9 Best Online Business Banks for 2023
This article is part of a larger series on Business Banking.
The best online business banks should provide your company with an outstanding business checking product and other products and services to help it grow. Some of these institutions focus on specific products that will help your company while others provide a wide range of products and services similar to a traditional brick-and-mortar bank.
These providers are either backed directly by the Federal Deposit Insurance Corporation (FDIC) or have an FDIC-insured backing bank. This gives you the confidence that your company’s finances will be insured to at least $250,000 per depositor, per bank.
Here are the nine best online business banks for small businesses, with links directly to the providers:
- Bluevine*: Best overall for higher interest rates on checking accounts
- Novo*: Best digital-only bank for rapid access to funds and faster payments
- Mercury*: Best for incorporated startups and tech companies
- Silicon Valley Bank: Best digital bank for startup resources
- Oxygen*: Best digital-only provider for cash back on debit card purchases
- Relay*: Best for businesses that need multiple accounts and debit cards
- First Internet Bank: Best for online-only full-service bank
- Grasshopper: Best digital-only bank for integrated free payment software
- Lili*: Best for digital tax preparation assistance
*Providers are financial technology (fintech) platforms backed by and FDIC-insured through a supporting bank partnership (Coastal Community Bank for Bluevine, Middlesex Federal Savings for Novo, Evolve Bank & Trust for Mercury and Relay, The Bancorp Bank for Oxygen, and Choice Financial Group, Inc. for Lili)
Best Online Business Banks Basic Checking Accounts At a Glance
Monthly Fee | Transaction Fee | Annual Percentage Yield (APY) | Cash Deposit Fee | |
---|---|---|---|---|
Business Checking | None | None | 2% on qualifying balances $100,000 or less | $4.95 per deposit (Green Dot locations) |
Business Checking | None | None | N/A | None; cash is deposited through money orders |
Business Checking | None | None | N/A | Cash deposits not accepted |
SVB Edge | None for three years, then $50 per month | None | N/A | None |
Business Checking | None | None | N/A | $4.95 per deposit (Green Dot locations); also through Plaid link to bank |
Relay Standard | None | None | N/A | Cash deposits not accepted |
Business Checking | None | None | 0.50% on balances of $10,000 or more | Cash deposits not accepted |
Innovator Business Checking | None | None | 1.5% | Cash deposits not accepted |
Business Checking Basic | None | None | None | $4.95 per deposit (Green Dot locations) |
Bluevine: Best Overall for Higher Interest Rates on Checking Accounts
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
- Your company wants to earn interest on its checking account and meets one of the two requirements set aside by Bluevine to earn interest. High-interest earnings help make Bluevine our top checking account for limited liability companies (LLCs).
- You need a line of credit—Bluevine is our choice for the best small business line of credit.
- You don’t need a physical location, as Bluevine is a digital-only bank.
The most significant advantage Bluevine has compared to other digital-only banks is its interest-bearing business checking account. You can earn 2.0% APY on balances up to and including $100,000 if you meet one of two qualifying criteria:
- Spend $500 or more a month with Bluevine Business Debit Mastercard issued by Coastal Community Bank
- Receive $2,500 per month in customer payments into your account via ACH, wire transfer, mobile check deposit, or directly from a merchant payment processing provider
It charges no monthly fees or transaction fees, and it is one of our top picks for the best free business checking accounts. It also does not have a minimum opening deposit or minimum balance requirement, and its lack of fees make it an excellent choice for a bank account for self-employed and freelance professionals.
In October 2022, Bluevine launched sub-accounts to help customers manage their funds. Bluevine offers five sub-accounts, which would give you up to six total accounts. Funds held across all accounts are eligible to earn interest if criteria are met.
However, there are fees if you have to deposit cash or withdraw cash out of network. Deposits must be completed at a Green Dot retail location for $4.95 per deposit, and Bluevine charges $2.50 for out-of-network ATM withdrawals in addition to third-party fees. Visit Bluevine for more information.
