10 Best Banks for Startups in 2023
This article is part of a larger series on Business Banking.
The best banks for startups should provide new businesses with an excellent low- or no-fee checking account, business support products, and specific services geared toward startups. They should even have outstanding lending products, with loans and lines of credit that can assist newer businesses with needed funding for growth and expansion.
Also, they should offer products and services that benefit the growth of all businesses, including startups. Those products and services should be scalable to help you as your company grows.
After reviewing more than 100 banks, here are the 10 best banks for a startup business, with links directly to the provider:
- Chase Member Federal Deposit Insurance Corp. (FDIC). : Best overall bank for startups with full-service banking
- Novo Provider is a financial technology (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
- Mercury Provider is a fintech platform backed by and FDIC-insured through supporting bank partnerships with Choice Financial Group and Evolve Bank & Trust : Best digital bank for larger-scale incorporated startups
- Bluevine Provider is a fintech platform backed by and FDIC-insured through a supporting bank partnership with Coastal Community Bank. : Best for earning interest on smaller balances and best business line of credit
- U.S. Bank Member FDIC : Best for free business checking with a traditional bank
- Bank of America Member FDIC. : Best for ongoing rewards and low cash deposit fees
- Brex Provider is a fintech platform backed by and FDIC-insured through partnerships with multiple banks. See Brex's website for the complete list. : Best business account for startups and scaled companies
- Found Provider is a fintech platform backed by and FDIC-insured through a supporting bank partnership with Piermont Bank. : Best digital-only provider for self-employed startups
- Grasshopper Member FDIC. : Best for earning interest on larger checking balances
- Lili Provider is a fintech platform backed by and FDIC-insured through a supporting bank partnership with Choice Financial Group. : Best for startups needing digital tax preparation assistance
Best Banks for Startups at a Glance
Account Name | Monthly Fee | Free Monthly Transactions | Annual Percentage Yield (APY) | Free Cash Deposit Limit | |
|---|---|---|---|---|---|
 | Business Complete Banking | $15; waivable | 20 | N/A | $5,000 per month |
 | Business Checking | None | No limit | N/A | No fee; cash deposited through money orders |
 | Business Checking | None | No limit | N/A | Cash deposits not accepted |
 | Business Checking | None | No limit | 2.0% on qualifying balances of $250,000 or less | $4.95 per deposit (Green Dot) |
 | Silver Business Checking | None | 125 | N/A | $2,500 per month |
 | Fundamentals Business Checking | $16; waivable | 200 | N/A | $7,500 per month |
 | Brex Cash | None | No limit | N/A | Cash deposits not accepted |
 | Business Checking | None | No limit | N/A | Accepted at certain retail locations for a fee |
 | Innovator Business Checking | None | No limit | Up to 2.25% | Cash deposits not accepted |
 | Business Checking Basic | None | No limit | N/A | $4.95 per deposit (Green Dot) |
Chase: Best Overall Bank for Startups With Full-service Banking
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 depending 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 |
Automated Clearing House (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 Choose Chase
- You want all the products and services offered by a traditional bank
- You prefer the convenience of both branch and online access
- You like to have both personal and business banking with one bank
Chase is the best bank for startup businesses looking for a full-service traditional bank. It offers three different business checking options with waivable monthly fees that can scale as your business grows. This is why it is considered one of the best small business checking accounts on the market.
In addition, it has industry-leading lending products, including credit cards (see our list of the best Chase credit cards) and lines of credit, along with point-of-sale (POS) and software solutions. Through J.P. Morgan, Chase provides commercial lending solutions, including commercial real estate (CRE) loans. J.P. Morgan also offers payment services, cash flow management, commercial credit cards, and merchant services.
Whether your startup needs just a business checking account or has grown to need a full range of business banking products and services, Chase can meet your needs.
Novo: Best Digital-only Bank for Rapid Access to Funds & Faster Payments
What We Like
- Refunds all 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
- Non-interest 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 | 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 |
*Novo is a business fintech platform backed by FDIC-insured Middlesex Federal Savings. | |
When To Choose Novo
- You use Stripe and want quick access to your funds as Novo Boost allows you to receive payments faster than other providers
- Your business withdraws cash from ATMs frequently
- You aren’t interested in an interest-bearing checking account or getting lending products from your business checking account provider
For startup businesses that receive payments regularly through Stripe, Novo is a great banking option. With its Novo Boost product, you can receive payments faster from your Stripe account than other providers. In addition, Novo offers Express ACH, which allows you to send and receive same-day ACH payments. The ability to receive and send payments rapidly gives Novo a huge advantage over other fintech options.
