The best bank accounts for self-employed professionals and freelancers should offer free or low-cost business checking. This account should have limited fees, easy access through phone and web-based applications, and great software integrations to help small business owners send and receive payments through popular payment applications.
Banks that provide these accounts should have products and services to help small businesses with limited employees grow and compete against larger businesses. Many of these top providers also allow cash deposits and withdrawals for businesses dealing with cash payments regularly.
Here are the nine best bank accounts for self-employed professionals, with links directly to the provider websites:
- Bluevine Provider is a financial technology (fintech) platform backed by and Federal Deposit Insurance Corp. (FDIC)-insured through a supporting bank partnership with Coastal Community Bank. : Best overall for self-employed with a high interest yield checking and line of credit
- Lili Provider is a fintech platform backed by and FDIC-insured through a supporting bank partnership with Choice Financial Group. : Best for new freelancers who need digital tax preparation assistance
- Novo Provider is a fintech platform backed by and FDIC-insured through a supporting bank partnership with Middlesex Federal Savings. : Best digital-only bank for rapid access to funds and faster payments
- Bank of America Member FDIC : Best for self-employed individuals seeking a traditional bank
- Found Provider is a fintech platform backed by and FDIC-insured through a supporting bank partnership with Piermont Bank. : Best for freelancers looking for detailed expense tracking
- Grasshopper Member FDIC : Best digital-only bank for high-yield checking and integrated free payment software
- Chase Member FDIC : Best for small business banking tools and premium checking
- Live Oak Bank Member FDIC : Best for freelancers looking for high-yield business savings
- Oxygen Provider is a fintech platform backed by and FDIC-insured through a supporting bank partnership with The Bancorp Bank. : Best digital-only provider for cash back on debit card purchases
Earn 4.25% APY with Bluevine Premier and 2.0% APY for Bluevine Standard on qualifying balances. |
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Best Bank Accounts for Self-employed Professionals At a Glance
Account Name | Monthly Fee | Free Monthly Transactions | APY | Free Cash Deposit Limit | |
---|---|---|---|---|---|
Standard Checking | None | No limit | 2.0% on qualifying balances of $250k or less | $4.95 (Green Dot) or $1 + 0.5% of deposit (Allpoint+ ATM) | |
Business Checking Basic | None | No limit | N/A | $4.95 per deposit (Green Dot) | |
Business Checking | None | No limit | N/A | No fee; Cash deposited through money orders | |
Fundamentals Business Checking | $16; waivable | 200 | N/A | $7,500 per month | |
Business Checking | None | No limit | N/A | Available at 79,000+ retail locations | |
Innovator Business Checking | None | No limit | Up to 2.25% | Cash deposits not accepted | |
Business Complete Banking | $15; waivable | 20 | N/A | $5,000 per month | |
Business Savings | None | No limit | 4.00% | Cash deposits not accepted | |
Business Checking | None | No limit | N/A | $4.95 per deposit (Green Dot) or via Plaid link | |
Bluevine: Overall Best For Self-employed With High Interest Yield Checking & Line of Credit
What We Like
- Interest-earning checking on balances of $250,000 or less
- Integrates with QuickBooks
- Excellent line of credit product
Drawbacks
- No savings, money market, and certificate of deposit (CD) accounts
- No physical branch locations
- Fee for depositing cash
Features
- No monthly maintenance fee
- No minimum balance requirement
- Free debit card (with up to 4 free additional debit cards for authorized users) and two free checkbook orders per year
- Integrates with QuickBooks and Xero
- Connects with business payment solutions, including Stripe, PayPal, and Expensify
- Has live customer support from dedicated professionals
- Offers line of credit & credit card product
- Automatic transfers with sub-accounts
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | No limit |
ACH Fees | None |
Monthly Fees | None |
Teller Cash Withdrawal Fee | None |
Domestic Wire Transfer Fees | $15 for outgoing, incoming are free |
International Wire Transfer Fees | $15 for outgoing, incoming are free |
ATM Fees | Free at MoneyPass locations nationally; $2.50 plus operator fees for nonnetwork ATM use |
Cash Deposited |
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APY | 2% on balances of up to $250,000, once qualifications are met |
Bluevine is a business fintech platform backed by FDIC-insured Coastal Community Bank. |
When To Use Bluevine
For freelancers and self-employed business owners looking to earn interest from a business checking account, Bluevine is an excellent choice. With a Bluevine Standard business checking account, you can earn 2.0% APY on balances of $250,000 or less if you spend $500 a month on Bluevine’s debit card or receive $2,500 in customer payments in a month.
