10 Best Banks for Startups

Keeping business and personal finances separate is necessary even for new business owners, so it’s essential to open a separate business bank account when you start your business. The best banks for startups offer basic business checking accounts with few to no fees and a wide range of deposit products that can scale with your business’s growth.

The best banks for startup business bank accounts are:

• U.S. Bank: Best overall for free checking with limited free monthly transactions
• Chase Bank: Best for convenient card payment acceptance
• Bank of America: Best for earning big introductory bonus
• Wells Fargo: Best for scaling bank account services as a business grows
• Axos: Best for free checks and welcome bonus
• Novo: Best for free ATM use and low-cost checking account
• First Internet Bank: Best for opening more than one type of bank account
• LendingClub Bank: Best for earning rewards on business debit card purchases
• PNC: Best for basic checking with free overdraft setup
• TIAA Bank: Best for earning interest without minimum balance requirements

U.S. Bank: Overall Best Bank for Startups

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U.S. Bank offers a fee-free business checking account without opening deposit and minimum balance requirements. The U.S. Bank Silver Business Checking Package offers 125 free transactions and up to $2,500 in no-fee cash deposits per statement cycle. It also offers other business banking products such as business credit cards, loans, and lines of credit, as well as business services, including cash management and payroll.

Who it’s best for: Startups with limited monthly transactions that want a fee-free business checking account in an accessible bank.

Fees & Terms

• Monthly fee: None
• Transaction fee: Free for the first 125 transactions, then 50 cents thereafter
• Cash deposit fee: Free for the first $2,500 in cash deposits each month—fee for excess cash deposits may vary
• ATM fee: No charge for out-of-network ATMs, although operator fees apply—free access to more than 3,200 ATMs nationwide and free withdrawals from 25,000-plus MoneyPass ATMs
• Minimum initial deposit: None
• Minimum balance requirement: None

Why It’s Best for Startups

U.S. Bank is considered the overall best bank for startups because it offers a free checking account with limited free monthly transactions and cash deposits. Since new businesses typically have fewer banking transactions in a month, these limitations may not be a disadvantage for startups. With U.S. Bank’s Silver Business Checking account, startups can have a business bank account without having to pay monthly fees or being required to maintain a balance to waive fees. U.S. Bank also offers other business banking products that may be essential for new business owners, and it has a wide network of branch locations and ATMs.

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Chase Bank: Best for Merchant Services

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Chase offers a wide range of business banking products and services, as well as nationwide branch locations and ATM networks. Chase is a great option if your startup business only makes a low number of monthly deposits and you want to earn a sign-up bonus. You can earn an introductory cash bonus of up to $300 when you meet certain conditions after opening a business bank account with Chase.

Who it’s best for: Startups that want nationwide branch access, have low monthly deposits, and need a convenient card payment acceptance feature.

Fees & Terms

• Monthly fee: $15, waived if you meet one of the following criteria:
  • Maintain a minimum daily balance of $2,000
  • Spend at least $2,000 in purchases (less returns or refunds) using your Chase Ink® Business Card
  • Deposit $2,000 into your Chase checking account from your QuickAccept℠ and/or other eligible Chase Merchant Services transactions before your bank account statement period
  • Maintain a linked Chase Private Client Checking℠ account
• Transaction fee: Free for the first 20 transactions, then 40 cents per transaction thereafter—no charge for electronic deposits and deposited items made via ATM, automated clearing house (ACH), and Chase QuickDeposit
• Cash deposit fees: Free for the first $5,000 per statement cycle, then $2.50 per $1,000 thereafter
• ATM fee: No fee for in-network transactions and $2.50 for each non-Chase transaction
• Minimum deposit: None
• Minimum balance: None to maintain the account

Why It’s Best for Startups

One of the reasons Chase is best for startups is that it offers QuickAccept℠ merchant service, which is a built-in feature of the Chase Business Complete checking account. QuickAccept℠ is available within the Chase Mobile® app, making it easy to accept card payments anytime and anywhere. With QuickAccept℠, you can get same-day deposits at no additional cost.

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Bank of America: Best for Earning Introductory Bonus

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Bank of America offers the most attractive sign-up bonus that allows you to earn up to $500 when you complete the required qualifying activities. It also offers up to 200 transactions and $7,500 cash deposits for free every month. It has a large network of physical branches and ATMs nationwide, making this bank an excellent option for businesses that prioritize ease of access.

Who it’s best for: Startups who can maintain at least $1,000 and want to earn a lucrative sign-up bonus.

Fees & Terms

• Monthly fee: $16, waived when you:
  • Maintain a $5,000 combined average monthly balance
  • Use a Bank of America business debit card to make at least $250 in new net qualified purchases
  • Become a member of Preferred Rewards for Business (first four checking accounts, per enrolled business)
• Transaction fee: Free for the first 200, then 45 cents per item
  • No excess transaction fee for ACH, debit card transactions, online bill pay, electronic debits, and checks deposited through remote deposit online
• Cash deposit fee: Free for the first $7,500, then 30 cents per $100
• ATM fee: No ATM fee for withdrawals, deposits, transfer, payments, and balance inquiries at more than 16,000 Bank of America ATMs nationwide—$2.50 per transaction on out-of-network ATMs.
• Minimum deposit: $100
• Minimum balance requirement: None to maintain the account

Why It’s Best for Startups

Bank of America is a one-stop-shop for business banking—it offers a wide selection of business bank accounts, as well as business credit cards and loans. It has several physical branches and ATMs nationwide and a streamlined online banking system. This is best for startups who want an opportunity to earn a big introductory bonus and those who are looking for more than just the basics.