If your business withdraws cash from an ATM regularly, Novo is the perfect choice for a startup since it refunds all ATM fees at the end of each month. It also offers up to 10 reserve accounts, unlimited invoicing, and excellent accounting and payment software integrations. While you cannot order checks with Novo, you can send paper checks from the app.
It doesn’t charge for cash deposits, but you must purchase a money order and deposit it through the app. One other drawback is that Novo doesn’t have any lending products. Overall, it is an excellent option for startups, especially those with frequent ATM withdrawals.
Mercury: Best Digital Bank for Larger-scale Incorporated Startups
What We Like
- No monthly maintenance fees
- Physical and virtual debit cards
- Treasury product offers outstanding yield on balances over $250,000
Drawbacks
- Accounts unavailable to sole proprietorships and trusts
- Lacks paper check-writing abilities
- Limited lending options and no cash deposits
Features
- Earn interest with Mercury Treasury product if you have more than $250,000 in Mercury accounts and request Treasury
- Set customer user permissions for your team members
- Create auto-transfer rules for your accounts
- Integrate accounts with QuickBooks and Xero accounting software
- Virtual debit cards available right away, with physical debit cards arriving in the mail in a few days
- Physical checks unavailable
- Business payment integrations with Shopify, Stripe, Zapier, Amazon, and PayPal
- Email customer service available
- Savings account provided when you open checking account
- Other products include Mercury Treasury, capital and venture debt, and credit card
 | |
|---|---|
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | No limit |
Monthly Fees | None |
Domestic Wire Transfer Fees | None |
International Wire Transfer Fees | None as long as it is sent through Mercury’s structure |
ATM Fees | No charge for out-of-network ATMs, although operator fees apply; free access to Allpoint ATM network (55,000 locations worldwide) |
Cash Deposited | Cash deposits not accepted |
APY | N/A |
*Mercury is a business fintech platform backed by Federal Deposit Insurance Corp. (FDIC)-insured Choice Financial Group and Evolve Bank & Trust. | |
When To Choose Mercury
- Business owners who don’t need their business bank to have a physical location
- Companies that don’t need to deposit cash
- Startups and tech companies looking for a fee-free business banking experience
Mercury is a fintech banking product made with startups and tech companies in mind. Its checking and savings accounts are completely free, with no minimum deposit or balance requirements.
The biggest perk of Mercury is its new Vault product. Mercury will use partner banks and a sweep network to extend your FDIC insurance to up to $5 million.
Mercury also offers Treasury, which is an interest-earning account. It is only available to customers with at least $500,000 in funds in Mercury accounts and is currently earning up to 5.43% APY, although the bank expects that to increase as the prime rate increases.
What’s more, the provider has the IO Mastercard, which offers automatic 1.5% cash back on all purchases.
The company also has outstanding software integrations and a perks page that allows you to advertise deals for your business on the Mercury website. Most businesses incorporated in the US are eligible for an account, except sole proprietorships and trusts.
The drawbacks are the inability to deposit cash and no lending products outside of the credit card and a venture capital term loan program. Otherwise, Mercury is a great choice for startups looking for a digital-only bank.
Bluevine: Best for Earning Interest on Smaller Balances & Best Business 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 CD accounts
- No physical branch locations
- Fee for depositing cash
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
| |
|---|---|
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 non-network ATM use |
Cash Deposited | $4.95 fee per transaction, available through Green Dot retail locations |
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 Choose Bluevine
- Your company wants to earn interest on its checking account and meets one of the two requirements set aside by Bluevine to earn interest
- You need a line of credit; Bluevine is also our choice for the best small business line of credit
- You prefer an online-only bank
For startups looking for an online-only financial provider with interest-bearing checking and the best line of credit product on the market, Bluevine is a great choice. You can earn 2.0% APY with its business checking on balances of $250,000 or less—as long as you either spend $500 a month with the debit card or receive $2,500 in customer payments in a month.
Startups will like Bluevine because it has no monthly fees, transaction fees, minimum opening deposit, and minimum balance requirement. It also has great software integrations and provides two free checkbook orders per year.
You can now send international payments with Bluevine to 32 countries in 15 currencies. Payments sent in United States dollars (USD) cost $25 per payment while payments sent in other currencies cost $25 plus 1.5% of the payment amount. See Bluevine’s website for more information.
Cash deposits cost $4.95 per transaction and can only be done at a Green Dot retail location. Also, Bluevine charges $2.50 for out-of-network ATM withdrawals in addition to third-party fees. If most of your transactions are digital and not cash-based, Bluevine is an excellent choice.
