10 Best Silicon Valley Bank Alternatives 2023
This article is part of a larger series on Business Banking.
Silicon Valley Bank (SVB), one of the largest providers of funding and support for startup companies, was shut down by regulators on March 10, 2023. A recent attempt to raise venture capital funding failed, and it was turned over to Federal Deposit Insurance Corporation (FDIC) receivership. Insured deposits will be available through the new bank created by the FDIC, Deposit Insurance National Bank of Santa Clara, starting March 13, 2023.
For startups already struggling in this challenging economy, the possibility of your bank failing could make things even worse. Startups that had accounts with Silicon Valley Bank, or were considering an account with SVB, should choose one of these alternative banks instead. These banks offer great business checking products insured by the FDIC, along with outstanding startup business support.
Here are the best Silicon Valley Bank Alternatives, with links directly to the provider’s websites:
- Chase: Best overall alternative to SVB with full-service banking
- Bank of America: Best for ongoing rewards and low cash deposit fees
- Brex*: Best cash management for startups and scaled companies
- Mercury*: Best digital bank for larger-scale incorporated startups
- Novo*: Best digital-only bank for rapid access to funds and faster payments
- Bluevine*: Best for earning interest and best business line of credit
- Found*: Best digital-only provider for self-employed professionals
- Oxygen*: Best digital-only provider for cash back on debit card purchases
- Grasshopper: Best digital-only bank for integrated free payment software
- Lili*: Best for startups needing digital tax preparation assistance
*Providers are financial technology (fintech) platforms backed by FDIC-insured bank partnerships. (Partnerships: Brex has partnered with 10 banks that are FDIC-insured, Middlesex Federal Savings for Novo, Choice Bank and Evolve Bank & Trust for Mercury, Coastal Community Bank for Bluevine, Piermont Bank for Found, The Bancorp Bank for Oxygen, and Choice Financial Group, Inc., for Lili.)
Best Silicon Valley Bank Alternatives at a Glance
Account Name | Monthly Fee | Free Monthly Transactions | Annual Percentage Yield (APY) | Free Cash Deposit Limit | |
---|---|---|---|---|---|
SVB Edge | None for 3 years; $50 per month after | No limit | N/A | No fee | |
See alternatives below | |||||
Business Complete Banking | $15; waivable | 20 | N/A | $5,000 per month | |
Fundamentals Business Checking | $16; waivable | 200 | N/A | $7,500 per month | |
Brex Cash | None | No limit | N/A | Cash deposits not accepted | |
Business Checking | None | No limit | N/A | Cash deposits not accepted | |
Business Checking | None | No limit | N/A | No fee; Cash deposited through money orders | |
Business Checking | None | No limit | 2.0% on qualifying balances of $250k or less | $4.95 per deposit (Green Dot) | |
Business Checking | None | No limit | N/A | Cash deposits not accepted | |
Business Checking | None | No limit | N/A | $4.95 per deposit (Green Dot) or via Plaid link | |
Innovator Business Checking | None | No limit | 1.51% | Cash deposits not accepted | |
Business Checking Basic | None | No limit | N/A | $4.95 per deposit (Green Dot) or via Plaid link | |
Chase: Best Overall Alternative to SVB With Full-service Banking
What We Like
- $300 bonus when you open an account
- Easy-to-waive monthly fee
- Built-in card acceptance with QuickAccept℠ via the Chase MobileⓇ app
Drawbacks
- Limited number of free transactions
- ATM fees not reimbursed
- Fee for cash deposits of more than $5,000 per statement period
Features
- Manage debit, deposit, and ATM card settings for individual employees
- Deposit checks, view account balances, pay bills, and make transfers through the mobile app
- Integrates with QuickBooks and other leading accounting software
- Free debit card, mailed within 10 business days of application approval
- Physical checks’ costs, depending on type ordered
- Chase Merchant Services
- Live customer support online or in branch during business hours
- Other products include business savings, certificates of deposit (CDs), lending products, credit cards, merchant services, and collection services
Chase Business Complete BankingSM Checking Terms
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | 20 monthly, then 40 cents per transaction |
Automated Clearing House (ACH) Fees | $25 for first 25 items per month, 15 cents per item above 25 per month, $2.50 return fee |
Monthly Fees | $15; waivable if conditions are met |
Domestic Wire Transfer Fees | Up to $35 for outgoing wires, up to $15 for incoming wires |
International Wire Transfer Fees | Up to $50 for outgoing wires, up to $15 for incoming wires |
ATM Fees | $3 per transaction at any non-Chase ATM, plus ATM operator fees |
Cash Deposited | $2.50 per $1,000 after you deposit $5,000 in a billing cycle |
APY | N/A |
When To Choose Chase
For startup businesses that might be looking for a traditional bank alternative to Silicon Valley Bank, Chase is the best option. Chase offers three business checking options with waivable monthly fees that can scale as your business grows. This is why it’s considered one of the best small business checking accounts on the market.