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Wells Fargo: Best for Upgrading Account Services

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Who it’s best for: Startups looking for an easy-to-waive monthly fee and those who want to be able to upgrade their bank accounts as their business grows.

Fees & Terms

• Monthly fee: $10 per month—waived if you maintain a $500 average daily balance
• Transaction fee: Free for the first 100 transactions, then 50 cents thereafter
• Cash deposit fee: Free for the first $5,000 per month, then 30 cents per $100 thereafter
• ATM fee: $2.50 per withdrawal at out-of-network ATMs in addition to ATM operator fees—no charge for using any of the 13,000-plus ATMs in the Wells Fargo network
• Minimum initial deposit: $25
• Minimum balance requirement: None

Why It’s Best for Startups

Wells Fargo offers checking account options that can scale with your business’s growth, making it easy to upgrade your account services as your needs change. Wells Fargo’s Initiate Business Checking is best for new business owners that need the most basic and common features. As your business evolves, your financial activities increase and your banking needs grow. Wells Fargo offers Navigate Business Checking and Optimize Business Checking accounts that can cater to your bigger needs.

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Axos: Best for Free Checks & Welcome Bonus

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Axos is an online-only bank that offers fee-free banking with no minimum balance requirements. Axos offers a $100 welcome bonus for new businesses registered after June 1, 2020. It also offers other business banking products and services including business savings accounts, certificates of deposits, merchant services, and business loans.

Who it’s best for: Startups that want to earn a welcome bonus and enjoy free checks and those with employees.

Fees & Terms

• Monthly fee: None
• Transaction fee: Free for the first 200 transactions, then 30 cents per item thereafter
• Cash deposit fee: Not applicable
• ATM fee: None, refunds all third-party domestic ATM fees
• Minimum initial deposit: $1,000
• Minimum balance requirement: None

Why It’s Best For Startups

Axos offers a special welcome bonus of $100 for new businesses that are registered after June 1, 2020, making it an excellent option for startups. You’ll also get your first set of 50 checks for free and enjoy unlimited domestic ATM fee reimbursements. Axos is also ideal for startups with employees, as it offers a program that allows employees access to financial literacy tools as well as personal account perks.

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Novo: Best for Low-cost Checking & Free ATM Use

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Novo is a purely digital bank that offers a free business checking account with basic features ideal for new businesses. It offers free unlimited transactions, has no minimum balance requirement, and refunds all ATM fees. It has no physical branches but allows you to deposit checks directly through its mobile app. You can also make cash deposits through USPS money orders or Middlesex Federal’s ATM network.

Who it’s best for: Startups that prefer an online-only bank that offers a free basic checking account with unlimited free transactions and free ATM use.

Fees & Terms

• Monthly fee: None
• Transaction fee: None—offers unlimited free transactions
• Cash deposit fee: None—cash is deposited through USPS money orders or Middlesex Federal’s ATM network
• ATM fee: None—refunds all third-party ATM fees
• Minimum initial deposit: $100
• Minimum balance requirement: None

Why It’s Best for Startups

Novo provides simple business banking, which is ideal for new business owners. While Novo has limited services, it offers a fee-free business checking account with unlimited transactions and basic features that startups would find useful. Novo also refunds all ATM fees and integrates with other small business tools. Its simple and easy-to-use mobile app allows you to efficiently manage your business finances online.

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First Internet Bank: Best for Opening Multiple Online Bank Accounts

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First Internet Bank is an online-only bank that offers both business checking and savings accounts that allow you to earn interest. This is an excellent option for startups that want to open multiple online accounts with the same bank while earning interests. Its small business checking account offers unlimited transactions, no monthly fee, and no minimum balance requirement. While First Internet Bank does not have physical branches, it has a wide ATM network nationwide and reimburses up to $10 in third-party ATM fees per month.

Who it’s best for: Startups who prefer to bank and open multiple accounts in an online-only bank and those who prefer an interest-bearing checking account.

Fees & Terms

• Monthly fee: None
• Transaction fee: None—offers unlimited free transactions
• Cash deposit fee: Not applicable (cash deposits are not accepted)
• ATM fee: None—refunds up to $10 in third-party ATM fees
• Minimum initial deposit: $100
• Minimum balance requirement: None

Why It’s Best for Startups

First Internet Bank offers a variety of online-only business bank accounts as well as business loans and other business services. Startups that can maintain at least $10,000 in their business checking account will have an opportunity to earn 0.30% APY. FIB also offers other high-yield business bank accounts, which may be useful for new business owners who want to open multiple interest-bearing accounts in the same bank.