Bluevine is a digital-only banking provider with no monthly fees, minimum balance requirements, or monthly transaction limits. In addition, it has the best small business line of credit on the market. When your business grows to the point where you might need a line of credit, Bluevine can provide that, which is why it is also one of the leading banks for small business loans.
In addition, the company has now added a premium checking product called Bluevine Premier, which earns 4.25% APY on balances up to $3 million and extended FDIC insurance of up to $3 million. There are also reduced fees for services like wire transfers and ACH transfers. Bluevine Premier has a waivable $95 monthly fee. To waive the fee, you need to maintain an average daily balance of at least $100,000 and spend at least $5,000 with your Bluevine debit card.
If you need to write checks, Bluevine offers a great perk with two free checkbook orders annually. It also has great software integrations with accounting and payment software.
Bluevine allows you to send international payments as well. You can send payments to 32 countries in 15 currencies directly from your Bluevine dashboard. Payments are sent out between 8 a.m. and 5 p.m., Eastern time, and can be received in as fast as 24 hours.
You also get up to five subaccounts. This allows freelancers to separate their finances, including potential tax reserves, into a reserve account. Funds held across all accounts are eligible to earn interest if criteria are met.
One of the few drawbacks to Bluevine is the cost of cash deposits. You must make cash deposits at either Green Dot retail locations for $4.95 per transaction or Allpoint+ ATMs for $1 per deposit plus 0.5% of the deposit amount. Bluevine also charges $2.50 for out-of-network ATM withdrawals in addition to third-party fees.
If you are a freelance business that deposits cash regularly, you may want to consider a bank with a physical location, such as Bank of America.
Lili: Best for New Freelancers Who Need Digital Tax Preparation Assistance
What We Like
- No monthly fees for basic tier
- Lili Pro plan includes an automatic savings account that earns 4.15% APY on balances of $100,000 or less
- Tax Optimizer helps with tax preparation for small businesses
Drawbacks
- No physical locations
- Some of the best features are in higher-tier Lili Pro account
- No outgoing wire transfers
Features
- Free Visa business debit card
- Mobile banking
- Invoice software: Unlimited invoice creation
- Tax Optimizer: Tracks tax write-offs
- Balance Up: Fee-free overdraft coverage feature
- Physical checks unavailable
- Integrations with QuickBooks, Venmo, PayPal, and CashApp, among others
- Toll-free phone support Monday through Friday, 9 a.m. to 7 p.m. Eastern time, and by email
- Lili Pro available for $9 per month
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | None |
Monthly Fees | None |
Domestic Wire Transfer Fees | Incoming are free; Outgoing unavailable |
International Wire Fees | Unavailable |
ATM Fees | None at 38,000 MoneyPass ATMs (third-party ATM fees may apply); $2.50 for out-of-network |
Cash Deposited | $4.95 fee per transaction, available through Green Dot retail locations |
APY | None |
Open an Account | |
*Lili is a business fintech platform backed by FDIC-insured Choice Financial Group, Inc. |
When To Use Lili
Lili works well for new freelancers because it offers an outstanding business checking product along with a robust tax optimizer inside the app.
If you upgrade from Lili Basic, the free checking product, to Lili Pro, you gain access to the tax optimizer to track potential write-offs. You will also get a tax bucket to set aside funds, scan receipts, complete your Schedule C within the app, and produce quarterly and annual expense reports.