When To Use Bluevine
With the highest interest-earning business checking account on the market and the best business line of credit, Bluevine is our best overall online business bank. With its business checking account, you can earn 2% APY on balances up to $100,000 as long as you either spend $500 a month with the debit card or receive $2,500 in customer payments in a month.
It is one of our top recommendations for those looking for the best small business checking accounts and the best banks for small business loans. In addition, it has great integrations and no monthly fees, transaction fees, minimum opening deposit requirements, and minimum balance requirements. It also provides two free checkbook orders per year.
Its biggest drawbacks are its cash deposit and out-of-network ATM fees. Cash deposits will cost you $4.95 per transaction and can only be done at a Green Dot retail location, while out-of-network ATM withdrawals cost $2.50, in addition to third-party fees.
If you want to earn on higher balances, you will need to choose a different provider, such as Grasshopper, which doesn’t cap its interest earnings on its business checking account.
Bluevine Business Checking 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 Business Checking
- Your business frequently withdraws cash from ATMs
- You aren’t interested in an interest-bearing checking account or getting lending products from your business checking account provider
- You use Stripe, Square, or PayPal and want faster access to your funds, as Novo Boost allows you to receive payments faster than other providers
Thanks to its Novo Boost and Express ACH offerings, Novo is an outstanding choice for businesses looking for faster access to funds and same-day ACH payments. If you accept payments from Stripe, Novo Boost lets you receive payments sent from your Stripe account faster than other providers.
To further expedite the payment process, users can now connect Stripe, Square or PayPal and get paid via card, Apple Pay, Google Pay, PayPal, or Venmo.
In addition, Novo offers Express ACH, which 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.
If your business makes frequent ATM withdrawals, Novo benefits you as well. It refunds all ATM fees at the end of the month with no limits. It also has no monthly fee, transaction limits, minimum opening deposit, or minimum balance requirement.
Novo allows cash deposits, but those deposits must be made through money orders deposited through the app. It doesn’t charge for this, but you will have to purchase money orders from US Postal Service (USPS) locations for up to $1.95 for up to $1,000 money orders.
It even provides up to 10 reserve accounts, unlimited invoicing, and great software integrations with accounting and payment software. You cannot order checks, but paper checks can be sent from the app. One drawback is that Novo lacks lending products.
Novo now allows you to apply even if you don’t have an employee identification number (EIN) or limited liability company (LLC). For more information on Novo, visit the company’s website.
When To Use Novo
Not only does Novo offer a great business checking product and outstanding software integrations, but its Novo Boost and Express ACH products allow you to receive and make payments faster than with other online banks. Novo Boost enables you to receive payments from your Stripe account more quickly than other providers, whereas Express ACH allows you to accept or send same-day ACH payments.
Novo is especially beneficial for those that make ATM withdrawals regularly as it refunds all ATM fees at the end of each month. In addition, it has no monthly fees, transaction limits, minimum opening deposit requirements, and minimum balance requirements. One of its biggest perks is its digital integrations, with unlimited free 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. Money orders can be bought from various locations, including US Postal Service (USPS) locations, for up to $1.95 for money orders of up to $1,000.
This institution doesn’t offer any lending or savings products, so business owners looking for those products from their checking provider will need to choose another, like Grasshopper, Axos, and Silicon Valley Bank.
Novo Business Checking Overview
Mercury: Best for Incorporated Startups & Tech Companies
What We Like
- No minimum deposit to open an account
- Physical and virtual debit cards
- Treasury product offers outstanding yield on balances over $250,000
Drawbacks
- Accounts not available to sole proprietorships
- 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,
- Other products include Mercury Treasury, capital and venture debt and credit card
Mercury Business Checking Terms
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | No limit |
Automated Clearing House (ACH) Fees | None |
Teller Cash Withdrawal Fee | None |
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 |
Open an Account | |
*Mercury is a business fintech platform backed by FDIC-insured Evolve Bank & Trust. |
When to Use Mercury Business Checking
- Business owners who are comfortable with an online-only bank and don’t need their business bank to have a physical location
- Companies with reserve funds of more than $250,000 and wanting to earn interest on those funds
- Businesses looking for a fee-free business banking experience
Mercury is a great choice for a tech or startup company looking for an online business checking account. Its checking and savings accounts are free, with no minimum deposit or balance requirements. Most businesses incorporated in the US are eligible for an account, except sole proprietorships and trusts.