In addition, Chase has industry-leading lending products, including credit cards and lines of credit, along with POS and software solutions. Chase provides commercial lending solutions through J.P. Morgan, including commercial real estate loans. J.P. Morgan offers payment services, cash flow management, commercial credit cards, and merchant services.
All of Chase’s business checking products charge a monthly fee that is easily waivable if you meet balance or activity requirements. You can also get a $300 cashback bonus for opening an account and meeting specific requirements. It’s one of the best account-opening promotions on the market.
For startups that might be leery of choosing another online-only bank, you can have confidence in the future of Chase, which dates back more than 200 years. No matter what stage your startup is in, Chase has the products and services to meet your needs.
Bank of America: Best for Ongoing Rewards & Low Cash Deposit Fees
What We Like
- 200 free transactions per month
- Free digital tools to track business performance
- Ongoing rewards
Drawbacks
- Cash deposit fees charged per $100 over monthly allowance
- Doesn’t offer ATM fee reimbursements
- Requires a $100 opening deposit
Features
- Deposit checks, view accounts, make transfers, and pay bills with the mobile app
- Credit card processing and payroll services through ADP
- Cash Flow Monitor® cash management tool connects accounting, analytics, and payroll apps
- Check your business credit score through a partnership with Dun & Bradstreet
- Free debit card
- Integrations with QuickBooks, TurboTax, and Zelle®
- Customer service during business hours in branch and via phone or social media messages
- Merchant services available through Expensify
- Other products include business savings, certificates of deposits (CDs), lending products, financial analysis through Merrill Financial Advisor
Bank of America FundamentalsTM Business Checking Terms
Required Opening Deposit | $100 |
Required Balance Minimum | None |
Transaction Limit Before Fees | 200 monthly, then 45 cents per item |
ACH Fees | May vary |
Monthly Fees | $16; waivable if conditions are met |
Domestic Wire Transfer Fees | Fees vary |
International Wire Transfer Fees | Fees vary |
ATM Fees | None at over 16,000 ATMs nationwide; $2.50 per transaction on out-of-network ATMs |
Cash Deposited | Up to $7,500 per month free, then 30 cents per $100, per statement cycle |
APY | N/A |
When To Choose Bank of America
Bank of America is another great traditional bank alternative to SVB. The company offers multiple checking options and full-service business banking products and services. When comparing Bank of America to Chase, 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; 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.
In addition, you can check your Dun & Bradstreet business credit score for free within the Bank of America app. This is one of the reasons Bank of America is our choice as the best bank for small business loans and the best bank for real estate investors.
With its preferred rewards for business, you can earn bonus rewards on credit cards and get a higher interest rate on business advantage savings accounts.
There are excellent software integrations and a wide range of additional business products, including savings, CDs, lending products, and financial analysis through Merrill financial advisor. Bank of America includes all the products and services your startup will need to flourish.
Brex: Best Cash Management for Startups & Scaled Companies
What We Like
- No minimum balance or opening deposit requirement
- No opening or maintenance fees
- All ACH and wire transfers are free
Drawbacks
- No ATM card option
- No physical locations and cash deposits in an account
- Tightened qualification requirements may leave your business unable to obtain an account
Features
- No fees on money transfers, including ACH, checks, and wire transfers, both domestic and international
- No opening or maintenance fees
- Uncapped rewards and 10 to 20 times higher limits on Brex Mastercard with no personal guarantee
- Spend management for accounting automation and accuracy
- Partner perks with businesses, such as Amazon Web Services (AWS), Apple, QuickBooks, and UPS
- Powerful mobile app with expense tracking and integrations with popular financial and business software
- Deposits can be spread among 10 member banks that are FDIC-insured for a maximum of $1 million ($250,000 each)
- Customer support via chat seven days a week from 5 a.m. to 8 p.m. Pacific time or by email
Brex 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 |
International Wire Fees | None |
ATM Fees | No ATM card available |
Cash Deposited | None; cash deposits not accepted |
APY | N/A, invested cash in money market can draw up to 4.10% |
Open an account | |
*Brex is a business fintech platform, which partners with 10 program banks that are FDIC-insured. |
When To Choose Brex
For companies that have received venture capital funding in the past and are looking to move their accounts from Silicon Valley Bank, Brex might be a good choice. Billions of dollars in funds were moved from SVB to Brex on March 9, 2023.
It has the strictest requirements of any provider on this list, so be sure your business meets the criteria listed on Brex’s website before you open an account. If you cannot qualify, there are Brex alternatives that can serve your business needs, or you could choose another provider from this list.
