Most banks charge nothing to open a business checking account, but monthly fees range from zero to $25 depending on the bank and account type

Opening a business checking account itself is free at nearly every bank. The cost comes later, in monthly maintenance fees. Some banks charge nothing if you keep a minimum balance or set up direct deposit. Others charge $10 to $25 per month regardless. A few banks—mostly online-only—have no monthly fee at all. The real question is not what opening costs, but what you will pay to keep the account open.

The initial setup takes 15 to 30 minutes and requires your business license or EIN, a government ID, and your Social Security number. You will not pay anything at that moment. The first monthly fee, if there is one, hits your account 30 days after opening.

Key Takeaways

  • Opening a business checking account is free at all major banks, but monthly maintenance fees range from $0 to $25 depending on the institution.
  • Many banks waive monthly fees if you maintain a minimum balance, usually $500 to $2,500, or set up payroll direct deposit.
  • Online banks typically charge no monthly fee, while traditional brick-and-mortar banks often charge $10 to $20 per month.
  • Additional costs may apply for wire transfers ($15 to $30), overdraft fees ($25 to $35), and stop payments ($15 to $25).
  • The cheapest option depends on how you use the account—high-volume transactions, frequent transfers, or low balances each point to different banks.

Monthly maintenance fees and how to avoid them

Most traditional banks charge $10 to $20 per month to maintain a business checking account. Chase, Bank of America, Wells Fargo, and Citibank all charge monthly fees on their standard business accounts. The fee disappears if you meet one of these conditions: keep a minimum balance (usually $1,000 to $2,500), receive payroll direct deposits, or maintain a linked savings account with a certain balance.

Online banks like Novo, Mercury, and Brex often charge zero monthly fees with no minimum balance requirement. The trade-off is that you cannot deposit cash or speak to someone in person. If your business handles mostly digital payments and transfers, an online bank can save you $120 to $240 per year.

Some banks offer tiered accounts. A basic business checking account might cost $15 per month, while a premium version costs $25 but includes perks like higher wire transfer limits or priority customer service. For most small businesses, the basic account with a waived fee (by meeting the minimum balance) is the better deal.

Minimum balance requirements that waive fees

If you do not want to pay a monthly fee, the most common path is keeping money in the account. Banks set minimum balances between $500 and $2,500. As long as your balance does not drop below that number on the statement date, the monthly fee is waived.

This works well if your business naturally keeps cash on hand. If you run payroll weekly and your account dips to $200 between paychecks, you will hit the fee every month. In that case, either choose a bank with no minimum, or use the direct deposit waiver instead—most banks waive fees if you receive at least one payroll deposit per month, regardless of balance.

Check the exact rule before opening. Some banks measure the minimum on the last day of the month. Others use an average balance across the month. A few require the minimum to never drop below the threshold, even for a single day. That last rule is the hardest to meet and is worth avoiding.

Additional fees beyond the monthly charge

Opening and maintaining the account is one cost. Using it creates others. Wire transfers typically cost $15 to $30 per outgoing wire. Incoming wires are usually free. Overdraft fees range from $25 to $35 per overdraft, and some banks charge multiple times per day if you overdraw repeatedly.

Stop payments (telling the bank to cancel a check you wrote) cost $15 to $25. Returned deposit fees occur when a customer's check bounces; banks charge $10 to $20 for processing it. ACH transfers are almost always free, both incoming and outgoing, so they are the cheapest way to move money between accounts.

Cashier's checks and money orders cost $5 to $15 each. Account research requests (the bank pulls old statements or transaction history for you) can cost $25 to $50. These fees add up only if you use these services regularly, but they are worth knowing before you need them.

Comparing online banks versus traditional banks

Online banks have lower overhead, so they pass savings to you. Novo, Mercury, and Brex charge zero monthly fees, zero minimum balance, and zero overdraft fees (they simply decline transactions instead). The catch: you cannot deposit cash, and customer service is email or chat only, not phone.

Traditional banks charge monthly fees but offer in-person deposit, phone support, and a local branch if something goes wrong. Chase's basic business checking costs $15 per month but waives the fee if you keep $1,500 or receive direct deposit. Bank of America charges $12 per month with a $1,000 minimum or direct deposit waiver.

If your business deposits checks or cash regularly, a traditional bank is worth the monthly fee. If you operate entirely through digital payments and transfers, an online bank saves money and offers the same core features. Some businesses use both: a free online account for day-to-day operations and a traditional bank account for check deposits and in-person needs.

Hidden costs: what banks do not advertise

Banks often waive the monthly fee but charge for everything else. A business that writes 50 checks per month, makes 10 wire transfers, and occasionally overdraws can easily pay $200 to $300 in fees despite a "free" account. Read the fee schedule before opening, not after.

Some banks charge for paper statements (usually $2 to $5 per month if you opt out of electronic statements). Others charge for check orders—your first box is free, but replacements cost $15 to $30. A few charge for ACH transfers if you exceed a certain number per month, though this is rare.

The fee schedule is a legal document the bank must provide. Ask for it before you open the account, or find it on the bank's website under "Pricing" or "Disclosures." Compare the full schedule, not just the monthly fee.

How to choose based on your business type

A service business that invoices clients and receives payments via ACH or credit card does not need check-writing or cash deposits. Novo or Mercury saves you $120 to $240 per year with zero fees and no minimum balance.

A retail business that handles cash and checks needs a traditional bank with in-person deposit. Chase or Bank of America costs $12 to $15 per month, but the ability to deposit cash same-day and speak to someone by phone is worth it. Waive the fee by keeping $1,500 on hand or setting up payroll direct deposit.

A business with high wire transfer volume should choose a bank that offers a lower per-wire rate or includes free wires in a premium account. Brex, for example, offers unlimited free domestic wires on some accounts, which saves money if you move money between accounts frequently.

A startup with minimal cash flow should use an online bank until the business grows. Once you are ready to hire employees and need payroll processing, move to a traditional bank that offers integrated payroll and waives the checking fee when you use it.

Frequently Asked Questions

Do I have to pay to open a business checking account?

No. Every major bank charges zero dollars to open a business checking account. The cost comes in monthly maintenance fees after the account is open, which vary from $0 to $25 depending on the bank and whether you meet fee-waiver conditions.

What is the cheapest business checking account?

Online banks like Novo, Mercury, and Brex charge zero monthly fees, zero minimum balance, and zero overdraft fees. If you need in-person deposit or phone support, a traditional bank with a waived monthly fee (by keeping a minimum balance or setting up direct deposit) is the next cheapest option at $0 per month.

Can I avoid the monthly fee by keeping a certain amount in the account?

Yes. Most traditional banks waive the monthly fee if you maintain a minimum balance, typically $1,000 to $2,500. Some also waive it if you receive at least one payroll direct deposit per month, regardless of balance. Check the specific bank's rules before opening.

Are there fees for using my business checking account?

Yes, beyond the monthly fee. Wire transfers cost $15 to $30 each. Overdraft fees are $25 to $35. Stop payments cost $15 to $25. Returned deposit fees are $10 to $20. ACH transfers are almost always free. Check the bank's full fee schedule before opening.

Should I use an online bank or a traditional bank?

Online banks save money ($0 monthly fees) but do not allow cash deposit or phone support. Traditional banks charge $10 to $20 per month but offer in-person service. Choose based on how you operate: digital-only businesses benefit from online banks; cash-handling or check-deposit businesses need a traditional bank.