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Aug 2, 2024 · Our experts chose First Internet Bank as the best online bank for small businesses because it has low fees and high interest rates on business accounts.
- Cassidy Horton
- Bluevine: Best Overall For Interest-Earning Checking & Business Line of Credit
- Live Oak Bank: Best High-Yield Savings Account
- Relay: Best For Businesses Needing Multiple Accounts & Debit Cards
- Novo: Best Digital-Only Bank For Rapid Access to Funds & Faster Payments
- Grasshopper: Best Digital-Only Bank For Integrated Free Payment Software
- Found: Best Digital-Only Provider For Self-Employed Professionals
- Lili: Best For Digital Tax Preparation Assistance
- NBKC Bank: Best Full-Service Business Online Bank
- How We Evaluated The Best Online Banks For Small Businesses
- What to Consider When Choosing An Online Business Bank
When to Choose Bluevine
1. You want to earn interest on your online business bank accounts: With Bluevine’s Standard business checking account, you can earn 2.0% APY on qualifying balances of up to $250,000 as long as you either spend $500 a month using its debit card or receive $2,500 in customer payments in a month. While Grasshopper’s top interest rate is now 2.25%, Bluevine’s higher rate at lower balances gives it a slight edge. That’s why Bluevine is one of the best small business checking accountsavailable. 2....
When to Choose an Alternative
1. You make regular cash deposits: Bluevine provides two options for depositing cash but both require fees. You can make cash deposits at over 90,000 Green Dot retail locations for $4.95 per transaction or one of 1,500 Allpoint+ ATMs for $1 per deposit plus 0.5% of the deposit amount. Consider a traditional bank like Chase if you handle cash regularly. Check out our Chase Business Complete Banking reviewfor more information.
When to Choose Live Oak Bank
1. For businesses wanting to earn maximum returns off of company reserves:Live Oak Bank is a great choice. Its business savings earn 4.0% APY and business CDs earn as much as 5.0% APY. The company gears its product offerings toward self-employed business owners—specifically startups, entrepreneurs, gig workers, freelancers, and side hustlers. 2. You want an online banking provider that is a traditional bank:Live Oak Bank is a member FDIC bank, although all of its accounts are online only. Thi...
When to Choose an Alternative
1. You want to withdraw cash from your account or deposit cash:Live Oak Bank doesn’t provide a debit card with its savings now that it has brought back its business checking product. You’ll have to transfer funds to a business checking account first. Live Oak also doesn’t accept cash deposits. Consider Bluevine as an alternative if you need ATM access to your funds.
When to Choose Relay
1. You need the ability to use subaccounts to manage business funds:For businesses needing multiple accounts to separate business finances, Relay is an excellent choice for an online business bank. You can get up to 20 checking accounts that you can use to set aside reserves for different expenses. 2. You have large teams that require debit card access:In addition to a large number of checking accounts, Relay provides up to 50 Visa debit cards. Relay helps you keep track of those accounts wit...
When to Consider an Alternative
1. You want to earn interest from your business checking:Relay has many great features, but interest-bearing checking is not one of them. However, it does offer an automated savings account that earns 1% to 3%. If you want interest-bearing checking from your online banking provider, Bluevine and Grasshopper are your best options.
When to Choose Novo
1. You use Stripe, Square, or PayPal and want faster access to your funds:Novo Boost allows you to accept payments from popular online payment processors and receive payments faster than other fintechs on this list. You can connect Stripe, Square, or PayPal and get paid via credit card, Apple Pay, Google Pay, Venmo, or online ACH. 2. You need to send or receive same-day ACH payments: Novo’s Express ACH enables you to accept or send same-day ACH payments. The combination of Express ACH and Nov...
When to Choose an Alternative
1. You want to earn interest: While Novo has an excellent business checking product, it doesn’t offer any interest-bearing accounts. You should consider Bluevine or Grasshopper for interest-bearing checking or Live Oak Bank or Relay for interest-bearing savings.
When to Choose Grasshopper
1. You want digital-only banking that includes great integrations:Grasshopper’s biggest perk is the inclusion of Autobooks for free with each account. This gives each user free integrated payment and invoicing software. 2. You want to earn interest on your business checking account: Grasshopper offers up to 2.25% APY uncapped with its business checking. Balances less than $25,000 or greater than $250,000 earn 1.51% APY, while balances of $25,000 to $250,000 earn 2.25%. To qualify, you must ma...
