21 Best Free Business Checking Accounts

This is especially important when you are working with large figures. When it comes to opening a business checking account, all the banks want your business. But you need to figure out how to choose the best one.

How to Choose a Business Checking Account?

There are many reasons you need to give serious consideration as to what checking account to use.

A business checking account is what separates your personal and business funds. It is actually a legal requirement. If you run an LLC or corporation, you need to have a separate account. Things can get quite problematic if you start to use business funds for personal expenses. It just makes things easier, especially in terms of payroll and accounting.

The following are some things you need to consider in terms of choosing a business checking account:

1. Introductory Offers & Bonuses – There are many signup bonuses for business checking accounts. Typically, you can make between $50 – $250 if you signup with a new bank and maintain a balance for over 2 months, such as $1,000. Not a critical factor, but not something to be ignored either.
2. Speed of Service – How quickly can you get up and running with this bank? Some offer same-day approval, though these tend to be online.
3. Service Fees – These are the monthly maintenance fees. They typically range between $10 – $30 per month. The more services on offer, the higher the price.
4. Minimum Account Balance – If your account goes below the minimum balance, you may be hit with a charge. This is not the norm, but make sure to check the terms and conditions first.
5. Transaction Costs – This one is quite important. Some banks may only allow several free transactions per month, such as 100. If you intend to make a lot of transactions, then you will get hit with extra charges. Be aware that some banks also only allow a limited number of deposits before hitting you with a charge.
6. Wire Transfer Fees – There is nearly always a fee for wire transfers, which are simply fees for transferring from one bank to another. With digital transfers, wire transfers have fallen out of use. Many banks will allow several free wire transfers.
7. Interest Rates – Once a huge consideration, now it’s not really all that important. There was a time when banks offered decent interest rates on deposits, but this rate is not tiny.
8. In-Person or Online – Many financial services are now online. But there are still plenty of business owners who want a point of contact and a physical branch to visit. This is a personal consideration for you.

1. Novo

Novo is an innovative startup that has a lot of appeal to new businesses. It offers very low fees, easy application, and a very smooth mobile and web experience. Novo offers integrations with Stripe, Shopify, Slack, Xero, Intuit Quickbooks, Xapier, and Wise, which is a big incentive for many new business owners, especially for online business models.

In many ways, it bears resemblance to Small Business Bank, at least in terms of its fees. However, it is much more sleek and modern with some neat integrations. It offers very functional mobile applications and it takes only 10 minutes to apply online. They don’t even conduct a credit check on applicants.

Novo

2. Small Business Bank

Small Business Bank allows you to get started asap. You will be approved in either one or two days and the documentation requirements are very minimal – application form, driver’s license, EIN, and proof of address. That’s it. Most businesses are approved within one business day. They also have longer support hours in comparison to other banks, open from 7 AM to 11 PM every day.

And the benefits do not stop here. The minimum deposit is $5, and there is no minimum balance requirement. It is perfectly suited for micro-businesses and small businesses, and the hint is in the name. You don’t have to visit a physical branch but can signup online. It offers 3 business checking accounts – sole proprietor (for freelancers and independent contractors), micro business account, and small business account.

Small Business Bank

3. BBVA Clear Connect for Business

BBVA recently shut down its subsidiary, Azlo, which was a great fee-free bank. But BBVA itself offers a great business checking account that is also free, as well as having a great signup bonus of up to $250. BBVA is a huge bank, not a new startup tech firm. It has been around since 1964 and has a lot of offerings to the public. You need $25 to open an account and there they have a large network of fee-free ATMs, including ATMs at 7/11 and Allpoint. Be mindful of opening an account with BBVA and closing it quickly. If you open an account and close with 180 days, you will incur a charge of $25.

BBVA Clear Connect for Business

4. Bluevine Business Checking

Like many banks on this list, there are no monthly service fees with Bluevine. But unlike many other contenders, Bluevine offers a 1% interest rate on accounts holding more than $1,000. And the benefits don’t end there. With Bluevine, you can get access to 24/7 banking, a free business debit card, and unlimited transactions. There are no fees (ACH, wire transfer, or NSF) and no minimum balance requirements. ATM withdrawals are fee-free across 38,000 terminals in the USA.

