The 15 Best Banks in 2023 for Owners of Small Businesses

                                                                                      

A business owner is responsible for several financial obligations. Fortunately, even if numbers aren't your strong suit, having an account with one of the top banks for small businesses can help with anything from managing payroll to budgeting for office supplies. Opening a corporate bank account may seem cumbersome to an entrepreneur, but keeping personal and professional earnings separate is a wise step. It is simple to track paid bills, expenses, and money received when you open a small company bank account. Moreover, you may create a business line of credit, which is necessary if you want to apply for a business credit card or a small business loan. (According to a 2018 Nav poll, 70% of small business owners without a professional checking account had their loan applications rejected.) 

Although many small business bank accounts are identical, some of their differences may be more advantageous for your company's needs. In the end, you should take into account the typical account balance and volume of transactions for your business as well as logistical aspects like location, clientele, and mobile banking. While choosing the best business bank account might be difficult, AD PRO has put together the advice and a list of the top small company bank accounts below to assist.

knowing the fundamentals of a small company bank account 

Researching small business bank accounts may seem intimidating if you don't have experience with banking services, but knowing the fundamentals will help you make the best choices for your organization. Take a look at a couple of these Queries before you start looking for the top small business banking products.

A corporate checking account is what?

Consider a business checking account to be the main repository for all of your company's funds. When you open a business checking account, you can use it to make cash withdrawals, pay bills and staff, and even accept credit card payments. What distinguishes that from the checking account you now have, then? A commercial checking account and a personal one primarily differ in their intended use. A personal account may have some restrictions because it wasn't created with work in mind, even if you may be able to transfer money into or out of it. A small business bank account, on the other hand, is made to expand with you as your company does, so you might be able to provide employees with debit cards or integrate your finances with your preferred bookkeeping program. 

Most small businesses require a business checking account, so you should get one right away. Yet there is the benefit to opening a savings account as well if you have even a tiny cash reserve. By doing this, you can increase the amount of your credit line, earn interest, and meet minimum balance requirements.

How do you open a bank account for your business?

Once you've located a bank that can meet your small business's demands, you should quickly submit an account application. Have your social security number, postal address, and a copy of your passport or driver's license on hand when asked for personal information. Also, banks will ask for your company's name, address, employer identification number (EIN), and any other paperwork that proves you are the owner of the business. 

To open a business bank account, certain institutions may ask for a deposit, however, this sum is frequently $100 or less. (If you choose a product that has no minimum opening balance, be sure to check the fine print to make sure you aren't making up the difference in monthly maintenance costs.) Some banks provide a sign-up bonus as an incentive for account opening; however, it's crucial to focus on choosing the business checking account that will work best for you in the long term. 

Most of the time, opening a business checking account online is easy; however, approval could require a few business days.

How to pick a bank account for your business

As no two businesses are alike, your ideal small business banking match might not be the same as the rest of your network. Yet, if you've never opened a small business account before, you might not even know what to search for.

Making the best choice for your small business bank account is a choice that should not be made hastily. While some small business owners may prefer excellent customer service or financial advice, others may place more value on local expertise or online convenience. Here are a few things to think about to assist.

Cost

Contrary to popular assumption, a business account that is advertised as "free" isn't necessarily free. Several banks offer checking accounts with no monthly fees, even though corporate banking accounts normally have greater fees than personal ones. To avoid costs, account holders might need to keep a minimum daily or monthly balance or restrict their activities. However, some accounts are both free and inexpensive. To make a sensible decision, read the fine print.

recurring transactions

Business bank accounts typically have monthly transaction limits, unlike personal checking accounts (which include deposits, withdrawals, transfers, and electronic payments). Since ranges differ, it's important to understand where your small business fits into the range as well as the penalties for going over the allotted amount. There might be a limit on the number of transactions you can complete while maintaining your eligibility for a free account. Consider your company's monthly operations before applying.

Account balance on average

For small businesses that maintain balances above a specific level on a daily or monthly average, many banks provide better rates. Think about what yours will be and make plans based on that. 

Location  

You can now open a small business account online, never having to visit a bank. Going digital may be the best course of action for business owners who manage their finances using websites or mobile applications or who conduct the majority of their transactions online. But you'll want to utilize a bank account with a nearby physical branch if you deal with a lot of money, like face-to-face communication, or want to establish a connection with a professional who is familiar with your area or local economy.