Lili Pro costs $15 a month. It includes 1% cash back rewards, fee-free overdrafts up to $200, a savings account with 4.15% APY, and the ability to create and send unlimited invoices. Both Basic and Pro accounts provide you with a debit card, the option to get paid faster with direct deposit two days early, built-in expense tracking, and no hidden fees.
You can now access your Lili account via browser login in addition to the Lili app. Lili also now allows multimember LLCs, S-corps, general partnerships, and limited liability partnerships to sign up for an account. This is in addition to sole proprietors (with or without a DBA) and single-member LLCs, which were already eligible for an account.
Unfortunately, the provider doesn’t allow you to send wire transfers, and you cannot order checks or send them from the app. Similar to Bluevine, you can deposit cash, but it must be done through Green Dot retail locations for $4.95 a transaction.
What gives Lili a slight edge over competitor Found is the ability to deposit cash and a little more robust tax preparation integration.
Novo: Best Digital-only Bank for Rapid Access to Funds & Faster Payments
What We Like
- Refunds up to $7 in ATM fees at month’s end
- No maintenance fees
- Novo Boost and Express ACH allow faster access to your funds
Drawbacks
- Unable to deposit cash directly
- Lack of savings accounts and lending products
- Noninterest drawing account
Features
- Integrates with other business tools, such as QuickBooks, Slack, Xero, Stripe, Square, PayPal, Wise, and Shopify
- Set aside funds for taxes and other large business expenses with Novo Reserves
- Deposit checks directly through the mobile app
- Online banking includes unlimited invoicing and bill pay
- Novo Boost in coordination with Stripe allows you to access funds faster
- Express ACH lets you accept or receive same-day ACH payments
- Virtual debit card available immediately, one free physical debit card per user
- Paper checks can be sent straight from the app
- Live customer support from dedicated professionals
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | No limit |
ACH Fees | None |
Monthly Fees | None |
Domestic Wire Transfer Fees | None to receive; cannot send wires domestically but can send fee-free ACH transfers |
International Wire Transfer Fees | Novo partners with Wise to send international wires for a “low” fee |
ATM Fees | Up to $7 refunded at the end of the month |
Cash Deposited | None; money orders can be purchased and deposited through the app |
APY | N/A |
Novo is a business fintech platform backed by FDIC-insured Middlesex Federal Savings. |
When To Use Novo
For self-employed individuals who accept payments through Stripe or send and receive ACH payments regularly, Novo is an excellent choice.
If you accept payments from Stripe, Novo Boost lets you receive payments sent from your Stripe account faster than other providers. Meanwhile, Novo’s Express ACH enables you to accept or send same-day ACH payments. The combination of Novo Boost and Express ACH gives you access to your money faster than other digital-only providers.
To further expedite the payment process, users can now connect Stripe, Square, or PayPal and get paid via card, Apple Pay, Google Pay, PayPal, or Venmo.
Novo is also a great choice for freelancers who frequently withdraw money from ATMs for their business or need to make cash deposits. It refunds all ATM fees at the end of each month, and the cost of cash deposits is generally lower than Bluevine and Lili.
It also has a business checking option with no monthly fees, minimum balance requirements, and transaction limits. It even offers excellent integrations with accounting and business payment software and allows for free unlimited invoicing through the app.
If you’re looking for a digital-only bank, Novo may be the best account for freelancers who regularly handle cash as part of their business as cash deposits are possible—and Novo doesn’t charge for them. However, to make a cash deposit, you must purchase a money order and deposit it through the app. Many locations sell money orders, including United States Postal Service (USPS) locations, for up to $2.90 for money orders of up to $1,000.
You cannot purchase checks, but you can send checks directly from the app for free. Novo doesn’t have lending products, and you cannot send wires—but you can send domestic ACH transfers for free.
