5 Best Online Business Checking Accounts for 2021

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Online business checking accounts are best for small businesses that don’t normally handle cash transactions. The best online business checking account options offer low-cost checking along with bank features like in-network ATMs, ATM fee reimbursements, and seamless app integration. Simply put, the best online banks make digital banking just as easy to navigate as traditional banking.

The best online business checking accounts are:

• First Internet Bank: Best for opening your checking and savings account under the same bank
• TIAA Bank: Best for sole-proprietors or single-member limited liability companies (LLCs)
• LendingClub Bank: Best for earning unlimited1% cash back
• Novo: Best for freelancers and low-cost checking
• Axos: Best for earning welcome bonus

First Internet Bank: Best for Opening Multiple Bank Accounts

First Internet Bank offers both business checking and savings accounts that allow you to earn interest. This is a major convenience for those who want to have their accounts with the same bank while earning money on their deposits. Its checking account offers unlimited transactions with no monthly fee or minimum balance requirement. It has a vast ATM network that makes it easy to withdraw cash whenever you need it. Moreover, it reimburses up to $10 in third-party ATM fees per month.

Who it’s best for: Business owners looking for interest-bearing checking with unlimited transactions and no monthly fee.

Fees & Terms

• Monthly fee: None
• Transaction fee: None
• Outgoing wire transfer fee (domestic): $20
• Outgoing wire transfer fee (international): $50
• ATM fee: None
• Minimum initial deposit: $100
• Minimum balance: None
• Ongoing APY: 0.30% on balances of $10,000 or more

Why We Like It

First Internet Bank made it to the top of our list because, despite not having a brick-and-mortar branch location, it’s a full-fledged bank. FIB offers a full suite of personal accounts, loans, mortgages, and a variety of business accounts. This makes it a small business owner’s one-stop-shop for online banking.

TIAA Bank: Best for Sole Proprietors or Single-member LLCs

TIAA Bank’s Small Business Checking offers a solid free checking account designed for sole proprietors and single-member LLCs. Its checking account also allows you to earn interest with no minimum balance requirement. Accessibility isn’t an issue because you can make deposits online, have access to nearly 80,000 ATMs, and be reimbursed for up to $15 for third-party ATM fees each month. TIAA Bank accounts with a minimum average daily balance of $5,000 can enjoy an unlimited ATM fee reimbursement. It also provides tools that easily integrate with various aspects of your business, including bookkeeping, payment methods, and financial reporting and analysis.

Who it’s best for: Unincorporated sole proprietors and single-member LLCs.

Fees & Terms

• Monthly fee: None
• Transaction fee: None
• Outgoing wire fee (domestic): $25
• Outgoing wire fee (foreign): $35
• ATM fee: None
• Minimum initial deposit: $1,500
• Minimum balance: None
• Ongoing APY: 0.10%

Why We Like It

We like TIAA Bank because it employs a full range of security measures to ensure that you are banking safely. It prioritizes client security and integrates tools such as encryption technology, fraud detection, and web safety. Furthermore, clients who become victims of identity theft may qualify for up to $1,000 in reimbursement coverage for certain identity theft-related expenses.

LendingClub Bank: Best for Earning Unlimited 1% Cash Back

LendingClub Bank’s Business Checking is one of the only business checking accounts that rewards businesses with unlimited1% cash back on debit card purchases when you maintain at least $5,000 in your account. It also offers unlimited rebates for ATM fees charged by other banks worldwide. You won’t be charged a monthly maintenance fee and can earn 0.10% APY if your balance is at least $5,000.

Who it’s best for: Payment-heavy businesses that keep an average balance of $5,000 or more to enjoy free monthly fees, earn APY, and cash back.

Fees & Terms

• Monthly fee: $10, waived if you maintain a minimum balance of $5,000
• Transaction fee: None
• Outgoing wire fee (domestic): $18
• Outgoing wire fee (foreign): $40
• ATM fee: None; unlimited ATM fee reimbursements
• Minimum initial deposit: $100
• Minimum balance to avoid monthly fee: $5,000
• Ongoing APY: 0.10% on balances of $5,000 or more

Why We Like It

One of the most important things to look for when choosing an online bank is the features that the bank’s mobile app offers. LendingClub Bank made it to our list because its mobile app allows you to see real-time transaction history, create and send invoices, and generate accounting reports. Its app also accepts card, automated clearing house (ACH), and lockbox payments, making it convenient to use.

