If you operate a small enterprise, then a bank account is not an option, it’s actually a necessity. It is required that every business has its own personal checking accounting, and perhaps credit card, savings, and other accounts, so as to keep cash secure and create a financial record for the enterprise.
Don’t just hurry off to the nearest bank, thinking they will give you the best deal or even offer you all the amazing features you desire in a small business bank. It is necessary that you make proper research before choosing any of the best business banks that best suits your specific business needs.
In the rest of this article, we will be looking at 13 best banks for small businesses in 2021.
How to choose a bank for your small business
As you compare your different options, below are some factors to keep in mind before choosing your banks for business accounts:
- Think about your long- and short-term financial targets. Are your business needs likely to change within the span of a year? Can your bank accommodate your business after that period?
- Consider how you would like to bank. Are you searching exclusively for online banks or are brick-and-mortar banks an option?
- Search for product services or specifications that are most useful to your business.
- Do not forget to enquire about the fees that may be associated with any enterprise account you choose and explore several alternatives before you sign up.
- Don’t hesitate to explore other alternative banks as well. It’s okay to start with your personal bank, but don’t let it end there.
13 Best Banks for Business Accounts
Best Overall: Chase
Chase should be your number one choice if you’re a small-business owner looking to enjoy the traditional bank experience. For starters, Chase has locations in several parts of the country, provides business checking with zero fee provided you keep a minimum balance of $1,500, plus they have one of the best mobile banking and online banking systems.
In all, Chase ranks number one because it provides everything brick-and-mortar businesses, solo businesses, and/or small enterprises need: multiple locations, and the option to evade monthly service charges.
Best Credit Union: Navy Federal Credit Union
Although Navy Federal Credit Union can not technically be called a bank, it provides excellent business banking services suitable for a vast range of small enterprises. They comprise payment processing, credit cards, loans, business savings and checking, and even insurance and retirement packages for you and your staff.
It should be noted that credit unions operate as not-for-profit organizations, meaning that they usually charge lower fees and give higher interest rates on savings compared to for-profit banks. To register a business bank account at Navy Federal, you have to first become a business member. To do this you have to register with the credit union as an individual yourself. To get started, you’ll need to make a $100 opening deposit as well.
Best for Online-Only Checking: Axos Bank
Axos takes the top spot for the best online checking account that is available for small enterprises today. Axos bank is the oldest online-only bank in the U.S. with many years of experience to provide banking services for both personal customers and corporate businesses. Axos offers savings accounts and money market for enterprises, CDs, as well as a completed suite of cash management services.
It’s a really impressive bank, not just as an online bank. You can choose Axos Bank for your small enterprise banking needs, if cash is not necessary for your operations but you are in need of a serious bank.
Best for Number of Branches: Wells Fargo
Wells Fargo is one of the best banks for business accounts with tremendous popularity, in spite of some bad PR recently. It is the biggest SBA lender for Small Business Administration loans and boasts more locations than any other bank in the U.S. Wells Fargo provides 4 various business checking accounts. All of these accounts have monthly fees; however you can dodge them in most cases with a minimum balance condition.
The Simple Business Checking account requires that you have a minimum of $500 to evade fees. Since Wells Fargo is extremely large, it provides almost any service that your enterprise might need. This includes services such as business tax services, HR and payroll. However, you might have to pay higher to enjoy many of these things from Wells Fargo than certain companies that have a specialization in these different services.
Do your small enterprises work with a lot of cash? Then Wells Fargo should be top on your consideration list. Not only are you able to deposit cash at the border 3 branch network, but also can you withdraw funds charge-free from its large network of ATMs.
Best for Business Analysis: M&T Bank
M&T Bank can be one of your business banks if you stay on the East Coast and need a reliable bank for your small enterprise banking needs. M&T boasts 690 branches in Florida, West Virginia, Washington D.C., Maryland, Pennsylvania, and New York. Beyond its impressive branch network, M&T has more to offer. M&T Bank ranks as a top SBA lender and provides a variety of bank accounts.
There are 5 checking alternatives that may be ideal for most small enterprises, in addition to particular accounts for professional and medical services industries. The most prominent disadvantage is that you are required to maintain a huge balance to avoid fees in many of those accounts. You are expected to keep a $2,500 average balance in order to waive the $10 charge on the basic Simple Checking for Business account.
Best Fee-Free Brick-And-Mortar Checking: US Bank
While US Bank is not really as large as some of its competitors, it however still provides a huge network of ATMs and branches around the United States. The biggest advantage for small enterprises is the Silver Business account, which features checking with zero monthly maintenance fee.
Like the other banks listed, US Bank provides other services via a bundle including payroll servicing, invoicing and credit card processing.
NBKC: Best for easily accessible, low-fee checking and savings accounts
NBKC is one of the best banks for business accounts, providing almost charge-free, digital enterprise checking account with cash deposit. It delivers a digital-friendly banking experience – although the bank itself has its presence in 4 Kansas-based locations. With NBKC, you can easily and quickly apply for your account online, whether you choose a savings or checking account.
