10 Best Online Business Banks for 2023

The best online business banks should provide you with outstanding business checking options while also supporting your company with other products and services. While some of these providers have limited product offerings, others offer the same services you would receive from a traditional brick-and-mortar bank.

These providers are backed directly by the Federal Deposit Insurance Corp. (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 10 best online business banks for small businesses, with links directly to the providers:

• Bluevine*: Best overall for interest-earning checking and international payments
• Novo*: Best digital-only bank for rapid access to funds and faster payments
• Mercury*: Best for tech companies, startups, and businesses needing additional FDIC insurance
• Found*: Best digital-only provider for self-employed professionals
• Relay*: Best for businesses needing multiple accounts and debit cards
• Grasshopper: Best digital-only bank for integrated free payment software
• Lili*: Best for digital tax preparation assistance
• Live Oak Bank: Best for high-yield savings account
• NBKC Bank: Best full-service online bank
• Oxygen*: Best digital-only provider for cash back on debit card purchases

*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, Choice Financial Group and Evolve Bank & Trust for Mercury, Piermont Bank for Found, Evolve Bank & Trust for Relay, Choice Financial Group, Inc. for Lili, and The Bancorp Bank for Oxygen).

Best Online Business Banks Basic Checking Accounts at a Glance

Bluevine: Best Overall for Interest-earning Checking & International Payments

When To Choose 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 qualifying 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. While Grasshopper’s top interest rate is now 2.25%, Bluevine’s higher rate at lower balances gives it a slight edge over Grasshopper.

Bluevine is also one of our top recommendations for those looking for the top small business checking accounts and the leading 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.

For businesses sending payments internationally, you can now do so from the Bluevine dashboard to 26 countries in eight currencies. Payments are sent out between 8 a.m. and 5 p.m., Eastern time, and can be received in as fast as 24 hours.

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. View Bluevine’s list of countries available for international payments.

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.

Novo: Best Digital-only Bank for Rapid Access to Funds & Faster Payments

When To Choose Novo

Novo offers a great business checking product and outstanding software integrations. However, what stands out is its Novo Boost and Express ACH products. Using those products, Novo allows you to receive and make payments faster than with other online banks, which is why it is one of our best banks for small businesses. Novo Boost enables you to receive payments from your Stripe account more quickly than other providers while Express ACH allows you to accept or send same-day ACH payments.

To further expedite the payment process, users can now connect to Stripe, Square, or PayPal and get paid via card, Apple Pay, Google Pay, PayPal, or Venmo. Novo now allows you to apply for an account even if you don’t have an employee identification number (EIN) or limited liability company (LLC).

Novo is especially beneficial for those who regularly make ATM withdrawals 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 $2.40 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, such as Grasshopper or NBKC Bank.

Mercury: Best for Tech Companies, Startups & Businesses That Need Additional FDIC Insurance

When To Choose 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. If you spend $2,000 within the first 90 days on your debit card, you will receive $300 in cash back. However, sole proprietorships and trusts aren’t eligible for an account.

The provider has top-notch software integrations, ideal for both tech companies and startups, and its perks page allows you to advertise deals for your business on the Mercury website. What’s more, it offers Mercury Vault, its newest perk, which uses sweep accounts and partner banks to increase your FDIC insurance to $5 million.

You can access the interest-bearing Treasury account by request once you have at least $250,000 in funds in your Mercury accounts. Currently, it is earning up to 4.92% APY, with that rate changing weekly.

Mercury has 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.

Found: Best Digital-only Provider for Self-employed Professionals

When To Choose Found

If you’re looking for a business checking account with robust built-in bookkeeping software and excellent tax tracking and preparation, Found is a great option. The integrated bookkeeping solution allows you to categorize expenses, capture receipts, and set custom rules within the Found app. Found also allows you to complete and send your Schedule C directly from the app and pay your tax bill directly.

Geared toward freelancers and self-employed small business owners, it has no monthly maintenance or transaction fees and no minimum opening deposit requirements. It even provides unlimited free invoicing, which can be customized with your company’s logo and colors. Payments for those invoices can be accepted through payment apps.

Found doesn’t charge for any ATM withdrawals, although out-of-network ATM withdrawals would be subject to third-party fees. However, the provider doesn’t list its ATM network on its website. Additionally, it does not allow you to make cash deposits and deposit checks in the app.

If you need to deposit a check, you can use the Ingo Money app. Checks deposited through it can be accessed in your account immediately for a fee or in 10 days for free (see Ingo Money’s fees). The major drawback is that the check must be made out in your name and not your business name for Ingo Money to accept it.

Relay: Best for Businesses That Need Multiple Accounts & Debit Cards

When To Choose Relay

For businesses that need 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.

Relay recently added the ability to deposit cash at any of 55,000 Allpoint ATMs nationwide. You are limited to $1,000 per transaction, but this fee-free option to deposit cash gives Relay a considerable advantage over other fintechs on this list.

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. Its biggest drawback is that it has no lending products.

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 multi-step approval rules for bill payments, batch payments for bills, one-click reconciliation of bills, and same-day ACH delivery.

Grasshopper: Best Digital-only Bank for Integrated Free Payment Software

When To Choose Grasshopper

Grasshopper is another digital-only bank with a full range of banking products. Now offering the highest APY of the providers listed in this guide, as well as the highest uncapped APY, it is a great choice for an online business bank. Its interest yield is tiered depending on your balance.

Here is the tier structure for interest earnings:

• Balances up to $24,999.99: 1.51% APY
• $25,000 to $249,999.99: 2.25% APY
• $250,000 or greater: 1.51% APY

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.

In addition to earning up to 2.25% APY, Grasshopper’s biggest perk is the inclusion of Autobooks for free with each account. This gives each user free integrated payment and invoicing software.