Novo: Best for Freelancers and Low-cost Checking

Novo is an excellent option for freelancers and entrepreneurs who like to keep their banking simple. It offers a business checking account with popular features that make digital banking even easier, including online banking and mobile app integration. With Novo’s checking account, owners get great banking that’s completely fee-free. Open this online bank account if you’re an owner who needs a basic account that’s easy to use.

Who it’s best for: Freelancers and entrepreneurs who want easy-to-manage banking with no fees and easy app integration.

Fees & Terms

• Monthly fee: None
• Transaction fee: None
• Outgoing wire fee (domestic): Service not offered
• Outgoing wire fee (foreign): Service not offered
• ATM fee: Refunds all ATM fees
• Minimum initial deposit: $50
• Minimum balance: None

Why We Like It

We like Novo because of its fee-free online banking that offers unlimited free transactions and unlimited ATM fee reimbursements. Its easy-to-use mobile app makes this bank an ideal option for business owners who prefer simple and hassle-free digital banking. It also integrates with several point-of-sale and other tools that are useful for your business.

Axos Bank: Best for Earning Welcome Bonus

Axos Bank offers a $100 welcome bonus for new business owners who incorporated their business after June 1, 2020. It offers fee-free banking with no minimum balance requirements, free online bill pay, free first set of 50 checks, and unlimited domestic ATM fee reimbursements. Axos is also an excellent option for businesses with employees as it offers workplace banking which allows employees to open low-fee accounts.

Who it’s best for: Newly incorporated business owners who want to earn a welcome bonus and those with employees.

Fees & Terms

• Monthly fee: None for Basic Business Checking; $10 for Business Interest Checking (can be waived if you maintain at least $5,000 balance)
• Transaction fee: Up to 200 free items (debits, credits, or deposited items) per month, 30 cents per item thereafter for Axos Basic Business Checking account; up to 50 free items per month for Business Interest Checking, 50 cents per item thereafter
• Outgoing wire fee (domestic): $15
• Outgoing wire fee (foreign): $50
• ATM fee: Refunds all ATM fees
• Minimum initial deposit: $1,000
• Minimum balance: None
• APY: None for Basic Business Checking and up to 0.81% APY for Business Interest Checking

Why We Like It

What we like about Axos is its workplace banking program—not only do small business owners get a great fee-free checking account, but by having a business relationship with Axos, their employees can benefit as well. Axos Workplace Banking is designed to help employees cut costs, build emergency funds, and improve financial wellness that can help them prepare for the future.

Honorable Mention: BlueVine Business Checking

Known for its small business loans and funding, BlueVine expands its commitment to small businesses with its small business checking account. This account is free of monthly fees, ACH charges, and incoming wire fees. It also earns an impressive APY that’s 10 times the national average on balances of at least $1,000 up to $100,000. With all these features and more than 38,000 ATM locations, opening a bank account like this is a great deal for any small business owner. It also integrates with leading payment solutions and accounting software like QuickBooks Online, Wave, Stripe, and PayPal.

Who it’s best for: Business owners looking for a banking platform that emphasizes reliable customer service and earns high APY on checking balances.

Fees & Terms

• Monthly fee: None
• Transaction Fee: None
• Outgoing wire transfer fee (domestic): $15
• Outgoing wire transfer fee (international): Not applicable
• ATM fee: None
• Minimum initial deposit: None
• Minimum balance: None
• Ongoing APY: 1.00% on balances up to $100,000

Opening Conventional vs Online Business Checking Accounts

Business owners who need a business checking account can choose between conventional and digital banks. Traditional banks offer conventional checking accounts with brick-and-mortar branches. Those accounts usually provide a wide variety of products and services but carry more fees overall.

Meanwhile, digital checking accounts are designed better for online-based businesses that don’t usually handle cash transactions. Most online business checking accounts have no fees. However, online banks that do have account costs typically have structures that make it easy to avoid account fees by meeting minimum balance requirements. This type of account may not be right for you if you need access to a physical branch or if you frequently deal with cash.

How We Evaluated Online Business Checking Accounts

We reviewed several factors that make remote banking more affordable and easier, including low account fees and ATM access. We also looked for additional bank features valuable to business owners like easy app integration, introductory bonus offers, and third-party ATM fee reimbursements. The accounts on this list are the best because they earn high marks in one or more of these areas.

Bottom Line

Online business checking accounts are designed for owners who don’t need physical branches or cash processing. The best banks for small businesses usually offer fee-free banking with features businesses find helpful, making it easy to bank remotely. When deciding on the best digital account for your business, consider the banking features that your company needs most.