Do you want to choose the best bank for your business? The Really Useful Information Company (TRUiC) analyzed the best banks for small businesses in 2021 and can help you determine whether a national, online, toll-free or physical bank is best for your LLC or sole proprietorship.
There are four factors to consider when choosing the ideal business bank account for your small business:
- What kind of business do you run?
- Banking criteria according to the needs of your business
- Other advantages
TRUiC researched and identified the best banks for small businesses in 2021. It was by no means an easy task given all the competitive characteristics. You can read more about their top pick here and why they see it as a great option.
Here is the list of evaluated banks:
Federal Navy Credit Union
For businesses of any size, Navy Federal offers a variety of business bank accounts, including three checking accounts, two business savings accounts, and business certificates of deposit. The only downside to setting up a bank account with Navy Federal is that you will need a personal checking account, which you can only get if you are in the military. Credit unions, on the other hand, generally offer higher interest rates and lower costs than banks, which can therefore be considered advantageous. Navy Federal lowest level business current account pays 0.05% interest. The vast majority of banks do not pay interest on their lower level checking accounts. Additional business products, such as loans and credit cards, are available from Navy Federal. They have a section on their website dedicated to helping businesses depending on where they are in their growth cycle.
BlueVine is a good online bank to go to. They are ideal for organizations that don’t do a lot of cash transactions but will eventually want a commercial lender. Blue Vine started out as a small business loan before moving into business banking. They excel at both. Opening a business account with BlueVine can be done on their website, as well as sending them your business start-up documents, tax ID / EIN, and other essential information. BlueVine Payments is a unique bill payment service offered by BlueVine. You can pay vendors or anyone with a credit card, and BlueVine will pay them on your behalf by writing them a check or issuing an ACH payment. This service has a low charge of only 2.9%.
Chase is the bank to check if you own a retail or restaurant business that generates large and frequent cash deposits. They are ideal for organizations that manage a lot of money and have many physical locations. Chase has approximately 4,700 physical locations across the United States. Chase also offers a variety of competitive account alternatives suitable for different sizes of businesses. There are different types of business chequing accounts offered by Chase. In addition, they offer a few business savings accounts. Each account they provide is designed to help various types of organizations in various situations.
If your business needs financing, or plans to need it in the future, you should look for a bank that specializes in small business loans, especially Small Business Administration (SBA) 7 (a) loans. TRUiC did some research and found that Wells Fargo, the largest bank, is one of the best banks to work with if you are looking for an SBA 7 (a) loan. Wells Fargo offers a service called Simple Business Checking for Small Businesses. Additional Wells Fargo business offerings include SBA 7 (a) loans and credit cards. You can also use Card Studio Design, a free tool that lets you customize your business debit card with your logo and tagline. You can also apply for a merchant account and payroll services once your business is ready.
If you are a new business with few monthly transactions, a no-fee bank account may be the best option. There are plenty of banks that offer free accounts, but one in particular stands out: US Bank. The bank’s scale sets US Bank apart from most other no-charge bank accounts. US Bank is the fifth-largest bank in the United States, making it a great choice for businesses in the Midwest and West regions. US Bank operates 2,895 locations in 26 states.
A business bank account is required for various reasons. One of the most important reasons to open a corporate bank account is to keep your limited liability protections and avoid breaking the corporate veil. Additionally, you will need a business bank account to establish business credit as well as a mechanism to collect and preserve your income. For online business banking, TRUiC prefers BlueVine. If you keep a balance of $ 1000 in your online business checking account, you will receive an interest rate of 1%.