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Best of 2023
Best of 2023

5 Best Business Bank Accounts (2023)

Compare the best business bank accounts of 2023, ranked by interest rates, speed of the online sign-up process, potential monthly/ongoing fees charged, and past customer reviews.

Last Updated: January 19, 2023

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Our Business Banking Partners

BlueVine, Found, Lili, Live Oak Bank, Novo, & Relay

logo

PROVIDER

CASHBACK REWARDS

MONTHLY SERVICE FEES

CURRENT INTEREST RATE

WHY WE RECOMMEND

Bluevine Logo
Overall Score
4.9/5

1

Best For Overall Features

CASHBACK REWARDS

Up to 4.00%

MONTHLY SERVICE FEES

No fees

CURRENT INTEREST RATE

2.00%

Live Oak Bank Logo
Overall Score
4.8/5

2

Best For Earning Interest

CASHBACK REWARDS

None

MONTHLY SERVICE FEES

No fees

CURRENT INTEREST RATE

3.50%

Found Bank Logo
Overall Score
4.6/5

3

Best For Self-Employed

CASHBACK REWARDS

None

MONTHLY SERVICE FEES

No fees

CURRENT INTEREST RATE

0.00%

relay logo
Overall Score
4.5/5

4

Best For Easy Accounting

CASHBACK REWARDS

None

MONTHLY SERVICE FEES

No fees

CURRENT INTEREST RATE

0.00%

Grasshopper Bank Logo
Overall Score
4.3/5

5

Best For Fast Bill Pay

CASHBACK REWARDS

1.00%

MONTHLY SERVICE FEES

No Fees

CURRENT INTEREST RATE

1.51%

Our #1 Business Banking Choice for 2023

Lili Bank Logo
Overall Score
4.9/5

1

Best For Overall Features

CASHBACK REWARDS

Up to 4.00%

MONTHLY SERVICE FEES

No fees

CURRENT INTEREST RATE

2.00%

The Best Business Bank Accounts of 2023

Having a business bank account is essential for any company. A quality business bank account can provide valuable features such as integrations with point-of-sale or accounting software to make managing finances more efficient. Knowing the advantages of a good business bank account and how it can serve you will guide you toward selecting the right one.

What is a business bank Account?

A business bank account is similar to a regular one, but it is tailored to meet the needs of businesses.
A business bank account may be more suited for handling high amounts of cash, payroll operations, and accounting features. On the other hand, a personal bank account might tend to focus more on making payments and providing access to ATMs.
A business bank account can offer various other services like anti-fraud measures, cash operations, and funding options. Moreover, certain banks may be compatible with tools to allow users to directly manage their accounting or paychecks from their business banking accounts.
 

On top of offering tools that make it easier to keep your organization operating, having a business bank account is important for other reasons.

Keeping company funds separate from personal funds ensures better tracking of business performance. Moreover, it is necessary to uphold the legal protection of establishing LLCs or any other corporate form.

Do I need a business bank account?

There are several reasons why you should open a business bank account. Perhaps the most important reason is to separate your personal finances from your business finances. This will help you track your business expenses and income more easily, and it will also make it easier to file your taxes. A business bank account can also help you build your business credit history.

 

A business bank account can help you manage your finances more efficiently and make it easier to obtain a loan or credit in the future. It can also help you protect your personal assets in the event of a lawsuit. Opening a business bank account is a simple process, and there are many banks that offer business banking services.

How to choose the best business bank account for your needs

Choosing the best business bank account for your company means taking a few minutes to think about what you’re looking for in a bank account. Every business is different and has different needs.

For example, some companies operate using a lot of cash. If that describes your business, you need a bank that makes it easy to deposit and withdraw large amounts of physical currency. If you have a purely online business, you might want to use an online business bank.

Look for some banks that have features and tools that appeal to you and your company’s needs. Then, ask other business owners for recommendations, read reviews online, or make a decision based on your experience with different financial institutions.

Some factors to consider when comparing banks include:

Balance requirements: Some accounts require a minimum opening balance, although it’s often quite low. You may also need to maintain a certain balance or meet other requirements to avoid a monthly service fee.

Fees: Fortunately, online accounts tend to have few and low fees. Still, consider how you plan to use the account and which fees the bank charges before getting started.

Interest rates: Don’t expect a high interest rate on a business bank account, but you may be able to get something. Particularly for those that keep a lot of cash on hand, the interest you earn can stack up over time.

