6 Best Banks for Small Businesses in 2024

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Embarking on a new business venture is a thrilling opportunity. As you start an LLC, selecting a bank that caters to your business requirements is crucial. This article explores the best banks for small businesses suitable for your LLC, looking at their features, how to access their services, and their advantages and disadvantages.

LLCBase has compiled a list of the top small business banks that offer various services, including business checking and savings accounts, credit cards, loans, and merchant services. Whether you are a budding entrepreneur or an experienced business owner, there is a small business bank perfectly suited to fulfill your needs.

What is a Small Business Bank

A small business bank is a financial institution offering specialized products and services designed to meet the specific needs of small businesses. They offer a variety of banking solutions, including checking accounts, business loans, credit cards, treasury and cash management services, and others tailored toward small businesses’ operation and growth needs. Usually, these banks are more in tune with the local economy and are more apt to offer supportive lending processes to small businesses than larger banks.

These banks provide resources and expertise that help small businesses manage their finances and make essential capital investments. They play a crucial role in amplifying economic growth since they provide necessary lending services, especially for startups and businesses wanting to expand.

Small business banks could be traditional brick-and-mortar banks or online banks. They are regulated by the same U.S. banking laws and regulations and are insured by the Federal Deposit Insurance Corporation (FDIC).

Also Read: 10 Best Small Business Loans in the U.S. 2023

Best Banks for Small Businesses of 2023

The best banks for small businesses in 2023 have been identified. These banks excel in providing superior financial services tailored toward small businesses.

1. Axos Bank® Basic Business Checking

Axos Bank® Basic Business Checking ranks high among the best small business banks in the U.S. The bank offers an impressive suite of online and mobile banking services tailored to meet the multifaceted needs of small businesses. This bank is well-known for its unwavering commitment to delivering a seamless banking experience to its customers.

Business owners are afforded the ease and convenience of managing their finances anytime, anywhere — thanks to its state-of-the-art digital platform.

  • Annual Percentage Yield (APY): Not Applicable
  • Monthly Fee: None
  • Minimum Opening Deposit: None
  • Free Cash Deposits: Yes, unlimited
  • Overdraft Fees: $25
  • Promotional Bonus for Signing Up: $100
Axos Bank® Basic Business Checking

One key feature that sets Axos Bank® Basic Business Checking apart is that it imposes no monthly maintenance fees. This bank seeks to lessen the financial burden on entrepreneurs in a world where running a small business can already be costly. Moreover, it allows unlimited domestic ATM fee reimbursement, a boon for businesses that transact primarily in cash. The bank also offers a $100 welcome bonus, incentivizing small businesses to bank with them.

Beyond these tangible benefits, the value that Axos Bank® Basic Business Checking offers extends to its customer service. It is highly praised for providing personalized, prompt, and efficient customer support, which is important for small businesses that need immediate solutions to banking issues.

Coupling this level of service with the bank’s comprehensive suite of features and zero monthly fees, Axos Bank® Basic Business Checking makes a compelling case for being one of the best options for small businesses in the U.S.

Pros
  • No monthly fee or required minimum opening deposit
  • Unlimited transactions without any extra fees
  • Refunds for all domestic ATM fees
  • Cash deposits are available through MoneyPass and AllPoint ATMs
  • 24-hour customer service
Cons
  • A $25 charge for returned insufficient/uncollected funds
  • Lack of integration with third-party apps.

2. Grasshopper Business Checking Account

Recognized as one of the best small business banks in the U.S., Grasshopper Bank offers distinct advantages for startups, often met with complex financial challenges in the early stages of business. The bank’s practical and innovative solutions are specifically aimed at smoothing day-to-day operations for these businesses.

In particular, Grasshopper’s business checking account includes business-friendly features like built-in invoicing and bookkeeping tools, offering startups an all-in-one financial management platform.