The bank’s tools 

If you work with a bank that enables you to connect the data from your program, you might wish to do so if you use QuickBooks, payroll software, or another accounting tool. If withdrawals immediately appear in QuickBooks, it will be much easier to balance your books. It might be useful to have those transactions appear in your bank account as well if you use PayPal or Square.

how big the bank is

Large or small? You have the option as the company owner. It can be advantageous to have a close connection with someone who works for a local bank (or a local branch of a national bank). The person could be able to change the fees or allow you more leeway when applying for a small business loan. Smaller banks may require you to open an account in person, provide fewer online banking capabilities, and provide information that isn't always explicit online. Larger banks, in comparison, are more likely to explain the fine print online and let you open an account electronically.

Convenience

There is nothing wrong with opening an account at the bank you now use for personal affairs if it offers a business checking account option that suits your requirements. It's a good perk to be able to view data from several accounts from one place, website, or mobile app.

professional objectives

With so many alternatives, choosing a business bank account that meets your needs is simple. But first, think about where your company will be in a few years. Choose a program with more monthly transactions than you now require if you're trying to scale up. Perhaps you could want to look into accounts with merchant services if you want to include an e-commerce component in your business plan.

Do you want to join a credit union?

Although it's not the only option, managing your business funds can be done without a business bank account. A credit union, which is often a cooperative, member-owned institution, may appeal to some small business owners. The primary distinction between the two is that a credit union typically provides a nonprofit service whereas a bank is a for-profit financial organization. A credit union also requires membership, whereas a bank merely needs an account, before small business owners may access their services.

Although many credit unions might provide services akin to banks, such as managing loans and opening checking and savings accounts, they might have fewer features.

                                                                                 

Which banks are ideal for small businesses?

In the US, there are more than 4,500 commercial banks that provide thousands of possibilities for business checking accounts. Who among the busy entrepreneurs has the time to sort it all out? Instead, review the list of the top small business banks below.

             

1. Beginning of Business Checking by Wells Fargo

This business bank account permits free up to 100 transactions every fee period as well as up to $5,000 in monthly cash deposits. A $500 daily sum will waive the $10 monthly service fee that applies to this account. This option is great for a small business with little cash-flow activity because the starting deposit requirement is only $25. Even though the Wells Fargo Initiate Business Checking account is the simplest, it still provides fraud monitoring and zero-liability debit card protection. Small business owners can apply online or in person, just as with all Wells Fargo business checking accounts, and deliver the appropriate deposits and paperwork afterward.

2. BlueVine Enterprise 

The business checking account from BlueVine will appeal greatly to lone businesses with a sizable clientele. Unlike larger banks, BlueVine offers limitless transactions, no monthly service charges, and no minimum balance requirements. Also, account holders can use any of the 37,000 MoneyPass ATMs nationwide without paying a fee. BlueVine does not impose overdraft fees, giving you some piece of mind. With accounts up to $100,000, small company owners can also earn 2.0% interest, which is 50 times the national average. Additionally, you can integrate your BlueVine business checking account with accounting software like QuickBooks or payment processors like Venmo and Square to make banking even simpler. 

3. Comerica Standard Business Checking 

You may open a no-interest account at Comerica with just a $50 down payment and no minimum balance or monthly maintenance fees. With deposits totaling up to $2,500 per month, or 75 or fewer transactions, you can also avoid paying activity fees. With Comerica and QuickBooks in sync, you can send electronic payments and manage your finances. Also, you can upgrade to a different account using the same account number if your business expands. Although not a nationwide business, Comerica does have locations in several states (though fees and conditions will vary).

4. Checking Easy Business with Trust 

The Truist Simple Business Checking account can be a smart choice if your needs for a company bank account are straightforward and you just need a small number of transactions each month. This small business bank account might be an excellent choice for new business owners because it has no minimum balance requirement and no monthly maintenance cost. The account processes $2,000 worth of cash each month through 50 transactions. On its website, conditions and guidelines are outlined in more detail. 

5. PNC Business Checking  

This competitive account may be a good choice if you require checking but do not anticipate making many transactions because it has no monthly account maintenance cost for the first three months and a computerized cash flow platform that aids you in managing your business finances (150 or fewer per month). Keep a $500 average monthly collected sum to avoid the $12 monthly fee once it begins.

6. Checking with Wells Fargo Navigate for Business 

For business owners with rapidly expanding ventures, Wells Fargo's Navigate Business Checking account can be a terrific choice with 250 transactions and $20,000 in cash deposits each pay cycle. Maintain a $10,000 minimum daily balance or $15,000 in aggregate balances across Wells Fargo accounts to avoid the $25 monthly service charge. (A linked payroll services account may also be used to complete qualifying transactions.) There are no fees for incoming wire transfers, overdraft protection transfers, stop payments, cashier's checks, or money orders for small business owners with a Navigate Business Checking account. Also, each charge period includes two free non-Wells Fargo ATM cash withdrawals and two free outgoing domestic wire transfers. A $25 starting deposit is needed as a minimum before applying. 