Brex’s checking product 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.
The company also has a money market account, which can draw up to 4.19%. It offers a business credit card with uncapped rewards, spend management, expense tracking, bill pay, and financial modeling. Moreover, the Brex app has great integrations with various business and finance applications.
Brex has partnered with 10 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 $1 million in deposits for your company with the FDIC. With more than 93% of Silicon Valley Bank’s $161 billion in deposits having been uninsured, it is important to ensure your business funds are protected.
One drawback is that no ATM card is available, so if your startup needs to withdraw money from an ATM, you’ll have to choose another provider.
Mercury: Best Digital Bank for Larger-scale Incorporated Startups
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 |
ACH Fees | 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 |
*Mercury is a business fintech platform backed by FDIC-insured Evolve Bank & Trust. |
When To Choose Mercury
Mercury is a fintech banking product geared toward startups and tech companies. Its checking and savings accounts are free, with no minimum deposit or balance requirements.
One of the biggest benefits is up to $1 million in FDIC insurance through Mercury’s two partner banks, Choice Bank and Evolve Bank & Trust. The bank’s founder created Mercury with the goal of being a better SVB.
You can also get a $300 cashback bonus if you spend $2,000 on your debit or credit card within the first 90 days of account opening.
Mercury offers Treasury, which is an interest-earning account. It’s only available to customers with at least $250,000 in funds in Mercury accounts and is currently earning up to 4.67% APY.
Mercury has also added a credit card, the IO Mastercard, which offers 1.5% cash back and unlimited virtual cards.
It 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 United States are eligible for an account, except sole proprietorships and trusts.
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 must pay third-party operator fees.
The drawbacks are the inability to deposit cash and no lending products outside the credit card and a venture capital term loan program. Otherwise, Mercury is a great choice for startups looking for a digital-only SVB alternative.
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
Drawbacks
- 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
- Virtual debit card available immediately, one free physical debit card per user
- Paper checks can be sent straight from the app
- Live customer support from dedicated professionals
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 |
*Novo is a business fintech platform backed by FDIC-insured Middlesex Federal Savings. |
When To Choose Novo
For businesses that receive payments regularly through Stripe, Square, or PayPal, Novo is a great banking option. With its Novo Boost product, you can receive payments faster from those accounts than other providers. You can get paid via card, Apple Pay, Google Pay, PayPal, or Venmo.
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 an ideal 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.
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). Overall, it is an excellent option for businesses seeking an alternative to Silicon Valley Bank.
Bluevine: Best for Earning Interest & Best Business Line of Credit
What We Like
- Interest-earning checking on balances of $250,000 or less
- Integrates with QuickBooks
- Excellent line of credit product
Drawbacks
- No savings, money market, and 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 |
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 $250,000 or less, once qualifications are met |
*Bluevine is a business fintech platform backed by FDIC-insured Coastal Community Bank. |
When To Choose Bluevine
For businesses wanting an SVB alternative 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.
It charges no monthly or transaction fees and is one of our top picks for the best free business checking accounts. It also doesn’t have a minimum opening deposit or balance requirement, and its lack of fees makes it an excellent choice for a bank account for self-employed and freelance professionals.
Bluevine also provides up to five subaccounts to allow customers to separate their funds. Funds included in your six total accounts would be eligible to earn interest.
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.
Found: Best Digital-only Provider for Self-employed Professionals
What We Like
- No monthly fees, minimum balances, account fees, and sign-up fees
- Excellent expense tracking on both its desktop and mobile apps
- Helps you track tax write-offs and gives you real-time tax estimates
Drawbacks
- Cannot currently deposit checks made out in your business’ name
- Doesn’t accept cash deposits
- Cannot purchase checks or issue them from the app
Features
- Provides a business debit Mastercard, which allows you to track expenses and receive purchase alerts
- Debit cards can be frozen in the Found app
- Desktop and mobile apps
- Connect to accounting software and payment apps, such as Cash App, PayPal, Square, Venmo, and eBay
- Integrated bookkeeping allows you to categorize expenses, customize invoices, capture receipts, and set custom rules
- Track tax write-offs in the app
- View your tax estimate update in real-time
- Pay your taxes directly from the app
- Send your Schedule C directly from the app
- Customer service via email, online form, and support guides on the website
Found Bank Business Checking Terms
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | None |
ACH Fees | None |
Monthly Fees | None |
Domestic Wire Transfer Fees | Free incoming wires; outgoing wires unavailable |
International Wire Fees | Wire transfers unavailable |
ATM Fees | Found doesn’t charge for ATM usage; third-party ATM fees will likely apply |
Cash Deposited | Cash deposits not accepted |
APY | N/A |
*Found is a business fintech platform backed by FDIC-insured Piermont Bank. |
When To Choose Found Business Checking
For startups looking for an all-in-one product that combines a great business checking product with integrated bookkeeping, Found is an excellent choice. Found offers fee-free business checking options without transaction limits.
