Best Banks for Small Business

Banks for Small Business Reviews

Small business owners can greatly benefit from opening a business-specific bank account. Financial institutions that cater to businesses provide access to capital, streamline day-to-day operations, provide security, enhance economic growth, offer community support, and provide personalized services.

The B2B Reviews team gathered a list of 25 well-known and reputable banks for business. We then evaluated their features, services, pricing, and support to create our list. To learn more about how we chose the top banks, please review our methodology section.

Grasshopper – Best Digital Banking for Small Business

Grasshopper makes it easy to open a digital account on any device. With no monthly maintenance or overdraft fees, small businesses manage finances confidently. Additionally, Grasshopper allows free, unlimited ACH transfers, incoming domestic wires, and unlimited fee-free transactions. Businesses can earn unlimited cash back on online signature-based purchases with their free physical Visa debit card or instant-issue virtual cards.

Grasshopper allows access to powerful digital tools from anywhere at any time, enables seamless bill payments via check or ACH, supports instant check deposits, offers instant-issue virtual cards, ensures secure connections to external accounts, lets you create categories and budgets, and automates bookkeeping. The company makes payments effortless, allowing you to make wire payments, check payments, and one-time and recurring ACH payments for free from any device.

Grasshopper features

• Manage Payments: Grasshopper lets you make and schedule payment forms from any device, via check or ACH. Additionally, you can deposit a check in seconds by taking and uploading a photo. Grasshopper allows unlimited check deposits for no additional charge.
• Business Growth: Every deposit is FDIC-insured up to $250,000, allowing you to confidently grow your business.
• Online Bill Pay: You can pay your bills easily, either making or scheduling one-time and recurring payments. You can also send payments across the US quickly, with fees more than $15 less than the industry average.

How Grasshopper pricing works

• APY (Annual Percentage Yields): Up to 1.35% for checking; up to 3.10% for savings
• Monthly Fee: $0
• Minimum Deposit: $100

What markets does Grasshopper serve?

Grasshopper focuses on meeting the needs of small businesses, startups, venture-backed companies, and fintech companies.

Live Oak Bank – Best for High-Yield Business Savings

Live Oak Bank makes business banking simple. It offers a robust checking account that allows you to manage your day-to-day transactions seamlessly, ensuring a steady cash flow. Live Oak Bank also offers a high-yield savings account. Your small business can earn 7x the national average APY with Live Oak. Additionally, your deposits are FDIC-insured, providing a safeguard for your business against financial risks. Live Oak Bank also offers a high-yield Certificate of Deposit (CD), which allows you to lock in predictable returns and watch your savings grow.

When you maintain the account balance requirements, you can enjoy waivable monthly service fees. Live Oak makes it easy to make payments and deposit checks while on the go. The bank offers flexible debit card use, with unlimited purchases and withdrawals at over 55,000 Allpoint ATMs. With enhanced online banking, you can set employee permissions, customize alerts, connect with QuickBooks, and receive dedicated service from their U.S.-based team.

Live Oak Bank features

• Manage Payments: Make payments on the go, transfer funds between accounts, and utilize ACH Positive Pay (for both credit and debit transactions). On higher plans, Live Oak enables ACH payments, collections, and EFTPS.
• Business Growth: Live Oak helps you build for the future with secure checking and high-yield savings accounts. You can receive FDIC insurance coverage up to $10 million through the IntraFi Network.
• Online Bill Pay: Live Oak Bank is a fully digital bank and ensures all your online bill payments are secured and delivered on time.

How Live Oak Bank pricing works

GrasLive Oak Bank has three pricing plans for checking accounts: Business Essential, Business Plus, and Business Plus Analysis.

The Essential plan is ideal for key, everyday business checking needs. It has a $10/month service fee, which is waivable with a $1,000 average daily balance. The Plus plan is best for businesses requiring ACH, online wire services, or more robust features. It has a $25/month service fee, which is waivable with a $25,000 average daily balance. Finally, the Plus Analysis plan is designed for businesses with high daily balances that require statement aggregation and broader capabilities. That plan has a service fee of $100/month.