Where it really shines is in its offer of both traditional and non-traditional business financing, including Small Business Administration (SBA) lending, commercial real estate lending, yacht lending, and venture capital and private equity lending. In addition, it has cash back rewards on debit card purchases and an interest-bearing checking account.

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 does not allow cash deposits and requires a $100 minimum opening balance.

Lili: Best for Digital Tax Preparation Assistance

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. The institution offers two checking options: Lili Basic, which is free, and Lili Pro, which is $9 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.

Lili Pro’s biggest perk is its Tax Optimizer. It 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.

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 DBA) and single-member LLCs, which were already eligible for an account. However, the account is unavailable to B corporations (B-corps), C corporations (C-corps), and nonprofit organizations.

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.

Live Oak Bank: Best for High-yield Savings Account

When To Choose Live Oak Bank

For businesses that want to earn maximum returns off of company reserves, Live Oak Bank is a great choice. In addition to its outstanding business checking product, its business savings earns 4.0% APY and business CDs earn as much as 5.00% APY. The company gears its product offerings toward self-employed business owners—specifically startups, entrepreneurs, gig workers, freelancers, and side hustlers.

Its business checking has no monthly or transaction fees, no minimum deposit required, and no ATM fees at more than 55,000 Allpoint ATMs. It also won’t charge if you go out of network, but you will likely pay third-party ATM fees. ATM usage is only available with the checking account.

You can open an account directly on Live Oak’s website. Once your account is open, you can deposit checks, pay bills, and initiate transfers entirely online. Live Oak Bank’s accounts are available to businesses nationwide. There is a $100 minimum opening deposit requirement.

Drawbacks include no cash deposits accepted, although you can deposit checks through the mobile app or by mail, or transfer funds via ACH. Sending wire transfers will cost you $19 each, although incoming wires are free.

NBKC Bank: Best Full-service Online Bank

When To Choose NBKC Bank

For a small business owner looking for a full-service online bank, NBKC Bank is a great option. In addition to business checking products, it offers business money market, CDs, commercial lending, business solutions, and credit card products.

Its business checking is a fee-free account with no monthly fees or minimum opening deposit requirements. Transactions are free with no limit, and you can deposit cash for free at both NBKC and MoneyPass ATMs. In addition, NBKC refunds up to $12 in ATM fees each month.

While it operates as an online bank, you can visit a branch if your business operates in two Missouri cities (Kansas City and Liberty) or two Kansas cities (Overland Park or Leawood). Customer service by phone is limited to business hours, although you can also reach out via email.

Even though NBKC’s business checking doesn’t draw interest, the bank offers CDs that earn up to 3.25% APY and a business savings money market account that earns 2.0% APY. You can read our review of NBKC Bank’s business savings account for more details.

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

When To Choose 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 is 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.

How We Evaluated the Best Online Banks for Small Businesses

When we evaluated the best online banks for small businesses, we considered:

• Monthly fees, if any, and how easily they are waived
• Required opening deposit and balance minimums
• Transaction limits before fees
• ACH and wire transfer fees
• ATM fees and availability
• Cash deposit fees and availability
• Interest yield, if applicable
• Other checking account perks
• Software integrations
• Other business services provided
• Lending products provided
• Customer service and customer reviews

What to Consider When Choosing an Online Business Bank

While we used our own criteria to select the best online banks for small businesses for this list, here are some things you should review before making a selection.

1. Ensure Your Account is Covered by FDIC Insurance

After the recent bank failures of Silicon Valley Bank, Signature Bank, and First Republic Bank, business owners were reminded of how vital FDIC insurance is to a company’s financial security. Given, the idea of an online-only bank can be a little scary to some, especially in the wake of recent bank failures; however, every bank on this list is either directly insured by the FDIC or backed by an insured bank.

If your business needs extra FDIC insurance, Mercury is a great choice, thanks to its Vault product. Mercury uses a sweep network and partner banks to extend your FDIC insurance to $5 million.

2. Determine if the Online Bank Has the Products & Services You Need

While all the online banks listed above offer great business checking products, the quantity of additional business banking products varies. NBKC Bank, for example, offers the same type of full-service banking products and services you would expect from a traditional, brick-and-mortar bank. Meanwhile, Bluevine only offers business checking and a line of credit product. However, if you need a bank that offers more than just a couple of products and services, you should consider another option.

3. Consider How Often Your Business Handles Cash

While several online banks in this guide accept cash deposits—either through Green Dot retail locations, ATM deposits, or money orders—these can get pricey. In addition, if your business handles cash regularly, it may not be the most convenient way to deposit cash. You should consider a traditional bank instead. There are several great traditional banks in our roundup of the best small business checking accounts.

4. Determine if the Online Bank Has Strong Security Protocols

While all of the online banks on this list have a strong reputation for online security, this may not be true of every online bank you might find on the internet. Before you move your business funds into an online account, check out the security reputation of the online bank in question. Reading customer reviews can also help, as any online bank with a past security breach would be easy to find out about.

5. Read Customer Reviews

While reviews might not tell the whole story, it is good to see what other business customers have said about an online bank. Each individual bank review on Fit Small Business includes a customer review section.

Reviews often include both business and personal accounts, so some might not apply to your potential business account. However, it should alert you of any potential red flags to avoid before choosing a new online bank.

What You Need to Open a Business Bank Account

Each provider on this list may require different documents to open a business bank account. Generally, you will need:

• Employer identification number (EIN) or Social Security number if you’re a sole proprietor
• Fictitious business name certificate or doing-business-as (DBA) certificate
• Business formation documents
• Organization documents, including your ownership agreements
• Business licenses
• Government-issued photo ID, such as a passport or driver’s license

Frequently Asked Questions (FAQs)

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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.