks that business owners need to build relationships with for long-term success.

#7. Huntington

Huntington Bank is the best business bank account for anyone who thinks they’ll ever pursue an SBA loan. If you open a business, you should start a banking relationship with them, even if it’s just for a personal bank account.

They provide nearly two times as many SBA loans as any other bank on this list. Plus, the average loan is over $187K. That’s enough to help most people start or grow a business.

I banked with them when I lived in Michigan, but I closed my account before moving to Texas because mobile banking wasn’t what it is now. Unfortunately, they only have locations in Colorado, Illinois, Indiana, Kentucky, Michigan, Minnesota, Ohio, Pennsylvania, West Virginia, and Wisconsin.

I will rank them number one if they ever become a national bank. Did I mention they have a business checking account with no minimum balance requirements and no monthly service fee as long as you stay under 100 transactions monthly?

#8. TD Bank

TD Bank offers business owners in-person and online banking services. This includes checking accounts, credit cards, loans, lines of credit, merchant solutions, and more.

They originate more small business loans than any business bank except for Huntington. Their average loan is just over $127K, which is the lowest amount included in this list (excluding lenders with no SBA loan data). That makes them fourth overall for lending behind Live Oak, Huntington, and Bay First.

Their business checking account isn’t remarkable, but it will do the job. The primary reason for this ranking is that long-term relationships matter, and having a business checking account with a top SBA originator will be useful when you need funding.

#9. BayFirst

BayFirst is the best bank account for small business owners in Florida. This bank has 12 locations in the Tampa area.

They offer five different checking accounts for businesses with different needs, including a free one. In addition, they have savings options, merchant services, business lending, and treasury services. They’re also the third-largest originator of SBA loans.

#10. Truist

Truist is a local bank and insurance company operating primarily in the southeastern United States. They offer business checking accounts, savings accounts, lending, insurance, and employee benefits.

In addition to no-fee checking accounts, they boast the second-highest loan average at nearly $1.4 million. However, they only offered 108 loans last year.

If you live near a Truist branch, you might want to consider using them for your business banking.

#11. KeyBank National Association

KeyBank offers three levels of business bank accounts. All have a monthly fee of $5 to $25, which can be waived if you meet certain conditions. You might consider this business banking relationship if you are located in:

• Alaska
• Colorado
• Connecticut
• Florida
• Idaho
• Indiana
• Maine
• Massachusetts
• Michigan
• New York
• Ohio
• Oregon
• Pennsylvania
• Utah
• Vermont
• Washington

KeyBank provided 918 SBA loans with an average amount of slightly over $250K.

#12. PNC Bank

PNC Bank has branches in 29 states. They offer three business checking accounts with fees ranging from $12 to $50 monthly. Each account will waive the fees with a minimum deposit amount or other qualifications.

In addition to bank accounts, PNC also does savings accounts, merchant services, payroll and employee benefits, and SBA loans. This business banking company offered 669 SBA loans with an average of $246.3K, making it one of the top 10 lenders.

#13. Regions Bank

Regions Bank offers three checking business checking account options: Advantage Business Checking, Business Interest Checking, and LifeGreen Business Checking. The fees range from $12 monthly to $25 monthly, but there are ways to eliminate them.

I didn’t like that their website shows the most expensive offering by default. You manually have to make it show you other options. Unless you need higher transaction volumes, I’d go with the LifeGreen Business Checking account.

Regions Bank has a relatively high business loan offering with an average of over $944K per loan, but they’ve only offered 132 loans at this time. However, that still makes them one of the 12 best lenders.

#14. NBKC

NBKC is a local bank in Kansas City. It offers a $0 business bank account with no monthly maintenance fees, overdraft fees (exclusions apply), or minimum balances. As far as a business bank account goes, it seems to be truly free.

They offered SBA two loans in 2023 with an average of $275K.

#15. Bethpage Federal Credit Union

We’re only covering Bethpage Federal Credit Union because we reviewed competitors’ blogs and one of them ranked this credit union as the best mobile banking app. There isn’t any SBA data on this credit union.

