When it comes to starting a small business, having a bank account immediately becomes a requirement, rather than being a mere option. You will not find any business, be it of any size, without a bank account. There are several banks in the United States and choosing the right one may become a tough challenge. Here are 12 Best Banks For Starting Up small business in 2019 let’s learn more about it.
This is mainly because of a few important reasons:- like the ones being feasibility, fees charged by the bank, cash deposit and withdrawals, maintaining minimum account balance, interest rates, schemes, and other services.
while keeping in mind that business bank accounts may tend to charge higher fees than personal accounts, you should still seriously consider the costs of a bank account.
Major fees for business bank accounts include monthly account fees, excess transaction fees, excess cash deposit fees and much more. Since, every business varies in terms of size, business model, operations, etc., there is no perfect account for small business.
Therefore, there will be a few small businesses who may be happy with banks having only online services that do not charge any monthly fees. On the other hand, there may be businesses that may care more about frequent cash deposits and will never need to deposit a check from their phone, etc.
It is a good idea to have a business of your own and for that, you will also need some capital. You cannot expect to run your business with your personal bank account – you will require a business account for managing all business finances as well as applying for a business loan if needed. But, do not worry.
Here, at PlanGrip, we have already done all the necessary findings and research for you and have come up with the best banks for small business in 2019. Now, all you have to do is simply take a peek and select the one that suits you best.
Below we have listed major banks across the United States that differ on various grounds of services rendered and how they affect the needs of small business owners.
Chase is a great bank in the U.S. with a large number of customer base and one of the best options for small-business owners. The bank offers a wide range of banking programs for your small business, a few of which includes loans, credit and other financing services. Opening a chequing (checking) account with Chase Bank gives you a bonus of $200 and no fee is charged as long as maintain a minimum $1,500 balance, else a monthly fee of $15 is charged.
Upon signing up with Chase’s small business account, a free business debit card is issued to both you and your employees.
Business credit cards are amongst a few of the best ones on the market.
With the availability of online payroll program, you can easily manage your payroll and file taxes.
Merchant services account makes your checkout process more efficient.
Chase also offers a mobile banking system, which is accessible from any smartphone or tablet, allowing users to quickly scan and deposit cheques (checks) without the need of visiting a branch.
There are more than 5,300 branches and 15,500 ATMs across the nation.
Chase is not only a great bank for chequing (checking) accounts, it is also a choice for business credit cards and also one of the best online banking and mobile banking systems available today. There are also chances of getting cashback offers and earning rewards points on the applied business credit card.
(a) Total Business Checking
(b) Performance Business Checking
(c) Platinum Business Checking
Each low-cost business chequing (checking) account offers distinct services that can easily fulfill the needs of your small business.
Bank of America is another very popular bank that is a choice of over millions of small business owners in the United States. It is also one of the best banks you can opt for. The bank still continues to offer traditional financing, such as secured term loans for business, line of credit, loan for commercial real estate, vehicle and equipment financing, SBA loan, etc. The bank provides long-term financing at low rates, which is a good advantage.
(a) Business Fundamentals
(b) Business Advantage
An $18 monthly fee is waived under the following conditions:
You charge at least $250 per month on a business debit or credit card.
Maintain an average monthly balance above $5,000.
Have a combined average of linked Bank of America accounts of $15,000, or.
Keep a minimum daily balance of $3,000.
Free cash deposits, up to $10,000 per month.
Free mobile and online banking.
Business and employee debit cards
If your small business mainly deals in cash, then you definitely would want to consider having a business checking account with Bank of America as the bank charges the lowest fees on cash deposits you make.
Wells Fargo is another popular bank. It is the largest Small Business Administration (SBA) lender for SBA loans and has more branches than any other banks in the United States.
The bank offers four different business checking accounts, all of which have monthly fees, but you can avoid them with a minimum balance requirement in most cases.
For the Simple Business Checking account, the minimum balance requirement is $500 to avoid fees. Also, the bank offers virtually any service your small business might need, which includes things like payroll, HR, and business tax services.
If your small businesses use a lot of cash, Wells Fargo is one of your best options. Not only you can deposit cash at the largest branch network, but you can also withdraw amounts from its massive network of ATMs and without having to pay any service fees.
