7 Best Small Business Checking Accounts in 2021

Business owners need to open a business checking account to keep business and personal finances separate. The best business checking account is not costly to maintain, provides an opportunity to earn interest, and offers features that are useful for your business. It’s essential to choose a business checking account that meets your business’ unique needs.

The best small business checking accounts are:

• Bank of America: Best overall for cash deposits and a big introductory bonus
• Chase Bank: Best for a free checking account with low monthly deposits
• Capital One: Best for low-cost checking with unlimited transactions
• U.S. Bank: Best for making few monthly transactions
• Wells Fargo: Best for flexibility when upgrading account services as a company grows
• First Internet Bank: Best for opening multiple online accounts with the same bank
• Novo: Best for free ATM Use

Bank of America: Overall Best Small Business Checking Account

Bank of America offers a low-cost checking account with an attractive sign-up bonus that allows you to earn up to $500 when you complete the qualifying activities. You can also make up to 200 transactions and $7,500 cash deposits for free every month. While Chase is a close runner-up, Bank of America is the best bank if you want an account that yields the most lucrative benefits.

Who it’s best for: Business owners who need to make significant monthly cash deposits and want to earn a big introductory bonus.

Fees & Terms

• Monthly fee: $16. To avoid the monthly fee, meet one of the following requirements during each banking statement cycle:
  • Maintain a $5,000 combined average monthly balance
  • Use a Bank of America business debit card to make at least $250 in new net qualified purchases
  • Become a member of Preferred Rewards for Business (first four checking accounts, per enrolled business)
• Transaction fee: No fee for the first 200, then 45 cents per item
  • No excess transaction fee for automated clearing house (ACH), debit card transactions, online bill pay, electronic debits, and checks deposited through remote deposit online
• Cash deposit fee: No fee for the first $7,500, then 30 cents per $100
• ATM fee: No ATM fee for withdrawals, deposits, transfer, payments, and balance inquiries at more than 16,000 Bank of America ATMs nationwide; $2.50 per transaction on out-of-network ATMs.
• Minimum deposit: $100
• Minimum balance requirement: None to maintain the account

Why We Like It

Bank of America made it to our top list because it offers easy ways to avoid the monthly service fee. Another great thing about Bank of America is that electronic transactions don’t count towards your 200 free transactions, making it a good choice for small business owners who process most of their banking transactions online.

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Chase Bank: Best for Low Monthly Deposits

If you don’t quite need the 200 free monthly transactions Bank of America offers, you should consider this limited liability company (LLC) checking account. It offers 20 free transactions and up to $5,000 cash deposits each month. You can also earn up to a $300 sign-up bonus. Chase gives you access to 16,000 ATMs and more than 4,700 branches in 29 states.

Who it’s best for: Businesses that have low monthly deposits and want an easy-to-waive monthly fee.

Fees & Terms

• Monthly fee: $15, waived if you meet one of the following criteria:
  • Maintain a minimum daily balance of $2,000
  • Spend at least $2,000 in purchases―minus returns or refunds―using your Chase Ink® Business Card(s)
  • Deposit $2,000 into your Chase checking account from your QuickAccept℠ and/or other eligible Chase Merchant Services transactions at least one business day prior to the last day of your bank account statement period
  • Maintain a linked Chase Private Client Checking℠ account
• Transaction fee: 40 cents per transaction after your first 20 transactions made with a teller and paper checks written on the account; no charge for electronic deposits and deposited items made via ATM, ACH, and Chase QuickDeposit
• Cash deposit fees: $2.50 per $1,000 after the first $5,000 in cash deposited each month
• ATM fee: $2.50 per transaction at any non-Chase ATM in addition to ATM operator fees, plus free access to more than 16,000 ATMs nationwide
• Minimum deposit: None
• Minimum balance requirement: None to maintain the account

Why We Like It

We like Chase Bank because it has several branch locations and a large ATM network across the country, making it a good choice for small business owners who are always on the go. Chase also makes it easy for you to open a business checking account because there is no minimum deposit requirement.

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Chase and Bank of America offer very similar accounts, which is why we wrote a Chase vs Bank of America comparison article.

Capital One: Best for Unlimited Transactions

Note: Capital One requires that you apply in person. Online applications are not available.

Now here’s something most accounts don’t offer: unlimited monthly transactions. Capital One beats out Chase and Bank of America easily on this point, both of which charge a transaction fee if you go over the free monthly allowance. Capital One’s business checking account is a handy way to manage your business’s cash flow at a lower cost. You’ll also have access to a network of more than 39,000 ATMs nationwide. However, it only has about 750 physical branch locations across eight states, which is far fewer than other large banks on our list.