You can also get a $300 cash back bonus if you spend $2,000 on your debit or credit card within the first 90 days of account opening. Mercury recently added a credit card product that offers 1.5% cash back and unlimited virtual cards.
Both physical and virtual debit cards are available with your Mercury account. You can withdraw money from one of the 55,000 Allpoint network ATMs for free. Mercury doesn’t charge for out-of-network ATM withdrawals, but you will have to pay third-party operator fees.
This bank even has a Treasury account, which you can request once you have $250,000 in your Mercury accounts. Money in the Treasury account can earn up to 4.44% APY, with rates changing weekly.
Mercury has great software integration with QuickBooks and Xero and other integrations with Shopify, Stripe, Zapier, Amazon, and PayPal. It also has a great perks page that allows you to advertise deals for your business through the Mercury homepage.
One major drawback is its inability to deposit cash. Outside of its credit card product and venture capital term loan program, no standard lending products are available. Go to the Mercury website for more information.
When To Use Mercury
Mercury is great for tech companies and startups looking for a business bank, thanks to free business checking and savings accounts, along with potential interest earning with Mercury Treasury and a sign-up bonus for new accounts. Its software integrations are top-notch, which is ideal for both tech companies and startups. In addition, its perks page allows you to advertise deals for your business on the Mercury website.
If you spend $2,000 within the first 90 days on your debit card, you will receive $200 in cash back. However, sole proprietorships and trusts aren’t eligible for an account.
It also offers an interest-bearing Treasury account. You can access it by request once you have at least $250,000 in funds in your Mercury accounts. Currently, it is earning up to 3.67% APY, with that rate changing weekly.
Mercury recently added a credit card product that offers 1.5% cash back and unlimited virtual cards. However, its lending products are limited to its credit card and capital and venture debt products. Nevertheless, Mercury is a great choice for a digital-only bank with great software integrations and interest-earning account products.
Mercury Business Checking Overview
Silicon Valley Bank: Best Digital Bank for Startup Resources
What We Like
- Integrates with QuickBooks and other accounting software
- Flexible lending options for venture-funded businesses
- Global digital banking solutions
What's Missing
- No interest-earning checking
- Monthly fees after first three years are very high at $50
- Branch access limited to 16 states and select countries around the world
Features
The SVB Edge package for startups includes:
- Free checking for the first three years
- 1.75% interest rate on startup money market account
- 2x unlimited rewards business credit card with no annual fee and no foreign transaction fee
- Merchant services solution for credit and debit card acceptance
When To Use Silicon Valley Bank
Silicon Valley Bank (SVB) is a great option for all business sizes, but it specializes in products and services for startups thanks to the vast network of startup resources it provides. It offers guidance through networking events, hiring workshops, fundraising tips and tools, and opportunities to meet founders and investors. It also offers discounts for more than 50 different software and other services, such as Salesforce, Amazon Web Services (AWS), and Zendesk.
While its startup resources are top-notch, the bank fees are a major drawback. Although the basic account, SVB Edge, is free to start, it goes up to $50 a month after three years, which is very high. However, the second tier, SVB ScaleUp, includes $500 in monthly credits, which can be applied to service fees. If your business can grow into that account in three years, then this bank may be a good choice for your business.
It also offers business credit cards and lending products, including venture debt, growth, and working capital. Note that the ATM card is unavailable in the US—so if cash withdrawals are critical to your business, this won’t meet your needs.
SVB Edge 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 Business Checking
- 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
With 5% cash back rewards on all debit card purchases, Oxygen is a great choice for small businesses that make regular debit card purchases. It is a digital-only bank geared toward freelancers and creatives, among other small businesses. It is one of the few fintechs that provides personal and business banking options.
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. For more information, visit the Oxygen website.