You can deposit cash in your Bluevine account, something a lot of free business checking accounts no longer offer. If you haven’t heard already, Bluevine is also a big name in the online lending space for loans. So if you intend to take out a loan, it might be best to do so from this lender while also opening a business checking account for ease of integration. Bluevine only offers one banking product, the business checking account. Approval times are fast.

This is an excellent business checking account for small business owners. The only fees you will pay are $15 for outgoing wires and a $4.95 fee to deposit cash at Green Dot locations. You will also be charged for debit card replacements. Aside from this, the only downside is no physical access to branches, Bluevine being an online business. It’s also one of fewchecking accounts that allow a $0 deposit. Online reviews of Bluevine are very good.

Bluevine Business Checking

5. Citizens Bank Clearly Better Business Checking

This bank account seems to be designed for small businesses that operate with low-volume transactions. It allows for 200 free transactions and there is no minimum deposit or balance required. It only has branches in 11 states. There is no monthly fee. You will pay a $0.50 transaction fee for all transactions beyond 200.

Unfortunately, the fee structure of this account is not clearly defined. It’s even hard to make out with the fee page, which is lumped in with numerous other products. There appears to be no signup bonus and a $39 overdraft fee, though you can acquire overdraft coverage with them pretty easily. This means if you get overdrawn your overdraft will kick in and cover you.

Citizens Bank Clearly Better Business Checking

6. TIAA Small Business Checking

TIAA Bank has more ATMs than any other bank on the list, despite being primarily an online bank. There are over 80,000 TIAA ATM terminals, and most of them are fee-free. This makes TIAA perfect for those who often visit the ATM, though withdrawals are limited to $600 per day.

It offers a great mobile application for business checking. TIAA, the parent company, has been in business for over a century, so this is definitely a bank with longevity. For 6 years running, TIAA won the 2020 World’s Most Equitable Companies by Ethisphere Institute. There is no monthly service fee with TIAA and overdraft protection is available. However, there is a rather large $1,500 minimum deposit. NSF fees are $30. This is for the Small Business Checking.

General Business Checking has more charges. You have to maintain a minimum of $5,000 to avoid a monthly fee of $14.95. Wire transfers are $35 outgoing and $25 incoming. Late payment charges and $25.

TIAA Small Business Checking

7. US Bank Small Business Checking

US bank offers a small business checking account with no monthly service fee, 125 free transactions, and $0.50 per additional transaction. Because this is a large bank, there is no easy streamlined approval process and you are encouraged to book an appointment and see somebody. This might suit more traditional business models, but online business owners will want something more fast-paced. The US Bank checking account comes with overdraft protection and a debit card and online and mobile transactions.

US Bank Small Business Checking

8. Radius Bank Tailored Checking

With a rapid online approval process, 1% + cashback, unlimited transactions, and free worldwide ATMs, Radius Bank Tailored Checking has a lot going for it. It’s worth mentioning that Radius has recently joined forces with Lending Club, a former P2P loan provider. Radius has a fantastic online and mobile experience and offers a neat 1.5% cashback on certain spending. There is no monthly service charge.

The only downsides are the $5,000 minimum balance to avoid the monthly service charge fees and the $100 minimum deposit. But the monthly service fee is only 10% if you fall below 5%.

Further, it is one of few banks to offer unlimited free transactions. It integrates with Quickbooks and Mint.

The online approval process is also very quick with limited documentation required. This makes it perfect for small businesses, but mainly those that want to keep $5,000 and up in there.

Radius Bank Tailored Checking

9. Chase Business Complete Checking

To qualify for the signup bonus, you need to deposit $2,000 and maintain that balance for 60 days. You also need to complete 5 qualifying transactions. Unless you maintain a daily balance of $2,000, you will incur the monthly fee. But there are other ways to waive the fee, including spending $2,000 on purchases or linking a Chase Private Client Checking Account.