In addition, you can categorize expenses, capture receipts, and set custom rules with its app. Found also provides unlimited free invoicing. Found can customize those invoices with your company’s logo and colors. You can accept payment for those invoices through payment apps.
Not only does Found help you with short-term budgeting, but it can also help you prepare business taxes. Found has robust tax tracking and preparation software, allows you to complete and send your Schedule C directly from the app, and lets you pay your tax bill directly.
The provider doesn’t charge for any ATM withdrawals, although out-of-network ATM withdrawals would be subject to third-party fees. However, Found doesn’t list its ATM network on its website. Additionally, it doesn’t allow you to make cash deposits and deposit checks in the app, and only incoming domestic wires are available.
If you need to deposit a check, you can use the Ingo Money app. Checks deposited through that app can be accessed in your account immediately for a fee or in 10 days for free. The major drawback is that the check must be made out in your name—not your business name—for Ingo Money to accept it.
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 |
ACH 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 |
*Oxygen is a business fintech platform backed by FDIC-insured The Bancorp Bank. |
When To Choose Oxygen
For freelancers and creatives looking for an alternative to Silicon Valley Bank, Oxygen is an excellent option. It is a digital-only bank that offers 5% cash back on all debit card purchases. You can also open personal and business accounts through Oxygen, one of the few fintechs that offers both.
Oxygen’s business bank account is fee-free, with no minimum balance requirements or transaction limits. Like Bluevine, you can make cash deposits through Green Dot locations for $4.95 per transaction. However, you can also use in-app mobile check capture or transfer money via ACH or Plaid from an outside account.
For startups looking to incorporate, Oxygen provides nationwide LLC creation through its app powered by CorpNet, Inc. There are fees involved, but it’s one of the few services that isn’t free. Its app is award-winning, earning the 2021 Best Overall FinTech Mobile App at 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’s only open to a single sign-on (SSO) per account, which puts it behind many other fintechs in this guide.
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 |
When To Choose Grasshopper
Another fintech that offers interest-bearing checking is Grasshopper. It offers 1.5% APY on all balances with no minimum or maximum. In addition, you get 1% cash back on all debit card online and in-person purchases.
Customers must maintain a minimum average balance of $10,000 with no nonsufficient funds (NSF) items during the preceding 12 calendar months to continue to earn interest.
Grasshopper allows unlimited transfers, including free domestic and international wire transfers. There are no monthly fees and no transaction limits. However, no cash deposits are accepted.
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 Small Business Administration (SBA) lending, commercial real estate (CRE) lending, yacht lending, and venture capital and private equity lending. For businesses that had loans through SVB, Grasshopper might be a logical choice.
Lili: Best for Startups That Need 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
Drawbacks
- No physical locations
- Some of the best features are in higher-tier Lili Pro account
- 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
- Physical checks unavailable
- Integrations with QuickBooks, Venmo, PayPal, and CashApp, among others
- Toll-free phone support Monday through Friday, 9 a.m. to 7 p.m. Eastern time, and by email
- Lili Pro available for $9/month
Lili Business Checking Terms
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | None |
Monthly Fees | None |
Domestic Wire Transfer Fees | Unavailable |
International Wire Fees | Unavailable |
ATM Fees | None at 38,000 MoneyPass ATMs (third-party ATM fees may apply); $2.50 for out-of-network |
Cash Deposited | $4.95 fee per transaction, available through Green Dot retail locations |
APY | None |
Open an Account | |
*Lili is a business fintech platform backed by FDIC-insured Choice Financial Group, Inc. |
When To Choose Lili
Another SVB alternative that can help you with tax preparation is Lili. The company combines great business checking with 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 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 1.5% 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. Lili now allows multimember LLCs, 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 DBA) 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. Like Bluevine, you can deposit cash but must do it through Green Dot retail locations for $4.95 a transaction.
How We Evaluated the Best Silicon Valley Bank Alternatives
When we evaluated the best SVB alternatives, we considered
- Traditional bank vs online fintech
- FDIC insurance limits
- 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 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:
- 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
Bottom Line
With Silicon Valley Bank being closed by regulators on March 10, 2023, and turned over to FDIC receivership, you’ll need to find an alternative bank for your business funds. When choosing a new provider, it’s critical to consider additional insurance beyond what the FDIC provides. Traditional banks will provide the most stability, but the failure of one fintech doesn’t mean you should avoid all fintechs when considering your startup banking needs. However, it’s crucial that you keep up with the latest financial news and have a banking backup plan in the event you need to move your business funds on short notice.