  • Annual Percentage Yield (APY): 2.25%, with no minimum balance required to earn APY.
  • Monthly Service Fee: None
  • Minimum Deposit to Open: $100.
  • Cash Deposits: Cash deposits are not accepted.
  • Overdraft Fees: None.
  • Promotional Bonus for Signing Up: None
Grasshopper Bank Business Checking Account

Moreover, Grasshopper Bank uniquely supports founders’ needs at every step of the entrepreneurial journey. Unlike traditional financial institutions, Grasshopper goes beyond providing standard banking services. They offer a network of experts that founders can tap into for advice and mentoring, whether it’s support for accelerator applications, assessing funding opportunities, or navigating the complex landscape of investor relations.

Finally, Grasshopper Bank differentiates itself with its focus on modern, digital banking solutions. The bank offers a seamless online and mobile banking experience utilizing the latest fintech innovations. Along with comprehensive digital banking services, Grasshopper prioritizes individualized customer service, providing personalized attention and support to business customers.

Pros
  • Enjoy unlimited 1% cash back on eligible debit card expenditures.
  • Opportunity to gain up to 2.25% APY.
  • Absence of monthly service charges or penalties for overdrafts.
  • Access to free inbuilt bookkeeping software.
Cons
  • The process of depositing cash is unavailable.
  • You must deposit at least $100 when opening the account

3. Chase Business Complete Banking℠

Chase Bank ranks highly among the best small business banks in the US. Its Business Complete Banking℠ stands out due to its breadth of offerings, catering to the varied needs of different businesses. With three different business checking accounts, businesses can select an option that perfectly suits their needs.

Additionally, its two business saving accounts facilitate efficient money management. Beyond conventional banking, Chase also provides a range of business loans and the popular Chase Ink suite of business credit cards, serving as a comprehensive financial solution for businesses.

  • Annual Percentage Yield (APY): Not Applicable
  • Monthly Service Fee: $15, However, this can be avoided if you maintain a minimum balance of $2,000
  • Minimum Deposit to Open: None
  • Cash Deposits: There is no charge for cash deposits up to $5,000 each month.
  • Overdraft Fees:$34
  • Promotional Bonus for Signing Up: $500, but certain terms must be met
Chase Bank Business Complete Banking℠

The strength of Chase lies not only in its diverse product offerings but also in its massive network. With branches in 48 states and over 4,700 branches, and 16,000 ATMs, Chase ensures that businesses can access timely, convenient banking services wherever they are.

The widespread network of Chase enhances the ease of banking for small businesses, allowing them to perform transactions and access their accounts with minimum hassle, an important factor in today’s fast-paced business environment.

Beyond the tangible benefits, Chase also delivers valuable customer support. It showcases a robust online platform and mobile app, facilitating seamless digital banking experiences. These virtual platforms make it exceptionally easy for businesses to manage their accounts, track payments, and perform transactions conveniently.

Combining vast financial solutions, expansive networks, and top-notch digital services, Chase Business Complete Banking℠ undoubtedly establishes itself as one of the top choices for small businesses in the U.S.

Pros
  • No minimum deposit is required to open an account.
  • Unlimited electronic transactions without fees.
  • In-built Credit card processing.
  • Attractive welcome bonus for new customers (Terms and conditions apply).
Cons
  • There is a $15 monthly fee.
  • There are monthly limits on free cash deposits ($5,000) and physical transactions (20).
  • Fees apply when using ATMs outside of the network.

4. nbkc Business Account

nbkc Bank is among the top small business banks in the United States, thanks to its simple yet comprehensive banking services. A standout feature that distinguishes NBKC is its free business checking account. This account eliminates many fees typically associated with a business account and offers perks such as no minimum balance requirement and free transactions.

Furthermore, adding savings accounts that can be opened online further enhances small business owners’ convenience.

  • Annual Percentage Yield (APY): Not specified
  • Monthly Service Fee: No service fee is charged
  • Minimum Deposit to Open: No minimum balance is required to open an account.
  • Cash Deposits: Unlimited cash deposits at no extra fee
  • Overdraft Fees: No overdraft fees are imposed
  • Promotional Bonus for Signing Up: No bonus is given on signing up
nbkc Bank Business Account

In addition to the basic banking services, nbkc offers additional facilities that cater to a broad range of business needs. Their business credit card, for instance, is an excellent financial tool for managing and tracking business expenses. Moreover, the bank’s cash management solutions provide businesses with the tools and resources to streamline their financial operations, helping optimize their cash flow and overall financial health.