You can also manage everything on your tablet or smartphone or on your computer via the NBKC app. Thus, with virtually non-existent charges and 2 easily accessible accounts, NBKC is no doubts one of the top recommended banks for business.
Specifically, you can expect your NBKC enterprise checking account to feature: $0 minimum balance, unlimited number of transactions, free business online banking and banking via the NBKC app, $12 in monthly refunds for ATM charges made by other banks. NBKC also gives you the ability to include desktop deposit, as well as ACH debits and credits to your account for affordable monthly fees.
BlueVine: Best for digital, no-fee business checking accounts
When it comes to the best business banks for small enterprise, you may likely think of brick-and-mortar banks. However, you don’t have to step your feet into a traditional bank before you can enjoy a remarkable banking experience with BlueVine Business Checking.
BlueVine Business Checking account is exceptional for a couple reasons – it’s charge-free, entirely digital, and it offers you the opportunity to earn interest. BlueVine provides: a single enterprise checking account, and this account has zero minimum balance requirement, zero minimum opening deposit, unlimited free-of-charge transactions, and zero monthly charges.
Some prominent provisions of the BlueVine Business Checking account are: the opportunity to earn 1% interest on balances as much as $100,000, zero ACH payment fees, zero NSF charges, free debit card with free access to ATM at MoneyPass ATMs, two free checkbooks, mobile check deposit, and 24/7 mobile and online banking.
Capital One: Best for high volume deposits and monthly transactions
Even though Capital One offers significant commercial and consumer banking programs, their detailed suite of financing solutions shows that they are also committed to small enterprise owners. Capital One offers two business checking options to select from: The Spark Business Basic Checking and the Spark Business Unlimited Checking. Capital One stands out as a brick-and-mortar bank that provides an enterprise checking account which features unlimited transactions and a large number of free cash deposits.
So, banking with Capital One would be a smart decision if you manage a business with a large volume of monthly transactions as well as cash deposits.
Radius: Best for interest-earning business checking and online-based tools
With Radius, you have the opportunity to create an interest-earning business checking account online, in addition to having access to a wide range of digital tools so as to streamline your financial management. While Radius has a few additional fees than some of the other online competitors, it provides amazing features such as unlimited 1% cash back on debit card purchases and unlimited ATM fee rebates, commercial equipment and real estate financing, SBA loans, 4 business credit card options, and cash management solutions including fraud prevention, sweep accounts, deposit and disbursement services, and payments.
Radius charges $10 monthly fee which can be waived with an average monthly balance of $5,000 or more. Regardless of the ATM you use, you won’t be charged any ATM fees at all. Another feature of Radius account is Autobooks, an online payment and invoicing platform that enables you to prepare and send invoices, receive payments, reconcile transactions for accounting, and generate reports.
Best bank for online freelancers: Simple
Sometimes, all you need is something “simple”. Simple is an online bank that aims to achieve simple things such as money transfers, provide withdrawals, and receive deposits. It has built-in budgeting tools that enable you to monitor your cash, and your Simple account integrates with other banks, making it possible for you to easily make money transfers back and forth.
It is pertinent to mention however, that Simple may not be the best option for you if you’re in need of credit cards, business loans, or other financing. The good things about Simple are zero overdraft few, zero monthly service charges, zero minimum balance requirement, unlimited monthly transactions, robust mobile app, and built-in expense-tracking and budgeting tools.
Best bank for SBA loans: First Home Bank
First Home Bank is a Florida-based bank, serving clients all over the country. It is often rated as one of the top ten most active SBA lenders in the country. It provides a plethora of banking services for small enterprises – including savings and checking accounts, and non-SBA loans.
First Home Bank stands out as a result of the following features: $0 checking account fee, $0 minimum balance, 250 free transactions per month, credit cards, and loans availability. You may however want to keep in mind that there are no interests on the business checking accounts of First Home Bank.
Best sign up bonuses: Bank of America
Bank of America is ubiquitous with about 4,300 branches and 16,000 ATMs! Unlike some other competitors, you won’t enjoy unlimited free transactions with Bank of America, and you also have limited free cash deposits.
Some of the features of Bank of America include having a minimum balance ($3,000 daily to avoid fees), free transactions every month (up to 200), $0.45 transaction fee, credit cards, and availability of loans.
At the end of the day, what matters most is that small enterprise owners have a lot of options for the banking needs. On the other hand, the challenge here is that all these multiple options about which bank to use might make it more difficult to narrow your choices down and decide on what works best for your business.
This is why it is essential that you make your research before choosing the most suitable bank for your specific business needs. When you review accounts, be sure to consider some of these features: free ATMs, mobile check deposits, cash deposits, in-person customer service, and interest-bearing checking accounts.
Remember, all businesses are not the same; so there is no single perfect account for small enterprises. All you need to do is choose one of the best banks for business that most satisfies the unique business needs of your enterprise.