Axos Bank is the oldest online-only bank in the United States with several years of successful experience in providing banking services to both personal customers as well as businesses.
The Business Interest Checking account offered by Axos Bank is free, however, there is a rather $5,000 average daily balance required to be maintained, otherwise, you are charged to pay a $10 monthly fee.
The account includes up to 50 free items per month, so it is not ideal for the busiest businesses with a huge number of transactions or a smaller business that keeps a low daily balance.
But it does offer interest, which is currently 0.80% and a great online and mobile banking options for quick banking. Axos also offers a basic business checking account with no monthly fee, up to 200 free items per month and other features with no interest. Depending on your needs, this may be better than the Business Interest Checking account.
It is pretty impressive for any bank, not just online banks. If you don’t need to work with cash but do need a serious bank, consider Axos Bank for your small business banking needs. It can be a great option for you.
Navy Federal Credit Union offers top quality business banking services that are perfect for a wide range of small businesses in the United States.
Their services include business checking and savings accounts, loans, credit cards, payment processing, retirement and insurance for you and your employees. Basically, credit unions are not-for-profit entities, which means that they tend to charge lower fees and offer higher interest rates on savings in comparison with that of for-profit banks.
To open a business bank account at Navy Federal Credit Union, it is mandatory that you will first need to become a business member.
This requires you to join the credit union yourself as an individual first. You will also need a $100 opening deposit in order to get started.
Credit unions are typically geared more toward consumers than businesses. But don’t overlook the big opportunity to save money with a business checking and savings account at a credit union.
Capital One bank is one of 12 best banks for starting up a small business. And has substantive banking programs for consumers as well as commercial start-ups and establishments. The bank offers comprehensive financing solutions to small business owners. You can choose from two business accounts:
(a) Spark Business Basic Checking
(b) Business Unlimited Checking
Capital One’s Spark Business Checking programs offer comprehensive online banking system, allowing you to easily complete tasks online. You are also provided with different cash flow management tools that can help you quickly analyze.
Thus, with a significant lending program and low-cost business checking accounts Capital One is one of the best banks for small businesses But, Capital One really sets itself apart by being totally devoted to small businesses.
Not two small businesses are alike, and Capital One recognizes that by tailoring their Spark Business program to meet various banking needs across various industries.
One of the 12 best banks for starting up a small business and Many small businesses may not be familiar with the Live Oak Bank. This is simply because the bank has no physical branches. It is a completely digital bank.
Live Oak Bank offers both personal and business banking services via the Internet. On the business side, the bank focuses on SBA loans, certificates of deposit and savings accounts.
Although Live Oak Bank offers many different types of business loans. They have a great deal of success and experience with SBA loans. So, if you are on the market, looking for an SBA loan, then this is definitely a bank that you should contact for your small business.
Live Oak Bank provides:- certificates of deposit and savings accounts for small business owners. The bank’s Business Online Savings Account is a high-yielding account, currently being at a 1.09% interest rate, which you can open and easily manage online using any device. The yield, according to the Live Oak Bank, is 12 times higher than the national average.
There are no monthly maintenance fees and the certificate of deposit rates currently range from 2.45% to 3.15%, which depends on how long you keep your money locked in.
You can get started online and the bank has a team of industry and banking experts to help you accomplish the financial life and goals of your small business. However, if you are looking for a checking account, then you probably need to find other options. As the Live Oak Bank currently does not offer to check accounts.
Although US Bank may not be quite as big as some of its competitors, it still offers a large network of branches and ATMs around the United States.
The biggest standout for small businesses is the Silver Business account, which offers to check with no monthly maintenance fee.
This account is a good option for smaller businesses with less than 150 transactions per month. While $0.50 each is charged for additional items. You can deposit up to 20 mobile checks each month with no fee. Pay the same $0.50 for additional mobile deposits you make.
Like other banks on this list, US Bank offers additional services through a package, which includes credit card processing, payroll servicing and invoicing.
Other checking accounts have a higher number of free transactions, but require a large balance in order to avoid monthly services fees, which can be charged up to $25 per account by the bank.
