Best Banks for Small Business of December 2023

Best Banks for Small Business of December 2023

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The best banks for small business allow entrepreneurs to address multiple business banking needs, with a free or low-fee business checking account, as well as options for savings, credit cards, business loans or merchant services.
You may want to leverage business bank accounts from multiple institutions to keep your funds secure — especially if your deposits exceed the federally insured limit of $250,000. Keeping payroll and an emergency fund at different small-business banks from your main business account can also help shield your business from disruptions.

Note: Most of the star ratings on this list are specific to the bank’s business checking account. The exceptions are Live Oak Bank and NBKC, which are highlighted for their business savings products. If a bank offers multiple business checking accounts, we rated the entry-level account.

Small-business banking: Best banks for business accounts

Best for: 24/7 customer support

Axos Bank’s free business checking account comes with 24/7 customer support, fee-free cash deposits and unlimited refunds for ATM fees in the United States.

Axos also offers interest-bearing checking and savings accounts, business loans (including SBA loans) and merchant services.

Best for: Online banking, business credit cards

American Express’s business checking account offers one of the most competitive interest rates out there for businesses:

1.30%

on balances up to $500,000. The free online business checking account also has no monthly fees, overdraft fees or stop-payment fees.

Best for: 1% cash back on debit card purchases

LendingClub offers a high-yield online business checking account that includes unlimited ATM fee rebates and earns unlimited 1% cash back on debit card purchases. You can also deposit cash at compatible ATMs for no additional fee (a rarity for online business accounts). The trade-off: A $10 monthly fee (waived with an average monthly balance of $500).

Best for: Full-service business banking

Chase offers a variety of small-business banking services that set it apart from other national brick-and-mortar banks, including three business checking accounts, two business savings accounts and the Chase Ink suite of business credit cards, among other financial products.

You can open a business account online or in person. (Chase has more than 4,700 branches across 48 states.)

Best for: Branch access and business loans

Wells Fargo has roughly 4,900 branch locations and over 12,000 ATMs across 40 states, plus Washington, D.C. — the largest branch network in the U.S. — making it an ideal choice for small-business owners who prefer to do at least some of their banking in person.

In addition, Wells Fargo is among the best banks for business loans, offering business lines of credit, real estate financing, equipment financing and more. It’s also one of the most active SBA 7(a) lenders and ranked third in SBA 7(a) loans approved for fiscal year 2022 .

Best for: Business savings accounts and SBA loans

Live Oak Bank, a North Carolina-based institution, isn’t currently offering new business checking accounts. But that’s OK — because Live Oak’s standout product is actually its business savings account. Paying

4

% APY, this account is a great option for your company’s emergency fund.

Additionally, Live Oak Bank is a top SBA lender. While you don’t need a Live Oak business bank account to apply for these loans, establishing a relationship with a banker early on may be helpful when it’s time to seek financing.

Best for: Business money market accounts

NBKC offers a simple business money market account with a high APY —

2.50%

. But it also stands out for its fee-free, online-based business checking account, though the bank does have four branches in the Kansas City area.

Best for: Unlimited checking account transactions

Capital One’s business checking accounts offer unlimited fee-free transactions, an uncommon feature for brick-and-mortar banks. Capital One also has some of the best business credit cards on the market.

Best for: Welcome bonus, free business checking (brick-and-mortar)

U.S. Bank is one of the few brick-and-mortar banks that lets you open a business account online, as well as over the phone or in-person. And new account holders can net a substantial welcome bonus with qualifying activities:

Earn up to an $800 bonus when you open a new, eligible U.S. Bank business checking account online with promo code Q3AFL23 and complete qualifying activities, subject to certain terms and limitations. Offer valid through January 8, 2024. Member FDIC.

Business owners can choose from one of three U.S. Bank business checking accounts (including a free business checking option) and take advantage of additional services, including payment processing, small-business loans and business credit cards.

Best for: Generous account limits, easy application

Bank of America stands out among national and regional brick-and-mortar banks by offering unlimited fee-free electronic transactions, high cash deposit limits and the ability to open an account online, over the phone or in person.

Two options for business checking accounts, several solid business credit cards, a high-yield business CD account and dedicated business support round out Bank of America’s business banking services.

Best for: High-yield business checking

Grasshopper is a fully digital, FDIC-insured bank that launched in 2019 and caters exclusively to small businesses. The bank does not offer consumer accounts.

Grasshopper’s high-yield checking account earns up to

2.25

% APY and comes with invoicing and bookkeeping tools built into its online banking platform. Founders can also tap Grasshopper experts for help with everything from accelerator applications to navigating investor opportunities.

Grasshopper does not support cash deposits, though, and there’s no weekend support.

Navy Federal Credit Union

Best for: Credit union for veterans

In order to open an account at Navy Federal Credit Union, all business owners must be eligible for credit union membership — which means they or their family members must be current or retired military members, veterans or Department of Defense employees. If you meet those requirements, though, this credit union offers three business checking accounts, multiple business savings options and 24/7 customer support.

