13 Best Banks for Small Business (2024 Update)

One of the first few steps in getting your small business off the ground is choosing a bank for your business entity. Although there are different sources of finance, bank institutions are the most traditional way of seeking funding. The bank you choose will play a vital role in receiving and making payments, processing transactions, availing small business loans and more.

So, have you chosen one for your business yet?

If not, we are here to help. In this article, we have put together a list of the best banks for small businesses that are present in the market. No luck with banks? Do not worry, you can always apply for small business grants.

We will not only show you the best options available but will also help you make a choice. Since you will be sticking to your bank account for quite some time, it is important to evaluate your choices well.

If you are ready, let’s begin.

Comparison of the Best Banks for Small Business

1. NBKC

Best budget-friendly online checking account for small businesses.

If you are looking for a small business bank that makes you feel like you are dealing with a human being, NBKC is the best choice. At every stage, you will be interacting with real humans and not machines.

But if you are looking for in-person banking at a branch, you must know they are present only in a few locations in the Kansas City area. All your transactions are processed online and you can easily open a business account for free.

They do not require you to maintain a minimum balance, offer online banking, e-statements, online deposits, and much more for no fee at all.

Some other banking functions that it helps small business owners with is disbursement, fraud management, collecting payments, and cash management. Irrespective of your business’s side, NBKC offers banking solutions for every type of business.

This bank is especially good for online business owners as you can send invoices to your customers, allow online payments and keep track of all those who have paid you.

If you are looking for a bank that will provide you with business loans along with good online banking services, NBKC is a good choice as they offer different types of business loans like commercial loans, SBA loans, lines of credit, equipment loans and others.

Apart from all of this, there are also different types of credit card options that you can choose for your business.

Pricing and Fee Structure

NBKC offers one checking account where its pricing is very simple. They do not charge you anything for opening the account, maintenance fees, transactions fees or any other hidden charges.

2. LendingClub

Best small business bank for small business loans.

As the name suggests, LendingClub specializes in lending and helps small businesses looking for loans. However, it is not a direct lender but is a lending marketplace where they connect borrowers and lenders.

This does not mean that it’s not a safe platform. The process of getting the loans is the same as direct lending banks and you will need to fill necessary documents. They’ve partnered with Accion Opportunity Fund which makes the loan application process smoother.

You can borrow anything between $5K-$500K and use it for whatever your business needs may be. The complete loan application and approval process happens online and is very quick. There will even be a dedicated client advisor to guide you through the process.

If yours is a small business and you need a small loan LendingClub even lets you apply for a personal loan and use it for business purposes. However, to qualify for any of their business loans, you must have been in business for at least 12 years.

Pricing and Fee Structure

If you are looking for a small business loan, you will have to fill a short form on their website and LendingClub will send you a quote. The repayment term for their loans lies between 6 months to 5 years.

There will be a fixed interest rate that you will have to pay and the origination fee lies between 3.49% and 7.99%.

3. Chase

Best feature-rich bank for small businesses just getting started.

Chase is a great banking choice for small businesses of all types due to the extensive range of services and banking options it offers. Some of them include merchant services, online banking, business credit cards, business lending and more.

With over three thousand branches, it offers a choice between online banking and in-person banking. It is also the best small business bank for businesses that use credit cards extensively. There is a wide variety of business credit cards to choose from.

You will get a hundred free transactions every month, so it may not be a very good choice if you anticipate processing a lot more transactions than that. Along with checking accounts for businesses, Chase also offers savings accounts.

Also, if you want the maintenance fee of your account to be waived off, you will have to maintain a minimum balance of $2000 at all times. With the merchant services, you can easily accept payments from your customers online.

Some other services that it offers to businesses include payment processing, foreign exchange, business debit cards, employee retirement plans, commercial banking and business loans. The loan options include SBA loans, lines of credit, commercial real estate loans and others.

