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.
Updated: December 10, 2023
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BlueVine, Found, Lili, Live Oak Bank, Relay Bank, and Relay Bank.
WHY WE RECOMMEND
Up to 5.30%
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Any business, sole proprietorship, freelancer, or corporation should have a business bank account. This type of account offers a range of valuable features, such as compatibility with accounting and point-of-sale software, protection of personal assets, and so much more.
Understanding the benefits of a business bank account and how it can benefit your business will save you time and money and help you know how your company operates at a more granular level.
A business bank account is a type of financial account that is specifically designed for use by businesses rather than individuals.
There are several reasons why you should open a business bank account. Perhaps the most important reason is to separate your personal and business finances.
This will help you track your business expenses and income more easily and make it easier to file your taxes.
Choosing your company's best business bank account can be challenging.
Still, ensuring that your business has the right tools and resources to manage its finances effectively is essential.
Here are some key factors to consider when choosing a business bank account:
Bluevine, known initially as an online small business lender, has expanded its offerings by launching an online-only business bank account.
This account stands out from others with its high-interest rate and lack of fees, and setting up an account is simple and can be done online, with no minimum opening balance or monthly balance requirement.
The only fees associated with this account are $15 for outgoing wires and $30 for express delivery of a replacement debit card.
Additionally, the 2.0% annual percentage yield (APY) on all balances up to $250,000 may be particularly attractive for businesses with significant cash in their account.
This interest rate is higher than many other business bank accounts, which often have a higher balance requirement and lower interest rate if they offer interest at all.
To open a business bank account, you will typically need the following items:
Some banks may also require a business plan, financial statements, and tax returns.
It's important to note that the specific requirements may vary depending on the bank and the business account you are opening.
Be sure to check with the bank or credit union you plan to use to verify the specific requirements.
A business bank account is designed to meet the financial needs of businesses. This type of account provides access to helpful features such as payroll and accounting integrations. Additionally, keeping business finances separate from personal finances by having a different bank account makes monitoring the company's financial performance simpler. In certain situations, having a separate bank account is necessary to maintain the legal distinctions and protections of operating a business.
Since many business bank accounts have low or no minimum balance requirement for opening and maintaining the account, it is advisable to open one as soon as you launch your business.
The main difference between personal and business bank accounts is that the former is in an individual's name, and the latter is in the business's name. Additionally, business bank accounts may offer features that are specific to companies, such as the capability to send invoices or access employee debit cards. Banks also may charge additional or different fees for business accounts, such as transaction fees.
The most suitable business bank account for you will vary based on the nature of your business and the specific services required. Online accounts may be appropriate for companies that do not handle or receive cash payments, while physical bank accounts may be more appropriate for retail businesses. Regardless of the type of account, it's essential to consider the benefits, features, and fees offered.
It is possible to open multiple bank accounts for your business, such as one for depositing cash and another for an online account that earns interest for keeping most of your funds.
Business bank accounts are also eligible for Federal Deposit Insurance Corporation (FDIC) insurance, which provides coverage of up to $250,000 per person per bank. Verify with your bank to confirm that your account is covered under this insurance. Additionally, if you open an account with a credit union, you may be covered by National Credit Union Administration (NCUA) insurance instead of FDIC.
US Bank disclosure:
Complete these steps to earn the offer:
1. Earn your $350. Complete $5,000 in new money deposits within 30 days of account opening and maintain for 60 days after account opening.
2. Earn your $800. Complete $25,000 in new money deposits within 30 days of account opening and maintain for 60 days after account opening