Withdrawing and depositing cash: One of the biggest drawbacks of an online bank account is dealing with cash. It’s generally easy to withdraw money from an in-network ATM for free and some banks refund ATM fees. Depositing cash can be more difficult, and is rarely free. If your business frequently uses or receives cash, you may be better off with a brick-and-mortar bank or credit union.

Transaction limits: Some business bank accounts charge a per-transaction fee once you hit a certain number of transactions in a month.

Integrations and ease of use: Having a business bank account that easily integrates with your accounting and payroll systems can make running your business much easier. Some bank accounts even include services for small business owners, like built-in invoicing, ACH payments, budgeting, and financial reporting. Look for other features that can make running your business easier as well, such as employee debit cards and responsive customer service.

The bank’s other business offerings: Depending on the type of business you’re building, you may want to open an account with an eye toward the future. If you think you’ll need additional financing in the future, starting a relationship with a bank that also offers business loans or lines of credit might make sense.

Top benefits of using a business bank account

Easier Expense Tracking: One of the best ways to save money within your business is by tracking your expenses. This can be difficult and time-consuming, but it's worth it in the long run when the tax season comes around. With a business bank account, you can easily track your expenses to know where your money is going. This way, you can ensure you're staying up to date with the business's books and not mixing personal expenses into these transactions.

Increased Business Credibility: When you have a business bank account, it shows you're serious about your business. This can help you build credibility with potential customers and clients since any checks and invoices will be made to the company name, not your personal one.

Build Business Credit: One of the best ways to build business credit is by using a business bank account. This is because when you use this type of account, your payments will be reported to the major credit bureaus. This way, you can establish a good payment history and improve your credit score. This will come in handy if you ever need to take out a business loan or line of credit.

Accept Credit Cards: In today's world, it's crucial to be able to accept credit cards as payment. This is because more and more people are using this method of payment, and if you're not able to accept it, you could be missing out on sales. With a business bank account, you can easily set up a merchant account so that you can start accepting credit cards. This will help you increase your sales and customer base.

Audit Protection: Businesses are always at risk of being audited by the IRS. This can be stressful and costly, but with a business bank account, you can have peace of mind knowing that your transactions are well-documented and organized. This way, if you are ever audited, you'll have everything you need to prove your expenses and deductions.

Best business bank account: Bluevine Business Checking Account

BlueVine started as an online small business lender, offering invoice financing and business lines of credit. It recently launched an online-only business bank account, which stands apart from other business bank accounts with its relatively high interest rate and lack of fees.

It’s easy to set up an account online, and there’s no minimum opening balance or monthly balance requirement.

In fact, Bluevine only charges two potential fees: $15 for outgoing wires and $30 if you want express delivery for a replacement debit card.

Bluevine's 2.0% annual percentage yield (APY) on all balances up to $100,000 may be particularly attractive if you tend to keep a lot of cash in your business account. While there are a few other business bank accounts that offer interest, they generally have a higher balance requirement and lower interest rate. Many don’t offer any interest at all.

Pros

Cons

Frequently Asked Questions

What is required to open a business bank account?

To open a business bank account, you’ll need to have a few things, including:

What are the benefits of a business bank account?

Business bank accounts are designed for the needs of businesses, meaning your organization will get access to useful tools like payroll and accounting integrations. Having a separate business bank account also lets you keep your personal and company funds apart, which makes tracking your company’s performance easier. In some cases, a separate bank account is required to maintain the legal protection of forming a business.

When is the right time to transition to a business bank account?

Considering many options have a low—or no—opening and monthly balance requirement, you should open a business bank account as soon as you start your business.

What’s the difference between a personal and business bank account?

Personal bank accounts are opened in a person’s name, while business bank accounts are opened in a business’s name. Beyond that, the largest distinction is that business bank accounts may have business-specific features, such as the ability to send an invoice or get an employee debit card. However, banks may also charge additional or different fees for business accounts, such as transaction fees.

What’s the best business bank account?

The best business bank account is going to depend on the type of business you run and the services you need. Online accounts can be a good option for businesses that don’t use or get paid in cash, while brick-and-mortar business bank accounts might be a better fit for retailers. In either case, consider the accounts’ benefits, features, and fees.

Can a business have multiple bank accounts?

Yes, you can open multiple bank accounts for your business. For example, you might have one account where you deposit cash and an online interest-bearing account where you keep most of your money.

Are business bank accounts insured?

The Federal Deposit Insurance Corporation (FDIC) insurance, which insures up to $250,000 per person, per bank, can apply to business bank accounts as well. You can check with the bank to make sure your account is covered. If you open an account with the credit union, you may be covered by similar insurance from the National Credit Union Administration (NCUA) rather than the FDIC.

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