Pricing and Fee Structure

Depending on the services you choose, the pricing offered by Chase differs from business to business. However, to open a checking account, you will have to maintain a minimum balance of $2000 and pay a monthly fee of $15 to $0.

4. Wells Fargo

Best small business bank that offers the most competitive interest rates on small business loans.

If you are looking for a business bank that is easily accessible, Wells Fargo is the best choice as it has many locations across the country. It also has some of the best business loan options available.

For businesses that want to open business bank accounts, there are different types of savings and checking account options. When you get cheque books and debit cards for the accounts, you can even add your business logo to the same.

Some other features that Wells Fargo offers include mobile deposits, balance tracking and account alerts, zero liability protection, 24/7 fraud monitoring, and many convenient payment options.

Wells Fargo also has several business loan options that offer competitive interest rates. You can use the business lines of credit at very low rates and no collateral. They also have SBA loans with longer repayment periods and lower down payments.

Along with these, you can also get commercial real estate loans for expanding your business.

If you are looking for merchant services, Wells Fargo can help you with that as well by providing payment processing services like point-of-sale features and facilitates online mobile payments.

Pricing and Fee Structure

To start with Wells Fargo, you will need to open a business checking account which can be done with a minimum opening deposit of $25 depending on the bank account type. By maintaining the specified minimum balance amount you can even save on the monthly maintenance cost.

5. KeyBank

Best business checking accounts for small business owners.

KeyBank is a good small business bank for businesses that deal with large amounts of cash and would like to access in-person banking as well as mobile banking. There are a lot of banking options and services that you can choose from at KeyBank.

They have more than a thousand branches across fifteen states and over forty thousand ATMs across the country. To begin with, there are a number of checking and savings account options that you can choose from.

Each type of checking account comes with a specific number of transactions that you are allowed and a maintenance fee that can be waived off. Ordering checks for your business through KeyBank is also very easy and can be done online or through a branch.

For businesses looking for merchant services, there are plenty of options in that area too. KeyBank makes it easy to accept online payments and seamlessly integrates with payment gateways. You can also get merchant solutions designed specifically for your business.

Protecting your business by becoming PCI-DSS compliant is also very easy with KeyBank. If you are looking for cash management features, there are several features for collecting payments, invoicing, cash and check processing, wire transfers and others.

To make it easier for business owners, KeyBank offers payroll services and helps with employee incentives and performance rewards.

Pricing and Fee Structure

To open a bank account with KeyBank, the minimum opening deposit is $25. For each account, you will need to maintain a minimum balance and even though their account maintenance fee is quite low, you can get it waived off by maintaining the balance.

6. Capital One

Best bank for small businesses that want to process unlimited transactions.

Capital One is a good choice for small businesses that are able to maintain a monthly balance of $2000. With them, you can open a business account without a minimum deposit and you will also be allowed to process unlimited transactions free of cost.

Whether you are looking for in-person banking or online banking, Capital One has the option for both. Its online banking interface has been designed keeping in mind less tech-savvy small business owners. However, to open an account you will have to visit a branch.

Along with checking and savings accounts, and CDs Capital One some other business services that you get are merchant services, lending, trade credit, credit cards and others. They have several custom plans for small businesses so you can bundle services as per your choice.

Their merchant services allow business owners to accept different types of payment methods, hosted web pages, mobile terminals, data security tools, and reporting features. For those looking for credit cards, there is a wide range of options to choose from.

With Capital One, you will get access to seventy thousand fee-free ATMs, which include MonePass, Allpoint ATMs and Capital One. However, the location availability of branches may be limited so you may want to check on their website before you make a choice.

Pricing and Fee Structure

To open a checking account with Capital One, you will need a minimum deposit of $250. While you will not be charged for any transactions, there is a charge for cash deposits once you cross $5000.

Depending on the account you choose, you can get the maintenance charge waived off by maintaining a minimum balance of the amount specified.

7. Digital Federal Credit Union

Best simplified small business banking.

