Keeping your personal and business finances separate is one of the most important things you can do as a business owner. Not only does it make bookkeeping and tax preparation easier, but business bank accounts often have special perks for business clients.
Choosing the right bank for your small business account depends on your individual circumstances and preferences. Some banks and account types are geared toward people who don’t mind banking entirely online, while others offer brick-and-mortar locations. Others may be appropriate for independent contractors, while others may need additional services.
Here’s an overview of some of the best banks for small businesses and self-employed people.
Chase Bank
If you prefer having a brick-and-mortar location, Chase Bank has 4,700 locations in 28 states and approximately 16,000 ATMs. Chase offers small business banking services with three different types of checking accounts and two types of business savings accounts. They also offer online banking through the website or mobile app.
The monthly service fees start at $15 per month but can be waived with minimum balances. There are unlimited fee-free electronic deposits, and the limits on fee-free cash deposits and physical transactions will vary, depending on account type. If you choose the Business Complete Banking account, you can use Chase QuickAccept to take credit card payments through the Chase mobile app. All accounts come with free business debit cards, and some customers will be eligible to earn a $300 welcome bonus.
Wells Fargo
Wells Fargo is another brick-and-mortar bank, with 4,900 branches in 40 states, plus 12,000 ATMs. Like Chase, they offer online and mobile banking features, and three different business checking account options. There may be additional checking and savings account options depending on your location and type of business.
Monthly service fees start at $10 per month, which is waived by keeping a minimum balance of either $500 or $1,000 (depending on account type). They also offer a limited number of fee-free transactions and cash deposits.
Novo
If you’re comfortable banking entirely online, Novo is a good business checking option. They offer checking accounts for small businesses, with no maintenance fees, no minimum opening deposit, no minimum balance, and a mobile app. They also integrate with business tools like QuickBooks, Stripe, Square, PayPal, Shopify, and more. Account holders can deposit checks directly through their mobile app, and Express ACH allows you to accept or receive same-day ACH payments. They also refund all ATM fees on a monthly basis.
While there are no savings account options, you can set aside funds with the Novo Reserves feature. Plus, the unlimited invoicing and bill pay features are great for business owners. The main drawback is that you can’t make cash deposits: you’ll need to purchase a money order and deposit it through the app.
The bottom line
These three banks have all received great reviews from small business owners, but their features vary significantly. Take the time to research small business bank accounts, especially the fees and potential drawbacks, to ensure you’re getting the services you need.