Bank of America: Best for Self-Employed Individuals Seeking a Traditional Bank
What We Like
- 200 free transactions per month
- Free digital tools to track business performance
- Ongoing rewards
Drawbacks
- Cash deposit fees charged per $100 over monthly allowance
- Doesn’t offer ATM fee reimbursements
- Requires a $100 opening deposit
Features
- Deposit checks, view accounts, make transfers, and pay bills with the mobile app
- Credit card processing and payroll services through ADP
- Cash Flow Monitor®, a cash management tool, lets you connect accounting, analytics, and payroll apps to help you make business decisions
- Check your business credit score through a partnership with Dun & Bradstreet
- Free debit card
- Physical checks’ cost varies depending on type ordered
- Integrations with QuickBooks, TurboTax, and Zelle
- Customer service during business hours in branch and via phone or via social media messages
- Merchant services available through Expensify
- Other products include business savings, CDs, lending products, and financial analysis through Merrill Financial Advisor
Required Opening Deposit | $100 |
Required Balance Minimum | None |
Transaction Limit Before Fees | 200, then 45 cents per item |
Monthly Fees | $16; waivable if conditions are met |
Domestic Wire Transfer Fees | Fees vary |
International Wire Transfer Fees | Fees vary |
ATM Fees | Free access to approximately 15,000 ATMs nationwide; $2.50 per transaction on out-of-network ATMs |
Cash Deposited | Up to $7,500 per month free, then 30 cents per $100 per statement cycle |
APY | N/A |
When To Use Bank of America
Some freelancers and self-employed business owners would prefer a bank with a physical location, especially those who deal with cash regularly.
It offers two different business checking accounts with waivable monthly fees and great ongoing rewards: Business Advantage FundamentalsTM and Business Advantage Relationship Banking.
Business Advantage Fundamentals is one of the best low-tier business checking accounts on the market, with waivable fees and plenty of free transactions. Its $16 monthly fee can be waived in one of three ways:
- Maintain a $5,000 combined average monthly balance.
- Spend at least $250 in new net purchases on a business debit card.
- Become a member of Preferred Rewards for Business.
With the company’s preferred rewards for business, you can earn 25% to 75% bonus rewards on credit cards and get a 5% to 20% higher interest rate on business advantage savings accounts.
Bank of America is also known for its outstanding customer service and online experience. In Keynova Group’s 2022 Small Business Banker Scorecard report, Bank of America ranked first for digital customer experience capabilities catered to small businesses.
As your freelance business grows, it can scale its services along with your business needs. Those offerings include merchant services, lending products, investments, and other small business resources.
With more than 4,000 branch locations in 37 states and more than 17,000 ATM locations, Bank of America can cater to most self-employed professionals wanting physical access to the bank. And for those who only need online access, accounts are available nationwide.
Found: Best for Freelancers Looking for Detailed Expense Tracking
What We Like
- No monthly fees, minimum balances, account fees, and sign-up fees
- Excellent expense tracking on both its desktop and mobile apps
- Helps you track tax write-offs and gives you real-time tax estimates
Drawbacks
- No free cash deposits
- Interest earning only through paid-tier Found Plus
- Cannot purchase checks or issue them from the app
Features
- Provides a business debit Mastercard, which allows you to track expenses and receive purchase alerts
- Debit cards can be frozen in the Found app
- Desktop and mobile apps
- Connect to accounting software and payment apps, such as Cash App, PayPal, Square, Venmo, and eBay
- Integrated bookkeeping allows you to categorize expenses, customize invoices, capture receipts, and set custom rules
- Track tax write-offs in the app
- View your tax estimate update in real-time
- Pay your taxes directly from the app
- Send your Schedule C directly from the app
- Customer service via email, online form, and support guides on the website
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | None |
ACH Fees | None |
Monthly Fees | None |
Domestic Wire Transfer Fees | Free incoming wires; outgoing wires only sent to Found customers |
International Wire Fees | Unavailable |
ATM Fees | Found doesn’t charge for ATM usage; third-party ATM fees will likely apply |
Cash Deposited | Accepted at more than 79,000 retail locations; list available in the Found app |
APY | N/A |
*Found is a business fintech platform backed by FDIC-insured Piermont Bank. |
When To Use Found
Found is very similar to another digital-only banking option on this list, Lili, and they’re likely competing for the same freelance customers. The one area where Found seems to have a slight advantage over Lili is in more detailed expense tracking as part of its integrated bookkeeping. If that is important to your freelance business, Found is the better option.
