8 Best Silicon Valley Bank Alternatives 2023
This article is part of a larger series on Business Banking.
Silicon Valley Bank, one of the largest providers of funding and support for startup companies, was shut down by regulators on March 10, 2023. It was purchased by First Citizens Bank later that month and is back in operation, providing most of the same products and services as before.
Even though it is backed by a trustworthy bank, many startup owners will hesitate to put money in a bank carrying the name of a previously failed institution. Startups may want to consider one of these alternative banks instead, which offer great business checking products along with outstanding startup business support.
After reviewing more than 100 business banks, here are the best Silicon Valley Bank alternatives, with links directly to the provider’s websites:
- Mercury Provider is a fintech platform backed by and Federal Deposit Insurance Corp. (FDIC)-insured through supporting bank partnerships with Choice Financial Group and Evolve Bank & Trust. : Best overall alternative, serving larger-scale incorporated startups
- Chase Member FDIC. : Best for full-service small business banking tools and premium checking
- Bank of America Member FDIC. : Best for ongoing rewards and higher monthly free cash deposit limits
- Brex Provider is a fintech platform backed by and FDIC-insured through supporting bank partnerships with multiple banks. See Brex's website for the complete list. : Best cash management for startups and scaled companies
- Novo Provider is a fintech platform backed by and FDIC-insured through a supporting bank partnership with Middlesex Federal Savings. : Best digital-only bank for rapid access to funds and faster payments
- Bluevine Provider is a fintech platform backed by and FDIC-insured through a supporting bank partnership with Coastal Community Bank. : Best for interest-earning account with best line of credit and international payments
- Found Provider is a fintech platform backed by and FDIC-insured through a supporting bank partnership with Piermont Bank. : Best digital-only provider for self-employed professionals
- Grasshopper Member FDIC. : Best digital-only bank for highest yield and integrated free payment software
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 |
 | Business Checking | None | No limit | N/A | Cash deposits not accepted |
 | 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 | No fee; Cash deposited through money orders |
 | Business Checking | None | No limit | 2.0% on qualifying balances of $250,000 or less | $4.95 per deposit (Green Dot) |
 | Business Checking | None | No limit | N/A | Available at 79,000-plus retail locations |
 | Innovator Business Checking | None | No limit | Up to 2.25% | Cash deposits not accepted |
Mercury: Best Overall SVB Alternative, Serving Larger-scale Incorporated Startups
What We Like
- No monthly maintenance fees
- Physical and virtual debit cards
- Treasury product offers outstanding yield on balances over $250,000
Drawbacks
- Accounts unavailable to sole proprietorships and trusts
- 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 account
- Other products include Mercury Treasury, capital and venture debt, and credit card
| |
|---|---|
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | No limit |
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 Federal Deposit Insurance Corp. (FDIC)-insured Choice Financial Group and Evolve Bank & Trust. | |
When To Choose Mercury
Not only is Mercury our choice for the best SVB startup account alternative due to its support for larger-scale startups, but it was also one of the top choices of many former SVB customers. In the immediate aftermath of Silicon Valley Bank’s failure, more than $2 billion in deposits were transferred to 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 its up to $5 million in FDIC insurance through Mercury’s Vault product. 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 offers Treasury, which is an interest-earning account. However, it is only available to customers with at least $500,000 in funds in Mercury accounts and is currently earning up to 5.43% APY.
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 US are eligible for an account, except sole proprietorships and trusts.
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.
Chase: Best for Full-service Small Business Banking Tools & Premium Checking
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, CDs, lending products, credit cards, merchant services, and collection services
 | |
|---|---|
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | 20, 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 is considered one of the best small business checking accounts on the market.
Apart from Chase business credit cards, the provider offers industry-leading lending products, including lines of credit, along with POS and software solutions. It provides commercial lending solutions through J.P. Morgan, including commercial real estate (CRE) 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 cash back 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 & Higher Monthly Free Cash Deposit Limits
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®, a cash management tool, lets you connect accounting, analytics, and payroll apps to help you make business decisions
- Check your business credit score through a partnership with Dun & Bradstreet
- Free debit card
- Physical checks’ cost varies depending on type ordered
- Integrations with QuickBooks, TurboTax, and Zelle
- Customer service during business hours in branch and via phone, or via social media messages
- Merchant services available through Expensify
- Other products include business savings, CDs, lending products, and financial analysis through Merrill Financial Advisor
 | |
|---|---|
Required Opening Deposit | $100 |
Required Balance Minimum | None |
Transaction Limit Before Fees | 200, then 45 cents per item |
Monthly Fees | $16 (waivable if conditions are met) |
Domestic Wire Transfer Fees | Fees vary |
International Wire Transfer Fees | Fees vary |
ATM Fees | Free access to approximately 15,000 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.