Chase Business Complete Checking

10. Bank of America Basic Fundamentals Checking Account

The $16 monthly service charge on the BOA Advantage Fundamentals business checking account might seem a little high if you’re looking for a free small business checking account. However, Bank of America not only offers one of the most competitive business checking accounts from a big bank, but they also offer three different ways to waive your monthly service fee:

• Spend $250 in net new purchases using a business debit card
• Maintain an average monthly balance of at least $5,000
• Qualify for and enroll in the Preferred Rewards program

Moreover, the BOA Advantage Fundamentals account includes 200 fee-free transactions per month, $7,500 in cash deposits per month, and access to online banking, mobile banking, free bill pay, mobile check deposit, and business owner and employee debit cards. After the 200 transactions are used, you will be charged $0.45c per transaction

You will also be able to use your debit card for free at any BOA ATM and visit any of their branch locations across the U.S, of which there are many. There is no minimum balance required to open an account.

Bank of America Basic Fundamentals Checking Account

11. Axos Bank Basic Business Checking

Axos Bank Basic Business Checking has similar features to other large banks, including Chase and Bank of America. It offers 200 fee-free transactions, no monthly service fees, unlimited domestic ATM reimbursements, and a free debit card.

It also offers a $100 signup bonus to new businesses and a dedicated relationship manager.

The first set of 50 checks is free with Axos Bank and it offers a better mobile experience than other big banks. The major downside with Axos Bank is that you will need $1,000 for the minimum deposit, which is an uncommon requirement that can put off a lot of business owners.

Axos Bank Basic Business Checking

12. Lili Small Business Bank Account

Lili is a little unique in that it is designed specifically for gig workers and freelancers, but also useful for independent contractors and solopreneurs. One of the most important things that you will need to do as a freelancer is open a business bank account (something that people often fail to do). Freelancers need to separate their personal and business finances for legal and tax reasons.

With Lili, there are no monthly service fees and no minimum balance requirements. There are also no ATM fees with partner terminals (over 38,000 of them) and no overdraft fees. There are not even any overdraft fees. The approval process is lightning fast – it just takes 3 minutes to complete on your phone. Approval is pretty much instant and you’ll get a debit card in the mail.

You will pay fees to deposit via cash, so you won’t want to go with Lili if you frequently do this. Lili is an application, and there is no website. This makes it unique among checking account providers. One of the coolest features of Lili is automatic tax savings, which helps you to save for tax time. Lili also has some cool expense tracking tools.

Lili Small Business Bank Account

13. Brex Cash Cash Management Account

The most important thing to know about Brex Cash is that it isn’t a bank account and Brex is not a bank. Brex Cash is actually part of a new product class called ‘cash management accounts that are designed to do what a traditional bank account does and more. This account offers FDIC insurance just like a traditional bank account and is offered by Brex Treasury LLC, a registered broker-dealer that is a member of FINRA and SIPC. It offers integrations with QuickBooks, Xero, NetSuite, Concur, and Expensify and markets itself as the next generation of financial technology and is perfectly suited to startups.

Along with being free, this account offers a lot of freedom to business owners with its free unlimited ACH, wire, and check payment options and no minimum balance requirements.

One unusual feature of this cash management account is that you are given a credit card, not a debit card, with the account. It is paid daily (like a debit card), and also allows you to earn points on these transactions. This is great for businesses looking to increase their credit score.

Brex is a new player in the space offering a lot of unique features. If you want a worry-free account that allows you to easily invest your cash when you’d like and earn points on your spending, Brex Cash is an excellent option to consider. There are no monthly service fees, no account minimums, and no insufficient funds charge.

Brex Cash Cash Management Account

14. NorthOne Business Banking

NorthOne Business Banking offers a host of features including no ATM fees, unlimited free transactions, excellent customer support, and lots of integrations with financial tools. It provides access to over 300,000 ATMs across the USA, a colossal figure. You can even create and send invoices through the banking application or a dedicated standalone application.

NorthOne offers unlimited sub-accounts and more digital tools than practically any other provider.

However, it does have a $10 monthly fee which cannot be waived, in contrast with many other online providers offering free banking.

NorthOne Business Banking

15. NBKC Bank Business Checking Account

This is an online business checking account with no monthly service fee, no unlimited transactions, and no minimum balance requirements. It offers $12 in refunds from charges from other banks in ATM fees. There are no incoming domestic wire fees, overdraft, stop payment, or any other similar incidental fees. So with this checking account, you really know where you stand in terms of charges. You can add users to your account.