I checked out their website, and it is nice. They offer no fees, unlimited transactions, and a small interest rate on checking accounts.

If you live in Bethpage, New York, I’d probably consider them when you open a business. Otherwise, go with someone closer to home.

Best Online Bank for Small Business

Online banks are phenomenal if you don’t accept cash payments or run a retail store. If you need consistent cash, you should go with one of the major banks or a local institution.

Many online banks lack official lending numbers. I suspect this is because they use third parties to find the best rates and the loans are qualified under other banks.

#16. GrassHopper

GrassHopper offers a rate of 2.25% and 1% cash back on all purchases with no monthly maintenance fees or minimum balances. Their money market accounts allow you to earn another 3.75% on balances up to $25K.

They also ranked 14th for outstanding loans in the group. GrassHopper offers API (application programming interface) banking, which could be amazing for publicly held companies and crypto organizations since it allows for real-time treasury dashboards.

#17. Bluevine

Bluevine claims to have helped over 500K small businesses. You can earn between 2% and 4.25% with their business checking accounts. They don’t offer savings because their business checking accounts already pay as much as most savings accounts.

You must meet minimum requirements like spending a certain amount or making a minimum deposit amount, but the thresholds are fairly easy for the 2% plan. You’ll want to upgrade to the other accounts once you meet the higher balance and expense thresholds.

SBA loan data isn’t available for this bank.

#18. LendingClub

LendingClub is primarily a lending platform that has expanded to offer business bank accounts. Their business checking accounts earn 1.5% interest on the portion of your balance under $100K and 0.1% on the portion above $100K. Plus, as long as you maintain a business bank account balance of at least $500, there are no maintenance fees.

You can also apply for loans between $5K and $250K. Savings products allow you to earn up to 5.2%.

#19. TAB Bank

You’ll get a great interest rate on your business checking (0.25%), and savings accounts (4%), but TAB Bank is a fairly new bank with no record of 2023 SBA lending.

I’m hesitant to give it a good rank until I know more. Once it has an established track record, I’ll reconsider whether it should be ranked higher.

#20. Axos

Axos offers free or interest-bearing business checking accounts. It also offers lending, savings accounts, insurance over $250K, and merchant services. Multiple competitors consider it one of the best banks for small businesses.

#21. Novo

Novo has no monthly fees, transaction limits, or minimum average monthly account balances for its checking accounts. It also doesn’t pay any interest, offer savings accounts, or have any other remarkable features.

I’m unsure why it makes other lists, but that’s my take.

#22. Lili

Lili is like a bank account, bookkeeper, and tax preparation service in one. The best values are in the paid plans, though.

You can get started for free. For the best value, assume you need a minimum balance of at least $4,500 or as much as $15K for the highest plan. The 4.15% APY will cancel out the monthly service fees at these values.

Lili should also make tax time easier.

#23. Nav

Nav helps people build their business credit scores. The Nav checking account works with Nav Prime to help you build your business credit score faster by reporting all transactions to credit bureaus.

A Nav Prime account costs approximately $600 annually, but their checking account is free. They also advise you on how to improve your credit and identify the best funding sources for a small business. Business owners like Cristobal Mondragon have recommended using Nav Prime because most people are unfamiliar with how business credit scores work.

Nav SBA loan data isn’t available because loans obtained through them are backed by external banks or credit unions.

#24. Relay

Relay is online banking built for a business with bookkeepers and accountants reviewing their financials. It allows up to 20 checking accounts and two savings accounts for separate expenses.

You can apply for this free online business bank account on the Relay website. If an accountant recommends this online banking option, they are probably earning affiliate sales. That’s okay if they pass some of the savings on to you.

#25. Mercury

Mercury is a business bank account for startups. They offer financial workflows, bill pay, and 5.39% in interest on balances over $500K. The account is free, but they charge a monthly fee beyond basic workflows. Currency exchange is only 1%, and wire transfers are free.

Best Bank for Small Business Loan Data

The data below was extracted from SBA lender reports. This section only includes the banks listed in the table below. There are over 1,500 banks that have provided business loans, but only 75 have provided more than 100 loans.

