6 Best Small Business Checking Accounts April 2021

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 only a 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

Bank of America: Overall Best Small Business Checking Account

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

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 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 nearly 4,900 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 Cards
  • 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

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, 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

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. U.S. 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

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

First Internet Bank: Best for Opening Multiple Online 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

Honorable Mention: BlueVine Business Checking

While most owners know BlueVine for its lending products, it launched a fee-free online checking account recently 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

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 also 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.