The downsides are that there is no physical branch access outside of Missouri and Kansas and you can’t integrate the account with third-party tools (a big drawback). There is a $5 for outgoing domestic wires and a $45 for incoming domestic wires, which is pretty steep. It takes a little longer to get approved compared to online lenders.

NBKC Bank Business Checking Account

16. Huntington Bank Unlimited Business Checking

The Huntington Bank Unlimited Business Checking account offers unlimited free transactions up to $10,000 with a $0.30c fee thereafter. You can waive the $20 a month service fee, but only if you have a huge $10,000 in total deposits. This is one of the largest deposits I’ve seen to waive the fee.

You get to choose one free bonus tool with Huntington Bank Unlimited Business Checking – this includes either 2 free incoming domestic wires, 10% off Paychex, 25 returned deposit items, reverse positive pay, or 50 deposit scans per month. If you visit their physical branch, you can avail of a $400 bonus in Ohio, Michigan, Indiana, Pennsylvania, Kentucky, West Virginia, and Illinois. You must deposit $5,000 within 60 days to qualify.

Huntington Bank Unlimited Business Checking

17. First Bank Essential Business Checking Account

The First Bank Essential Business Checking account is one with a low monthly fee of $10, and this can be waived by maintaining a balance of $1,000 or more. However, overdraft and negative balance charges are pretty sharp. It’s $36 for an overdraft and $36 per week for a negative balance. They do offer 250 fee-free transactions per month along with the standard free debit card.

First Bank Essential Business Checking Account

18. Popular Bank Primary Business Checking

The Popular Bank Primary Business Checking is useful for businesses that have a decent revenue and are already up and running, but not really for startups and new organizations. It comes with a $15 monthly charge and has no opening minimum balance. It comes with useful treasury management features and allows for 3 accounts. To waive the $15 monthly charge, you need to maintain a whopping $15,000 in the account.

For this reason, it is primarily for bigger businesses such as LLCs and C-Corps with treasury requirements. It offers over 55,000 fee-free ATMs worldwide and comes with 100 free transactions. Image Remote Deposit is available for a fee of $40. This solution is ideal for businesses that make around $250,000 annually and are looking for accounts receivable and payable functionality, with more than one account.

It is marketed as a ‘package’ and allows for

Popular Bank Primary Business Checking

19. National Cooperative Bank Basic Business Checking

The national Cooperative Bank Basic Business Checking Account is ideal for businesses with light activity. Like most banks, NCB offers several checking accounts depending on your business size. The minimum balance to open this account is $100 and it offers 100 free transactions, 50 free deposits, and no monthly service charge.

National Cooperative Bank Basic Business Checking

20. Iberia Bank Free Business Checking

The Iberia Bank Free Business Checking Account is much different from checking accounts offered by larger banks. Clients can benefit from no minimum balance, a free debit card, no monthly service charge, a waiver on personal checking accounts monthly fees, 500 free transactions, and up to $10,000 in deposits per month.

These are significant advantages in comparison to other large bank offerings. There is a $0.50c transaction fee above 500 transactions. This is really a large bank that matches the fee structure and mobility of online financial technology firms, which is an interesting mix.

You can also grant access to 3 other people during the application process. The application process is online, and you will need the typical information – date of birth, business legal documents, passport, phone number, EIN, SSN, etc.

Iberia Bank Free Business Checking

21. First Citizens Bank Basic Business Checking

This is a minimalist but appealing checking account for small businesses with a light transaction volume. There are no monthly service charges and no minimum balance requirements. It offers 175 free transactions each month and up to $5,000 in free deposits every month. The visa debit card comes free, though the only fee-free ATMs are those of the First Citizens Bank. The application is very smooth and intuitive similar to the online website.

First Citizens Bank Basic Business Checking

Conclusion

It’s obvious that you are not short on choice when it comes to business checking accounts in 2021. You have an insane amount of options, and can find a checking account with fees that are pretty close to zero, once you do a little research.

Don’t get hit needlessly with unfair bank charges. Understand exactly what the costs are and choose an account that is perfectly suited to your business. You should easily find a suitable option from the above list of the 21 best business checking accounts for 2021.