Digital Federal Credit Union, also often referred to as DCU, has been able to retain a lot of its customers for a long time. Its combination of online banking and in-branch banking make small business banking very convenient for small business owners.

To get started, it offers the least expensive business checking account options. They do not charge any minimum deposit, maintenance charges or other hidden fees. There are also several savings account options to choose from.

DCU is one of the best credit unions for small business owners. If you worked for a participating employer previously, you too can become a member and utilize the services.

Some other perks that you can enjoy with DCU are access to 80,000 ATMs across the country, up to twenty free deposits per day and up to four DCU visa debit cards per account.

If you are looking for small business loans, there are a few fee-free options too that you can choose from.

Pricing and Fee Structure

Opening a checking or savings account with DCU is free and they also do not charge any additional fees. They also do not charge additional fees apart from the interest rate if you decide to take a small business loan from them.

8. Axos Bank

Best feature-rich online bank for growing small businesses.

If you are looking for an online banking solution that offers plenty of features and a free business checking account, Axos is a great choice. It is the perfect choice if you anticipate processing under two hundred transactions per month.

Along with the free business checking account, there are other options as well and you can even choose between different savings and money market accounts.

Through their extensive network of ATMs, you can withdraw money conveniently without worrying about the fees.

If you have surplus funds in hand, Axos also offers CDs and CDARs that are FDIC insured and have high interest rates. While with every account, you get a number of free transactions included, Axos also provides treasury management services for larger businesses.

Using their mobile banking facilities, you can view your account balances, deposit checks, automate your bills and more. You can also access all your account statements through their online banking facilities only.

Axos also has a partnership with Celero Merchant Services through which they offer merchant services like eCommerce solutions, point of sale terminals and equipment, check acceptance and mobile commerce.

For small businesses looking for funding, Axos also has loan options, lines of credit, equipment finance, and many more financing options.

Pricing and Fee Structure

To open a business bank account with Axos, there is a certain amount of minimum balance that you will have to maintain and also have a minimum opening deposit. With each account, there are a certain number of deposits, maintenance fees and other conditions that apply.

9. M&T Bank

Best business bank accounts for small businesses.

If you are on the lookout for a bank that offers a variety of small business checking accounts and good interest rates on savings accounts, M&T is a good option.

If you are lucky and there is an offer running, you might even be able to save on the monthly maintenance fee for the first 12 months.

They also have different business debit card options at competitive rates and no annual fees at all. There are many additional features that you get depending on the card you choose.

For businesses looking for cash management services, M&T also offers payables processing options, receivables tools and tools to help with fraud and risk management.

You can make use of real-time payments, wire transfers, remote check deposits, fraud services and many more features.

To make it even more convenient for business owners to bank online, M&T also has their own mobile app which includes different account management features. You can even configure your system to start receiving payments from your customers from anywhere.

Along with these features, M&T provides several merchant services to businesses in different industries. For businesses looking for financing options, there are different lines of credit, term loans, credit card options and equipment financing schemes that they can choose from.

Pricing and Fee Structure

M&T offers two checking account options where the maintenance fees are as low as $10 a month.

These maintenance fees can be waived off by maintaining a minimum balance as mentioned. For more elaborate banking features, the M&T tailored business checking account is a good choice.

10. Regions Bank

Best regional bank that offers high flexibility to small and medium-sized businesses.

If your business is located in the South, Midwest or Texas, Regions Bank could be a good option for your small business. Though it offers online as well as in-branch banking, to open a bank account with them, you will need to contact their bank executive.

It offers a wide range of banking services and financial solutions for small businesses. To get started, there are five types of checking accounts and four types of savings accounts. There are also several CDs that you can choose from.

Using the online and mobile banking feature, you can easily check your account balance, pay bills, transfer funds and even enroll in different business service solutions. Regions Bank also lets businesses use wire transfers to electronically transfer funds.

It also allows business owners to deposit checks into their accounts by simply scanning them through a mobile device.

