7 Best Bank Accounts for Self-employed Professionals in 2023
This article is part of a larger series on Business Banking.
The best bank accounts for self-employed professionals and freelancers should offer a low-cost business checking account, which should come with limited fees and easy access through phone and web-based applications. In addition, these accounts should have great software integrations to help small business owners send and receive payments through popular payment applications.
The financial providers offering these accounts should be able to help freelancers grow with other business support products and services. Many providers also allow cash deposits and withdrawals for businesses dealing with cash payments regularly.
Here are the seven best bank accounts for self-employed professionals:
- Bluevine*: Best bank account overall for self-employed with a high-interest yield checking
- Lili*: Best for new freelancers who need digital tax preparation assistance
- Novo*: Best digital-only bank for rapid access to funds and faster payments
- Oxygen*: Best digital-only provider for cash back on debit card purchases
- Found*: Best for freelancers looking for detailed expense tracking
- Bank of America: Best for self-employed individuals seeking a traditional bank
- First Internet Bank: Best for freelancers who want a full-service digital-only bank
*Providers are financial technology (fintech) platforms backed by and Federal Deposit Insurance Corp. (FDIC)-insured through a supporting bank partnership (Coastal Community Bank for Bluevine, Choice Financial Group, Inc., for Lili, Middlesex Federal Savings for Novo, The Bancorp Bank for Oxygen, and Piermont Bank for Found)
Best Bank Accounts for Self-employed Professionals At a Glance
Provider | Monthly Fee | Transaction Fee | Annual Percentage Yield (APY) | Cash Deposit Fee | ATM Fee |
---|---|---|---|---|---|
Business Checking | None | None | 2.0% on qualifying balances up to $100,000 | $4.95/deposit (Green Dot locations) | Free at MoneyPass ATM locations nationwide |
Business Checking Basic | None | None | None | $4.95/deposit (Green Dot locations) | Free at MoneyPass locations; $2.50 for nonnetwork |
Business Checking | None | None | N/A | None; cash is deposited through money orders | Refunds all ATM fees |
Business Checking | None | None | N/A | $4.95/deposit (Green Dot locations); Also through Plaid link to bank | None at Allpoint ATMs; $3 or $5 out-of-network |
Business Checking | None | None | N/A | Cash deposits not accepted | None; third-party ATM fees may apply |
$16; waivable | Free (first 200 in a month), then 45 cents each | N/A | Free up to $7,500/month; 30 cents every $100 after | $2.50/transaction + operator fees (non-BoA ATM) | |
Small Business Checking | None | None | 0.50% on balances of $10,000 or more | Cash deposits not accepted | None; reimburses up to $10/month in ATM fees |
Bluevine: Best Bank Account Overall for Self-employed With High-interest-Yield Checking
What We Like
- Interest-earning checking on balances of $100,000 or less
- Integrates with QuickBooks
- Excellent line of credit product
What's Missing
- No savings, money market, and certificate of deposit (CD) accounts
- No physical branch locations
- Only one debit card is issued per account
Features
- No monthly maintenance fee
- No minimum balance requirement
- Free debit card 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
Bluevine Business Checking Terms
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, none for incoming |
International Wire Transfer Fees | $15 for outgoing, none for incoming |
ATM Fees | Free at MoneyPass locations nationally; $2.50 plus operator fees for nonnetwork ATM use |
Cash Deposited | $4.95 fee per transaction, available through Green Dot retail locations |
APY | 2.0% on balances of up to $100,000, once qualifications are met |
Open an Account | |
*Bluevine is a business fintech platform backed by FDIC-insured Coastal Community Bank. |
When To Use Bluevine Business Checking
For freelancers and self-employed business owners looking to earn interest from a business checking account, Bluevine is an excellent choice. You can earn 2.0% APY on balances of $100,000 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 bank with no monthly fees, minimum balance requirements or monthly transaction limits. In addition, it has the best business line of credit on the market. When your business grows to where you might need a line of credit, it can provide that, which is why it’s one of the leading banks for small business loans.
If you need to write checks, it offers a great perk—two free checkbook orders annually. It also has great software integrations with accounting and payment software. Moreover, wire transfers are relatively inexpensive, with outgoing wires costing just $15.
One of the few drawbacks to Bluevine is the cost of cash deposits. You must make cash deposits at Green Dot retail locations, which cost $4.95 per transaction. Bluevine also charges $2.50 for out-of-network ATM withdrawals in addition to third-party fees.
If you have a freelance business that deposits cash regularly, consider a bank with a physical location, such as Bank of America.
Bluevine Business Checking Overview
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 1.5% APY
- Tax Optimizer helps with tax preparation for small businesses
What's Missing
- No physical locations
- Limits business accounts to doing-business as (DBA) setups and single-owner limited liability companies (LLCs)
- No 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
When To Choose Lili
Lili works well for new freelancers because it offers an outstanding business checking product along with a robust tax optimizer inside the app. The tax optimizer lets you track potential write-offs, set aside money in a tax bucket, scan receipts, complete your schedule C automatically, and produce quarterly and annual expense reports. It’s a very powerful tool included in the Lili app.
You get two checking options: Lili Basic, which is free, and Lili Pro, which is $4.99 a month. Both 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.