Finally, nbkc emphasizes accessibility and simplicity in its business banking services. The entire banking process, from account opening to daily transactions, can be performed online, providing small businesses flexibility and convenience.

Therefore, the straightforward, cost-effective, and high-value offerings and cutting-edge digital banking facilities make nbkc Business Account a top contender for small businesses seeking a comprehensive banking solution in the U.S.

Pros
  • No monthly charges or minimum deposit are required to open an account.
  • No fees are levied on any transaction, and there is no overdraft fee or incidental fee.
  • Cash can be deposited via MoneyPass ATMs.
  • Runs an iOS app (nbkc) that can accept contactless payments.
Cons
  • A high fee ($45) is charged for international wire transfers.
  • No customer support during weekends or after office hours.
  • The integration of third-party apps is not available.

5. Bank of America Business Advantage Fundamentals™ Banking

Bank of America is a forerunner in the small business banking sector in the US, particularly with its Business Advantage Fundamentals™ Banking. This offering is laden with exceptional features that cater to the dynamic needs of small businesses. One of its most notable benefits is the offer of unlimited electronic transactions, a factor conducive to businesses with high-frequency cash flow activities.

Additionally, high cash deposit limits equip businesses with greater financial flexibility, making Bank of America an excellent choice for businesses with robust cash handling needs.

  • Annual Percentage Yield (APY): Not Applicable
  • Monthly Service Fees: $16.00 per month. However, this will be waived if a minimum balance of $5,000 is maintained
  • Minimum Deposit to Open: $100 is required to open an account
  • Cash Deposits: Yes. A maximum of $7,500 per month can be deposited free of charge
  • Overdraft Fees: $10
  • Promotional Bonus for Signing Up: $200

Another standout benefit of choosing Bank of America for small business banking is the convenience and accessibility of account opening. The bank provides three distinct ways of opening an account, allowing businesses to choose a method that fits their preference and circumstances. Businesses can choose between visiting a physical branch, making a call, or even opening an online account. This availability of options is especially beneficial in today’s digital age, where businesses seek both traditional and tech-driven banking services.

Bank of America also outshines several other national and regional brick-and-mortar banks in terms of its vast physical presence. With thousands of branches scattered across the country, small businesses can enjoy the assurance of in-person support and services when needed. This, combined with the bank’s robust online and mobile banking platforms, ensures an efficient, seamless, and comprehensive banking experience for small businesses.

Therefore, Bank of America’s Business Advantage Fundamentals™ Banking certainly ranks among the top choices for small businesses seeking a well-rounded banking solution in the U.S.

Pros
  • Transactions can be made electronically without incurring any fee.
  • High limits for cash deposits.
  • Business accounts can be set up wholly online.
Cons
  • No free options are available for business checking accounts.
  • The account-opening process requires a minimum deposit of $100.
  • A fee for using ATMs out of the bank’s network is charged.

6. LendingClub Tailored Checking

With its unique and competitive products, LendingClub has distinguished itself as a prime choice for small business banking in the U.S. The Tailored Checking account represents its flagship offering, designed to benefit small businesses immensely.

Unlike many traditional business accounts, Tailored Checking earns interest, allowing businesses to grow their savings while keeping funds easily accessible. Additionally, it offers unlimited ATM fee rebates, a huge benefit for businesses that rely on cash transactions, and a 1% cash back on debit card purchases, rewarding businesses for their everyday spending.

  • Annual Percentage Yield (APY): 1.50% APY can be earned without a minimum balance requirement.
  • Monthly Service Fee: A fee of $10 is charged, but this can be waived if a minimum balance of $500 is maintained.
  • Minimum Deposit to Open: $100 is required to open an account.
  • Cash Deposits: The bank allows unlimited cash deposits at no additional cost.
  • Overdraft Fees: There are no charges imposed for overdrafts.
  • Promotional Bonus for Signing Up: No bonus is offered upon signing up.
LendingClub Bank Tailored Checking

Besides its superior checking account, LendingClub offers other services tailored to support small businesses. Their cash management services provide a robust tool for businesses to effectively monitor and manage their financial activities, facilitating better financial decision-making and efficiency. As well as this, the bank’s small-business loans provide much-needed funding opportunities for businesses at various stages, from those looking to get off the ground to businesses aiming to expand their operations.

