Starting a business is an exciting and fulfilling endeavor, but it comes with significant financial responsibilities. One crucial aspect of running a successful business is having a reliable and efficient bank account to manage your finances.
Choosing a new business checking account can be overwhelming due to the numerous options available in the market. However, businessmen can take solace in knowing that many free business checking accounts can help them save costs and provide various benefits for efficiently managing their finances.
This article will explore many business bank accounts and discuss how they can benefit your enterprise. Whether a beginner or an experienced business owner, this comprehensive guide to managing your business finances is essential reading material.
When creating our ranking system to determine the top free business bank accounts, we considered multiple factors to ensure a thorough assessment. These factors included account fees, minimum balance prerequisites, transaction limits, availability, additional benefits and services, and compatibility with third-party services.
Our evaluation of each account was based on its cost-efficiency, user-friendliness, and the benefits it provides to businesses. We aimed to create a trustworthy and informative ranking system for business accounts that considers various factors, including a monthly maintenance fee, free transactions, online and mobile banking capabilities, and compatibility with popular accounting software.
This ranking can assist businesses in making informed decisions when selecting an account.
Novo is a business account that’s easy to use and free of charge and can be set up quickly in under ten minutes. It has an online banking application that enables you to carry out transactions such as global customer payments, check deposits, wire transfers, and incoming wires.
It doesn't charge monthly service, ACH, or wire fees and offers unlimited U.S. transactions and reimbursement of ATM fees. Novo is the solution for those seeking a small business checking account.
In addition to being cost-effective, Novo offers several features that enhance the convenience of banking, including physical and virtual debit cards, free invoicing, Novo reserves, Stripe integration, and payments via Apple and Google Play stores.
Your resources are protected through security measures and FDIC insurance provided by Middlesex Federal Savings.
In account opening, please note that a minimum deposit of $50 is mandatory. In case of insufficient funds or uncollected funds, returned charges of $27 each will be applied at the opposite end.
Novo doesn't offer an APY, which means you cannot earn interest on your deposits. You cannot directly deposit cash into your account, although you can use a money order as an alternative method. These are some key limitations to remember.
Why we chose it: Novo Banks free checking account fee structure, which is almost non-existent, makes it an ideal option for startups. Novo is an excellent choice if you're looking for a bank that won't charge you fees for your small business.
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If you're looking to generate revenue for your business, it's important to open a free business checking account that offers borrowing and credit line options. Unfortunately, Novo's range of features doesn't include these options.
While this may not be an issue for some users, those seeking to maximize their earning potential must consider other alternatives.
Novo offers free business checking accounts with great benefits, including discounts on various business applications. With a Novo checking account, you can enjoy a 30% discount on HubSpot's range of business tools.
Depending on your software, your savings could reach up to $4,000. Also, take advantage of Novo's connections today and save big with the savings account.
With a meticulously crafted dashboard, managing your invoices becomes a breeze. The digital debit card purchases allows you to transact online or in person via your preferred payment app without relying on a physical card.
With Novo Reserves, you can deposit funds into various accounts that cater to future expenses or big projects while enjoying the benefits of the best free business checking accounts.
>> Try Novo Business Bank Account Free >>
If you're looking to open free business checking accounts, Bluevine is the one to beat. Its unique combination of low fees and great benefits sets it apart from other options on the market.
With a small business checking account, you won't have to worry about monthly fees, transaction fees, or overdraft charges. Plus, you can withdraw cash from any 37,000+ MoneyPass locations across the U.S. without being hit with pesky ATM fees.
One advantage of opening a business advantage savings account with Bluevine is that there’s no requirement for a minimum deposit. Hence even small businesses with limited cash can avail of this opportunity.
You can perform transactions like depositing, withdrawing, and making customer payments frequently per your needs. Moreover, if you fulfill one or both of the two monthly requirements, you can earn an Annual Percentage Yield (APY) of 1.5% on balances up to $100,000 through Bluevine.
The advantages of using Bluevine include the ability to transfer funds instantly, sub-account availability, the provision of dedicated account numbers, an online application process, and the offer of two complimentary checkbooks. Your funds are secure as Bluevine deposits are insured up to $250,000 per account holder by the Coastal Community Bank, an FDIC member.
Bluevine offers a top-quality free small business bank account but has some restrictions. Bluevine isn't a traditional bank but a financial technology firm, thus having no physical branches. Balances exceeding $100,000 will not earn any interest, and Bluevine doesn't accept cash, paper checks, or foreign currency deposits.
Why we chose it: Bluevine is currently the top choice for a free business checking account due to its user-friendly interface, minimal fees, and exceptionally low interest rate.
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Bluevine doesn't provide loans. However, it offers a convenient option of obtaining a business line of credit that can be used for various purposes. The credit line can be as high as $250,000, and approval decisions can be made in five minutes.
