Editor’s note: This is a recurring post with regularly updated account details.
Small business checking accounts provide a handy way to separate your business and personal finances. As a business owner, you can choose between online and traditional brick-and-mortar banks. Online accounts are designed for businesses that don’t need to visit a physical branch, and traditional accounts are better for businesses that handle daily cash transactions. It’s crucial to evaluate your business’ needs before choosing.
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
- BlueVine: Best for earning an ongoing annual percentage yield (APY) while paying no banking fees
- Azlo: Best for avoiding all banking fees
- First Internet Bank: Best for opening multiple online accounts with the same bank
Bank of America: Overall Best Small Business Checking Account
Bank of America
What We Like
- Up to $450 for opening a new small business checking account, credit card, and Bill Pay with qualifying activities
- Supports businesses that handle daily cash transactions
- 200 monthly transactions at no cost
What's Missing
- $0 monthly fee
- Simple cash bonus
- $0 opening deposit
Additional Features
- Monitor, a cash flow management tool, allows you to connect accounting, analytics, and payroll business apps to help you make smarter business decisions
- Mobile app that can be used to deposit checks, watch accounts, make transfers, and pay bills
- Offers five small business credit cards
For a low-cost checking account, Bank of America’s sign-up bonus jumped out at me as I reviewed dozens of competitors. You can earn up to $450 with qualifying activities for opening a new small business checking account, credit card, and using bill pay. Not only that, but you can also receive 200 free transactions and make $7,500 in cash deposits 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: Any business that makes significant monthly cash deposits and wants to earn a big introductory bonus
Fees & Terms
- Monthly fee: $13 to $18, depending on which state you opened your business account in; waived if you meet one of the following criteria during each checking statement cycle:
- Spend $250 on new net purchases with your Bank of America business debit card, credit card, or charge card
- Maintain an average monthly balance of $5,000 on the primary account
- Maintain a minimum daily balance of $3,000 on the primary account
- Maintain a combined average monthly balance of $15,000 or more in your linked Bank of America checking and savings accounts
- 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: Free access to more than 16,000 ATMs nationwide; $2.50 per transaction on out-of-network ATMs
- Minimum deposit: $100
- Minimum balance requirement: None to maintain the account
Chase Bank: Best for Low Monthly Deposits
Chase Bank
What We Like
- $300 new account bonus
- No opening deposit
- Low minimum balance requirement to waive the monthly fee
What's Missing
- More free monthly transactions than Bank of America
- Deposits don’t earn interest
Additional Features
- Integrates with leading accounting software like QuickBooks
- Offers a mobile finance app that lets business owners deposit checks online, check their account balances, pay bills, and make transfers
- Provides several Chase business credit cards
If you don’t quite need the 200 free monthly transactions Bank of America offers, you should consider this LLC checking account. It offers 100 free transactions and $5,000 in cash deposits each month. Plus, you can earn a sign-up bonus worth $300. Chase gives you access to 16,000 ATMs and more than 4,700 branches in 29 states. It’s also one of the best free business checking accounts.
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 100 transactions made with a teller, incoming wires, and all debits each month; 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
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
Capital One
What We Like
- Unlimited transactions
- Integrates with top accounting software
- 5,000 in cash deposit each month with no fee
What's Missing
- Opening deposit less than $250
- Online application
- Cash bonus for new accounts
Pricing
- Integration with top accounting software like Xero
- A mobile app business owners can use to pay bills, track accounts, make transfers, and deposit checks
- Capital One business credit cards available for business owners who want to open a credit card and checking account with the same bank
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. That’s right―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 allowance. Capital One’s business checking account is a handy way to manage your business’s cash flow without hurting your wallet. You’ll also have access to a network of more than 39,000 ATMs nationwide but only 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 or if you have two other Capital One accounts
- 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
U.S. Bank: Best for Limited Transactions
U.S. Bank
What We Like
- 50% discount on your first check order up to $50
- 125 free monthly transactions
- No monthly fee or opening deposit
What's Missing
- More free transactions than our top pick
- Cash-based introductory offer
- Large group of in-network ATMs nationwide
Additional Features
- Access ADP Payroll from your bank account dashboard
- Take advantage of digital invoicing and payment systems, which are integrated into your online dashboard
- Use a mobile app to oversee all of your accounts, move money between accounts, and deposit checks online
Most major banks require you to meet a minimum balance requirement to waive the monthly fee; however, U.S. Bank does not. With this free account, you’ll have 125 free monthly transactions. Plus, you’ll 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 the MoneyPass ATM network, which means you’ll have free ATM withdrawal access at 25,000-plus ATMs nationwide. US Bank also ranks as the best bank for nonprofits.
Who it’s best for: 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
- 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
Wells Fargo: Best for Scalability
Wells Fargo
What We Like
- Offers solutions for scaling your business
- Largest network of branch locations
- Only requires a $500 minimum balance to waive the monthly fee
What's Missing
- Introductory bonus for new accounts
- $0 opening deposit
Additional Features
- Add your business logo and tagline on your debit card
- Manage your entire bank account from your mobile phone
- Receive reimbursements for any unauthorized debit card or ATM transactions if you report them promptly through its zero-liability protection plan
- Deposit checks remotely
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, it has one of the largest networks with more physical branches than every bank on our list. Wells Fargo also has 13,000-plus ATMs nationwide.