The comprehensive financial solutions offered by LendingClub demonstrate their deep understanding of small businesses’ unique needs and challenges. The bank can help small businesses improve their financial health and growth by offering interest-earning checking accounts and valuable cost-saving benefits.

Furthermore, with the addition of its cash management services and lending services, LendingClub ensures that small businesses in the U.S. can access a one-stop solution for their banking needs, thus confirming its status as one of the best small business banks in the country.

Pros
  • No overdraft fees, unlimited transactions at no additional cost.
  • Earn 1.50% APY on balances up to $100,000 and 0.10% on all balances beyond that.
  • Access to ATMs for free.
  • Earn an unlimited 1% cash back on purchases made with a debit card.
Cons
  • A monthly fee of $10.
  • A minimum deposit of $100 is required to open an account.
  • To waive the monthly service fee and earn cash-back rewards, you must maintain a minimum balance of $500.

Why Do You Need a Business Bank

Here are some reasons why your small business needs a business bank.

  1. Separate Personal and Business Finances: A business bank helps you separate your personal finances from business transactions, maintaining proper accounting records.
  2. Licensing Requirements: Some U.S. states require businesses to have a dedicated banking account to get state business licenses.
  3. Credibility: A business bank account can boost customer credibility by showing that you run a professional operation.
  4. Accurate Tax Reporting: It can provide organized reports for accurate tax filing, making the process easier and more efficient.
  5. Loans and Credit: Business banks often offer small business loans and credit lines that could help grow your business.
  6. Cash Management: They provide various cash management services like payroll services, online bill pay, wire transfer services, etc.
  7. Business Credit Cards: They offer business credit cards, often with additional benefits like reward points, cash back, and travel benefits.
  8. Merchant Services: Business banks provide merchant services enabling businesses to accept customer credit or debit card payments.
  9. Fraud Protection: With features like automated fraud detection, they help protect your business from fraud or embezzlement.
  10. Access to Expertise: Business banks often provide access to financial advisors who can help you make informed financial decisions to help grow your business.

FAQs

What is a Small Business Bank?

A small business bank offers financial services designed specifically for the needs of small and medium enterprises. These services may include business checking and savings accounts, business credit cards, and business loans.

What are some of the best banks for small businesses in 2023?

The best banks for small businesses in 2023 include the Axos Bank Basic Business Checking, Grasshopper Business Checking Account, Chase Business Complete Banking℠, nbkc Business Account, Bank of America Business Advantage Fundamentals™ Banking, and LendingClub Tailored Checking.

What are some features of the Axos Bank Basic Business Checking?

The Axos Bank Basic Business Checking offers no monthly maintenance fees, no minimum balance requirement, unlimited domestic ATM fee reimbursements, and a $100 new account cash bonus.

What is special about Grasshopper Business Checking Account?

The Grasshopper Business Checking Account offers no monthly fees, minimum opening deposits, unlimited transactions, and free cash deposits.

What is unique about Chase Business Complete Banking℠?

The Chase Business Complete Banking℠ is unique for its wide accessibility, with thousands of branches nationwide, plus it offers a $300 bonus for new customers.

What are the key features of the nbkc Business Account?

The nbkc Business Account offers a comprehensive online banking experience with no minimum balance requirement, free mobile check deposits, and no NSF fees.

Why should a small business consider the Bank of America Business Advantage Fundamentals™ Banking?

The Bank of America Business Advantage Fundamentals™ Banking is a good choice for small businesses because of its low minimum opening deposit requirement, funds easily accessible at thousands of branches and ATMs, and access to a suite of online banking tools.

What does the LendingClub Tailored Checking offer?

The LendingClub Tailored Checking offers 1% cashback on debit card purchases, no monthly maintenance fee, no minimum account balance, and 0.10% APY on $5,000 or more balances.

Why do small businesses need a business bank?