Its other slight edge is out-of-network ATM withdrawals. It doesn’t charge for any ATM withdrawals, while Lili charges $2.50 for out-of-network withdrawals. You can make cash deposits at more than 79,000 retail locations and eligible customers can deposit checks directly through the app.
As part of its integrated bookkeeping, you can also categorize expenses, capture receipts, and set custom rules with its app. Found also provides unlimited free invoicing, and it can customize those invoices with your company’s logo and colors. You can even accept payment for those invoices through payment apps.
Not only does Found help you with short-term budgeting, but it can also help you prepare business taxes. It has robust tax tracking and preparation software, which allows you to complete and send your Schedule C directly from the app, and lets you pay your tax bill directly.
Found is a good option for a self-employed bank account. If detailed expense tracking and out-of-network ATM withdrawals are essential, and you don’t need to deposit cash or checks, Found is probably the right choice. Otherwise, Lili would get the edge.
Grasshopper: Best Digital-only Bank for High-Yield Checking & Integrated Free Payment Software
What We Like
- Cash back on debit card purchases
- Interest-bearing account
- No monthly fees or transaction fees
Drawbacks
- No physical locations
- Minimum deposit required to open
- Cash deposits not accepted
Features
- Free physical and virtual Visa® rewards debit cards
- Unlimited 1% cash back on online and signature-based purchases
- Free bill pay, check deposit services, and digital invoicing tools
- Free domestic ACH and wire transfers when a balance greater than or equal to $25,000 is maintained
- International US dollars (USD) and foreign exchange (FX) wire transfers also available
- Autobooks, QuickBooks, and Plaid integrations with additional financial data management tools available
- Access to multimillion-dollar FDIC insurance up to $125 million
- Earn up to 4.0% APY on balances greater than $50,000 when bundled with an Accelerator Savings Account
- Personalized support from a US-based Client Services team available by phone, email, chat, and secure message
- Other products include business savings, CDs, lending products, credit cards, merchant services, and collection services
Required Opening Deposit | $100 |
Required Balance Minimum | None |
Transaction Limit Before Fees | No limit |
ACH Fees | None |
Monthly Fees | None |
Domestic Wire Transfer Fees | Free if account balance is $25,000 or greater; no incoming wire fees; $10 for outgoing |
International Wire Transfer Fees | $5 for incoming, $25 for outgoing |
ATM Fees | Free at 45,000 MoneyPass & Sum network ATMs |
Cash Deposited | Cash deposits not accepted |
APY |
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When To Use Grasshopper
Grasshopper is a good choice for freelancers, thanks to its inclusion of invoice and payment software Autobooks with each business checking account. Grasshopper’s online-only business checking offers excellent cashback rewards (debit card earns 1% cash back on all online and in-store purchases) and great APY (up to 2.25% uncapped).
Grasshopper has tiered interest earnings on its business checking, with accounts earning as much as 2.25% APY. Here is the tier structure for interest earnings:
- Balances up to $24,999.99: 1.51% APY
- $25,000 to $249,999.99: 2.25% APY
- $250,000 or greater: 1.51% APY
While there is no minimum or cap on balances that earn APY, customers must maintain a minimum average balance of $10,000 with no nonsufficient funds (NSF) items during the preceding 12 calendar months.
For self-employed startups that might want a higher interest yield or more FDIC insurance, Grasshopper has a new checking product called Accelerator Business Checking. It includes extended FDIC insurance up to $125 million through the company’s ICS deposit account. You can also earn up to 4.0% APY by opening an Accelerator Savings Account.
For self-employed business owners making many debit card purchases, Grasshopper’s cashback can help you earn money on everyday purchases. And with no cap on interest earnings, you will continue to earn passive income as your account balance grows. Grasshopper’s account is fee-free with no minimum balance requirements, though you must deposit $100 to open the account.