U.S. Bank: Best for Free Business Checking With a Traditional Bank
What We Like
- No monthly fee
- Free mobile check deposits
- Apply in person, online, or by phone
Drawbacks
- Expensive wire fees
- Limited free transaction
Features
- Send and receive money through app
- Digital invoicing and payment systems integrated into your online dashboard
- Mobile app to monitor all of your accounts, transfer funds between accounts, and deposit checks online
- Easy integration with overdraft protection or credit card processing services for your business
- Free debit card and 50% discount on first check order up to $50
- Integrations with QuickBooks and U.S. Bank Payment Processing
- Customer service online, by phone, or in-branch during business hours
- Other products include lending and cash flow products, other checking options, and point-of-sale (POS) services
 | |
|---|---|
Required Opening Deposit | $100 |
Required Balance Minimum | None |
Transaction Limit Before Fees | 125 in a month, then 50 cents per transaction |
ACH Fees | None |
Monthly Fees | None |
Domestic Wire Transfer Fees | $40 for outgoing, $14 for incoming |
International Wire Fees | $75 for outgoing, $15 for incoming |
ATM Fees | No charge for out-of-network ATMs, although operator fees apply |
Cash Deposited | $2,500 in cash deposits or 25 free cash deposits per cycle, whichever comes first |
APY | N/A |
When To Choose U.S. Bank
- You are looking for a business checking account with no monthly fees
- Your cash deposits don’t exceed $2,500 per month
- You want a cash back bonus for opening a new U.S. Bank account
For startups looking for a traditional bank with free business checking, U.S. Bank is another great traditional bank option. Previously, the company had branches in just 26 states, but now, U.S. Bank’s business checking accounts are available nationwide.
There is no monthly fee for the company’s basic business checking, known as Silver Business Checking. You get 125 free transactions monthly and up to $2,500 in free cash deposits.
If you exceed those thresholds regularly, U.S. Bank offers two higher-tier accounts. There are waivable monthly fees for the Gold and Platinum Business Checking accounts, but both allow more free transactions and other perks.
In addition, you can earn up to a $800 bonus when you open a new, eligible U.S. Bank business checking account (promo code: Q3AFL23) and complete qualifying activities, subject to certain terms and limitations—offer valid through January 8, 2024. See our article on the best bank account promos and offers for details on how to qualify.
Bank of America: Best for Ongoing Rewards & Low Cash Deposit Fees
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 Choose Bank of America
- Your business makes large cash deposits each month
- You want to earn rewards from your checking account
- You prefer the convenience of both branch and online access
Another outstanding traditional bank is Bank of America, which offers multiple checking options and full-service business banking products and services. It has two business checking accounts with monthly fees that can be easily waived.
Also, you can work with your business banking advisor to determine when you might need to switch from one account to the other. In addition, it offers up to $500 in combined cash back and credit card statement credits as part of its ongoing rewards.
With its 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 also offers outstanding business savings, CDs, lending products, and financial analysis through Merrill financial advisor. You can even check your business credit score through the app in partnership with Dun & Bradstreet. Bank of America includes all the products and services your startup will need to flourish.
Brex: Best Business Account for Startups & Scaled Companies
What We Like
- No minimum balance or opening deposit requirement
- No opening or maintenance fees
- All ACH and wire transfers are free
Drawbacks
- No ATM card option
- No physical locations and cash deposits in an account
- Tightened qualification requirements may leave your business unable to obtain an account
Features
- No fees on money transfers, including ACH, checks, and wire transfers, both domestic and international
- No opening or maintenance fees
- Uncapped rewards and 10 to 20 times higher limits on Brex Mastercard with no personal guarantee
- Spend management for accounting automation and accuracy
- Partner perks with businesses, such as Amazon Web Services (AWS), Apple, QuickBooks, and UPS
- Powerful mobile app with expense tracking and integrations with popular financial and business software
- Deposits can be spread among multiple member banks that are FDIC-insured for a maximum of $6 million
- Customer support via chat seven days a week from 5 a.m. to 8 p.m. Pacific time or by email
 | |
|---|---|
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 |
International Wire Fees | None |
ATM Fees | No ATM card available |
Cash Deposited | None; cash deposits not accepted |
APY | N/A, invested cash in money market can draw up to 4.10% |
Open an account | |
*Brex is a business fintech platform, which partners with 10 program banks that are FDIC-insured. | |
When To Choose Brex
- You need to transfer money frequently; all ACH, check, and wire transfers are free
- You don’t need to deposit cash as Brex does not accept cash deposits
- You don’t need to withdraw money via ATM as Brex’s debit card does not allow you to withdraw cash at an ATM
Another digital-only bank geared toward startups is Brex. Its checking product, Brex Cash, has no opening deposit requirement, minimum balance requirement, limit on free monthly transactions, and monthly fees. The biggest perk is no wire fees, either domestic or international.
