If you’ve been freelancing and hustling for awhile, you may eventually reach the point where you can turn your passion into a full-time business. Then the good habits you have followed from the start will pay off, and you can easily step into the next level and open a business checking account.
Best business checking accounts
If you are a small business or entrepreneur one of your goals is to keep as much of the money you make as possible. So making sure you don’t waste money on banking fees should be on the top of your to do list. You want as many features and conveniences as you can find, so managing your money will be as secure, easy and worry free as possible.
Banking features. Look for banks that offer multiple payment options, international money transfer services, free invoicing and booking keeping tools, free integration with common business tools like QuickBooks, and free debit card features. And, a robust and easy to use banking app, so you will have access to your account on the go.
Fees. Check for banks offering zero minimum balance requirements to start. Especially when you’re a new business, maintaining a minimum balance can be hard. Also, look for minimal or zero fees for transfers, payments and withdrawals, to avoid your business getting “nickel and dimed” to an empty account.
Security. Any bank you select should be FDIC insured at least $250,000. It should also offer standard security for its online and phone banking app.
Top banks for your business
Pros: Novo is an online only bank that specializes in small businesses and entrepreneurs. It offers, no monthly fees, no minimum balance requirements, free ACH transfers, unlimited ATM fee refunds. Plus, the minimum deposit to start an account is only $50. A Novo account also offers suite of features perfect for online small businesses like built-in integration with many common tools (Stripe, WooCommerce, QuickBooks, Xero and more), and worldwide acceptance of its debit card.
Cons: Novo is an online only bank, so no physical branches with in-person help. All customer service is handled via emails and messaging in their app. Also, it does not offer a business credit card or savings account option.
Pros: BlueVine offers a free business account with no monthly fees, zero minimum balance requirements, unlimited transactions per month, free ACH transfers, and zero insufficient fund fees. A BlueVine account can also earn 2% interest on balances up to $100,000.
Cons: Customer service hours are limited to Monday through Friday. Also, it does not offer a savings account option. And for those with significant international business, it does not offer international wire transfers, and domestic wire transfers have a $15 fee.
Pros: If your business is a bit more flush with cash monthly, you may want to pay a bit and opt for a more full service bank. Of those, Chase is the most small business friendly with manageable monthly fees of $15 per month and a minimum balance of $2,000. Chase has thousands of physical branches domestically so you can access in-person assistance. It also has robust offerings for growing business; savings accounts, business loans and credit card options. Establishing a business relationship with a full service bank like Chase can be an advantage as your business expands and may be in need of a business loan, line of credit or credit card.
Cons: Fees. Fees. And more fees. Chase is a traditional, full service bank with a big footprint and a big brand name – you will pay for that. Unlike the previous two banking options, Chase’s requirements for opening account are more rigid and extensive. You will be unlikely to setup your account same-day.