Through its partnership with Paycor, Regions Bank even offers payroll and HR services to businesses. Under the broad umbrella, some of the services that they offer include timekeeping, onboarding, reporting and analytics, workers’ compensation and others.

Since businesses often require financing, Regions also provides several financing options to businesses from a wide range of industries. Some of these financing options include credit cards, lines of credit, SBA loans, and equipment financing.

Pricing and Fee Structure

Depending on the number of transactions that you process every month, Regions Bank has five different checking accounts that you can choose from. If you expect to process a moderate number of transactions, the Advantage Business Checking account can be a good choice.

11. PNC Bank

Best small business bank for fee-free transactions and online banking.

PNC is an ideal bank for small business owners who prefer a brick and mortar bank along with the facilities of online banking. It is also a good bank if you would like to process less than five hundred transactions per month.

To get started, you can begin your application process for opening a bank account online but you will have to visit a branch at some point during the process. If you are looking for a checking account, there are five options that you can choose from.

They also have money market demand accounts, sweep accounts, and certificates of deposit. For businesses that are looking for credit cards for their businesses, PNC also has a wide variety of credit card options that offer plenty of rewards and benefits.

PNC offers merchant services to make it easy for small businesses to accept payments online and in person. Payroll processing for your employees is one more feature that PNC offers so that businesses can focus on other important tasks.

If you are looking for online banking features, PNC lets you view your account summary and activity online, view online statements, check images, transfer funds, PNC alerts, data export and even lets you manage payroll online.

What makes PNC a good banking option is that it even offers financing options. If you are looking for loans, there are many options to choose from. Some of the options include lines of credit, SBA loans, real estate loans and small business vehicle loans.

Pricing and Fee Structure

Depending on the type of business checking account you choose, there will be a minimum opening deposit and also a maintenance fee that you will need to pay after three months of opening your account.

However, if you meet certain specified criteria, you will be able to get the fee waived off.

12. Bank of America

Best bank for small businesses operating with a large cash flow.

The Bank of America is a good option for small businesses that have to deal with a large amount of cash and would like to have access to in-person banking. However, unlike most other banks, all the transactions with them are free of cost.

Along with normal banking features like checking accounts and credit cards for businesses, there is so much more that Bank of America offers. With checking accounts, some other tools that you get include Zelle, account management, debit cards, profile linking and more.

If you are looking for credit cards for your business, with Bank of America, you will even get three options to choose from. The best part about all these credit cards is that there is no annual fee but many interesting rewards.

A unique feature that Bank of America offers is that you can even link your bank account to analytics tools. Using this, you can keep track of your debits, credits, get projections, compare important metrics and more.

Some third-party applications that you can integrate with include QuickBooks Online, ADP payroll services, Expensify, Google Analytics, TurboTax and many more.

Bank of America also has their own mobile banking app which you can use to check account balance, transactions, online statements and transfer funds. For businesses looking for financing, Bank of America also offers a wide range of lending options.

Other business services that you get with Bank of America are payroll services, remote deposits, and cash management tools.

Pricing and Fee Structure

There are two checking account options that Bank of America offers. If you are looking for all the basic tools for your business’s banking, the Business Advantage Fundamentals Banking is a good choice.
For businesses looking for solid financial solutions, Business Advantage Relationship Banking may be a better choice.

13. US Bank

Best bank for small businesses that do not want to maintain a minimum balance.

From business bank accounts to credit cards, loans, business services, business payments and online banking, there are a wide variety of services that US Bank offers.

Since it has over three thousand branch locations and four thousand ATMs across twenty-five states, it is one of the most accessible banks.

If you are looking for a free checking account, US Bank may be a good choice. This is ideal if you have less than one hundred and twenty-five transactions per month. For the other accounts, there is a monthly maintenance fee and sometimes hidden charges too.

Along with checking accounts, US Bank has savings accounts, CDs, and money market accounts. Even though the bank has many physical locations, they offer online and banking options to their users.