Who it’s best for: Owners who value a low-cost checking account that provides unlimited transactions.

Fees & Terms

• Monthly fee: $15, which is waived if you maintain a $2,000 minimum 30- or 90-day average balance
• Transaction fee: None
• Cash deposit fee: $0 for the first $5,000 in monthly deposits; $1 for every $1,000 deposited after your first $5,000
• ATM fee: Free access to more than 39,000 Allpoint ATMs nationwide
• Minimum deposit: $250
• Minimum balance requirement: None

Why We Like It

Capital One wins a spot in our list of best business checking accounts because of its free unlimited transactions, making it an excellent choice for businesses that need to make a significant number of transactions in a month. It also offers up to $5,000 free monthly cash deposits and a waivable monthly fee. Additionally, if you use Xero as your small business accounting software, your Capital One account can easily be integrated.

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U.S. Bank: Best for Business with Infrequent Transactions

While most major banks require you to meet a minimum balance requirement to waive the monthly fee, U.S. Bank does not charge any monthly fee at all, regardless of your balance. With this free checking account, you’ll enjoy 125 free monthly transactions and up to $2,500 cash deposits. You’ll also be able to access a network of more than 3,000 physical branch locations and more than 5,000 ATMs in 28 states. It also provides free access to more than 25,000 MoneyPass ATMs nationwide. U.S. Bank ranks as the best bank for nonprofits.

Who it’s best for: Startups, nonprofits, and small businesses that make fewer than 150 transactions a month.

Fees & Terms

• Monthly fee: None
• Transaction fee: 50 cents per transaction after the first 125 transactions each month
• Cash deposit fee: No fees on the first $2,500 in cash deposits each month; fee for excess cash deposit may vary
• ATM fee: No charge for out-of-network ATMs, although operator fees apply; free access to more than 3,200 ATMs nationwide and free withdrawals from 25,000-plus MoneyPass ATMs
• Minimum deposit: None
• Minimum balance requirement: None

Why We Like It

Many small business owners only have a small number of monthly transactions and may find it difficult to meet the fee waiver requirements of other business checking accounts. What we like about the U.S. Bank’s Silver Business Checking account is that it allows you to manage your business’s finances without having to pay monthly fees or worry about hitting special requirements to waive fees.

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Wells Fargo: Best for Scalability

Growing businesses typically need accounts that can scale with their success, and that’s where Wells Fargo comes in. You can upgrade your business checking easily as your needs increase in both monthly transactions and deposits. With more than 5,600 locations available, it has one of the largest networks with more physical branches than every bank on our list. Wells Fargo also has more than 13,000 ATMs nationwide.

Who it’s best for: Growing businesses that need scalability and want access to Wells Fargo’s numerous additional financing and investment services.

Fees & Terms

• Monthly fee: $10 per month; fee waived if you maintain a $500 average daily balance
• Transaction fee: 50 cents per transaction after the first 100 transactions each month
• Cash deposit fee: 30 cents per $100 deposited after $5,000 in monthly deposits
• ATM fee: $2.50 per withdrawal at out-of-network ATMs in addition to ATM operator fees; however, there is no charge for using any of the 13,000-plus ATMs in the Wells Fargo network
• Minimum initial deposit: $25
• Minimum balance requirement: None

Why We Like It

One of the best things about Wells Fargo is that it offers scalability to help support your business’s growing needs. It has three types of business checking accounts, each supporting businesses in different stages with different needs. Its Initiate Business Checking is a great tool for new businesses that are just building a stable foundation. Its Navigate Business Checking is a good option for a growing business, and the Optimize Business Checking is great for seasoned businesses with advanced needs. You can upgrade your checking account as your business grows and your banking demands evolve.

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First Internet Bank: Best for Earning Interest on Checking Account Balances

Choose First Internet Bank if you want to open a business savings account at the same online bank where you have your checking account. Its small business checking account is free and pays interest on balances of at least $10,000. If you also happen to open a business savings account, you’ll earn a 0.40% annual percentage yield (APY) with a daily balance of $10 million or below, or $0.25% with a daily balance higher than $10 million. First Internet Bank offers an easy way to grow your money from your deposits. It’s also one of the best free business checking accounts available.

Who it’s best for: Businesses that don’t need to visit physical branch locations and want to earn interest from their multiple online deposit accounts.

