Pros
One of the largest and most well-known banks, brick and mortar locations are everywhere.Business credit cards offer plenty of perks.Wide variety of checking accounts and services for just about any type of business.
Cons
A checking account comes with fees unless you keep a daily balance, like a $35,000 daily balance for the Chase Performance Business Checking account.JPMorgan Chase & Co. is the largest bank in America, which might feel too impersonal to people looking for a more local banking experience.Business offerings are for a wide variety of business types, so you have to know what you are looking for in an account and services.
Wells Fargo also has a secured credit card with no annual fee. There is also a variety of checking options to choose from to fit your business needs. This bank also has merchant services like payment processing options. You can even choose from payroll and more services like retirement investing, making it one of the best banks for small businesses. Pros:
Offers many options and services specifically for small businesses.Options allow you to avoid pesky annual fees.This is another larger bank with many different ATM and service locations.
Cons:
This is the third-largest bank in the nation, making it another poor option for anyone looking for a small, local experience.Most perks on the business credit cards require a high degree of business spending, like $1,000 per month, with might not be a good option for businesses with very low overhead.
Two credit card options are heavy on mile rewards, making them good if you travel for business frequently. Capital One also features merchant services to help you accept payments, monitor fraud and handle customer data insights. Pros
Wide variety of credit card offerings.Additional services like merchant services.
Cons
Some places might receive the message that Capital One is still working on bringing online business banking to their area.It’s hard to find information about business checking and savings accounts online.This service is mainly known for its credit cards, so you may have to check elsewhere for business loans.
Pros
Axos is very mobile and online banking heavy.There are a wide variety of options you don’t see everywhere, like business CDARS and money market accounts.
Cons
If you like being able to go up the street to the local branch, this isn’t that sort of bank.Having so many options for your business means you really have to do your research and know what products make sense for your type of business.
Pros:
Good low-to-no fee service.One of the few services that caters to freelancers.Perfect for anyone who uses online banking exclusively, as well as digital bookkeeping and project management.
Cons:
Not a good option for anyone who likes physical bank locations.Novo’s BBB listing has only been active since May of 2020, and the company is not BBB accredited.It is just a banking app, so you would need to look elsewhere for lending options.
When searching for the best banks for small businesses, we considered:
Credit cards that meet small business needs Amount of savings and checking options specifically for small businessesThe types of fees a small business owner would have to payWhich loans and other lending options the bank offered to small businesses Whether the bank specifically listed small business solutions on its website What types of small businesses the service supported, like whether they were for more traditional small businesses or freelancers/sole proprietors
Well-established banks with a wide variety of product offerings for small businesses tended to make the list, with smaller additions for banks that have a comprehensive online experience or catered to specific types of small business owners that others didn’t. Physical locations: Chase and Wells Fargo are the best choices if you want the kind of banking experience where you can find a physical location right up the road in most cases. Chase and Wells Fargo both have thousands of branch locations across the U.S. Credit card rewards: Capital One is known for its flexible credit card offerings. Chase and Wells Fargo also have good rewards on their credit cards. Comprehensive online banking experience: If online banking is for you, choose Axos or Novo, both of which focus on technology-centered banking. Low-to-no fees: Novo stands out as a banking app that advertises low-to-no fees and no hidden fees. Wide variety of checking and savings account options: Chase, Wells Fargo and Axos are notable for their small business CDs. Chase has a truly wide variety of checking and savings options, however. Loan needs: Wells Fargo stands at the top of the list for a wide variety of loan options, including SBA loans, like the SBA 7(a) loan. However, if you have a high amount of transactions and a high monthly balance, those accounts would make sense. As another example, if you have a retail part of your business, also look into a bank that offers merchant services. You will especially look into small business banking solutions if you need loan options, like an SBA loan. Physical banking can be a good option if you like to have a live person to help you review your options in person or feel more secure using physical banking. It can also help you keep track of money that you might use later to invest in certain parts of your business. A massive perk is that small business savings accounts allow you to build interest in your saved money. As such, the cashback and rewards might exceed the annual fee. However, if you have low expenses, then you might want to look into a service that advertises low-to-no fees and no hidden fees. Below are some of the additional best banks for small businesses you might consider:
NBKC Bank: low-fee online banking. LendingClub: online tools to help find a business loan.BlueVine: no-fee online checking.