Business account opening with no fees and enjoy interest charges only on the amount utilized. Presently, the rates are as low as 4.8%.
Bluevine currently provides a substantial reward of 2.0% APY for its free small business bank account. However, the account doesn't include any other incentives for signing up.
Bluevine offers multiple payment options for bills, including ACH, check, or wire transfers, which can be made directly from your account or credit card. There are no restrictions on the number of transactions you can make monthly.
The platform allows for creating multiple sub-accounts, which can be used to organize and track finances by dividing funds into different categories.
>> Try Bluevine Business Bank Account Free >>
If you're a freelancer or an independent contractor, Lili's business checking account is an excellent choice for managing your finances. With a range of digital tools at your disposal, Lili stands out from the crowd with its integration with popular services like Uber, Lyft, and Shopify. The best part? Thanks to this feature, you can get paid up to two days earlier than usual.
Lili's business advantage savings accounts come equipped with powerful account management tools designed to meet the unique needs of freelancers. With these tools, you can easily differentiate between business and personal expenses, effectively managing your finances from your mobile device effortlessly.
Lili's innovative automatic tax savings feature takes the hassle out of tax time by automatically setting aside a portion of your earnings for taxes. Say goodbye to financial stress and hello to simplified banking with Lili's free business checking account.
Lili's digital tools can simplify managing business finances for individuals, whether they’re ride-share drivers or online shop owners, by enabling them to do so through their smartphones with just a few taps.
Why we chose it: Lili's cutting-edge software helps businesses to optimize their taxes and minimize fees, thereby ensuring maximum retention of their hard-earned income. Moreover, if a small business is looking for a free bank account with no credit checks, Lili can provide an excellent solution.
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Lili doesn't provide any borrowing alternatives to its customers. You must explore other possibilities if you require a loan or a credit line.
You can earn cash back deposited directly into your business checking account using your Lili debit card at participating merchants. You won't have to worry about any service or transaction fees when using your debit card anywhere in the world, as it's one of the best merchant payment processing providers.
Lili's tax optimizer is unmatched in its ability to assist individuals in minimizing tax-related expenses. This program enables users to classify their purchases, identify their tax bracket, and complete filing procedures without difficulty.
Lili's online banking service also provides a convenient mobile application that allows users to track personal and business expenses while traveling. Registration is easy and can be completed in a matter of minutes without the need for any paperwork.
>> Try Lili Business Bank Account Free >>
Axos has an advantage over other free small business bank accounts regarding cash deposits. The service enables users to deposit physical cash into their accounts via the MoneyPass and Allpoint networks, which isn't typically allowed by comparable services that primarily allow online deposits.
Axos offers personalized online banking solutions, including mobile banking services, image statements, online bill pay, and a dedicated relationship manager unique to banks rather than financial companies.
Axos makes opening a basic business checking account cost-effective through its online application. You can even enjoy free Bill Pay services when opening a business bank account with Axos.
With Axos Bank's business account with no fees, you can rest easy knowing that there are no monthly maintenance fees, minimum deposit requirements, or minimum balance restrictions.
Furthermore, you'll get unlimited deposits and access to reimbursement for domestic ATM fees. In addition to these benefits, the account offers QuickBooks integration, FDIC insurance through Axos Bank, and 50 free checks.
Axos offers a Basic Business Checking account that isn't only free but allows for monthly reimbursement of two domestic wire fees. Although this account lacks an APY and requires customer payment for international and free domestic wire transfers, it remains an excellent option for businesses looking for a free small business bank account. It's noteworthy that Axos operates solely online and has no physical branches.
Why we chose it: Axos Basic Business Checking is the top account due to its very few fees and the option of making cash deposits for free.
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Although Axos offers its members a diverse range of credit and lending options, it can be challenging for businesses to meet their eligibility criteria. One of the requirements is at least two years in operation, among other things.
However, if you're looking to open a free business bank account, Axos may not be the best fit as they offer a minimum loan of $10 million.
If you're a new business owner looking to open a free business bank account, Axos offers a great opportunity to receive a welcome cash bonus of $200 when you sign up. But don't worry if you're not a new business, as you can still get $100 when you open an account with Axos.
Axos has a network of over 91,000 ATMs across the United States, and in case you use an out-of-network ATM, the bank offers fee reimbursement. Axos provides reimbursement for the first two wire transfers every month. The bank also integrates with QuickBooks to assist with bookkeeping.
>> Try Axos Business Bank Account Free >>
Looking for a fee-free business bank account with no deposit? Look no further than the Capital One 360 Checking Account. This top-rated account offers a mobile app with high ratings, physical bank locations, and an above-average APY.
