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Whether you’re side hustling to bring in some extra income or have a brilliant business idea you’re planning to action – opening a separate business account is non-negotiable.
Keeping your finances separate is the only way to make sense of how much you’re making and spending on your business – as well as the ultimate way to stay on top of your goals. And I don’t just mean your financial goals – but your business goals, too.
So, how do you go about opening a business account – and who should you bank with for the best customer experience, rates, and business perks? In this post, I want to tell you about the best banks for small business, and what features make them shine among their competitors.
Top 5 Best Banks for Small Business
The top 5 banks for small business owners are:
#1 Best Bank for Small Business: Wells Fargo
When it comes to checking and savings accounts, there are simple options to choose from as well as the more advanced business accounts that allow you to perform complex banking needs.
On top of that, you can get a whopping $500 bonus for opening a new eligible checking account by November 15, 2019.
Wells Fargo Business Account Highlights
- $25 opening deposit
- Multiple business checking accounts to choose from
- Checking accounts come with monthly service fees – but you can avoid them if you maintain certain average balances (from $500 each fee period)
- Earn a $500 bonus if you open an eligible small business account (you’ll need a $15,000 minimum balance on day 30, and day 90 of opening)
- Offers business savings accounts and CDs
- Minimum opening deposit: $25
- Business Market Rate Savings is the best for small businesses (0.03% APY)
- Business Platinum Savings offers the highest interest rate at 0.10% APY
- Monthly fees apply, but can be avoided with qualifying actions
Wells Fargo Business Credit Cards
- Several business credit cards available
- You choose whether you want the rewards to be cash back or points
- Earn 1.5% cash back on every $1 spent OR 1 point on every $1 spent
- Bonus offer of $500 or $1,000 depending on which credit card you choose
Small Business Loans
- Wells Fargo offers unsecured small business loans ranging from $10,000 to $100,000
- Fixed interest rates starting at 7.75%
- Terms: 1 to 5 years
- Wells Fargo also offers merchant, payroll and other services
- Manage your business banking on-the-go with a top-rated Wells Fargo mobile app
2. Chase Bank
Chase Bank also provides excellent business banking solutions, particularly when it comes to small business credit cards. That’s not surprising at all, because Chase is one of the biggest card issues in the states – and is known for its stellar credit card rewards.
Chase Bank Business Account Highlights
- Multiple checking accounts available
- $15 monthly service fee for the Chase Total Business Checking, which can be waived if you maintain a daily balance of $1,500 or more OR link it to select Chase personal banking accounts
- 16,000 ATMs and around 5,000 branches
- Small to large business savings accounts available
- Chase Business Total Savings account best for small businesses (0.01% APY)
- Monthly service fee: $10 (waived if you maintain a minimum ledger balance of $1,000 or if you link it with your Chase Total Business Checking account)
- 15 monthly deposits at no charge + $5,000 in cash deposits per statement cycle without a fee
Chase Business Credit Cards
- Several small business credit cards available
- Cards with no annual fee available
- Ink Business Unlimited Credit Card and Ink Business Cash Credit Card offer a 0% intro APR for 12 months (15.24%–21.24% APR after that)
- Rewards include 1.5% cash back on every purchase, up to 5% cash back on select business categories
- Earn $500 bonus cash back on select business credit card categories (you’ll need to spend $3,000 on purchases in the first three months from opening your account)
Small Business Loans
- Chase offers fixed and variable rate business loans
- Loan amounts from $10,000
- Business loan terms: up to 7 years
- Mobile banking with a top-rated app
- Chase Bank also offers merchant services
3. Axos Bank
If you’re looking for an online-only business checking account, look no further than Axos Bank. Basic Business Checking account is one of the best basic business banking solutions available to small businesses right now. It’s free, and there’s a surcharge-free ATM network nationwide.
There is a $1,000 minimum opening deposit, though – but you also get a first set of 50 checks for free, as well as 200 other free items (debits, deposits, credits, etc.).
Checking account aside, Axos Bank also offers other customized business banking solutions, like business interest checking, business savings and money market accounts, as well as CDs. Axos Bank also offers user-friendly digital tools like online banking and an app. The only downside is that the app doesn’t get such high ratings, unlike Wells Fargo and Chase.
