The last thing you need as a self-employed professional is complicated banking. That’s why the best banks for self-employed individuals offer free or low-cost business accounts, easy-to-use mobile and online apps, and software integration that simplifies accounting. In this article, we’ve listed banks that provide the best business checking accounts for self-employed professionals who like to keep things simple:
- Novo: Best for simple, low-cost business checking
- First Internet Bank: Best for multiple high-yield business accounts
- LendingClub Bank: Best for earning rewards on business debit card purchases
- Bank of America: Best for traditional and cashed-based banking
Novo: Best for Simple, Low-cost Business Checking
Novo is a terrific option for self-employed professionals who like to keep their banking simple and low-cost. The Novo checking account has no monthly fees, no minimum balance requirements, and no fees for transfers, mailed checks, or incoming wires. Novo also refunds all ATM fees and integrates with other small business tools.
| PROS | CONS |
|---|---|
| No monthly maintenance fees | No physical branch locations |
| Refunds all ATM fees | No outgoing wire service |
| Integrates with business tools like QuickBooks, Slack, Stripe, Xero, Wise, Shopify, and Zapier | Doesn’t earn interest |
Fees & Terms
- Monthly fee: None
- Transaction fee: None
- Outgoing wire transfer fee (domestic): Service not available
- Outgoing wire transfer fee (international): Service not available
- ATM fee: Refunds all ATM fees
- Minimum initial deposit: $50
- Minimum balance: None
Additional Features
- Mobile and online banking
- Free business debit card
- Business tools integration including:
- QuickBooks
- Xero
- Wise
- Slack
- Shopify
- Stripe
- Check deposits directly through the mobile app
- Cash deposits by United States Postal Service (USPS) money order or directly into Middlesex Federal’s ATM network
- Human-powered customer service
Who it’s best for: Freelancers and self-employed people who want easy and straightforward banking with no fees and easy app integration.
First Internet Bank: Best for Multiple a High-yield Business Accounts
For those looking for robust returns on both business checking and savings accounts with one bank, First Internet Bank is your best pick. This bank’s business checking account has no monthly maintenance or transaction fees and earns a high annual percentage yield (APY) on deposits of $10,000 or more. Plus, you can gain even higher APYs by using its business money market and business savings accounts. With these perks, you can see why First Internet Bank is one of the best for the self-employed.
| PROS | CONS |
|---|---|
| High-yield business checking account | No branch locations |
| High-APY business savings options | Minimum $10,000 to earn APY on business checking |
| No transactions fees | Business savings account require a minimum balance to avoid monthly fee |
| No monthly maintenance fees on the business checking account | |
Fees & Terms
- Monthly fee: None on checking; $2 to $5 on business savings account balances of less than $10,000
- Transaction fee: None
- Outgoing wire transfer fee (domestic): $20
- Outgoing wire transfer fee (international): $50
- ATM fee: None
- Minimum initial deposit: $100
- Minimum balance: None
- Ongoing APY: 0.40% on balances of $10,000 and higher
Additional Features
- Online and mobile banking
- Remote deposit capture
- Business lending, including Small Business Administration (SBA)
- Selection of business accounts, including:
- High-yield business savings accounts
- Business money market accounts
- Business certificate of deposit (CD) accounts
Who it’s best for: Self-employed business owners who need more than one high-APY business account to meet their business needs.
LendingClub Bank: Best for Earning Rewards on Business Debit Card Purchases
There’s nothing like earning rewards, but very few banks allow businesses to earn cash back on debit card purchases. That’s where LendingClub Bank sets itself apart—earning unlimited 1% cash back, giving you a nice return on expenses you’d pay anyway. However, be prepared to keep at least $5,000 or more to qualify for rewards.
| PROS | CONS |
|---|---|
| Up to 1.5% cash back | $5,000 minimum balance to avoid monthly account fee |
| Interest-earning business checking | $5,000 minimum to earn debit card rewards |
| No transaction limits and fees | No branch locations |
Fees & Terms
- Monthly fee: $10, waived balances of $5,000 or more
- Transaction fee: None
- Outgoing wire fee (domestic): $18
- Outgoing wire fee (foreign): $40
- ATM fee: None
- Minimum initial deposit: $100
- Minimum balance: None
- Ongoing APY: 0.10% on balances of $5,000 or more
Additional Features
- Online and mobile banking
- Bill pay
- Remote deposit capture
- Invoicing services via Autobooks
- SBA loans and other business loans
- Business credit cards
Who it’s best for: Self-employed individuals who want to earn rewards on everyday business checking account purchases.