7. Bank First Citizens Business Checking in Basics

Choose a First Citizens basic business bank account for a checking account with no minimum balance and no monthly maintenance fee. Up to 100 goods and $5,000 in free transactions are available each month from the bank. First Citizens has a powerful online banking service, but if you prefer to manage your money in person, you can visit one of their more than 500 locations in states including California, North Carolina, Virginia, and others. This business bank account has a higher initial cost ($100 minimum deposit) than some other more cost-effective solutions, but it pays for itself in the long run thanks to its benefits.

8. Basics of the Bank of America Business Advantage Banking

This Bank of America account is excellent for a small business that is expanding. Spend $250 on net-qualified debit card transactions, keep a combined monthly average balance of $5,000, or sign up for Preferred Rewards Business to avoid the $16 monthly cost. The small business account from Bank of America is not only linked to Zelle so you can send and receive money with ease but it is also equipped with tiny fraud protection and security, providing you additional piece of mind. For keeping tabs on your daily finances, Bank of America also offers several features like a Cash Flow Monitor and mobile check deposit. Although you can apply online, not all locations have Bank of America branches.

9. Business Comprehensive Banking at Chase

This uncomplicated business checking account gives up to $5,000 in free cash deposits per statement cycle, as well as limitless debit card purchases and transactions inside the Chase ATM network. When you keep a $2,000 minimum daily balance or link a Chase private checking account, the $15 monthly charge is waived. To get started, apply online or stop by one of Chase's many US offices. Also, you can get $300 when you open a Business Complete Checking account through certain actions.

10 . Comerica Checking for Small Businesses 

With Comerica's Small Business Checking account, you may make up to 300 transactions per month and deposit up to $5,000 in cash with no monthly fees as long as your balance is $7,500 or above. Ask a Comerica representative before you apply as fees and requirements differ by location. You'll get a free year of bill-pay service, much like with the business' Basic Business Checking account. Additionally, this platform provides specialized services including automated bill payment plans and payroll functions.

11. Streamlined Checking Account for CitiBusiness

For companies with fewer than 250 transactions per month and deposits of $5,000 or $10,000 (depending on the state) or less, this basic business checking account is the best option. To avoid the $15 monthly fee, keep your balance at a $5,000 minimum every month. One restriction: You must submit your application at a physical branch, but after you have your small business account, you may sign up for text and email alerts and use the brand's mobile app to stay current.

12. Checking with Bank of America's Business Advantage

You won't be charged any fees for stop payments, inbound wire transfers, or electronic deposits when using Business Advantage Savings. Moreover, you will get as many as 500 transactions per month. While fees are quite expensive at $29.95 every cycle, there are several adaptable ways to avoid them, like using a business credit card or keeping a monthly balance of $15,000 in credit. Payroll and merchant services are also provided by Bank of America. 

13. Gold Business Checking from U.S. Bank 

Cash flow can be controlled using U.S. Bank's Gold Business Checking Package, which offers 300 free transactions and $10,000 in cash deposits per statement cycle. Also, small business owners are eligible for a 50% discount on their initial $100 check order. To make it simple for you to open a new business account, U.S. Bank provides an EZ-Switch Kit, fraud and overdraft protection, and other services. Also, you may manage all of your check, wire, and ACH accounts in one location with the help of U.S. Bank's SinglePoint Essentials.

14. Maximize Business Checking at Wells Fargo

Ideal for larger enterprises with sophisticated cash management requirements and huge transaction volumes. You can have up to 250 free transactions per statement period after starting with a $25+ deposit, and there are no fees for stop payments, cashier's checks, wire transfers, or money orders. The Commercial Electronic Office at Wells Fargo provides treasury information reporting, customized reports, ACH origination, and online banking services including wire transfers, which are all enabled by this offering.

15. Flexible Checking Account with CitiBusiness

This business bank account might be right for you if your small business processes more than 500 transactions per month and maintains a balance of at least $10,000 regularly. You can deposit up to $20,000 each month with no fees if you maintain the minimum amount (otherwise, costs range from $22 to $30). Additionally, your small company checking account will cover overdrafts owing to CitiBusiness's Safety Check by transferring money from your linked CitiBusiness IMMA or CitiBusiness business savings account.

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