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LendingClub Bank: Best for Earning Rewards on Debit Card Purchases

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LendingClub Bank is an online-only bank that offers a business checking account with free unlimited monthly transactions. With a minimum average balance of $5,000, the monthly fee will be waived and you can enjoy an unlimited 1% cash back for your debit card purchases. You can also earn an ongoing APY of 0.10% on balances of $5,000 and up.

Who it’s best for: New business owners who can maintain at least $5,000 in their checking account and those that don’t process cash transactions.

Fees & Terms

• Monthly fee: $10 per month—waived if you maintain a $5,000 average daily balance
• Transaction fee: None—offers unlimited free transactions
• Cash deposit fee: Not applicable
• ATM fee: None—refunds all third-party ATM fees
• Minimum initial deposit: $100
• Minimum balance requirement: None to maintain the account—at least $5,000 to earn an ongoing APY of 0.10%

Why It’s Best for Startups

LendingClub Bank is an excellent option for startups that have at least $5,000 in extra business funds to store in a bank account. What makes this bank best for startups is that it offers unlimited 1% cash back on business debit card purchases and 0.10% APY on balances over $5,000, which is a great way to earn extra cash for your business.

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PNC: Best for Basic Checking With Free Overdraft Setup

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PNC Bank offers a basic checking account with a free overdraft protection setup, which is a good option for new business owners with basic banking needs. PNC offers a cash reward of up to $200 when you open a qualifying account, maintain a minimum average daily balance of $5,000 for the first three months, and make at least 20 eligible debit card purchases. PNC also offers other business checking account options that are ideal for growing businesses.

Who it’s best for: Startups that need a checking account with basic features, free overdraft protection setup, and the opportunity to earn cash rewards.

Fees & Terms

• Monthly fee: $10 per month after the first three months—waived if you:
  • Maintain a $500 average daily balance
  • Use a linked PNC business credit card to make a minimum of $500 in eligible purchases
  • Maintain a linked PNC Merchant Services® account and generate a minimum of $500 in qualifying monthly processing deposits
• Transaction fee: Free for the first 150 total transactions, then 50 cents thereafter
• Cash deposit fee: Free for the first $5,000, then 25 cents per $100
• ATM fee: $3 to $5 at non-PNC Bank ATMs
• Minimum initial deposit: $100
• Minimum balance requirement: None to maintain the account

Why It’s Best For Startups

What makes PNC one of the best banks for startups is that it provides a basic checking account with free overdraft protection and an easy-to-waive monthly fee. New business owners also get a chance to earn a cash reward when they meet certain criteria—this is a great way to earn extra funds for your business.

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TIAA Bank: Best for Earning Interest on All Balances

Visit TIAA Bank

TIAA Bank offers a free checking account that allows you to earn 0.10% interest on all balances. It reimburses all third-party ATM fees if you can maintain an average balance of at least $5,000, or up to $15 in monthly ATM fees for balances below $5,000. TIAA Bank allows you to make deposits online and access nearly 80,000 ATMs nationwide.

Who it’s best for: Startups that can make an opening deposit of at least $1,500, don’t process cash transactions, and want to earn interest on all balances

Fees & Terms

• Monthly fee: None
• Transaction fee: None
• Cash deposit fee: Not applicable
• ATM fee: None—reimburses third-party ATM fees of at least $15 per month
• Minimum initial deposit: $1,500
• Minimum balance requirement: None to maintain the account and earn interest

Why It’s Best for Startups

The opportunity to earn interest without minimum balance requirements makes TIAA a great option for startups that don’t usually process cash transactions. TIAA prioritizes security and ensures that clients can bank safely. It offers up to $1,000 reimbursement to cover certain expenses for those who become victims of identity theft.

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Why Startups Should Consider Opening a Business Bank Account

Using a personal bank account for business can be very risky, and it can also create complications with your business accounting. As a startup, you should consider opening a separate bank account as soon as you have registered your business to avoid commingling your business finances with personal funds. This makes your business accounting much easier, and it can avoid tax issues with the IRS later on.

Additionally, having a business bank account can allow you better access to business loans, which are important if your business will need funding. Lenders typically review bank statements to confirm a business’s creditworthiness, and a business bank account can provide credibility to companies that are just starting out.

Requirements for Opening a Business Bank Account as a Startup

The requirements for opening a business bank account as a startup are the same as opening an account as an established small business. Before opening an account, it’s important that you have first registered your business and that you have your business documents and personal identification ready. Most traditional and digital banks have an option for opening an account online; however, some banks may require you to visit a physical branch to open an account.

How We Evaluated the Best Banks for Startups

The best banks for startups should have features that new businesses need, including low banking costs, business tools, business support, and business funding options. To find the best banks for startups, we considered several factors such as fees, introductory offers, the size of the bank’s network, and account benefits like accounting software integration, refunds for ATM fees, and the opportunity to earn interest.

Bottom Line

Businesses that are just starting out need to open a separate business bank account to avoid commingling business and personal finances. Startups need affordable banking, business support, funding, and business products like payment solutions to help them succeed. It’s essential to understand the fees, terms, features, products, and services of each bank before choosing one.