There is no single "best" bank for every business
The right business bank depends on what you do, how many transactions you make, whether you need in-person service, and how much you want to pay in monthly fees. A freelancer with ten clients a year has different needs than a retail store processing hundreds of card payments daily. A bank that charges $15 a month might be perfect for one and wasteful for another.
The choice comes down to matching your actual situation against what each bank offers. This means knowing your transaction volume, whether you need physical branches, what payment methods matter to you, and what you can afford to keep in the account to avoid fees.
Key Takeaways
- Monthly fees range from zero to $30 or more depending on the bank and account type, and many banks waive fees if you maintain a minimum balance or deposit threshold.
- Online-only banks typically charge lower fees and offer better interest rates on balances, but you cannot deposit cash or speak to someone in person.
- Banks with physical branches cost more but let you deposit cash, get cashier's checks, and talk to someone when something goes wrong.
- The best account for you depends on your transaction volume, whether you need cash handling, and how much you can keep in the account to avoid fees.
- Most banks let you switch accounts later, so starting with a basic option and moving if your needs change is a reasonable approach.
Online banks versus banks with branches
Online banks like Novo, Mercury, and Brex typically charge no monthly fee and offer higher interest rates on your balance. They work well if you pay vendors by ACH transfer or wire, invoice clients who pay by bank transfer, and rarely need to deposit physical cash. The tradeoff is that you cannot walk into a branch, deposit checks by hand, or get a cashier's check the same day.
Banks with physical locations—Chase, Bank of America, Wells Fargo, and regional banks—charge $10 to $30 per month but let you deposit cash, get certified checks, and speak to a person. They are necessary if your business takes cash payments, receives many paper checks, or needs same-day services. Many waive the monthly fee if you maintain a minimum balance, typically $1,000 to $5,000.
A middle option is a bank that operates both online and in branches. You get some physical access without paying the full premium, though fees are usually higher than pure online banks.
What to compare when you are looking at accounts
| Factor | Why it matters | What to ask |
|---|---|---|
| Monthly fee | Adds up quickly if you do not meet waiver conditions | What is the base fee, and what balance or deposit amount waives it? |
| Transaction limits | Some accounts cap the number of free transfers or checks per month | How many ACH transfers, wire transfers, and checks can I write for free? |
| Cash deposit options | Critical if you take cash payments | Can I deposit cash at a branch, ATM, or third-party location? |
| Check deposit | Affects how fast you get paid | Can I deposit checks by phone, mobile app, or mail? How long does it take to clear? |
| Wire transfer fees | Outgoing wires often cost $15 to $30 each | What is the fee for sending and receiving domestic wires? |
| ACH transfer fees | Many banks charge per transfer or cap free transfers | How many free ACH transfers per month, and what is the cost after that? |
| Overdraft fees | Can be $30 to $40 per occurrence | Does the bank charge overdraft fees, and can I opt out? |
| Interest rate | Matters if you keep a large balance | What is the current APY on the account balance? |
Banks that work well for specific situations
If you rarely move money and want no fees: Online banks like Novo or Mercury charge zero monthly fees and have no minimum balance. They work for consultants, freelancers, and service businesses that invoice clients and receive payments by transfer. You will not use branches, so the lack of physical access does not matter.
If you take card payments: Stripe, Square, and PayPal all offer business accounts tied to their payment processing. Fees are built into transaction costs rather than monthly charges. These work alongside a regular business bank account, not instead of one, because you still need somewhere to hold money between payouts.
If you handle cash: A regional bank or a large national bank with branches near you is necessary. Chase and Bank of America have thousands of branches and ATMs where you can deposit cash. Expect to pay $15 to $25 per month unless you maintain a $2,000 to $5,000 minimum balance.
If you need a business credit card: Chase, American Express, and Brex all offer business cards with rewards and expense tracking. The card is separate from the bank account, but having both at the same institution can simplify bookkeeping. Some banks waive the account fee if you maintain an active business credit card.
How to avoid common fees
Most business accounts waive the monthly fee if you meet one of these conditions: maintain a minimum balance, receive a certain amount in deposits each month, or set up direct deposit. Ask the bank which waiver applies to your account before you open it, because the requirements vary widely.
Wire transfer fees are unavoidable at most banks—typically $15 to $30 per wire. If you send wires regularly, factor this into your choice. Some online banks charge less, but you will still pay something.
Overdraft fees happen when your balance goes negative. Many banks charge $30 to $40 per occurrence. You can usually opt out of overdraft protection, which means transfers will be declined rather than charged a fee. Ask whether the bank allows this.
Transaction limits are easy to miss. Some accounts cap the number of free ACH transfers or checks per month. If you write 50 checks a month, an account that allows only 25 free checks will cost you money. Read the fine print before opening.
How to switch banks if you need to
Switching business accounts is slower than switching personal accounts because vendors and clients need your new account number. Plan for two to four weeks of overlap where both accounts are active.
Start by opening the new account and getting your new account number. Then update your information with clients who pay you, vendors you pay regularly, and any services tied to automatic payments. Ask each one to confirm the change before you close the old account.
Keep the old account open for at least 30 days after the last transaction clears, in case a check or transfer arrives late. Once you are confident everything has moved, close it. Most banks will not charge a fee to close an account, but confirm this before you open.
Frequently Asked Questions
Do I need a business bank account or can I use my personal account?
You can legally use a personal account, but it creates problems for taxes and liability. The IRS expects business income in a business account, and mixing personal and business money makes tax time harder. If you are sued, a personal account offers less legal protection. A business account costs $10 to $30 per month and is worth it.
What is the minimum balance I need to avoid fees?
It varies by bank and account type. Most banks waive fees for balances between $1,000 and $5,000, though some online banks have no minimum at all. Ask the specific bank what balance waives the fee for the account you want, because the requirement is not the same everywhere.
Can I get a business account without an EIN or LLC?
Yes. Sole proprietors can open a business account using their Social Security number and a DBA (doing business as) name. You do not need an LLC or EIN, though some banks prefer an EIN. Call the bank and ask what documents they need for your business structure before you go in.
What happens if I overdraft my business account?
The bank will charge an overdraft fee, usually $30 to $40, and the transaction may be declined. You can opt out of overdraft protection at most banks, which means transfers will be rejected instead of charged a fee. This is safer than paying overdraft fees, but it can cause payments to fail. Ask the bank about this option when you open the account.
Should I keep my business savings in the same bank as my checking account?
It is convenient but not required. Many businesses keep checking at one bank and savings at another if the savings bank offers a better interest rate. Online banks often pay higher interest on savings than traditional banks. You can transfer money between banks by ACH, which takes one to two business days.