Managing Business Accounts

I’ve set up my bank accounts so that I send the majority of my business income into a money market account to earn the most interest. The rest I send to a separate business bank to keep my ongoing spending and my vendor payments separate.

Then I scheduled monthly transfers to a business savings account to comply with the limitations on transactions. On a monthly basis, I pay zero fees because I don’t exceed transaction limits or fall below the minimum balance.

Most of my funds are earning at least 4% interest, and all my payments are automated. When you structure your finances with the right business accounts, managing your financial life becomes much easier.

Business Banking FAQ

What is the best bank for small business checking?

A Bluevine business checking account is typically considered the best business checking account. You can earn between 2% and 4.25% interest on the money in the account. However, it’s an online bank, so it won’t work for everyone.

For people who need a business checking account with cash deposits, you’ll probably want a Bank of America checking account or one from a regional bank near you.

What is the best bank for small business line of credit?

Live Oak Bank provides the most small business loans purely from a dollar standpoint. Companies such as Huntington, TD Bank, BayFirst, U.S. Bank, and Wells Fargo provide loans more frequently, but those are typically smaller lines of business credit.

How to open a business bank account

When you open a business bank account, you’ll need to:

1. Decide what’s important to you in a business bank account.
2. Gather your documents.
3. Choose the type of bank account you want.
4. Open the business bank account by filling out the required forms.
5. Deposit money.

For more information, check out our blog about how to open a business bank account.

How many bank accounts should I have as a small business owner?

Most small business owners should have at least three business bank accounts to help protect their business income:

• Deposit checking account: You should use this account to collect payments and deposit cash. You’ll then transfer funds to your reserve savings.
• Reserve savings account: You should keep the majority of your money in a reserve savings account to earn interest. You’ll receive money from your deposit checking and send money to your expenses account.
• Expenses checking account: This checking account needs to have bill pay set up. It will be fed by the reserve savings account and only used to pay expenses. Depending on the number of expenses you have, you may be able to use a savings account to earn more interest.

You might also want a separate business checking account or savings account for:

• Sales tax: This business account should earn interest because there will be large amounts sitting around for one to three months. Payments are normally to the state, but local governments also charge taxes in some situations.
• Payroll: You’ll probably want a business checking account to keep payroll separate from other expenses. Given that each payment is typically considered a transaction, you can’t use a savings account. You could keep it in savings, then transfer each period to your business checking account, but that means even more work for you.
• Income tax: You might want another business account that earns interest for your income taxes. You’ll need to pay them either quarterly or annually.

There are plenty of other business accounts you might want. Here are a few ideas:

• Profit
• Owner salary
• Inventory
• Marketing

Having a separate business checking account for each of these allows you to spend freely using a debit card.

Can I deposit my LLC check into my personal account?

No. Depositing a check to your LLC into your personal checking account mixes your business and personal finances. At that point, you are co-mingling funds, and it may make it so that your LLC is no longer providing limited liability protection.

What is the best business bank for annual percentage yield savings?

Live Oak is the best business bank for savings with a 3.7% interest rate for all sizes of accounts (subject to change). There are some business savings accounts from other banks that provide up to 4.42% annual percentage yield, but they have high minimum balances or caps on the amount that can be in the account at higher rates.

Is it better to bank online?

Yes, with some exceptions. As long as you don’t handle a lot of cash or checks, your business will benefit from online banking. Some of the best business checking accounts are offered by online banks.

When you have lots of cash and check payments, the best business checking accounts are normally the ones that are convenient for your business.

Always make sure you do a thorough analysis. Business checking accounts often require an average daily balance that may impact how much you pay for the service.

Sign Up for a Business Checking Account

At this point, you should have a good idea of which small business checking account and savings account you want. Go to the bank’s online portal and sign up.

Remember that you may want to create a financial strategy that puts your finances in different accounts. Having more than one account makes it easier to keep taxes, employee pay, vendor pay, and other expenses separate.

What do you think is the best bank for a small business? Let us know in the comments below.