In the 2019 U.S. National Banking Satisfaction Study by J.D. Power, this account ranked fourth overall, thanks to its strong satisfaction scores for mobile banking and checking accounts. The study evaluates customer experience across several factors, including deposit accounts and convenience.
If you're looking to open a free business bank account, Capital One 360 Checking Account is an excellent option. With no minimum deposit requirement, this account allows you to earn an Annual Percentage Yield (APY) of 0.10% on all balances, significantly higher than the national average of 0.04%.
Capital One provides Next Day Grace to its customers if they withdraw more money than what is available in their accounts. By opting into this service, the bank allows the overdraft transactions to go through, but the customer must ensure that the account balance is positive by the end of the next business day to avoid a $35 charge.
If the customer doesn't opt in, Capital One will either decline the transactions that exceed the account balance or move funds from a linked savings account, depending on the customer's choice. Any returned paper checks will attract a $9 fee, irrespective of whether there’s overdraft coverage.
If you like to do your banking face-to-face, Capital One has 450 physical locations, making it a better option than online-only checking accounts. Capital One has 41 Cafes where you can bank and work while enjoying a cup of coffee and receiving guidance from a certified financial coach. However, several Cafes have closed due to the COVID-19 outbreak, but Capital One is gradually reopening some of them.
If you have free checking accounts with no fees, you won't be charged extra fees when using your debit card outside the US. This is because there are no foreign transaction fees to worry about.
Why we chose it: Capital One has removed any restrictions on digital transfers, which means you can now continue managing your finances without any interruptions.
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Suppose you have an active bank business checking account that has been operating for at least two years. In that case, Capital One provides various lending options that can benefit your business.
The loan amounts and line of credit ranges are extensive, with a maximum cap of $5 million for each.
While Capital One doesn't provide any free small business bank account incentives for joining, its credit card options offer a range of rewards for each transaction. This makes it effortless for businesses to select a suitable card that meets their requirements.
Open a personal checking account with Capital One Basic Business Checking and enjoy unlimited digital fund transfers to any location in the world without restrictions. This account also protects against overdraft fees and offers free cash deposits of up to $5,000 every month.
>> Try Capital One Business Bank Account Free >>
American Express can be a great choice if you want to open a free business checking account. Renowned for its credit card services, American Express also provides business banking products that can benefit entrepreneurs. As such, opening a free small business bank account with American Express would be a valuable addition to your financial tools.
When you opt for American Express as your business banking partner and open the best free business checking account, you get more than just financial services customized to suit the specific requirements of businesses of all scales. You also enjoy unparalleled customer support and a variety of functionalities that cater to your organization's distinctive needs.
While American Express doesn't provide a typical bank business checking account, its assortment of business credit cards offers a variety of advantages and incentives, including cashback rewards, travel rewards, and flexible payment alternatives. These attributes can assist in managing cash flow efficiently and minimizing overall business costs.
Why we chose it: American Express provides an attractive interest rate and incentivizes shopping by depositing points that convert to dollars.
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American Express offers business loans and credit lines through Kabbage Funding to help needy companies. To qualify, your business must operate for at least one year and generate monthly revenue of $3,000, with a minimum FICO score of 640.
Connecting your American Express account to Kabbage can earn you $250. More details can be found in our Kabbage Funding review.
By signing up, new members can receive 30,000 reward points. However, to qualify for this offer, a minimum deposit of $5,000 is required in the account, which must be maintained for at least 60 days. During this period, there’s a need to make at least ten qualifying transactions.
By making purchases using your debit card, you can earn reward points, which can be exchanged for deposits directly into your bank account or used for other options such as gift cards and travel.
If you encounter any issues regarding reward points or other features provided by American Express, their customer service team is available 24/7.
>> Try American Express Business Bank Account Free >>
Looking for a free small business bank account? The U.S. Bank offers a one-of-a-kind solution with its Silver Business Checking account that comes with 125 complementary transactions and allows for up to $2,500 in free deposits each statement cycle.
This is ideal for small business owners who handle a moderate number of transactions and are looking to save on banking fees. It’s easy to open the best free business checking account with the U.S. Bank as they offer online and in-person options at their 2,000+ branches in 26 states.
New customers can benefit from a welcome bonus (terms and conditions apply) which makes this option even more appealing. For small business owners looking for a business bank account, the Silver Business Checking account is a great option.
Although there’s no monthly service fee, U.S. Bank will still charge fees for overdrafts, excess transactions, and cash deposits. Despite this, having access to a physical bank and enjoying the benefits of a free small business bank account may outweigh these fees for some entrepreneurs.
Why we chose it: U.S. Bank offers lending options catering to businesses of different scales, amplifying the perks of a dependable free small business bank account with no fees.
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U.S. Bank has many lending options available, making it one of the top choices for free small business bank accounts. Regardless of the size of your business, you can apply for loans ranging from $5,000 to millions of dollars, depending on the nature of your business.