• APY (Annual Percentage Yields): 3.90%
• Monthly Fee: $10 (waivable)
• Minimum Deposit: Plan dependent

What markets does Live Oak Bank serve?

Live Oak serves small businesses that need easy yet robust online banking services. It’s great for startups, small to mid-sized businesses, and enterprises.

Bluevine – Best for Multi-User Access

Bluevine sets small businesses up to thrive with high APY, secure multi-user access, team debit and credit cards, and built-in AP automation. You can earn up to 3.25% on checking deposits, automate accounts payable, and budget better with sub-accounts. Bluevine allows you to order additional debit and credit cards for trusted team members. You can track usage and earn unlimited 1.5% cash back on every purchase with the no-annual-fee card and up to 4% cash back on eligible business expenses.

Use up to five sub-accounts, each with its own account number, to organize finances. Set automatic transfer rules to designate funds for tax savings, payroll, and growth initiatives. Streamline accounts payable with Bluevine’s scalable AP platform. Bluevine allows you to set up individual logins for team members, along with multiple permission options. Set up custom payment workflows and two-way sync with QuickBooks.

Additionally, with balances of up to $250,000, you can earn 1.3% APY, and with upgraded plans, you can earn up to 3.25% APY on balances of up to $3 million.

Bluevine features

• Manage Payments: Bluevine offers all the payment options you need, including same-day ACH, mailed checks, and domestic and international wires.
• Business Growth: Offers business loans at competitive pricing and repayment terms, with Bluevine Line of Credit up to $250,000. Additionally, you can scale faster with high APY, built-in AP automation, and access to credit.
• Online Bill Pay: Easily add bill information, review and approve information, send payments, and reconcile with two-way QuickBooks Online sync.

How Bluevine pricing works

• APY (Annual Percentage Yields): 1.3%–3.25%, depending on account balance and plan
• Monthly Fee: $0
• Minimum Deposit: $0

What markets does Bluevine serve?

Bluevine is ideal for self-employed entrepreneurs, start-ups, small businesses, and those seeking integrated business checking, lending, and invoicing solutions.

Capital One – Best for Business Lending

Capital One guarantees small businesses can earn up to 3.50% APY for 3 months. The bank offers access to specialized products, money management tools, flexible lending options, and special rates. The free online tools make it easy to quickly deposit checks, pay vendors, track and manage finances, and more.

Capital One allows business owners to access ACH payments for free, send wires, deposit checks on the mobile app, transfer money between checking and savings accounts, control alerts, delegate access to accounts, and order and lock their business debit cards. Enjoy unlimited digital transactions, 70,000+ no-fee ATMs, make cash deposits, and FDIC-insured business checking accounts.

Capital One features

• Manage Payments: Capital One lets you pick the payment method that works best for you, including ACH, debit, or credit card. You can manage bills by tracking invoices and payments connected to your QuickBooks Online account.
• Business Growth: Capital One offers financial products, including lending and credit, as well as tools for cash flow and risk management, to help you grow your business.
• Online Bill Pay: Easily transfer and send money to and from your other accounts. Additionally, you can schedule multiple bill payments at once, paying vendors from one place.

How Capital One pricing works

Capital One has three business checking accounts; below is the information for the Basic Checking account.

• APY (Annual Percentage Yields): Up to 3.50%
• Monthly Fee: $15 monthly service fee, waived with $2,000 minimum balance
• Minimum Deposit: $0

What markets does Capital One serve?

Capital One services individuals, small to mid-sized businesses, enterprises, and more. It offers cash flow management and online banking in addition to lending services, making it great for businesses needing lending and loans.

U.S. Bank – Best for New Businesses

U.S. Bank makes business banking easy, allowing you to enroll using your business credentials and manage cash flows within an online dashboard. With U.S. Bank’s online dashboard, businesses can view and manage finances in one place. View account summaries, transfer money, track cash flows, view historical data, and glimpse future data predictions. Additionally, U.S. Bank offers Central Billing, which allows you to control and pay one statement for multiple cardholders, with transaction activity broken down for each account.