When To Use Oxygen
Oxygen is a digital-only bank geared toward freelancers and creatives, among other small businesses. It is one of the few fintechs that provides personal and business banking options. For businesses that use a debit card frequently, it’s a great option for a business bank account since it offers 5% cash back rewards on all debit card purchases.
For businesses considering becoming LLCs, Oxygen 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.
Oxygen was awarded the 2021 Best Overall FinTech Mobile App by the FinTech Breakthrough Awards, beating several other fintechs on this list.
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.
You can even 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 (SSO) per account, which puts it behind many other fintechs in this guide.
Oxygen Business Checking Overview
Relay: Best for Businesses That Need Multiple Accounts & Debit Cards
What We Like
- No minimum balance or opening deposit required
- Wire transfers are very inexpensive and are free with Relay Pro
- No ATM fees charged by Relay, although third-party fees may apply out-of-network
What's Missing
- No physical locations
- No cash deposits accepted
- No lending products available
Features
- No fee, online banking and money management platform
- Open up to 20 individual business checking accounts
- Issue up to 50 Mastercard debit cards
- Send and receive ACH transfers, checks, and wires
- Collect payments from PayPal, Stripe, Square, and more
- Relay Pro account available, which offers same-day ACH delivery, free wire transfers, and accounts payable support
When To Use Relay
For businesses needing multiple accounts to separate business finances, Relay is an excellent choice for a business bank. You can get up to 20 checking accounts, which allows you to use accounts to set aside reserves for different expenses.
In addition, Relay has great financial tracking within its app. You can also order up to 50 Mastercard debit cards, giving you additional tracking power for individual business expenses.
If your business needs to send wire transfers frequently, it is an excellent choice. The most you will pay for wire transfers is $10 with Relay’s basic business checking level, Relay Standard. If you upgrade to Relay Pro, they are entirely free.
This bank is another provider offering fee-free checking with no monthly fees or minimum balance requirements—and it has great software integrations as well.
While Relay Pro’s monthly fee of $30 is not waivable (unlike many premium accounts of other providers), the account comes with some great features. You get accounts payable support, including auto-imports from QuickBooks Online and Xero. It also includes multistep approval rules for bill payments, batch payments for bills, one-click reconciliation of bills, and same-day ACH delivery.
Its biggest drawbacks are that it doesn’t allow cash deposits and has no lending products.
Relay Standard Business Checking Overview
First Internet Bank: Best Online-only Full-Service 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
First Internet Bank is the one provider on this list that offers the same full-service banking products you would expect out of a traditional brick-and-mortar bank. This digital bank is also the most well-rounded bank in our guide, with features that fit businesses of all sizes. These are why it’s one of our recommendations for the best banks for small businesses.
It offers an interest-bearing checking account with a 0.50% APY on checking balances of $10,000 and higher with no maximum limit. For businesses that use ATMs frequently, First Internet Bank refunds up to $10 in ATM fees each month. It also has two savings options, both with waivable monthly fees once you pass an average daily balance threshold.
In addition to its excellent checking and savings products, it offers business CDs and various business lending products, including SBA loans, commercial real estate, commercial lending, and public finance. It also has software integrations with QuickBooks, shared account access, and no-fee bill payment.
As your business grows, the company provides commercial checking products, including treasury management and merchant services. For business owners looking to keep personal and business finances with the same bank, First Internet Bank offers personal lending and banking products as well.
First Internet Bank Business Checking Overview
Grasshopper: Best Digital-only Bank for Integrated Free Payment Software
What We Like
- Cash back on debit card purchases
- Interest-bearing account
- No monthly fees or transaction fees
Drawbacks
- No physical location
- Minimum deposit required to open
- Cash deposits not accepted
Features
- 1% cash back on all online and in-store debit card purchases
- Earn 1.5% APY on all balances with no minimum and no cap
- 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
Grasshopper Innovator Business Checking Terms
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 | 1.51% APY |
Open an Account |
When to Choose Grasshopper’s Innovator Business Checking
- You want to earn interest on your business checking account, as Grasshopper offers 1.5% APY uncapped on all balances with no minimums
- You are looking for cash back rewards on online and in-store debit card purchases
- You want a digital-only banking experience that includes great integrations with QuickBooks and need payment software such as Autobooks (provided free)
With the inclusion of Autobooks for free with each account, Grasshopper is a great choice for businesses looking for integrated invoice and payment software with its online-only business checking, which is a solid account thanks to excellent cashback rewards and a great APY. Its debit card earns 1% cash back on all online and in-store debit card purchases, and accounts earn 1.51% APY on all balances with no minimum and no cap.