Bank of America: Best for Traditional and Cashed-based Banking
Bank of America’s Business Fundamentals checking account offers the best in business banking for cash-handling self-employed professionals. This bank offers cash processing and is ideal for owners who prefer physical deposits and in-person banking over digital. You’ll also get some of the best business features and a nationwide bank network that includes hundreds of branches and more than 16,000 ATMs.
Who it’s best for: Self-employed professionals that have a cash-based business or prefer branch visits.
| PROS | CONS |
|---|---|
| Opportunity to earn $450 welcome bonus | Transaction fees |
| Cash processing | Minimum balance requirements |
| Nation-wide branch locations | |
Fees & Terms
- Monthly fee: $16, waived with one of the following requirements:
- Keep a $5,000 combined average monthly balance
- Make at least $250 in new net qualified purchases with your business debit card
- Become a member of Preferred Rewards for Business
- Transaction fee: No fee for the first 200, then 45 cents per item thereafter
- Cash deposit fee: No fee for the first $7,500, then 30 cents per $100 thereafter
- ATM fee: None for transactions made at a Bank of America ATM; $2.50 per transaction on out-of-network ATMs.
- Minimum deposit: $0 minimum deposit
- Minimum balance: None to maintain the account
Additional Features
- Mobile and online banking, including bill pay services
- Payroll and merchant services
- Business lending options
- Business credit cards
- Investment bank sector
Who it’s best for: Self-employed professionals that have a cash-based business or prefer branch visits.
Honorable Mention: BlueVine Business Checking
Previously, BlueVine was rated as the best overall bank account for self-employed professionals; however, it recently paused accepting new business checking account applications. Self-employed business owners can visit BlueVine’s website to join a waitlist to be notified when applications resume.
BlueVine’s fee-free business checking account is an excellent option for self-employed professionals. Not only does this account offer one of the highest APYs available, but there are no monthly maintenance fees and transaction limits. That means you won’t get hit with unexpected bank fees later, keeping your costs low and freeing up your money for important expenses. You can also write checks, pay vendors through online transfers, and use your debit card at more than 38,000 ATM locations nationwide.
| PROS | CONS |
|---|---|
| No monthly fees | Limited bill pay options |
| Unlimited transactions | Cash processing is limited |
| Account earns high-yield APY | No business savings account options |
Fees & Terms
- Monthly fee: None
- Transaction Fee: Free unlimited transactions
- Outgoing wire transfer fee (domestic): $15
- Outgoing wire transfer fee (international): Not available
- ATM fee: No fees
- Minimum initial deposit: None
- Minimum balance: None
- Ongoing APY: 1% on all balances
Additional Features
- Accounting software integration with apps including:
- QuickBooks Online
- Wave
- FreshBooks
- Connects with payment services like:
- Stripe
- PayPal
- Expensify
- Online and mobile banking with bill pay services
- Business loans
- Live customer support
- Small business credit cards
Who it’s best for: Self-employed individuals who need free checking and want to build business balances with high-interest yields.
How We Evaluated Self-employed Bank Accounts
We reviewed several factors to determine the best for self-employed professionals, including features that are helpful for self-employed professionals. This includes features like mobile banking, accounting, and payment software integration. We also prioritized banking costs, including monthly maintenance fees, transaction fees, and minimum balances that could affect your cash flow. We chose the bank accounts that represent the best of these features.
Do You Need a Business Bank Account If You’re Self-employed?
Anyone running a business can benefit from a business checking account, whether as a freelancer or a brick-and-mortar business. Business bank accounts separate your business finances from your personal finances, making accounting easier. You’ll also get customer support designed for just business owners.
It’s common for freelancers and side hustlers to use personal bank accounts for business, but a business bank account is a better option. Commingling personal and business funds can lead to unwanted attention from the IRS. Doing that could get you flagged for a tax audit, and you could also get hit with unnecessary IRS penalties and fees.
What You’ll Need to Open a Self-employed Bank Account
It’s fairly simple to open a business bank account. When opening an account at a branch location, you’ll need to provide identification for you and any business co-owners. You’ll also need to bring copies of any relevant business documents, including your business license, as these will be needed for the bank to verify your business identity. If you open your account online, the bank will let you upload documents electronically or send them in later via email, mail, or fax. It takes only minutes to open, and you’ll usually have full access to your account within a day or two.
Bottom Line
The best banks for self-employed people have more than just low costs and business checking accounts. These banks also offer a way to safely put away your money and access it via online, mobile apps, and ATMs later easily. Plus, the accounting software integration makes it easier to consolidate your books at the end of the quarter. Regardless of what bank you choose, be sure it offers the pricing and features you find most important for you and your business.
