Small business owners are constantly looking for opportunities to streamline their business operations. Choosing the right bank account can optimize most of your business finances.
Most banks charge a monthly fee for business checking accounts, but free business bank accounts also exist and are very valuable.
In this article, we will discuss the benefits of opening a free business bank account and review some of the best options available today.
Why you need a business bank account
As a small business owner, it is important to have a dedicated bank account for business transactions to keep them separate from your personal finances. Believe me, your accountant and her IRS will thank you.
But when it comes to banking, every company has different needs. For example, if your business handles large amounts of physical cash, it affects the type of bank account you open.
Fees are also an important consideration. If you don’t subscribe to the right service plan, you may end up spending more than you need on your banking transactions. The last thing you want is for your bank account to put pressure on your family budget.
Best commission-free business bank accounts
Clearly, a fee-free business bank account is ideal as long as it has all the features you need. To help you find the right account, we’ve created the following list of five banks and fintech companies that offer commission-free business checking accounts.
Novo
Novo offers a free business bank account with extra features built in. Among other things, Novo allows you to create, send and manage invoices through your checking account. Streamlining your billing process helps you work more efficiently.
Novo also makes accepting payments easy by offering several options. Connect with Stripe, Square, or PayPal to receive payments via Venmo, PayPal, Google Pay, Apple Pay, or credit card.
If you want to set aside some of your funds, you can do so using Novo Reserves. For example, you can divide your salary amount to avoid overspending in other areas. For more information, read our full Novo review.
blue vine
Bluevine does not charge monthly fees and does not require a minimum balance. This account includes unlimited transactions and free ATM access through the MoneyPass network.
This is also an interest-bearing account. Balances up to $250,000 earn him 2.0% APY at the time of this writing. However, there are pitfalls. Must spend $500/month on the bluevine Business Debit Mastercard or receive $2,500/month in customer payments.
Bluevine also offers the option of splitting your funds into sub-accounts. This is useful if you want to visualize a given fund. For example, you can store estimated tax payments in separate subaccounts.
For more information, read the full bluevine review here.
found
Found’s free business checking account is aimed at freelancers and individual entrepreneurs who are used to balancing a never-ending to-do list. You can benefit from many tools built directly into Found Business Checks.
You can automatically track your expenses through your account and Found provides a series of helpful visuals to help you understand business bookkeeping. You can automatically set aside money for taxes or to avoid overspending.
You can also send an unlimited number of invoices directly through Found. Also, the bank supports multiple payment methods to make payments easier. You can read the full Found review here.
relay
Relay allows small business owners to share monitoring of banking transactions with multiple team members.
If your business is growing, the ability to delegate some of your banking duties can be very useful. Account holders have the option to provide multiple team members with varying levels of access to their bank account.
Relay accounts allow unlimited transactions with no fees, but the downside is that there is no way to deposit cash. Read the full Relay review here.
nbkc bank
nbkc bank offers free business checking accounts without overdraft protection, online banking and domestic transfer fees.
Unfortunately, nbkc bank does not offer any streamlined integration with invoicing or bookkeeping tools. However, you can make free cash deposits at bank branches scattered throughout Kansas City. However, if you don’t live in the area, this perk may not be of much use. Read the full nbkc bank review here.
Compare business banking options
The following table breaks down some of the key features provided by the accounts described in this article.
employee debit card |
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Yes (at physical stores) |
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Choosing the right bank for your small business needs
The right business bank account makes a big difference for small businesses. Before considering your options, decide which factors are most important to your financial management.
Of course, choosing a commission-free account is often a top priority. But that’s not the only thing to keep in mind. For example, you can prioritize bank accounts that allow you to delegate some responsibilities to your team. Alternatively, you can select a bank account that automatically assigns tax liability to subaccounts.
Once you have decided what you want in your ideal bank account, finding the best bank account for your situation becomes easier.
final take
Finding the right business bank account may make your financial management tasks feel more streamlined. Take advantage of the perks that interest you when you transfer to a new bank account.
If you didn’t find an option for you on this list, explore the top business checking accounts today.