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.
If you have a business that makes a lot of debit card purchases and carries a high balance in the account, Grasshopper’s earning power can rival any other bank in this guide. Its account is fee-free with no minimum balance requirements, though you are required to deposit $100 to open the account.
One drawback is that cash deposits are not permitted. In addition, its free ATM network is a little smaller than some of its competitors, with no ATM fee reimbursement out-of-network. Visit Grasshopper’s website for more information.
When To Choose Grasshopper
With the second-highest APY offered on its business checking of any provider on this list—and the highest uncapped APY—Grasshopper is an excellent choice for a business bank. In addition to earning 1.5% APY uncapped on all balances, Grasshopper’s biggest perk is the inclusion of Autobooks for free with each account. This gives each user free integrated payment and invoicing software.
Grasshopper is another digital-only bank with a full range of banking products. In addition, it has cash back rewards on debit card purchases and an interest-bearing checking account.
Where it shines is in its offer of both traditional and nontraditional business financing, including SBA lending, commercial real estate lending, yacht lending, and venture capital and private equity lending.
For businesses that transfer money regularly, Grasshopper provides unlimited free transfers, including free wire transfers, both domestic and international. There are no monthly fees and no transaction limits.
However, it has two drawbacks—it doesn’t allow cash deposits and requires a $100 minimum opening balance.
Grasshopper Business Checking Overview
Lili: Best for 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 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 is another online business bank with no monthly fees, transaction limits, minimum balance, and deposit requirements on its basic checking account.
Its biggest perk is its tax optimizer, which lets you track potential tax write-offs, set aside money in a tax bucket, scan receipts, complete your schedule C automatically, and produce quarterly and annual expense reports. Considering that it’s built into your banking product, it’s a powerful tool, especially for small businesses without huge financial departments.
The institution offers two checking options: Lili Basic, which is free, and Lili Pro, which is $4.99 a month. Both 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 highlights 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. The company is also finalizing allowing multimember LLCs to sign up for an account. This feature is expected to go live before the end of 2022.
Unfortunately, Lili doesn’t allow you to send or receive wire transfers, and you cannot order checks or send them from the app. Like Bluevine, you can deposit cash, but it must be done through Green Dot retail locations for $4.95 a transaction.
Lili Business Checking Basic Overview
How We Evaluated the Best Online Business Banks
When we evaluated the best online business banks, we considered:
- Monthly fees, if any, and how easily they’re 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’ll 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 online bank is best for small business?
The best online bank for small business is Bluevine, thanks to its 2.0% APY on all balances of $100,000 or less and the best small business line of credit on the market. It’s also one of the best banks for small business loans.
Which bank is best for startup business?
Chase is the best bank for startup businesses, with full-service banking products that can scale with your growing business. If you’re looking for an online-only bank for your startup, Silicon Valley Bank has specific startup resources that can help your company grow.
Are online business bank accounts safe?
As long as the online bank you’re using is directly backed by either the FDIC or an FDIC-insured bank, your money is as safe in it as it would be in a traditional bank. However, it’s essential to research online banks to ensure you choose a bank with FDIC protection. Bluevine, Novo, and Mercury are our top three choices for online business banks.
Bottom Line
For businesses that don’t need physical access to a branch bank, online business banks can provide your company with all the products and services you need, with the convenience of 24/7 account access from anywhere. Each provider offers great business checking products combined with other products and services. Decide what your company needs from its business bank and choose the provider that best aligns with your business needs.