For businesses looking for financing options, there are several options to choose from like SBA loans, practice financing, equipment financing and even McDonald’s franchising loans. You can even choose from the business credit cards that US Bank offers.

Some business services that the US Bank offers to small business owners include cash management, payroll services, fraud protection and gift cards. Along with merchant services, it also offers cash services, remote deposit capture, and others.

Pricing and Fee Structure

US Bank offers three types of checking accounts that differ based on the number of transactions that you would like to process. While there is a free account, if yours is a small growing business, the Gold Business Checking Account may be a good choice.

How to Choose the Best Bank for Your Small Business

Now that you know the best bank account options for small businesses, you might want some help making the choice. There are several points that you must take into consideration while choosing a bank account that will address your business’s needs.

Also, since choosing a bank account is something you do not do every day, and is a commitment, you will need to be careful of your choice.

1. Choice of bank accounts

The most important factor while choosing a bank for your business is making sure it offers the bank account options that you are looking for.

If you are looking for the best business checking accounts, a good option will be one with a low minimum balance, opening deposit and transaction fee.

For savings accounts, you may want to choose a bank that offers good rates. You can also choose an account that offers checking and savings both in one, like NBKC.

Alternatively, you must also ensure that the bank you choose offers CDs and money market accounts since you may need them in the future.

2. Branch locations

While some small business owners specifically look for banks that offer online banking, it is always good to choose a bank account that has physical branches. This ensures that you can reach them at a physical location in case something becomes unresponsive.

Some banks also need you to visit their branch to open a bank account. Also, most banks are not present in every state which makes it difficult for businesses to bank with them. So before choosing a bank, make sure you check that there are a few branches in your state.

3. Transaction fees and hidden charges

Ideally, the best business bank accounts do not charge for transactions like Chase, PNC and Axos Bank. Sometimes it may look like there are no additional charges but there may be hidden fees that you will discover only when you look deeper.

4. Merchant services

Most business owners will need to accept payments for their products or their services for which merchant services can be essential. Some banks provide in-person services while some help with eCommerce.

Choose a bank that offers a variety of merchant services like online payments, point of sale systems, credit card processing and others.

You may also want to look for a business bank that has the best payroll services, offers rewards and retirement plans, takes care of workers’ compensation and others like Regions Bank.

5. Financing options

Every business needs access to funds at some point during the life cycle of its business. It could be for paying debts, expansion and diversification, or for business vehicles. Even though your business may not need funds now, it is a good idea to evaluate options for the future.

Look for a bank that offers different types of financing options like SBA loans, lines of credit, small business loans, commercial real estate loans, small business vehicle financing and trade practice loans.

Some banks that offer a variety of loan options include M&T, Digital Federal Credit Union, LendingClub, and Wells Fargo.

6. Customer support

Nothing is more frustrating than an unresponsive customer support team when you need them the most. There will inevitably be times when you will need the help of your bank’s customer support team, so it is advisable to take this factor into consideration too.

Read a few reviews to find out what others are saying about their experience with the bank you have shortlisted.

Best Bank to Open a Small Business Account

If you have read so far, it is safe to assume that you are looking for a bank for small businesses. You now have a list of the best options available and also a guide on how to choose a small business account.

Before you begin the selection process, make sure you identify what your primary purpose with your small business bank is. Are you looking for a loan or are you looking for a fee-free checking account?

You could even be looking for a bank that helps small business owners with merchant services. Whatever may be, match your needs with a good small business bank.

For fee-free small business accounts, there is Chase, PNC, Regions Bank, and US Bank. If you are looking for loans, LendingClub, Wells Fargo and Digital Federal Credit Union are the best options.

If you are looking for small business banks that makes online banking easy, there is NBKC and Capital One.

So you may see that there is a wide range of options available. All you have to do is pick the bank that offers the most competitive rates, allows you to save and has a solid feature set.

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