Citibank is one of 12 best banks for starting up a small business.
New York City
Los Angeles Francisco.
That covers a wide net of small businesses, but even if you are not located in any of these cities, there is a lot you can accomplish with the bank’s digital footprint.
Although Citibank is best known for their credit cards, their checking accounts are what really stands out for small business owners. They offer four types of business checking accounts, which is more compared to other banks on this list.
(a) Streamlined Checking Account: This is an entry-level business checking account, which requires you to maintain a $5,000 minimum balance to avoid a fee.
(b) Flexible Checking Account: This checking account is perfect for fast-growing businesses. You get 500 free transactions per month and you can avoid fees by maintaining a $10,000 minimum balance.
(c)Checking Account: This account is good for medium-sized businesses and it also offers earnings credit to offset fees.
(d) Interest Checking Account: This is an interest-bearing checking account for small businesses that can maintain a $10,000 or more.
Citibank is one of the 12 best banks for small businesses, offer for nearly every type of company at every stage of growth. As you grow, you might need a longer-term loan or merchant services account and their range of business checking accounts could mean that your bank can stay the same even as your business grows.
M&T Bank is one of 12 best banks for starting up a small business and it can also be considered as a fine choice for business analysis and your small business banking needs. Bank has 690 branches in New York, Pennsylvania, Maryland, Washington, D.C, Virginia, West Virginia, and Florida, while it also stands out for more than its branch network.
The Bank offers relationship managers who do more than offer you bank accounts and help you with customer service questions. bankers review your business finances inside and out to help you better understand them. And achieve the best small business success possible.
It is a top 10 SBA lender and offers a range of bank accounts. There are five checking options that would be suitable for most small businesses. And specific accounts for medical and professional services industries.
However, one of the biggest downsides is that you need to maintain a big balance to avoid fees in most of those accounts. To avoid the $10 fee on the basic Simple Checking for Business account, you are required to maintain a $2,500 average balance.
Azlo Bank is one of the 12 best banks for setting up a small business and created especially for freelancers, self-employed individuals and more.
It was launched with the backing with BBVA Compass Bank, which holds all accounts on this platform. Ensures that all deposits are FDIC-insured.
(a) It is digital.
(b) Completely fee-free.
In addition to all the features that you would expect to have from a business checking account. The bank also streamlines expense tracking and management with their app. This makes your banking experience a lot more efficient.
Also might be the perfect bank as it offers digital banking experience for small business owners. However, there is no availability of features, such as check deposit that you could get with a physical bank.
Azlo’s target customers are small business owners who need to access their accounts online and handle transactions electronically.
Consumers Credit Union Bank is one of the 12 best banks for starting up a small business. And it has many of the same financial offerings as other banks. However, their structure is slightly different from other banks in that the credit unions are member-owned and operated. And their products are available to members only.
Credit unions are often a good choice for small business owners because their products come with low fees, higher interest yield, and better services. The bank provides both personal and business banking services and is easy to join.
In order to join Credit Union:- You are first required to make an initial payment $5 as a membership fee. Then you can then open a savings account with a minimum deposit of $5.
Even the entry-level checking account waives the monthly $15 maintenance fee as long as you maintain a $1,000 minimum deposit. You can open interest-bearing savings account with as little as $5. And you need to make a deposit of at least $100 in order to avoid a monthly fee charge.
Consumers Credit Union offers:- a Visa credit card and Visa debit card for small business owners. which are perfect for separating your business from personal finances. Or for authorizing employee purchases.
The credit limit for individuals is also available for different cards, which can be used by you and your employees. If you get their debit card, you can access ATMs in the credit union’s nationwide network at no cost.
Every business should have its own dedicated checking account and possibly savings, credit cards, to keep cash safe. And should build a financial record for the business. Because every business is different, there is no perfect account for small businesses.
Some small businesses may be happy with an online-only bank that does not charge any monthly fees, whereas other businesses might care more about frequent cash deposits. And will never need to deposit a cheque (check) from their phone.
If you think that you are unhappy with the rates or the customer service provided by your current bank then look for a change.
Consider one of the 12 best banks for small business in 2019 listed above. It might be just the thing to help your business grow to the next level.