Small businesses need a business bank to keep their business finances separate from their personal accounts, to ease the process of expense tracking and tax reporting, and to access specialized business banking services.

How important is the physical availability of branches for small businesses?

The importance of the physical availability of branches varies from business to business. Some businesses may need regular access to physical branches to deposit cash, while others may operate online and prefer a bank with strong online and mobile banking features.

Does Axos Bank provide ATM reimbursements?

Yes, Axos Bank provides unlimited domestic ATM fee reimbursements with their Basic Business Checking account.

Is there a minimum opening deposit for Grasshopper Business Checking Account?

No, Grasshopper Business Checking Account does not have a minimum opening deposit.

Does Chase Business Complete Banking℠ offer any bonuses for new customers?

Yes, Chase Business Complete Banking℠ offers a $300 bonus for new customers.

How does NBKC bank manage NSF fees?

NBKC bank doesn’t charge any NSF (Non-Sufficient Funds) fees.

Is there any cashback on debit card purchases with LendingClub Tailored Checking?

Yes, LendingClub Tailored Checking offers 1% cashback on debit card purchases.

What are some key features small businesses should look for in a bank?

Key features can include low or no monthly fees, no minimum balance requirements, easy online access, free or reimbursed ATM access, a good mobile app, and excellent customer service.

Are all these best banks for small businesses based in the United States?

Yes, all these banks are based in the United States.

Do all these banks offer online banking services?

Yes, all these banks offer online banking services. Some, like Axos Bank and nbkc, are predominately online banks with vast online banking options.

Which bank among these offers a cash bonus for new accounts?

Chase Business Complete Banking℠ offers a $300 cash bonus for new accounts.

Are all these banking options suitable for all types of small businesses?

Each small business has unique banking needs, so a bank that is excellent for one business might not meet the needs of another. Evaluating each bank’s features, fees, and services is important to determine the best fit for a specific business.

How are these banks handling the aspect of digital banking?

All these banks have embraced digital banking. They offer online banking services such as mobile check deposits, bill pay, and money transfer services. In addition, banks like Axos Bank and nbkc have fully integrated digital platforms, satisfying the needs of businesses that operate largely online.

How to Choose the Best Small Business Bank for Your Business

One of the most important factors to consider when choosing a small business bank is the level of customer service they provide. As a small business owner, you want to work with a bank that values your business and is dedicated to meeting your needs. Look for a bank that offers personalized service and has a knowledgeable and responsive staff that is willing to go the extra mile to help you succeed.

In addition to great customer service, it’s important to consider the range of products and services offered by the bank. A good small business bank should offer a variety of banking products tailored to the needs of small businesses, such as business checking and savings accounts, business loans, merchant services, and online banking options. Make sure to choose a bank that can provide all the financial services you need to manage and grow your business effectively.

Another key factor to consider when choosing a small business bank is the fees and rates associated with their products and services. As a small business owner, you want to keep costs low and maximize your profits, so it’s important to choose a bank that offers competitive rates and fees. Be sure to carefully review the fee schedules for their products and services and compare them to other banks to ensure you are getting the best value for your money.

It’s also important to consider the bank’s accessibility and convenience. Look for a small business bank that has a network of branches and ATMs located near your business or home, as well as online and mobile banking options that allow you to manage your accounts anytime, anywhere. Having easy access to your bank can help you save time and stay on top of your finances more easily.

Finally, it’s important to research the reputation and stability of the small business banks you are considering. Look for banks that have a strong financial track record, positive customer reviews, and are well-established in the community. Choosing a reputable and stable bank will give you peace of mind knowing that your money is safe and secure.

In conclusion, choosing the best small business bank for your business requires careful consideration of factors such as customer service, products and services, fees and rates, accessibility, and reputation. By taking the time to research and compare different banks, you can find a banking partner that meets your needs and helps your small business thrive. Remember, the right bank can be a valuable asset to your business, so choose wisely.

Conclusion

An appropriate small business bank is vital to your company’s success when establishing an LLC. Each bank listed above provides distinctive benefits tailored to various business requirements. The most suitable small business bank for your LLC can be determined by evaluating the features, monthly charges, and access methods. For further details about initiating an LLC, please visit LLCBase.

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