Brex tightened its qualification requirements earlier this year, gearing toward startups and scaled companies. To qualify for an account, you must meet one of Brex’s criteria listed on its website. If you cannot qualify, see our buyer’s guide of the leading Brex alternatives that can serve your business needs.
The company also has a money market account, which can draw up to 4.91%, and offers a business credit card with uncapped rewards, spend management, expense tracking, bill pay, and financial modeling.
Brex’s spend management program, called Brex Empower, allows you to control several aspects of your business finances. In addition to your Brex Cards, you get control of global corporate cards, built-in spend controls, automatic general ledger (GL) sync, and fast reimbursements globally. You can learn more through our review of Brex Empower.
In addition, Brex has partnered with multiple banks to offer FDIC insurance up to $6 million. One drawback is there is no ATM card available. However, if that isn’t a feature you need, Brex has a great range of services that can help your business.
Found: Best Digital-only Provider for Self-employed Startups
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 Choose Found
- Freelancing startups looking for detailed expense tracking as Found has integrated bookkeeping
- Startup business owners looking for tax preparation assistance
- Self-employed startup business owners sending frequent invoices
If you are a freelancer or self-employed professional looking for startup banking, Found is an excellent choice. It’s a great all-in-one product that allows you to use bookkeeping integrated into the app—an invaluable tool especially for single-owner startup businesses—to manage your finances.
The integrated accounting software allows you to categorize expenses, capture receipts, and set custom rules with its app. You also get unlimited free invoicing, and the invoices can be customized with your company’s logo and colors. You can accept payment for those invoices through payment apps like Cash App, PayPal, Square, Venmo, and eBay.
Found’s app also comes with contractor management, which allows you to request and manage W-9s, 1099 payment reports, contractor tax forms 1099-NECs, and more. Plus, you can make cash deposits at more than 79,000 retail locations listed in the Found app, likely for a fee, and you can deposit checks once your account is approved.
Found’s fee-free business checking has no transaction limits and comes with robust tax tracking and preparation software. You can complete and send your Schedule C directly from the app and pay your tax bill directly.
Some of Found’s features are only included in Found Plus, which is $19.99 per month or $149.99 a year. You get interest-bearing checking with Found Plus, earning 1.5% APY on balances up to $20,000.
Found is a financial technology company, not a bank. Banking services are provided by Piermont Bank, Member FDIC.
Grasshopper: Best for Earning Interest on Larger Checking Balances
What We Like
- Cash back on debit card purchases
- Interest-bearing account
- No monthly fees or transaction fees
Drawbacks
- No physical location
- Minimum deposit required to open
- Cash deposits not accepted
Features
- 1% cash back on all online and in-store debit card purchases
- Autobooks software purchased by Grasshopper for all small business banking customers for digital invoicing and online payments
- No monthly fees or transaction fees; no minimum balance required
- 24/7 online and mobile banking
- Unlimited free ACH and incoming wires
- Physical and virtual debit card available
- Integration with QuickBooks
- Customer support via phone, live chat, email, secure message, and text message; also available through the app
- Other products include application programming interface (API) banking, treasury management, startup banking services, lending
 | |
|---|---|
Required Opening Deposit | $100 |
Required Balance Minimum | None |
Transaction Limit Before Fees | No limit |
ACH Fees | None |
Monthly Fees | None |
Domestic Wire Transfer Fees | No incoming wire fees; $10 for outgoing |
International Wire Transfer Fees | $5 for incoming; $25 for outgoing |
ATM Fees | Free at 45,000 Money Pass & Sum network ATMs |
Cash Deposited | Cash deposits not accepted |
APY |
|
When To Choose Grasshopper
- You want an interest-bearing business checking account as Grasshopper offers up to 2.25% APY uncapped with no minimums
- You want cash back rewards on online and in-store debit card purchases
- You want a digital bank that includes great integrations with QuickBooks and payment software, such as Autobooks (provided free)
Grasshopper is another digital-only bank with startups in mind. It offers the best interest-bearing checking of any fintech option in this guide, with up to 2.25% APY with no minimum and maximum. In addition, you get 1% cash back on all debit card online and in-person purchases.
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.
It even allows unlimited transfers, including free wire transfers, both domestic and international. There are no monthly fees and no transaction limits.
Not only does Grasshopper integrate with QuickBooks, but it also provides Autobooks to each customer free of charge. You can also make free ATM withdrawals at the more than 45,000 MoneyPass and SUM ATMs, and its powerful mobile app is backed by modern APIs to help power your startup.
