As a small business owner, you might already know that you should consider opening a dedicated online business bank account. Keeping your personal and business accounts separated is the easiest way to keep your business finances in order. A business checking account also makes it simple to track expenses and monitor your cash flow.
There are many online business banking options out there, including several online-only banks with no or low fees for small business owners.
Helpful resource: What Do I Need to Open a Business Bank Account (Checklist)
Before you start comparison-shopping, you should establish a baseline: what makes a good business bank account? Fee-free—or at least as few fees as possible—is a good place to start! While your business needs may vary, here are some important considerations for selecting the best online business bank account.
The best business bank accounts will:
Here are our top suggestions to help you find the best small business checking account for your needs.
Mercury's basic and more comprehensive banking services make it great for start-ups and e-commerce businesses.
Some of the best features of a Mercury account include:
Mercury is a great option for companies with a significant cash reserve, like start-ups, but may not be a good fit in certain cases. There are a few drawbacks you should keep in mind:
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Novo is an excellent online-only option for freelancers and entrepreneurs, with accounts that offer a wide variety of features and low rates. Novo's financial services are designed to accommodate the needs of most entrepreneurs, and come almost fee-free.
Novo accounts include:
If you're looking for a standard business bank account, Novo might be a good fit. There are a few areas to consider that might not meet your needs, though:
LendingClub has recently partnered with Accracy to offer some exciting new features. Small businesses that open a LendingClub bank account through Accracy now have access to a online checking account as well as bookkeeping, tax filing, and financial advisory services.
Some LendingClub highlights include:
While some businesses may appreciate LendingClub's full suite of connected financial services, there are some limitations to consider as well.
Further reading: Business Line of Credit: How Does it Work?
Businesses that deal heavily with cash deposits may require more features from their business bank accounts, including physical branch locations. An institution like Chase may better serve those companies.
Chase Business Complete Banking offers flexibility that works well for cash businesses, including:
Chase may be a strong contender among business bank accounts, but it does have some drawbacks to consider:
Further reading: How Do Small Business Loans Work?
If your business makes many transactions every day, Radius Bank might have the features you need.
Benefits include:
Unlimited transactions make Radius attractive since many other banks limit free transactions and charge fees once you hit their cap. But Radius may not be right for you if these areas are a concern:
If you prefer to do business face-to-face, U.S. Bank is a strong option—they have more than 3,000 branches across 40 states.
Some of the top features of a business bank account with U.S. Bank include:
Many customers enjoy having a banking location to visit, which makes U.S. Bank appealing. But it does have some other features to consider that may make it less attractive.
Your freelance business or side gig has different banking needs than, say, a medium or large company. Lili is a streamlined and straightforward platform designed for super-small businesses.
Some of the best features of Lili include:
While a good fit for some, Lili isn't ideal for all small businesses. A few other factors to consider include:
Axos Bank offers two online business checking accounts, Basic Business Checking and Business Interest Checking, and both are designed especially for small businesses. Their accounts are easy to open and manage entirely online, and they even offer a $100 welcome bonus when you open a new account.
Some of the best features of a business bank account with Axos Bank include:
Axos offers features that may be appealing for businesses looking to enhance their employee benefits, but there are other considerations as well that might be less attractive.
Further reading:
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