One drawback is that cash deposits are not permitted. In addition, its free ATM network is a little smaller than some of its competitors, with no ATM fee reimbursement out-of-network.
Chase: Best for Small Business Banking Tools & Premium Checking
What We Like
- $300 bonus when you open an account
- Easy-to-waive monthly fee
- Built-in card acceptance with QuickAccept℠ via the Chase Mobile® app
Drawbacks
- Limited number of free transactions
- ATM fees not reimbursed
- Fee for cash deposits of more than $5,000 per statement period
Features
- Manage debit, deposit, and ATM card settings for individual employees
- Deposit checks, view account balances, pay bills, and make transfers through the mobile app
- Integrates with QuickBooks and other leading accounting software
- Free debit card, mailed within 10 business days of application approval
- Physical checks’ costs depend on type ordered
- Chase Merchant Services
- Live customer support online or in branch during business hours
- Other products include business savings, CDs, lending products, credit cards, merchant services, and collection services
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | 20, then 40 cents per transaction |
ACH Fees | $25 for first 25 items per month, 15 cents per item above 25 per month, $2.50 return fee |
Monthly Fees | $15; waivable if conditions are met |
Domestic Wire Transfer Fees | Up to $35 for outgoing wires, up to $15 for incoming wires |
International Wire Transfer Fees | Up to $50 for outgoing wires, up to $15 for incoming wires |
ATM Fees | $3 per transaction at any non-Chase ATM, plus ATM operator fees |
Cash Deposited | $2.50 per $1,000 after you deposit $5,000 in a billing cycle |
APY | N/A |
When To Use Chase
For freelancers wanting another option for a full-service traditional bank or needing a scalable checking account, Chase is a great option. It has three excellent business checking products—Business Complete Banking, Performance Business Checking, and Platinum Business Checking—all with a waivable monthly fee if specific criteria are met. You can read our comparison of Chase’s business checking accounts to see which best fits the needs of your freelance business.
The basic checking product, Business Complete Banking, allows for 20 free transactions and $5,000 in free cash deposits monthly. The highest-tier account, Platinum Business Checking, is the best premium business checking account on the market, and it comes with a waivable $95 monthly fee.
For self-employed workers who might want a retirement plan, Chase offers access to 401(k) services through J.P. Morgan. If your small business has employees, J.P. Morgan offers information about regulations in parts of the US requiring businesses to enroll employees in a state-run individual retirement account (IRA) and how Chase can help your business comply with those laws. You may visit Chase’s 401(k) solutions page to learn more.
For freelancers needing merchant services, Chase provides those as well. You can even sign up for collection services, ACH payment services, and online account access through Chase’s access and security manager. Chase has all the services you need as your freelance business grows.
Live Oak Bank: Best for Freelancers Looking for High-yield Business Savings
What We Like
- No minimum balance requirements
- No monthly maintenance fees
- High-yield return on both savings and short-term CDs
Drawbacks
- No debit card for savings product
- No free outgoing wires
- No cash deposits
Features
- High-yield CDs
- Small Business Administration (SBA) and other loans available
- Free online and mobile banking
Required Opening Deposit | None |
Required Balance Minimum | 1 cent to earn interest |
Transaction Limit Before Fees | No limit |
Automated Clearing House (ACH) Fees | None |
Monthly Fee | None |
Domestic Wire Transfer Fees | None for incoming; $19 for outgoing |
International Wire Transfer Fees | Unspecified |
ATM Fees | No debit card for savings product. Must transfer cash to Live Oak business checking and then withdraw from ATM |
Cash Deposited | None; bank doesn’t accept cash deposits |
APY | 4.00% |
Customer Service | By phone or fax during weekdays from 8 a.m. to 8 p.m. Eastern time or through its support page |
Other Products | Business checking, SBA loans, United States Department of Agriculture (USDA) loans, and commercial lending |
When To Use Live Oak Bank
For self-employed business owners looking to earn interest on reserve balances, Live Oak Bank is an excellent choice. Live Oak tops our list of the best business savings accounts on the market, with 4.0% APY earned on all balances.