The basic business checking account has no monthly fees, transaction limits, and minimum balance requirements. Meanwhile, the perks of Lili Pro include 1% cash back rewards on all purchases, fee-free overdrafts up to $200, a savings account with a 1.5% APY, and the ability to create and send unlimited invoices.
You can now access your Lili account via browser login in addition to the Lili app. Lili is also finalizing allowing multi-member LLCs to sign up for an account, and this feature is expected to go live before the end of 2022.
Unfortunately, the provider doesn’t allow you to send or receive 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.
Lili Business Checking Basic Overview
Novo: Best Digital-only Bank for Rapid Access to Funds & Faster Payments
What We Like
- Zero maintenance fees
- Refunds all ATM fees
- Novo Boost and Express ACH allow faster access to your funds
What's Missing
- 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
Novo Business Checking Terms
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 | All fees refunded at the end of the month |
Cash Deposited | None; money orders can be purchased and deposited through the app |
APY | N/A |
Open an Account | |
*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.
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 generally is 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 US Postal Service (USPS) locations, for up to $1.95 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.
Novo Business Checking Overview
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 LLC creation available through the Oxygen App
- 5% cash back 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
Oxygen Business Checking Overview
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before 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 Green Dot retail locations; can also deposit through link to external bank via Plaid |
APY | N/A |
Open an Account | |
*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’s 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 an 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 (SSO) per account, which might not be as big a deal for a freelancer as it would be for a larger corporation.
Oxygen Business Checking Overview
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
- Cannot currently deposit checks made out in your business’ name
- Doesn’t accept cash deposits
- 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
Found Bank Business Checking Terms
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 unavailable |
International Wire Fees | Wire transfers unavailable |
ATM Fees | Found doesn’t charge for ATM usage; third-party ATM fees will likely apply |
Cash Deposited | Cash deposits not accepted |
APY | N/A |
Open an Account | |
*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. 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 ATM withdrawals. All out-of-network ATM withdrawals would be subject to third-party fees.
However, Found doesn’t list its ATM network on its website. Lili is a part of the MoneyPass network, which allows free ATM usage at more than 38,000 locations. Additionally, Found doesn’t allow you to make cash deposits and deposit checks in the app, whereas Lili does.
If you need to deposit a check with Found, you can use the Ingo Money app. Checks deposited through that app can be accessed in your account immediately for a fee or in 10 days for free. The major drawback is that the check must be made out in your name and not your business name for Ingo Money to accept it.
Both Found and Lili offer fee-free business checking options without transaction limits, have robust tax tracking and preparation software, allow you to complete and send our schedule C directly from the app, and let you pay your tax bill directly from the app. Neither allows you to send wire transfers.
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.
Found Bank Business Checking Overview
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, financial analysis through Merrill Financial Advisor
Bank of America FundamentalsTM Business Checking Terms
Required Opening Deposit | $100 |
Required Balance Minimum | None |
Transaction Limit Before Fees | 200 monthly, then 45 cents per item |
Monthly Fees | $16; waivable if conditions are met |
Domestic Wire Transfer Fees | Vary |
International Wire Transfer Fees | Vary |
ATM Fees | None at over 16,000 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 |
Open an Account |
When To Choose Bank of America’s Business Checking Account
Some freelancers and self-employed business owners would prefer a bank with a physical location, especially those who deal with cash regularly. For those business owners, Bank of America is a great option, as it is our best small business checking account.
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 the Keynova Group 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. For those who only need online access, accounts are available nationwide.
Bank of America FundamentalsTM Business Checking Overview
First Internet Bank: Best for Freelancers Who Want a Full-service Digital-only Bank
What We Like
- Fee-free banking
- Up to $10 refund for ATM fees
- Selection of business deposit accounts
What's Missing
- APY only available with average daily balance of $10,000
- No cash deposits
- No physical branches
Features
- Small Business Administration (SBA) loans and commercial loans
- Other business bank accounts available, including savings, money markets, and certificates of deposits (CDs)—ranked among the best business savings accounts
- Personal accounts
- Health savings accounts (HSAs)
When To Choose First Internet Bank
For freelancers looking for a digital-only bank that provides the same services as a traditional, brick-and-mortar bank, First Internet Bank is an excellent choice. Not only does it have an interest-bearing business checking account, but it also provides savings and CD accounts that earn interest. If your business grows, it has commercial checking, treasury management, and merchant services.
You can earn 0.50% APY with an average daily balance of at least $10,000 in your business checking account. Savings and CD rates are even higher.
What sets First Internet Bank aside from other digital-only banks is its offering of lending products. It has SBA lending, commercial real estate loans, commercial lending, and public finance loans. SBA microloans are one of the top forms of startup financing, which can help your freelance business grow.
First Internet Bank has software integrations with QuickBooks, shared account access, and no-fee bill payment.
Its drawbacks include more limited software integrations than the fintech options on this list. Also, cash deposits are not accepted. So, freelance businesses that need to deposit cash but still want a digital-only bank should consider Bluevine or Lili instead.
First Internet Bank Business Checking Overview
How We Evaluated the Best Bank Accounts for Self-employed Professionals
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 You Need To Open a Business Bank Account
Each provider on this list may require different documents to open a business bank account. 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
Frequently Asked Questions
Do I need a business bank account if I’m self-employed?
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.
How many bank accounts can you have at once?
There’s 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.
Can freelancers open a business bank account?
Not only are freelancers allowed to open a business bank account, but freelancers 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.