One of the few drawbacks is no cash deposits are accepted. You need $100 to open a business checking account, but there are no minimum balance requirements once the account is opened.
Lili: Best for Startups Needing 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 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 | 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 Choose Lili
- You want help with tax preparation as Lili has a tax optimizer built into its app, which automatically creates your Schedule C
- You want to create invoices directly in your banking app as Lili’s Pro account allows you to create an unlimited amount of invoices for free
- You want to handle accounting yourself as Lili Pro allows you to create invoices, accept payments, and scan receipts in the app
Another outstanding choice for startups and freelancers is Lili, thanks to a great business checking product and an outstanding tax optimizer built into the app. However, Found gets a slight edge over Lili due to the more robust features available in the free version of the app. However, both are excellent options.
If you upgrade to Lili Pro, you will have access to the tax optimizer to track potential write-offs and get to use a tax bucket to set aside funds, scan receipts, complete your Schedule C within the app, and produce quarterly and annual expense reports.
Lili Basic is the company’s free checking product. The company offers Lili Pro for $9 a month, which includes 1% cash back rewards, fee-free overdrafts up to $200, a savings account with 4.15% APY on balances of $100,000 or less, and the ability to create and send unlimited invoices.
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.
You can now access your Lili account via browser login in addition to the Lili app. Another recent change is Lili allows multimember limited liability companies (LLCs), S corporations (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 doing-business-as (DBA)—and single-member LLCs, which were already eligible for an account. The account is unavailable to B corporations (B-corps), C corporations (C-corps), and nonprofit organizations.
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.
Fallout from the Silicon Valley Bank Failure
On March 10, 2023, the startup business banking world was rocked by the failure of Silicon Valley Bank (SVB). While the subsequent failures of Signature Bank and First Republic Bank also hurt business banking customers, startups were heavily impacted by the SVB failure.
SVB had $175.4 billion in deposits at the time of failure, and a large percentage of those deposits belonged to startup businesses. However, as recently as the end of 2022, the bank had $341.5 billion in deposits, according to SVB’s annual report. The bank run on those deposits ended up causing the bank’s demise.
However, SVB has returned, now owned by First Citizens Bank. SVB continues to offer the same products and services it did prior to its failure. If you want to know more about the new SVB, check out our review of SVB business checking.
While all of the providers on this list seem like great options to avoid a future bank failure, SVB was in this buyer’s guide until its failure. So, to protect your business from potential future bank failures, consider the following steps:
- Choose a bank that uses IntraFi Network Deposits: To extend your coverage, IntraFi uses Certificate of Deposit Account Registry Service (CDARS) and Insured Cash Sweeps (ICS) to extend your FDIC insurance up to $150 million. There can be fees involved with this service.
- Select a bank that uses partner banks and sweep networks: Some banks use partner banks and sweep networks to spread your funds into multiple banks, extending your coverage. Mercury, for example, uses this method to increase your FDIC insurance to $5 million.
- Open accounts at multiple banks: You can extend your company’s FDIC insurance by having bank accounts at multiple banks as each would be insured up to at least $250,000
- Keep enough funds liquid to manage short-term emergencies: If all of your reserves are tied up in timed deposits, you might not be able to liquidate them quickly enough to deal with a short-term emergency. So balance your reserve funds by staggering timed investments, such as CDs that are part of a CD ladder so that you have funds available regularly
How We Evaluated the Best Banks for Startups
When we evaluated the best banks for startups, we considered
- Monthly fees
- 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 and lending products provided
- Customer service
- Customer reviews
What You Need to Open a Business Bank Account as a Startup
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 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
See our guide on how to open a business bank account for more details. It includes a downloadable checklist of required documents per entity type.
Frequently Asked Questions (FAQs)
The best traditional bank for startup businesses is Chase, thanks to waivable monthly fees, scalable checking options, and a full range of business support products and services.
While it might be tempting for small businesses, especially startup and freelancer businesses, to use their personal bank accounts for their business expenses, it is not recommended. A business bank account allows you to keep your finances separated, helps you build business credit, and simplifies your business taxes among other benefits.
You can get startup business loans, but a bank is more likely to give a loan to a startup that has an existing business relationship with the bank. This is another reason to open a business bank account. You will build your business credit and reputation with the bank, making it more likely to lend your business money. Otherwise, you may be stuck trying to find the best easy business loans, which come with high interest rates and fees.
Bottom Line
The institutions on this list can help your startup with all of your banking needs during the early stages of your business development. They offer outstanding business checking products along with other business products and services. When choosing the right provider, consider what products and services you need from your business bank, and then select one that best meets your business needs.