Axos Business Account Highlights
- Two checking accounts available: Basic Business Account and Business Interest Checking Account
- Basic Business Account best for small business checking needs
- No monthly maintenance fees
- $1,000 account opening deposit
- Business Interest Checking Account offers 0.80% APY (average daily balance of $5,000 or more required)
- Two savings accounts available: Business Savings and Business Premium Savings
- Offers competitive interest yields
- No monthly maintenance fees (if you meet the minimum balance requirements)
- Business Savings Account offers 0.80% APY ($1,000 minimum opening and $2,500 daily balance requirement)
- Business Premium Savings account offers 1.06% APY ($25,000 minimum opening deposit and requirement for APY)
Money Market Accounts
- Business Money Market account offers 0.80% APY (minimum daily average balance of $5,000)
- Check writing privileges
- No monthly fees with a balance of $5,000 daily
- $1,000 minimum opening deposit
Business Certificates of Deposit (CDs)
- Wide range of CDs
- Terms ranging from 3 to 5 years
- Up to 1.35% APY
4. Capital One
Capital One is also worth a closer look. Offering business checking and savings accounts with fees that are easy to waive, free deposits and no minimum balance, Capital One is an excellent option if your business is just starting out. Plus, their Spark Business Savings account comes with a promotional 12-month APY!
In addition to excellent checking and savings account offers, Capital One provides merchant services, credit cards, and tools to manage and analyze your cash flow. The savings and checking accounts come with monthly fees, but it’s quite easy to qualify for a no-fee account.
Capital One Business Account Highlights
- Two business checking accounts available (Spark Business Basic Checking and Spark Business Unlimited Checking)
- Spark Business Basic Checking has a $15 monthly fee, Spark Business Unlimited Checking $35
- With Spark Business Basic Checking, avoid the fees with a $2,000 minimum balance for 30 days or $2,000 90-day average balance
- One savings account available (Business Advantage Savings)
- $250 opening deposit
- Promotional interest rate for the first 12 months (2.00% APY)
- $3 monthly maintenance fee is waived with $300 minimum balance
- Up to 6 withdrawals per month
Capital One Business Credit Cards
- Several types of credit cards available
- Get up to 2% cash back on every purchase
- New customer one-time cash bonuses available ($200 or $500, depending on the credit card you go for)
- Miles rewards credit card available (earn up to 2X mile rewards + up to 50,000 one-time mile reward)
Business Certificates of Deposit (CDs)
- Attractive interest rates available
- Flexible term lengths
Last but not least, BBVA is another solid option to consider if you’re a small business. The bank offers a variety of small business banking solutions, such as checking and savings accounts, business loans, credit cards, merchant services, and specialty programs (like banking for non-profits).
When it comes to its products, there are accounts and credit cards that will work for any small business – as well as more advanced, premium products for larger corporations.
BBVA Business Account Highlights
- BBVA Business Connect Checking is a great account for small businesses
- No monthly fee
- Unlimited debit card transactions
- Up to $5,000 processing per month
- BBVA business savings account has a low $100 minimum opening deposit
- Competitive interest rates
- $5 monthly maintenance fee can be avoided if you meet the requirements
- Savings can be automated (i.e. you can set up to transfer funds automatically from your checking to your savings account with no charge)
BBVA Business Credit Cards
- Several types of credit cards available
- BBVA Visa Business Rewards Credit Card has no monthly fee (and is best for small businesses!)
- Introductory 0% APR for nine months
- 1 point for every $1 on purchases
- 3x points at office supply stores and 2x points at restaurants and gas stations
Small Business Loans with BBVA
- Secured and unsecured loans available
- Competitive rates
- Terms up to 5 years
- You can access funds via check, telephone transfer, online, or in a branch
How To Choose the Best Bank for Your Small Business or Side Hustle
Deciding to open a separate business bank account is a significant step in your business journey – and you need to make sure that you know exactly what to look to make the best decision.
There are many banks to choose from, but not all banks were created equal. Each bank offers a ton of different features – so it’s important to think about why you need a business account in the first place, and how you’re likely to use it.
While some banks will offer excellent APY rates on business savings accounts, that might come at a price of no checking accounts. Some banks will offer free checking accounts, while others will charge you for them – but will provide you with a ton of exciting business perks in return.
Think about what your side hustle or business needs and that’ll help you choose the bank that equips you the journey ahead of you, and helps you in achieving business success.