10 Best Banks for Startups in 2023

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.

Here are the 10 best banks for a startup business, with links directly to the provider:

• Chase: Best overall bank for startups with full-service banking
• Novo*: Best digital-only bank for rapid access to funds and faster payments
• Mercury*: Best digital bank for larger-scale incorporated startups
• Bluevine*: Best for earning interest on smaller balances and best business line of credit
• Bank of America: Best for ongoing rewards and low cash deposit fees
• Brex*: Best cash management for startups and scaled companies
• U.S. Bank: Best for businesses with low transaction volumes
• Grasshopper: Best for earning interest on larger checking balances
• Lili*: Best for startups needing digital tax preparation assistance
• Oxygen*: Best digital-only provider for cash back on debit card purchases

*Providers are financial technology (fintech) platforms backed by and Federal Deposit Insurance Corp. (FDIC)-insured through a supporting bank partnership.

(Partnerships: Middlesex Federal Savings for Novo, Evolve Bank & Trust for Mercury, Coastal Community Bank for Bluevine, The Bancorp Bank for Oxygen, and Choice Financial Group, Inc., for Lili; Brex is partnered with multiple banks that are FDIC-insured, see Brex’s list of partners.) The rest of the banks listed are FDIC insured.

Best Banks for Startups at a Glance

Chase: Best Overall Bank for Startups With Full-service Banking

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

For startup businesses looking for a full-service traditional bank, Chase is the best option. 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 POS and software solutions. Through J.P. Morgan, Chase provides commercial lending solutions, including commercial real estate 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

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. You can buy money orders from US Postal Service (USPS) locations for up to $2.40 for up to $1,000 money orders.

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

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 $250,000 in funds in Mercury accounts and is currently earning up to 4.92% APY, although the bank expects that to increase as the prime rate increases.

What’s more, the provider has the IO Mastercard, which offers 1.5% cash back on all purchases and unlimited virtual cards. You can learn more about it via our review of Mercury IO Mastercard.

Mercury 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.

There are no ATM fees if you use one of more than 55,000 Allpoint ATMs. Mercury doesn’t charge for out-of-network ATM withdrawals, but you will likely pay third-party fees.

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

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 26 countries in eight currencies. Payments sent in USD (United States Dollars) cost $25 per payment, while payments sent in other currencies cost $25 plus 1.5% of the payment amount. See Bluevine’s list of countries available for international payments.

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.

Bank of America: Best for Ongoing Rewards & Low Cash Deposit Fees

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. When comparing Chase vs Bank of America, Bank of America comes out on top in several categories.

It has two different business checking accounts with monthly fees that can be easily waived; read our review of Bank of America’s business checking to learn more about the accounts. 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 cashback 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 Cash Management for Startups & Scaled Companies

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. If your startup wires money regularly, this could save you quite a bit each month.

Brex did tighten its qualification requirements earlier this year, gearing toward startups and scaled companies. To qualify for a Brex account, you must meet one of five criteria listed on its website; see Brex’s requirements for an account. If you cannot qualify, see our roundup of the leading Brex alternatives that can serve your business needs.

The company also has a money market account, which can draw up to 4.62%, and offers a business credit card with uncapped rewards, spend management, expense tracking, bill pay, and financial modeling. What’s more, the Brex app has great integrations with various business and finance applications.

Brex has partnered with multiple banks, each insured for up to $250,000 through the FDIC. The bank states that deposits are spread among its partner banks, allowing it to insure up to $6 million in deposits for your company with the FDIC.

One drawback is there is no ATM card available, so if your startup needs to withdraw money from an ATM, you will have to choose another provider. However, if that isn’t a feature you need, Brex has a great range of services that can help your business.

U.S. Bank: Best for Businesses With Low Transaction Volumes

When To Choose U.S. Bank

• You want a basic business checking account with no monthly fee
• You want a cashback bonus for opening a new U.S. Bank account

For startups with low transaction volumes, U.S. Bank is another great traditional bank option. 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 $750 bonus when you open a new, eligible U.S. Bank business checking account (promo code: Q2AFL23) and complete qualifying activities, subject to certain terms and limitations—offer valid through June 30, 2023. See our article on the best bank account promos and offers for details on how to qualify.

Grasshopper: Best for Earning Interest on Larger Checking Balances

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.

Grasshopper also provides SBA lending, commercial real estate lending, yacht lending. and venture capital and private equity lending.

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 That Need Digital Tax Preparation Assistance

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. 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 2.0% APY, 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 (LLPs) to sign up for an account. This is in addition to sole proprietors―with or without a doing-business-as (DBA) designation―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.

Oxygen: Best Digital-only Provider for Cash Back on Debit Card Purchases

When To Choose Oxygen

• Startups, freelancers, and creatives who would like to have their personal and business finances with the same provider, as it is one of the few fintechs to offer both personal and business banking
• Businesses with frequent debit card purchases, as it offers 5% cash back rewards on debit card purchases
• Businesses that might want to transition to an LLC, as it allows you to do that through its app

For startups, along with business owners who consider themselves freelancers and creatives, Oxygen is an excellent option since it is a digital-only bank geared toward freelancers and creatives, among other small businesses. It offers 5% cash back on all debit card purchases.

For small businesses that might want to conduct their personal and business banking with the same provider, Oxygen gives you the option to have both personal and business accounts. It is one of the few fintechs that provide both banking options.

In addition, it targets business owners who may be looking to incorporate their businesses. It offers 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.

It also has a business bank account with no monthly fees, minimum balance requirements, and 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. Oxygen was awarded the 2021 Best Overall FinTech Mobile App by the FinTech Breakthrough Awards.

You can also open a business savings account, which earns 1% APY on balances up to $20,000. However, it has no 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 puts it behind many other fintechs in this guide.

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.

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 To Consider When Choosing a Startup Bank

While we used our own criteria to select the best banks for startups for this list, here are some things you should consider before making a selection:

1. Choose a Bank That Is Startup-friendly

While all the banks listed here are startup-friendly, this is not true of all banks. Some banks prefer to work with businesses that are larger or more mature than startups tend to be. If you choose a provider that isn’t in this guide, ensure they have the products and services to support your startup.

2. Find a Bank With Ample FDIC Insurance

Recent bank failures, especially that of SVB, have pushed FDIC insurance back into the forefront of business owners’ minds. Most typical accounts are insured up to $250,000, but that might not be enough for your business. Find a business bank that uses sweep networks and partner banks to extend your protection. This is especially important if your business regularly exceeds $250,000 in any one bank.

3. Understand the Bank’s Fee Structure

While some banks are largely fee-free, others offer waivable fees and a set limit of free transactions each month. If you are going to sign up for a bank with those types of fees, understand how your monthly banking habits will impact the fees you will pay. In some cases, like with Bank of America and Chase, you might be able to move to a higher-tier account if you exceed free limits, so long as you can meet the requirements to waive the higher monthly fees.

4. Determine Whether You Need a Physical Location

If your startup business handles cash regularly, you might want to consider a bank with a physical location. While some online banks allow for cash deposits, they often charge fees to deposit them. Others, like Novo, require you to purchase money orders to deposit cash. Most traditional banks allow for a certain amount of free cash deposits each month.

5. Read Customer Reviews

Our individual bank reviews include a section that highlights customer reviews of a bank. However, these reviews often include personal banking reviews, so they might not reflect the experiences of business customers. Still, reading the reviews can give you an idea of standout features and products that aren’t as stellar, so you can decide if that bank meets your needs.

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

Frequently Asked Questions (FAQs)

Which bank is best for a startup business?

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

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Do banks give money to startups?

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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.