Best for: Non-bank option for small businesses

Bluevine is a neobank — a financial technology company that provides business banking services and lending services through partner banks — and can be a great option for business owners who prioritize low fees and higher APYs over in-person customer service or a full suite of business banking services.
Bluevine’s free, high-yield business checking earns

2.00%

APY on balances up to $250,000 (terms apply) and offers up to $3 million in FDIC insurance coverage via Coastal Community Bank and the IntraFi sweep network. And its business line of credit lets business owners access up to $250,000 in as little as 24 hours with more lenient lending criteria than traditional banks, making it a popular option for startups and business owners with bad credit.

Be aware, however, that interest rates and payment terms on Bluevine business loans can be less favorable than at a bank. And business checking customers can’t have joint accounts or joint debit cards and need to use a third-party service to deposit cash (for a fee).

How to choose a bank for your small business

Many small-business owners choose their personal bank as their business bank. And while that may feel convenient, it’s worth exploring alternatives — after all, you might want different features as an entrepreneur than you do as an individual consumer.

Here are some questions to guide your search.

Do you want to bank online, in person or both?

Business owners who want an online business checking account can look to neobanks — fintech companies that partner with a bank to offer FDIC-insured business banking services. Neobanks typically offer free or low-cost business checking with a host of perks, like tax-planning tools or a high APY. These accounts may lack traditional banking functions, though, like wire transfers and the ability to make deposit checks. And many offer customer support almost exclusively via email.

If you prefer an in-person touch, explore local banks and credit unions. These smaller institutions can make it easier to start a relationship with a banker who can help your business grow (especially if you work with a community development financial institution). You may have an easier time getting your banker on the phone than you would with a larger company. But these smaller institutions are probably less likely to offer polished apps and 24/7 customer service.

National banks, like Chase and Bank of America, usually offer a combination of branch access and sophisticated digital services. However, they’re typically more likely than neobanks to charge monthly fees. And you may not get the same personalized attention from your banker that you would with a local institution with a mission that includes community investment.

Which types of bank accounts do you want?

In general, you probably need a business checking account for managing day-to-day revenue and expenses. But you may also want to consider:

  • Business savings accounts, which tend to pay more in interest but limit the number of transactions you can make in a given period. A business savings account may be a good place to store your company’s emergency fund.

  • Business money market accounts, which usually have APYs and transaction limits to business savings accounts but also offer debit cards and checks. These may also be good options for emergency funds or for surplus operating funds.

  • Business certificates of deposit, which can offer even higher APYs but don’t let you touch your cash until the term is up.

It can be wise to store an emergency fund at a different bank than your business checking account, since the FDIC only insures up to $250,000 per depositor per institution.

How much cash does your business handle?

It’s fairly common for business banks to limit the amount of cash you can deposit each month without paying fees. If your business takes in a lot of cash, look for a business bank account that lets you make unlimited free cash deposits — and if you spend cash often, look for free ATM access and refunds on ATM fees, too.

Will you want to apply for a business loan in the future?

In general, if you need a business loan, it’s a good idea to try to get one from a bank. Bank business loans tend to offer lower interest rates and better terms than online lenders, but they also have tighter lending standards.
Starting a relationship with a bank or credit union now may give you a leg up when it comes to applying for a business loan. If a banker knows your business well, they may be more open to working with you on financing even if your application is imperfect.

What business credit cards do you want?

You should choose the best business credit card for your company based on features like rewards, travel perks and annual fees — regardless of what financial institution it comes from.

But there may be benefits to using a credit card linked to your bank. Bank of America business credit cards, for instance, offer higher rewards rates to Bank of America business checking customers who maintain certain average balances in their business checking accounts.

What fees does the bank charge?

Make sure you understand the fees associated with any business bank account. Some business banks charge monthly fees for checking and savings accounts, although many waive those fees if you keep your balance above a certain level. Look for a business checking account with no fees unless you’re confident the account’s perks will outweigh the costs.

Should you have accounts at multiple business banks?

Some financial providers increase this coverage via Insured Cash Sweep accounts, which spread deposits across multiple FDIC-backed banks behind the scenes. But even if you use this service — or you’re not worried about hitting the $250,000 max — using more than one business bank can minimize the impact of potential issues like an unexpected account freeze.
A good first step is to store an emergency fund at a different bank than your business checking account. If your business keeps significantly more cash on hand — if you’re a startup with venture funding, for instance — a business cash management account may be a better fit to maximize potential returns.

Compare more business banking options

Want to explore more banks for small businesses? Use NerdWallet’s tool to search for and compare business checking accounts based on the features that are important to you, whether that’s unlimited transactions, free ATM access, no monthly fee or a low minimum opening deposit.

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