In addition, for those looking for other types of savings accounts, Live Oak offers business CDs with some of the highest APYs on short terms. You can get an APY of 5.00% on a one-year CD, 4.75% on an 18-month CD, and 2.00% on CDs ranging from two to five years.
The bank has no monthly fees and no minimum deposit required, just a one-cent requirement to earn interest on the account. Because Live Oak Bank has ended its business checking product, you can now get a debit card with your business savings account. You can withdraw cash for free at more than 55,000 Allpoint ATMs. If you use an out-of-network ATM, third-party fees may apply. One drawback is that the bank doesn’t accept cash deposits.
For freelancers looking to keep their personal and business savings accounts with the same provider, Live Oak Bank is one of the few fintechs that offer both. Live Oak Bank’s personal savings also earns 4.0% APY.
The provider even offers many small business loans, including SBA, USDA, and commercial loans. It was the top SBA 7(a) lender by dollar amount in 2022, lending more than $1.6 billion.
Oxygen: Best Digital-only Provider for Cash Back on Debit Card Purchases
What We Like
- Rare fintech that offers both personal and business banking
- No monthly fees or transaction fees
- Single-use virtual cards available for online shopping provide extra security
Drawbacks
- No free cash deposits
- Only one authorized user allowed per account
- No physical locations
Features
- Nationwide limited liability company (LLC) creation available through the Oxygen App
- 5% cashback rewards on everyday purchases with your debit card
- Ability to create single-use virtual cards to keep your business bank account secure
- Business savings product available with 1% APY on balances up to $20,000
- Multiple personal checking accounts available
- Free Oxygen Visa Business Debit Card and an unlimited amount of virtual cards
- Integrations with QuickBooks, Xero, Plaid, and Gusto
- Customer service via a toll-free phone number, email, social media support, and online help articles
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | None |
ACH Fees | None |
Monthly Fees | None |
Domestic Wire Transfer Fees | No fees incoming; outgoing unavailable |
International Wire Transfer Fees | N/A |
ATM Fees | None at Allpoint ATMs; $3 out-of-network domestically; $5 out-of-network internationally |
Cash Deposited | $4.95 fee per transaction, available through GreenDot retail locations; can also deposit through link to external bank via Plaid |
APY | N/A |
Oxygen is a business fintech platform backed by FDIC-insured The Bancorp Bank. |
When To Use Oxygen
If you make frequent debit card purchases with your freelance business, Oxygen is an outstanding choice. It provides 5% cash back rewards on all debit card purchases.
It is a digital-only bank geared toward freelancers and creatives among other small businesses. It is one of the few fintechs that provides personal and business banking options. This is great for self-employed business owners wanting to keep their business and personal finances in the same bank.
If your business grows and you decide to shift to a limited liability company (LLC), Oxygen can help with the transition. It provides nationwide LLC creation in the Oxygen app powered by CorpNet, Inc. There are fees involved, which is one of the few services with a fee.
The excellent banking products combined with outstanding technology integrated in the app helped Oxygen win the 2021 Best Overall FinTech Mobile App by the FinTech Breakthrough Awards, rising above all other financial technology providers in our guide.
Oxygen’s business bank account has no monthly fees, minimum balance requirements, or transaction limits. Deposits can be made through Green Dot locations for $4.95 per transaction and by in-app mobile check capture, via ACH or Plaid, from an outside account.
You can also open a business savings account, which earns 1% APY on balances up to $20,000. However, it lacks outgoing and international wire transfers, and you cannot set up multiple users in the app. It is only open to a single sign-on per account, which might not be as big a deal for a freelancer as it would be for a larger corporation.