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 cash back and credit card statement credits as part of its ongoing rewards. You can learn more about these accounts in our Bank of America business checking review.
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 one of our leading banks 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 multiple member banks that are FDIC-insured for a maximum of $6 million
- Customer support via chat seven days a week from 5 a.m. to 8 p.m. Pacific time or by email
| |
|---|---|
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 prior to the bank’s failure on March 9.
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 start to 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 4.72%. 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 multiple 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 $6 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 will have to choose another provider.
Novo: Best Digital-only Bank for Rapid Access to Funds & Faster Payments
What We Like
- Refunds all ATM fees at month’s end
- No maintenance 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
| |
|---|---|
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 the perfect 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.
While Novo previously didn’t offer lending products, it has introduced a working capital product available to banking customers who qualify.
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 Interest-earning Account With Best Line of Credit & International Payments
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 certificate of deposit (CD) accounts
- No physical branch locations
- Fee for depositing cash
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
| |
|---|---|
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | No limit |
Automated Clearing House (ACH) Fees | None |
Monthly Fees | None |
Teller Cash Withdrawal Fee | None |
Domestic Wire Transfer Fees | $15 for outgoing, incoming are free |
International Wire Transfer Fees | $15 for outgoing, incoming are free |
ATM Fees | Free at MoneyPass locations nationally; $2.50 plus operator fees for non-network ATM use |
Cash Deposited | $4.95 fee per transaction, available through Green Dot retail locations |
APY | 2% on balances of up to $250,000, 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, the best line of credit product on the market, and international payment support, 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 does not 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 offers the leading business line of credit on the market, with funding within 24 hours. You can also send international payments with Bluevine to 32 countries in 14 currencies—which is why it made our list of the best banks for international businesses.
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
- No free cash deposits
- Interest earning only through paid-tier Found Plus
- 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
| |
|---|---|
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 only sent to Found customers |
International Wire Fees | Unavailable |
ATM Fees | Found doesn’t charge for ATM usage; third-party ATM fees will likely apply |
Cash Deposited | Accepted at more than 79,000 retail locations; list available in the Found app |
APY | N/A |
*Found is a business fintech platform backed by FDIC-insured Piermont Bank. | |
When To Choose Found
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 like Cash App, PayPal, Square, Venmo, and eBay.
Found’s app also comes with contractor management, which allows you to request and manage W-9s, 1099 payment reports, contractor tax forms 1099-NECs, and more.
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. You can make cash deposits at more than 79,000 retail locations nationwide. The full list can be found on Found’s app.
Some of Found’s features are only included in Found Plus, which is $19.99 per month or $149.99 per year. You get interest-bearing checking with Found Plus, earning 1.5% APY on balances up to $20,000.
Found is a financial technology company, not a bank. Banking services are provided by Piermont Bank, Member FDIC.
Grasshopper: Best Digital-only Bank for Highest Yield & 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
- 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
| |
|---|---|
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 |
|
When To Choose Grasshopper
Another fintech that offers interest-bearing checking is Grasshopper. It offers up to 2.25% APY, which is the highest checking yield on this list. Balances less than $25,000 and greater than $250,000 still earn a solid 1.51% APY. 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 SBA lending, CRE lending, yacht lending, and venture capital and private equity lending. For businesses that had loans through SVB, Grasshopper might be a logical choice.
How We Evaluated the Best SVB Startup Account Alternatives
We evaluated over 100 banks for this buyer’s guide. 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 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
Bottom Line
While there is no reason to believe the new First Citizens Bank-backed Silicon Valley Bank isn’t a safe place to put your company’s funds, many business owners will be understandably hesitant to reinvest in a bank that failed once before.
When choosing a new provider, it is 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 is 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.