U.S. Bank lets you easily toggle between business and personal accounts, regardless of whether you’re using a desktop or a mobile device. This allows you to manage your money with a single username and password. You can easily transfer funds between internal and external accounts, view key accounts summaries, get reminders of upcoming payments, access a business app marketplace from your dashboard, and utilize tools to easily make and receive payments.

U.S. Bank features

• Manage Payments: Saves you time and money with automated clearing house (ACH) payments, enabling you to pay vendors and employees online.
• Business Growth: Offers innovative solutions to help you grow your business with expert advice, lending solutions, and staff management tools.
• Online Bill Pay: U.S. Bank makes scheduling bill payments convenient, ensuring you never miss a payment. Additionally, pay bills in minutes from one location.

How U.S. Bank pricing works

• APY (Annual Percentage Yields): 0.05% – 3.50%
• Monthly Fee: $0
• Minimum Deposit: $100

What markets does U.S. Bank serve?

U.S. Bank serves individuals, businesses, and institutions, offering services to consumers, small to mid-sized businesses, middle-market companies, and large corporations.

Baselane – Best for Real Estate Banking

Baselane is designed for real estate businesses, making it easy to automate banking, bookkeeping, and rent collection. With Baselane, you can easily manage money, expenses, and pay bills, all in one integrated platform. Plus, FDIC insurance is available up to $3 million for funds deposited via Thread Bank; however, certain conditions must be met. Additionally, it doesn’t require any minimum monthly balances.

Baslane offers real estate-specific checking and savings accounts, allowing you to organize operating expenses, profits, security deposits, and projects across unlimited accounts. Baselane enables separate interest or non-interest accounts to hold each security deposit compliantly. Other features include smart spend controls, payment scheduling via ACH, wire, or check, and auto-transfer funds; recipient management; mobile check depositing; physical Baselane checkbooks; property and expense categorizing; and limited or full accounting sharing with your partner, property manager, or accountant.

Baselane features

• Manage Payments: Easily schedule payments via ACH, wire, or check, and auto-transfer funds for low balances to prevent overdrafts. Additionally, set weekly or monthly spending limits and lock cards for safety.
• Business Growth: Allows you to manage unlimited accounts, and with Baselane’s savings account, you can earn up to 2.93% APY, which is 60x the national average.
• Online Bill Pay: You can both pay and collect bill payments through rent collection and bookkeeping.

How Baselane pricing works

Baselane has two banking pricing plans: Core and Smart. Its Core plan starts at $0 per month and offers banking and bookkeeping essentials. The Smart plan starts at $25 per month and provides advanced automations for hands-free finances.

• APY (Annual Percentage Yields): Up to 2.93%
• Monthly Fee: $0
• Minimum Deposit: $0

What markets does Baselane serve?

Baselane is designed to meet the banking needs of real estate properties and independent landlords. It allows you to manage all your entities under one roof—from LLCs to corporations, partnerships, and individuals.

Read our full Baselane Review.

Compare the Best Banks for Small Business Side-by-Side

What are Banks for Small Business?

Banks for small businesses are financial institutions that offer services designed for small to medium-sized businesses. These banking products typically include checking and savings accounts, merchant services, loans, payment processing, and treasury management. These business-focused banks differ from personal banking as they can easily process high volumes of transactions and manage payroll, cash flow, and bulk payments.

There are a variety of banks for small businesses, each specializing in different business services.

• National banks—These banks usually have an extensive branch network, offering services like small business loans, cash management, credit cards, and more.
• Online banks—Online banks are typically entirely digital and have low or no monthly fees. These are great for small businesses that operate primarily online and don’t need in-person services or cash deposit accounts.
• Credit unions—These are nonprofit organizations that can offer personalized services with higher interest rates and lower fees than traditional banks.
• Community and regional banks—Community banks are smaller institutions that can provide more personalized services and flexible business loans.

The best banks for small businesses make managing everyday operations and expenses easy. They can aid in financing, process payments (both from customers and payroll), enhance savings, and connect with tools like Zelle to streamline transactions.

How to Choose a Bank for Your Small Business

When choosing a bank for your small business, focus on the business-oriented products and services that are provided. For instance, does the bank offer products like business credit cards and debit cards, SBA loans, a business CD (certificate of deposit), or other tools?