Similarly, lines of credit are available with varying amounts based on your specific funding requirements.
When opening free business bank accounts, unfortunately, the U.S. Bank doesn't provide any incentives or bonuses for this service. However, they offer multiple credit card options with different welcome deals and opportunities to explore.
Looking for a free small business bank account? Look no further than U.S. Bank! With the ability to deposit up to $2,500 per statement cycle, businesses that handle a moderate amount of cash will find it an ideal choice.
Plus, if you prefer to pay by check, you can receive a 50% discount on your initial order. Beyond lending options, U.S. Bank provides several other valuable services that are certainly worth exploring.
>> Try US Bank Business Bank Account Free >>
Entrepreneurs who need a convenient and economical banking option can take advantage of the Oxygen mobile-only business account, an ideal choice for small business owners constantly on the go. This free small business bank account has zero monthly fees and offers unlimited fee-free transactions, making it an intelligent financial decision for any busy owner.
With this account, you can begin managing your finances immediately with no minimum deposit limits. You can access cash on the go without any fees through the Allpoint network.
Moreover, you can efficiently manage your cash flow by depositing cash through the Green Dot network, which charges a small fee of $4.95 per deposit.
Oxygen simplifies commencing a business through its third-party LLC formation services across the United States. It enables you to open free business checking accounts via its mobile banking app. This single-provider solution allows you to establish an LLC and easily create a business account. No matter where you're located, Oxygen assures uninterrupted operations for your business.
Why we chose it: Oxygen understands the preferences of modern entrepreneurs and provides innovative banking services, making it an ideal checking account option for sole proprietors.
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Oxygen is a FinTech company that operates on mobile platforms, distinct from a traditional bank. As a result of this distinction, Oxygen cannot provide any loan services.
When you receive cash back for purchases, it adds a pleasant feeling to the necessary expenses. For instance, buying gas, taking rideshares, or utilizing shipping services can result in a 5% cash back without any queries.
LLCs looking for free small business bank accounts and formation services can consider Oxygen, which also provides limited liability protection for freelancers. Freelancers can take advantage of Oxygen's mobile app to expedite the registration process.
>> Try Oxygen Business Bank Account Free >>
It’s crucial to create a thorough set of standards that considers various aspects of free checking accounts when determining the best free business checking accounts. The following is a comprehensive checklist of criteria for assessing the best free business checking accounts.
>> Best Online Business Bank Account - Novo >>
The term "no-fee checking" typically means a type of checking account that doesn't require monthly maintenance fee. Nonetheless, according to the Consumer Financial Protection Bureau, if an account is advertised as "free" or "no cost," it cannot impose monthly maintenance fees or other charges.
The bureau acknowledges that despite being advertised as the best business checking accounts, there may be account fees associated with it, such as:
Entrepreneurs can benefit from having an account specifically for their business as it offers a variety of advantages.
Sometimes, a bank may waive monthly maintenance charges or other fees if the account holder fulfills specific conditions. These conditions may vary and could include:
To initiate a no-fee checking account, there are some standard procedures that you must follow.
Discover the fundamental information regarding the best business checking account designed for new businesses.
When opening the best free business checking accounts, it's important to know that these accounts are specifically designed for conducting business transactions.
They are opened in the name of the organization and facilitate sending and receiving payments on behalf of the company. While some bank accounts may be suitable for small businesses, specialized business banking accounts also cater to LLCs and corporations.
When selecting free business bank accounts, you need to consider several factors. One of the primary considerations is to determine the waived fees and mandatory fees so that you can evaluate your banking costs.
Afterward, assess whether the account offers the necessary features required for your business, including unlimited free transactions, immediate transfers, cash deposits, and the ability to make payments using Bill Pay.
It's essential to confirm that your money is safeguarded by FDIC insurance and security measures. It's possible to optimize your account by adhering to FDIC banking guidelines, regardless of the type of free small business account you choose.
The FDIC protects banking customers in case of bank failure by insuring cash deposit limits up to $250,000 per depositor, per account ownership category, and per insured bank.
If an insured bank fails and cannot repay its customers' deposits, their money will still be safe. The NCUA offers similar protection for deposits in federally chartered and most state-chartered credit unions.
When embarking on your journey as an entrepreneur, one of the most important steps you can take to ensure the financial success of your business is to open a personal checking account. In 2024, we strongly suggest considering Novo for this purpose, as it offers a great combination of affordability and comprehensive features.
Novo comes highly recommended for savvy entrepreneurs searching for a free option for their banking needs. It provides an excellent balance between maximizing benefits and maintaining practicality. With a wide array of valuable perks included at no additional cost, navigating the fast-paced business world has never been easier.
Moneycontrol Journalists were not involved in the creation of the article.
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