Best Banks for Small Business in 2020
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:
Chase Bank provides excellent business banking solutions, and has a large footprint of nearly 5,000 branches.
Chase Bank also offers business loans, savings, and checking accounts. You can manage your business finances on the go with a top-rated Chase mobile app.
The Chase Total Business Checking account is perfect for small businesses. There is a $15 monthly fee; however, this can be waived as long as you meet certain criteria like maintaining a minimum daily balance of $1,500.
Chase QuickDeposit makes it easy to deposit checks directly from within the mobile app and you’ll have access to 16,000 ATMs or a branch nearest you for withdrawals.
Additional accounts include: Chase Performance Business Checking for mid-size businesses and Chase Platinum Business Checking for large businesses.
- Get your offer code.
- Open a new Chase Total Business Checking account
- Complete the following qualifying activities:
• Deposit a total of $1,000 in new money within 20 business days
• Maintain a $1,000 balance for 60 days
• Complete the qualifying transactions within 60 days of account opening. Qualifying transactions are: debit card purchases, Chase QuickDeposit, ACH (Credits), wires (Credits and Debits)
Offer expires 10/09/2020.
Chase offers two business savings accounts: Chase Business Total Savings and Chase Business Premier Checking.
Chase Business Total Savings targets businesses with lower savings balances, first-timers or those who are using savings as overdraft protection. Chase Business Premier Savings is better suited for businesses with higher savings balances looking to maximize earnings or save for growth.
It’s important to note that both come with monthly fees ($10 and $20 respectively); however, these can be waived by meeting relatively simple conditions.
Chase Business Credit Cards
Chase is also very popular when it comes to small business credit cards. That’s not surprising at all, because Chase is one of the biggest card issuers in the United States – and is known for its stellar credit card rewards.
The most popular Chase business credit cards fall into their INK line of cards:
- Ink Business Preferred
- Ink Business Unlimited
- Ink Business Cash
All three come with new cardmember signup bonus opportunities and great rewards.
Learn more about these Chase business credit cards.
Small Business Loans
Chase offers fixed and variable rate business loans from $10,000 and terms up to 7 years.
If you’re looking for an online-only business checking account, look no further than Axos Bank.
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 offers two business checking accounts: Basic Business Checking and Busines Interest Checking.
The 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 nationwide surcharge-free ATM network to utilize.
There is a $1,000 minimum opening deposit, though – but you also get the first set of 50 checks for free, as well as 200 other free items (debits, deposits, credits, etc.).
Their Business Interest Checking Account offers 0.80% APY (average daily balance of $5,000 or more required).
There are two business savings accounts available through Axos Bank: Business Savings and Business Premium Savings.
They offer competitive interest yields and 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
Their Business Money Market account offers 0.80% APY and comes with no monthly fees(minimum daily average balance of $5,000).
Also, this money market accounts does come with check writing privileges.
A $1,000 minimum opening deposit is required for new accounts.
Business Certificates of Deposit (CDs)
- Wide range of CDs
- Terms ranging from 3 to 5 years
- Up to 1.35% APY
Capital One offers excellent business checking and savings accounts, merchant services, credit cards, and tools to manage and analyze your cash flow.
Capital One is an excellent option if your business is just starting out. Plus, their Spark Business Savings account comes with a promotional 2.00% 12-month APY!
In addition to excellent checking and savings account offers, Capital One provides The savings and checking accounts come with monthly fees, but it’s quite easy to qualify for a no-fee account.
Capital One has two business checking accounts: Spark Business Basic Checking and Spark Business Unlimited Checking.
Both come with monthly fees ($15 and $30 respectively); however, they are easily waived by meeting minimum balance conditions.
Capital One is currently offering one business savings account: Business Advantage Savings.
One of their best features is a promotional interest rate for the first 12 months (currently a whopping 2.00% APY).
You’ll need a minimum of $250 to open a new account and a $300 minimum balance to waive the $3 monthly fee.
Capital One Business Credit Cards
Like Chase, Capital One is also known as having some of the best credit cards for small businesses.
The Capital One® Spark® Cash Select for Business card is great for those wanting to maximize cash back on their spending, earning unlimited 1.5x on all purchases. There’s even a $200 cash signup bonus once you spend $3,000 on purchases within the first three months.
The Capital One® Spark® Miles Select for Business card is suited for companies looking to earn miles to redeem towards travel, earning unlimited 2 miles per $1 on all purchases. This card offers a 50,000 miles – equal to $500 in travel – sign up bonus after spending $4,500 on purchases in the first 3 months. There is also an annual fee of $95, waived the first year.
Business Certificates of Deposit (CDs)
Capital One CDs come with attractive interest rates and flexible term lengths.
While several banks offer stellar business banking, there’s one bank that ticks most, if not all, of the boxes for small businesses – and that’s 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. Like other big banks on this list, Wells Fargo also offers loans, cds, credit cards and merchant services.
Wells Fargo has multiple checking accounts to choose from and each comes with monthly service fees – but you can avoid them if you maintain certain average balances (from $500 each fee period).
You only need $25 to open an account; however, you can earn a $500 bonus if you open an eligible small business account and have a $15,000 minimum balance on day 30, and day 90 of opening.
Like some of the others, Wells Fargo has two tiers of business savings accounts. The Business Market Rate Savings account is for new and growing businesses that are trying to build up some savings, while their Business Platinum Savings account is for established business looking for long-term growth.
They both offer interest, though minimal, at 0.03% APY and 0.10% APY respectively. Monthly fees do apply but can be avoided with qualifying actions.
Wells Fargo Business Credit Cards
Wells Fargo has several business credit cards available and each give you the option of cash or points back for redemption.
Depending on the card you choose, you may be offered a one-time signup bonus of either of $500 or $1,000.
Small Business Loans
Wells Fargo offers unsecured small business loans ranging from $10,000 to $100,000 in 1 to 5 year terms. Fixed interest rates start at 7.75%.
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’s Business Connect Checking is a great account for small businesses. There are no monthly service charges, unlimited debit card transactions.
You also wont have to pay ATM fees at the following: BBVA USA ATMs, over 43,000 ATMs in the Allpoint® network, and ATMs at 7-Eleven® gas stations. BBVA won’t charge you to use another bank’s ATM; however, the ATM provider may.
Additional checking account options are the BBVA Business Choice and BBVA Business Premium checking accounts.
The BBVA Business Savings account has a low $100 minimum opening deposit and competitive interest rates. It comes with a $5 monthly maintenance fee; however that can be avoided if you meet certain requirements.
If you have a business checking account, you can setup automated transfers from your checking to your savings account with no charge.
BBVA Business Credit Cards
The BBVA Visa Business Rewards Credit Card is ideal for small businesses. There are no monthly service charges and no charges for employee cards.
This card also lets you earn 3x points at office supply stores and 2x points at gas stations and restaurants.
Small Business Loans with BBVA
BBVA offers secured and unsecured loans at competitive rates. Their terms go up to 5 years and you can access your funds via check, telephone transfer, online, or in a branch.
Other Banks Reviewed For Small Businesses
These banks did not make our top list this year, but they offer great features and are worth your time to look into when doing your research:
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.