Identify what kind of fees the bank charges. Consider the monthly maintenance and service fees, minimum deposits, opening deposit requirements, transaction fees, etc. Work these fees into your budget to ensure the bank is the right fit for your business.

You also want to consider your business’s unique needs. If your business is primarily online, then a primarily digital bank may be perfect; however, if your operations will require in-person services, then more traditional brick-and-mortar banks will be best. Similarly, consider how convenient the bank’s ATM network is for you.

Finally, choose a business bank that has good customer service and competitive annual percentage yields (APYs) for its savings and checking accounts.

What Do I Need to Open a Business Bank Account?

To open a small business checking account, gather your Employer Identification Number (EIN) or Social Security Number, business formation documents (like Articles of Organization), a government-issued photo ID (one for each owner), and a business license or DBA certificate if applicable. You will also need to provide an address and contact information for your business. Some banks may require additional information for any other owners.

The bank itself will also have account opening requirements, such as minimum deposits, fees, and minimum monthly balances. Be sure to speak with the bank’s representative to gain a comprehensive understanding of the institution’s eligibility requirements.

Benefits of Using a Bank for Small Businesses

Using a bank for your small business is a great way to secure transactions, streamline operations, increase savings, and receive Federal Deposit Insurance Corporation (FDIC) coverage. Other benefits include:

• Financial management and growth
• Separated personal and business finances
• Simplified taxes
• Business credit growth
• Money market accounts
• Cash flow management
• Access to funding and lenders
• Payment processing
• Integrated accounting software
• Receipt upload options
• Professionalism and credibility
• Enhanced professional image
• Employee access (limited or full)
• Community support

How Much Do Banks for Small Business Cost?

The cost of opening an account for your small business depends on the financial institution, the type of account you choose (business savings account or checking account), and whether there are monthly and transaction fees.

Most banks charge monthly maintenance fees, which range from $0 to $15 on average. For example, most of the banks on our list, like Bluevine and Grasshopper, have a $0 monthly fee on their lowest plan. However, Live Oak Bank and Capital One have monthly fees of $10 and $15, respectively, both of which can be waived if a minimum daily balance is met.

Other fees to keep in mind include transaction fees, cash deposit fees, wire transfer fees, insufficient funds fees, and returned items fees.

Banks for Small Business FAQ

Should you have accounts at multiple business banks?

While it can be beneficial to have accounts at multiple banks, it is more common to have multiple accounts at a single location. This often simplifies operations like payroll, taxes, or savings, thereby improving organization, cash flow management, and financial security. However, large businesses and enterprises may benefit from having accounts at multiple banks, especially to keep deposits below the FDIC insurance limit.

How do I choose a bank for my LLC?

After forming your LLC, consider your business needs, like transaction volume and cash handling requirements. Look for banks that offer features that meet those needs, including digital tools, online banking, and local branches for in-person support if needed.

Are credit unions still worth it for business?

Yes, credit unions are worth looking into for your business bank account. They are especially great for small and local businesses since they often prioritize personalized service, lower costs, and community involvement. Additionally, credit unions are member-owned and not-for-profit organizations, meaning they can offer distinct advantages that traditional banks cannot. However, they may have some limitations, so be sure to fully research those before committing to a credit union.

How We Chose the Best Checking Accounts for Small Business

We curated a list of 25 banks for small businesses on the market and identified 11 popular vendors with significant online search volume to narrow our focus. From there, we selected six vendors that stood out due to the features they offered, their brand reputation, and more.

We scored companies on a scale of 1 (poor) to 5 (excellent) across the following criteria, each worth 25% of our total score:

• Features: We looked for vendors that offered vital features for business banking, such as money management, online bill pay, growth tools, and more. A bank scored higher the more advanced these features were.
• Pricing and transparency: We not only compared actual pricing and plans for each vendor but also evaluated banks on the transparency of information like fees and APY online.
• Onboarding and support: We looked for companies that offered multiple types of ongoing customer support.
• Brand reputation: We gathered data on customer reviews and ratings published on trustworthy third-party review sites to gauge each vendor’s reputation among its customers.