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The Best Cash Management Accounts in September 2020Best Banks for Small Businesses
When it comes to small business, your bank can be either your staunchest ally or a big source of headaches. Choosing the best bank makes a big difference, and it’s a decision as personal as your business. To help you make the right call, we've narrowed down the vast array of business banking choices by compiling a list of institutions that offer the best available deposit accounts to help your business grow.
We looked at the best options for three types of accounts: business checking accounts, business savings accounts and business money market accounts. Below, you can see our complete list of the best banks for small businesses for all these account types.
- Best banks for business checking accounts
- Chase Total Business Checking
- Radius Bank Tailored Checking
- Partner Colorado's Business High Interest Checking
- Best banks for business savings accounts
- Wells Fargo Bank Business Platinum Savings
- First Internet Bank Business Regular Savings
- Digital FCU Ltd Savings Account
- Best banks for business money market accounts
For each type of business account, we've identified best bank in three categories: traditional, online and credit union. Our review should arm you with the information you need to choose the right partner, no matter which type of financial institution you prefer.
Best banks for business checking accounts
| Bank and account | Minimum to open | Monthly fee | Minimum balance to waive fee | Number of free transactions per month |
|---|---|---|---|---|
| Chase Total Business Checking | $0 | $12 with electronic statements, $15 with paper statements | $1,500 daily balance | Unlimited AHC, ATM and Chase QuickPay deposits; 100 free transactions for all debits, teller transactions and incoming wire deposits |
| Radius Bank Tailored Checking | $100 | $10 | $5,000 | Unlimited for all types of transactions |
| Partner Colorado's Business High Interest Checking | $0 | $5 | Fee waived if you meet certain conditions | 350 transactions |
Best traditional bank checking account — Chase Total Business Checking
When it comes to the big banks, business checking accounts don't get better than Chase Total Business Checking. While this account does carry monthly maintenance fees of $12 or $15, depending on whether you want paper statements, they are easily avoided by keeping a reasonable daily balance of $1,500.
One of the biggest advantages Chase offers is its size: With 16,000 ATM locations and almost 5,000 branches across the country, business owners can easily access the funds in the account and have face-to-face conversations with the people keeping their money safe should the need arise. The Chase Total Business Checking account also allows for a decent number of free transactions suitable for a small business: 100 free debits (taking money out of the account via check or credit card), teller transactions or incoming wire transfers, and unlimited ACH or Chase Quickpay deposits. Your business may eventually outgrow these limits, but it's a great place to start.
Best online bank checking account — Radius Bank Tailored Checking
If you don't mind opening a business checking account somewhere that exists almost exclusively on the internet, then check out Radius Bank's Tailored Checking. This account offers a high APY of 0.75%, unlimited free transactions, and zero ATM fees at more than 20,000 ATMs worldwide — perfect for those business trips abroad.
Radius has only one single physical branch in Boston, but through the magic of the internet, anyone can sign up for this account regardless of geographic location. Managing the account also requires a certain digital literacy, as depositing checks, making payments and checking account information all happen via Radius's app.
Best credit union checking account — Partner Colorado's Business High Interest Checking
Not everyone likes to take their business to a bank, and some business owners prefer a credit union. If you count yourself on team credit union and are in the market for a business checking account, Partner Colorado's Business High Interest Checking may be right for you.
Because Partner Colorado is a credit union and not a bank, you must first qualify for membership before opening an account. The easiest way for anyone to do this is to donate $5 to the Partner Colorado Foundation, which you can do when opening the account.
This account earns a sky-high 3.25% APY on small balances up to $10,000 — a perfect way for small businesses to earn more on an account category that typically yields peanuts. As your balance grows, your APY will shrink to something more in line with the competition. Having between $10,000 and $25,000 earns 0.50% APY, and anything over $25K earns 0.10%.
There's a $5 monthly fee on the account, which is waived if you complete at least 20 debit card transactions, sign up for estatements and also log on to online banking.
Best banks for business savings accounts
| Bank and account | Monthly fee | APY | Minimum needed for APY |
|---|---|---|---|
| Wells Fargo Bank Business Platinum Savings | $15 — waived if you maintain a $10,000 minimum daily balance or link account to a Platinum Business Checking Account | 2.05% | $25,000 |
| First Internet Bank Business Regular Savings | $2 | 1.41% | $250,000 |
| Digital FCU Ltd Savings Account | None | 1.92% | $25,000 |
Best traditional bank savings account — Wells Fargo Bank Business Platinum Savings
They don't make banks much bigger than Wells Fargo, which operates physical branches in 39 of the 50 states. That alone may be enough of a selling point for business owners wanting to make sure their business savings stay safe, but the high APY of 2.05% for customers who open this account at a physical branch makes it even more enticing.