Who it’s best for: Growing businesses that 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
BlueVine: Best for Earning an Ongoing APY While Paying No Banking Fees
BlueVine
What We Like
- Pays an ongoing APY on deposits
- Connects with accounting software like QuickBooks Online, Wave, and FreshBooks
- Users can use business tools like Stripe, PayPal, and Expensify
What's Missing
- Branch locations
- Savings accounts
Additional Features
- BlueVine Business Checking debit card
- Clients can sync their transactions with accounting software like QuickBooks Online, Wave, and FreshBooks
- Connects with business tools like Stripe, PayPal, and Expensify
- Live customer support from dedicated professionals
- Various business lending products available, including business lines of credit and other business loans
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 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 all balances
Azlo: Best for Avoiding Fees
Azlo
What We Like
- Fee-free online checking account
- Access to more than 55,000 ATMs
- Integration with leading accounting and payment software
What's Missing
- Cash deposits
- Physical branch locations
- Interest
Additional Features
- Mobile deposits
- Instant transfers
- Ability to send invoices directly from your Azlo account
- Free mobile banking, online banking, and bill pay
- Free Azlo Visa debit card to use for transactions and at ATMs
- Accounting software integration with QuickBooks Online, Xero, and Wave
- Payment processing app integration with Kabbage, Stripe, Square, and PayPal
Paying fees is never fun, and that’s why Azlo stands out. It charges no transaction, ATM, or monthly fees. However, you can’t make cash deposits or outgoing wires because the bank has no branches. You’ll need to bank exclusively online, but you’ll have access to about 55,000 ATMs through Allpoint.
Who it’s best for: Cashless businesses that want a fee-free, online-only bank account
Fees & Terms
- Monthly fee: None
- Transaction fee: None
- Cash deposit fee: Cash deposits aren’t accepted
- ATM fee: None at 55,000 BBVA Compass or Allpoint ATMs
- Minimum initial deposit: None
- Minimum balance requirement: None
First Internet Bank: Best for Opening Multiple Online Accounts
First Internet Bank
What We Like
- Fee-free banking
- Deposits earn an ongoing APY
- Additional business accounts that earn interest
What's Missing
- Branch locations
- Cash deposits
- Unlimited ATM reimbursements
Additional Features
- First Internet Bank debit card
- Additional business bank accounts available, including savings, money markets, and certificates of deposit (CDs); we rank its savings accounts as one of the best business savings accounts
Choose First Internet Bank if you want to open a business savings account at the same bank where you have your checking account. Its small business checking account is free and pays 0.40% APY on balances of at least $10,000. If you also happen to open a business savings account, you’ll earn a high ongoing APY based on your account balance. Opening two accounts that both pay an APY is an easy way to maximize your dollar.
Who it’s best for: Businesses that don’t need to visit physical branch locations and want to open multiple online 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: 0.40% on balances of at least $10,000
First Internet Bank Additional Features
- First Internet Bank debit card
- Various business bank accounts available, including savings, money markets, and certificate of deposits (CDs); we rank its savings accounts as one of the best business savings accounts
Reasons to Consider a Business Checking Account
- 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 your business credibility: The moment you open a business checking account, your side hustle becomes legitimate and less of a hobby. Not only will it kick you into gear, but potential clients will see your business as more trustworthy when payments come from a business account.
- Creates a simpler tax season: Separating business and personal finances is key when you’re starting a business. Opening a business checking account is one way to do this, which simplifies 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, 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 size of each bank’s network and additional services, 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.
David Lusk
This is a great article and I see that it is updated for 2021. Unfortunately, just today Azlo has informed its clients (including my company) that its parent organization, BBVA US, has decided to close the bank. No additional information is available, such as any timeline, opportunities for transferring to another bank, etc.
Amanda Norman
Hi David,
Thanks for sharing this information! I’ve passed it on to the appropriate person.
Best wishes,
Mandy, Moderator
Ocean ATM
This is a very interesting and informative post. Thanks for sharing.
Jordan Tarver
Hi there,
I’m glad you found value in this article! Thank you for reading.
Bests,
Jordan
Graham Campbell
Yet another article that assumes everyone lives in the USA. There are 300m people who live in the USA and 7.2billion who do not. Not one bank outside USA mentioned.
Laura Handrick
Hi Graham,
Yes, you are correct. As a startup business ourselves, our focus at Fit Small Business has been on evaluating the best software and providing the answers to small business questions in the US and Canada. However, that won’t always be so. We’re are growing and evaluating our business strategy annually to determine what’s next on the horizon. When I write articles, I personally try to find a global vendor as an option for our non-US readership. It sounds like we need to do more of that. Thanks for helping us keep our global readers in mind, and stay tuned in the coming year as we continue to expand our reach.
Best!
Laura, Staff Writer
Marc Santoro
Capital One is currently not accepting any new business checking accounts on-line. You can only open one if you go to a branch, which are only located in a few select States. This has been the case since December 2017. They claim they are working on a new site in order to open business accounts on-line in the future, but do not have a timeline for it’s completion.
Michael Cetera
Marc,
Thank you for your comment. We have noticed this restriction, as well, which makes the account potentially far less attractive for many business owners. We’ve made note in this article that Capital One is not accepting online applications.
Jennifer Arnow
Note that Bank of America may have a ton of branches, but they have been rolling out a new platform discouraging people to use them other than for loans or the ATM. They are closing all drive thrus and, per the couple of branches that I interact with, will cease to have regularly staffed tellers. They will have “personal bankers” for loans, opening accounts, etc. If you have to go in to the branch and conduct a manual banking transaction (deposit, cashing a check), you will be at the mercy of the personal banker’s spare time. The direct statement about it that I received was that you would basically get in line behind any other customers there (who may be applying for a loan or another lengthy transaction). Obviously, this is to encourage electronic banking, but I think it’s a huge misstep in customer service, especially as Wells Fargo is currently working to be better at face time & personal service (and is doing a great job at it, in my experience). There are people like me that transaction business on behalf of clients (therefore I do not have ATM cards) or people that aren’t comfortable with the machines (typically the elderly) who will be thoroughly put out by this new feature at a bank that wasn’t particularly friendly to begin with.