How We Evaluated the Best Self-employed Bank Accounts
We evaluated over 100 banks when compiling this buyer’s guide. When we evaluated the best bank accounts for self-employed professionals, we considered:
- Whether accounts were available to sole proprietors, self-employed individuals, or freelancers
- Monthly fees, if any, and how easily they are waived
- Required opening deposit and balance minimums
- Transaction limits before fees
- ACH and wire transfer fees
- ATM fees and availability
- Cash deposit fees and availability
- Interest yield, if applicable
- Other checking account perks
- Software integrations
- Other business services provided
- Lending products provided
- Customer service and customer reviews
What to Consider When Choosing a Self-employed Bank Account
While we used our own criteria to select the best self-employed bank accounts for this list, here are some things you should review before making a selection:
1. Determine Eligibility for an Account With a Particular Bank
While the providers on this list all permit self-employed business owners to open a bank account, this isn’t true with every bank. Some banks specialize in accounts for corporations. Before choosing a bank, make sure you are eligible to open an account.
2. Understand the Fee Structure and How It Will Apply to Your Business
Most online-only banks offer business bank accounts with very few fees. Traditional banks like Bank of America and Chase typically have waivable monthly fees if criteria are met. In addition to monthly fees, banks can charge for wire transfers, excess transactions and, sometimes, cash deposits.
You should consider three factors before signing up for an account with waivable fees or limited free transactions:
- Can you meet the criteria to get the monthly fee waived?
- Does the account offer enough free cash deposits or transactions to meet your business needs?
- If you know you will end up paying certain monthly fees, is it worth it because of other features the bank provides that competitors do not? If that bank offers features that fee-free accounts don’t, it might be worth a small monthly fee.
Generally, freelancers should be wary of banks that have any of the following features:
- Cash deposit fees
- Inability to deposit cash or difficulty when depositing cash
- Low amount of free transactions
- Monthly fees that are expensive or hard to waive
- Minimum balance requirements
While the banks in our guide include some of these items, you may decide that you’re willing to accept some of these because of other features the bank offers. Just be aware of these and their potential costs before choosing a bank.
3. Consider the Need for a Bank With Physical Locations
Most of the banks on this list are online-only banks. This is ideal for many freelancers looking for an account with limited fees and may be willing to sacrifice the ability to visit a physical location for less expensive banking.
However, if your business handles cash regularly, or if you want the ability to visit a branch bank regularly, you may want to consider a bank like Bank of America or Chase, which have branches. Be sure to choose the provider with branches near your business.
4. Read Customer Reviews
If you look at the individual reviews linked in each section above, we include a customer review section for each provider. This can allow you to see each provider’s benefits and drawbacks before opening an account. Remember that customer reviews often include both business and personal accounts, so some might not apply to your potential business account.
For more information, see our guide on how to choose a bank for your small business. And for a complete list of our recommended checking providers, see our guide to the best small business checking accounts.
What You Need to Open a Business Bank Account
Each provider on this list may require different documents. Generally, you will need:
- Employer identification number (EIN) or Social Security number if you’re a sole proprietor
- Fictitious business name certificate or doing-business-as (DBA) certificate
- Business formation documents
- Organization documents, including your ownership agreements
- Business licenses
- Government-issued photo ID, such as a passport or driver’s license
You may refer to our guide on how to open a business bank account. It includes a downloadable checklist to guide you through the process.
Frequently Asked Questions (FAQs)
Yes, having a business bank account is essential even if you’re self-employed because it allows you to separate your business and personal finances. This makes tax preparation and business financial planning much easier and helps you avoid any potential issues with the IRS.
There is no limit to the number of business bank accounts you can have at any one time. However, keeping accounts open and not using them opens you up to potentially having a dormant business bank account.
Not only are freelancers allowed to open a business bank account, but freelancers also should open a business bank account. Doing so allows you to earn the benefits of some of the best small business checking accounts and keep your personal and business finances separate.
Bottom Line
All of these providers can help freelancers or self-employed business owners manage their business finances while providing resources to help them grow—but each has a slightly different business focus. You should consider what you need your business bank account to do for your company and choose the provider that best meets those needs.