While those hoping to open their account online will have to settle for a less exciting APY of 0.10%, those who can find their way to a physical branch and ask a manager about the 2.05% APY will be rewarded for their persistence with one of the highest rates around. Keep in mind you will need to maintain a balance of at least $25,000 to enjoy this rate.
Best online bank savings account — First Internet Bank Business Regular Savings
This online-only bank offers a solid, no-frills business savings account that earns a competitive rate of 1.41% on balances $250,000 and greater. Even if you don't have that much money in the account, you'll still earn a decent APY of 1.16% on balances up to $250K.
The account comes with a low monthly fee of $2, but even that can be avoided so long as you keep an average daily balance of at least $1,000 in the account.
Best credit union savings account — Digital FCU Ltd Savings Account
Digital FCU's Ltd Savings Account strikes a balance between a normal business savings account and a higher-earning money market account — a fact which Digital FCU is upfront about on its website. The account earns a high APY of 1.92% on balances of $25,000 and greater, but it will only allow you to make one free withdrawal from it each month, instead of the usual six most financial institutions allow (the maximum permitted under federal regulations). Withdrawals after this first freebie cost a hefty $25.
If you aren't deterred by the stricter rules, qualifying for membership with DCU can be as simple as making a $10 donation to Reach Out for Schools (a nonprofit). The account also allows for unlimited deposits and free access to FCU's online and mobile banking.
Best banks for business money market accounts
| Bank and account | APY | Minimum balance needed for APY | Maximum balance to which APY applies |
|---|---|---|---|
| US Bank Platinum Business Money Market | 0.06-0.60% | Tiers range from less than $50K for lowest APY to more than $1 million for highest | Tiers range from less than $50K for lowest APY to more than $1 million for high-interest-checking |
| Bay State Savings Bank Smile Worcester County Commercial Money Market | 2.35% | $0.01 | Unlimited |
| Affinity FCU Business Money Manager | 2.25% | $25,000 | Unlimited |
Best traditional bank — US Bank Platinum Business Money Market
US Bank is either one of the smallest big banks or biggest small banks in the country — it operates physical branches in 26 states, which makes it more than a regional player but not quite as ubiquitous as Chase or Wells Fargo. In any event, its Platinum Business Money Market may not bowl you over with its APY, but you do get the peace of mind of banking with a huge institution that some business owners look for.
The APY earned on this money market account work on a tiered system tied to the account's daily balance.
- A daily balance under $50,000 earns 0.06%
- A daily balance between $50,000 and $99,999 earns 0.20%
- A daily balance between $100,000 and $249,999 earns 0.25%
- A daily balance between $250,000 to $499,999 earns 0.30%
- A daily balance between $500,000 to $999,999 earns 0.50%
- A daily balance $1,000,000 and greater earns 0.60%
You should remember that FDIC insurance will only cover the balance in your account up to $250,000 before you go chasing a higher APY.
There's also a $15 monthly fee, but that's waived if you maintain a balance of at least $10,000. This money market account also grants you free access to U.S. Bank's online banking, which allows you to monitor your account, set up alerts and more.
Best online bank — Bay State Savings Bank Smile Worcester County Commercial Money Market
The first thing we should point out about this account is that your knowledge of Worcester County doesn't matter when it comes to reaping its benefits. Anyone can open this account by calling this Massachusetts-based bank and asking to open an account. The requirements are minimal for a small business money market account: a $5,000 initial deposit, which you must maintain to avoid a $7 monthly charge, and the rewards are high.
Those rewards include an APY of 2.35%, a Visa debit card linked to the account, online bill pay and online banking. Plus the satisfaction of knowing that "your deposits into a Smile Worcester County Money Market Account will help Bay State Savings Bank support economic growth in those areas of Worcester County that need it most," according to the bank.
Best credit union — Affinity FCU Business Money Manager
This New Jersey-based credit union delivers the goods with this money market account, which earns a high APY of 2.25% on balances $25,000 and up (and a still respectable 1.25% on balances between $2,500 and $24,999). A $5 donation to the New Jersey Coalition for Financial Education qualifies you for membership.
You also have to pay a $10 monthly fee on this account if your daily balance ever falls below $2,500. As with other money market accounts, Affinity's FCU Business Money Manager allows for a total of six withdrawals each month via check or debit card each month.
Affinity FCU also offers the option for you and your business to become a Business Member if you really enjoy dealing with this credit union. Membership benefits include working one-on-one with a credit union business specialists on which of Affinity's products best suit your needs, 401(k) and retirement plans for your employees and more.
Methodology
Rate and account data from DepositAccounts.com, as well as independent research on bank and credit union websites, were used to find the business accounts with either the highest APY, lowest fees or other benefits useful to business owners.
