The best small business account depends on your transaction volume, whether you need to accept card payments, and how much you're willing to pay in monthly fees

There is no single "best" account because small businesses have different needs. A freelancer who invoices three clients a month has different requirements than a retail shop processing hundreds of card transactions daily. The right account for you matches your actual cash flow, not the features you might use someday.

Start by listing what you actually do: How many checks do you write per month? Do customers pay you by card, ACH, or both? Do you need to deposit cash? How many people need access to the account? Once you know this, you can compare accounts on the fees that matter to you—not the ones that don't.

Key Takeaways

  • Monthly fees for small business accounts range from $0 to $30 depending on the bank and account type, and some banks waive fees if you maintain a minimum balance or direct deposit.
  • Transaction limits matter: some accounts charge per check written or per ACH transfer, while others include unlimited transactions in the base fee.
  • Card processing fees (typically 2.2% to 3.5% of each transaction) are separate from the account fee and apply whether you use the bank's payment processor or a third party.
  • Online banks usually have lower monthly fees but no in-person branch, while traditional banks offer branches and phone support at higher cost.
  • You can open a business account with an EIN, a Social Security number, or in some cases a DBA filing, depending on your business structure.

Monthly fees and what they cover

Most small business checking accounts charge a monthly maintenance fee between $10 and $30, though some banks offer $0 accounts with conditions. Chase Business Complete Checking, for example, charges $15 per month but waives it if you maintain a $2,500 minimum balance or have $2,500 in monthly direct deposits. Bank of America Business Advantage Checking charges $12 per month and waives it with a $2,000 minimum balance.

Online banks like Mercury, Brex, and Novo typically charge $0 monthly fees with no minimum balance requirement. The trade-off is that you cannot deposit cash in person and customer support is email or chat only. If you rarely handle cash and prefer to manage your account on your phone, this saves money. If you deposit cash weekly or need to speak to someone by phone, a traditional bank's fee may be worth it.

Some accounts charge per transaction: per check written, per ACH transfer, or per wire. If you write 50 checks a month, a $0.50 per-check fee costs $25 monthly—more than a flat fee account. Read the fine print on what is included in the base fee before comparing prices.

Transaction limits and per-item charges

A key difference between accounts is whether transactions are unlimited or metered. Most traditional banks include unlimited check writing and ACH transfers in the monthly fee. Some online banks do the same. Others charge per transaction: typically $0.25 to $1.00 per check, $0.50 to $1.00 per ACH transfer, and $15 to $25 per wire.

If you process payroll through ACH every two weeks, that is 26 transfers per year. At $1 per transfer, that is $26 annually—minor. But if you pay vendors daily via ACH, the cost adds up fast. Calculate your actual transaction volume before choosing an account based on price alone.

Wire transfers almost always cost extra, usually $15 to $30 per outgoing wire. This is standard across banks and is not a reason to switch. Incoming wires are usually free.

Card processing and payment acceptance

If customers pay you by card—credit card, debit card, or both—you will pay a processing fee separate from your account fee. This fee is typically 2.2% to 3.5% of each transaction plus $0.30 per transaction, though rates vary by card type and processor.

Some banks offer their own payment processing as part of the account. Chase, Bank of America, and Wells Fargo all have integrated card processing. The advantage is one invoice and one login. The disadvantage is that their rates are often higher than independent processors like Square, Stripe, or PayPal. Compare the all-in cost: account fee plus processing fees on your actual monthly card volume.

If you do not accept cards today but might later, do not let this drive your account choice. You can add a third-party processor to any account. Switching processors is easier than switching banks.

Minimum balance requirements and how they work

Many business accounts waive the monthly fee if you maintain a minimum balance. Common minimums are $1,000, $2,000, or $2,500. If you maintain that balance anyway—because that is your normal operating cash—the waived fee is real savings. If you would have to keep extra money in the account just to avoid the fee, calculate whether the interest you earn (if any) offsets the fee. Most business checking accounts pay no interest, so extra cash sitting there costs you opportunity.

Some banks also offer tiered fees: a lower fee if your balance stays above $5,000, a higher fee if it drops below. Read the account terms to understand exactly when the fee applies and what balance triggers it.

Online banks versus traditional banks

Online banks (Mercury, Brex, Novo, Lemonade) have lower or no monthly fees, faster account opening, and mobile-first interfaces. You cannot deposit cash in person, and customer support is usually email or chat during business hours, not 24/7 phone support. They work well for service businesses, freelancers, and e-commerce shops that rarely handle physical cash.

Traditional banks (Chase, Bank of America, Wells Fargo, local credit unions) charge higher monthly fees but offer in-person branches, phone support, and the ability to deposit cash and checks at a teller. They work well for retail, restaurants, and other businesses that handle cash daily or need to speak to a banker in person.

A middle ground: some regional banks and credit unions offer low fees, in-person service, and reasonable online tools. If you have a local credit union, ask about their small business accounts—they often have lower fees and more flexible requirements than national banks.

What you need to open an account

Requirements vary by bank and business structure. Most banks require one of the following: an Employer Identification Number (EIN) from the IRS, your Social Security number if you are a sole proprietor, or a DBA (Doing Business As) filing from your state. Some banks require a business license or articles of incorporation if you are an LLC or corporation.

You will also need a government-issued ID, your Social Security number or EIN, and proof of your business address (a utility bill or lease). Some banks require an initial deposit, usually $25 to $100. Online banks can open accounts in minutes; traditional banks may take a few days to a week.

If you do not have an EIN yet, you can apply for one free from the IRS at irs.gov. It takes 15 minutes online and you get a number immediately. You do not need to wait for a physical letter to arrive.

Frequently Asked Questions

Can I use a personal bank account for my small business?

Legally, yes—but it creates problems. Mixing personal and business money makes tax filing harder and can expose your personal assets if the business is sued. A separate business account costs little and protects you. Most banks require a business account for businesses registered as LLCs or corporations; sole proprietors can sometimes use personal accounts, but should not.

Do I need an EIN to open a business account?

Not always. Sole proprietors can open an account using their Social Security number. LLCs and corporations need an EIN. If you do not have one, apply at irs.gov—it is free and takes 15 minutes. Some banks will let you open an account with a pending EIN application, but policies vary.

What is the difference between a business checking and a business savings account?

Checking accounts are for frequent transactions: paying bills, receiving deposits, writing checks. Savings accounts earn interest but limit how often you can withdraw. Most small businesses use checking for operations and keep a separate savings account for emergency funds or tax reserves. Interest rates on business savings are typically 0.01% to 0.5%, so the interest earned is small.

Can I switch banks without losing my account history?

Yes. Your old account stays open and your history stays with that bank. You can set up automatic bill payments and direct deposits at the new bank. Some banks offer a switching service that moves recurring payments for you. There is no penalty for closing a business account, though some banks charge a fee if you close within 90 days of opening.

What if I need to accept payments but do not want to use the bank's processor?

You can use any third-party processor—Square, Stripe, PayPal, Shopify Payments—with any bank account. The processor deposits funds into your account, usually within one to three business days. This is common and does not affect your account or relationship with the bank.