When to Choose an Alternative
1. You need to deposit cash: Grasshopper doesn’t allow cash deposits into its business accounts. A traditional bank like Chase is always going to be a great option if you handle cash regularly. See our Chase Business Complete Banking reviewfor information on Chase’s entry-level account. You can also choose fintechs like Bluevine and Relay for cash deposits.
When to Choose Found
1. Freelancers looking for detailed expense tracking with integrated bookkeeping: If you’re looking for a business checking account with robust built-in bookkeeping software and excellent tax tracking and preparation, Found is a great option. The integrated bookkeeping solution allows you to categorize expenses, capture receipts, and set custom rules within the Found app. Found also lets you complete and send your Schedule Cfrom the app and pay your tax bill directly. 2. Business owners looki...
When to Choose an Alternative
1. You want to earn interest without upgrading to a paid account:Found’s interest-bearing checking product is only available in its premium checking product, Found Plus, which is $19.99 a month or $149.99 a year. You can earn 1.5% APY on balances up to $20,000 with Found Plus. If you want an interest-bearing checking account, Bluevine and Grasshopper are great alternatives.
When to Choose Lili
1. You want the option to upgrade to a premium account with extra perks: Lili offers a fee-free business checking product, Lili Basic, which provides a debit card and an option to get paid two days early via direct deposit. However, if you need more features, you can sign up for Lili ProLili Smart costs $9 per month., which offers 1% cash back rewards, fee-free overdrafts of up to $200, a high APY savings product, and expense management tools. For unlimited invoicing and automated bookkeeping...
When to Choose an Alternative
1. You need to deposit cash regularly: You can only deposit cash through Green Dot retail locationsfor $4.95 a transaction. Bluevine is a great alternative for businesses that send wires regularly, while a traditional bank like Chase is better for cash deposits.
When to Choose NBKC Bank
1. You want an online full-service bank:For a small business owner looking for a full-service online bank, NBKC Bank is a great option. In addition to business checking products, it offers business money market, CDs, commercial lending, business solutions, and credit card products. Its business checking is a fee-free account with no monthly fees or minimum opening deposit requirements. Transactions are free with no limit. 2. You handle cash regularly:You can deposit cash for free at both NBKC...
When to Choose an Alternative
1. You need customer service outside of banking hours:As a traditional bank, customer service by phone is only available during business hours. You can reach out via email, but those are likely only answered during business hours as well. Bluevine, Novo, and Mercury are among the providers on this list that offer customer service outside of traditional banking business hours.
When we evaluated the best online banks for small businesses, we considered: 1. Monthly fees, if any, and how easily they are waived 2. Required opening deposit and balance minimums 3. Transaction limits before fees 4. ACH and wire transfer fees 5. ATM fees and availability 6. Cash deposit fees and availability 7. Interest yield, if applicable 8. O...
While we used our own criteria to select the best online banks for small businesses for this list, here are some things you should review before making a selection:
Sep 1, 2024 · As long as your online business bank is FDIC-insured (the standard is up to $250,000 for deposit accounts), online business bank accounts are generally as safe as brick-and-mortar...
- Jasmin Suknanan
Aug 30, 2024 · FDIC insurance: 10%. Banks with higher G-SIB status and more assets rose to the top. Those that offered digital security features like multi-factor authentication, disposable or virtual card ...
- Bank of America. Best for: Customer relationships and loyalty programs. Bank of America is the biggest commercial and industrial loan bank lender in the U.S.
- JP Morgan Chase. Best for: Variety of small-business products. Chase offers small business loans, lines of credit and commercial real estate financing for small business owners in addition to checking accounts, credit cards and payment solutions.
- Wells Fargo. Best for: SBA loans. Wells Fargo offers SBA loans, multiple types of lines of credit and a variety of other types of business loans. However, some term loan programs have been discontinued so you may want to consider other options if a term loan is what you want.
- U.S. Bank. Best for: Startups. U.S. Bank has fewer locations than other brick-and-mortar banks, including Chase and Wells Fargo. But if there’s a branch near you, U.S. Bank may be a good choice for startups, as you may be able to qualify for certain products with less than a year in business.
Jul 26, 2024 · Visit Bluevine. Best Banks for Small Business Loans at a Glance. Loans. Banking. Bluevine: Best Small Business Line of Credit. What We Like. No monthly fees. Excellent line of credit product with low required minimum time in business and annual revenue. High interest rate for qualified account holders. Drawbacks. Fee for depositing cash.
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Jul 30, 2024 · From long-term loans and lines of credit to SBA loans and special programs for business owners in underserved communities, banks provide eligible borrowers the funding to help their...