Fees & Terms

• Monthly fee: None
• Transaction fee: None; allows for unlimited transactions
• ATM fee: None; reimburses up to $10 per month in ATM fees
• Minimum initial deposit: $100
• Minimum balance requirement: None
• Ongoing APY: 0.30% on balances of at least $10,000

Why We Like It

What we like about First Internet Bank is that it offers fee-free banking that allows you to earn interest on your business checking account balances. It also reimburses third-party ATM fees of up to $10 per month. This is also a great bank of choice if you want to open multiple bank accounts with an online-only bank.

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Novo: Best for Free ATM Use

Novo is an online-only bank that offers a free business checking account with free unlimited transactions, no minimum balance requirement, and refunds all ATM fees. While it has no physical branches, you can deposit checks directly through its mobile app. It also integrates with other business tools, including QuickBooks, Slack, Xero, Stripe, Wise, and Shopify.

Who it’s best for: Businesses that don’t handle cash transactions like ecommerce and prefer an online-only bank that offers free ATM use. Novo was also listed as one of the best banks for self-employed business owners.

Fees & Terms

• Monthly fee: None
• Transaction fee: None; allows for unlimited transactions
• ATM fee: None; reimburses all ATM fees
• Minimum initial deposit: None
• Minimum balance requirement: None

Why We Like It

Not all small business owners require a physical branch location to meet their banking needs. For businesses that receive most of their payments electronically, a fully online bank like Novo offers a great banking solution. With its fee-free online banking, unlimited free transactions, and reimbursement of all ATM fees, Novo is a practical choice for business owners who rarely accept cash payments. It also integrates with several point-of-sale (POS) and other business tools to streamline your bookkeeping processes.

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Honorable Mention: BlueVine

While most owners know BlueVine for its lending products, it recently launched a fee-free online checking account to serve small business owners better. Not only does BlueVine offer an ongoing APY and no banking fees, but it also makes a conscious effort to provide a great online experience that matches the customer support you’d expect in your local branch. This account integrates with leading accounting software and payment solutions like QuickBooks Online, Wave, Stripe, and PayPal. BlueVine tops the best online business checking accounts.

Who it’s best for: Owners who want an online-only account that pays an ongoing APY and charges no fees.

Fees & Terms

• Monthly fee: None
• Transaction fee: None; offers unlimited transactions
• ATM fee: No fees at more than 38,000 ATM locations nationwide
• Minimum initial deposit: None
• Minimum balance requirement: None
• Ongoing APY: 1% on balances of up $100,000 (no interest earned on balances of more than $100,000)

Why We Liked It

We liked BlueVine because of its fee-free banking and unlimited free transactions while allowing you to earn 1% APY on balances up to $100,000.

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Reasons to Consider a Business Checking Account

• Separates your business and personal finances: Opening a business bank account is necessary if you want to keep your business and personal finances separate. This will help you avoid the risks and confusion often experienced by business owners who commingle their personal finances with their business funds.
• Helps you assess your business’s performance: Opening a business bank account will help you put all your business funds in one spot, making it easier to track your performance accurately, whether those are gains or losses.
• Lends credibility to your business: The moment you open a business checking account, your side hustle becomes legitimate and less of a hobby. Potential clients will see your business as more trustworthy when payments come from a business account.
• Creates a simpler tax season: Using a business checking account helps maintain a record of income and expenses attributable to your business, which simplifies your calculations for your taxes at the end of the year.
• Builds a banking relationship: Establishing your business is crucial to building your business credit score. When you open a business bank account, you signal to the credit bureaus to start a business credit history for your business. Building a banking relationship can also become beneficial if you need business financing in the future.

What You Need to Open an Account

When you’re opening a business bank account, requirements can vary depending on the bank and the structure of your business. However, most banks, whether traditional or online-only, require the following items:

• Employer identification number (EIN) or Social Security number if you’re a sole proprietor
• Fictitious business name certificate, or doing-business-as (DBA) certificate, if you run your business under a name other than your own
• Business formation documents
• Organization documents, including your ownership agreements
• Business licenses

How We Evaluated the Best Business Checking Accounts

The best banks offer free business checking accounts or easy ways to avoid monthly service charges. When evaluating these accounts, we prioritized monthly, transaction, and ATM fees, along with opportunities to earn an introductory offer. We also considered the bank’s ability to accept cash deposits, the size of each bank’s network, and additional services offered, including other business accounts or unique checking account features.

Bottom Line

Opening a checking account is essential for managing the money of a small business. Additionally, it can help separate your business and personal finances. Whether you’re looking for low fees or high transaction limits, the best business checking account should offer the features you value the most.