The best business bank accounts for small businesses in 2025: how to choose the right one

What factors should you consider when choosing a business bank account?

Before diving into financial institution recommendations, we’ll review the factors that make a business bank account valuable for your company. 

Below, you’ll find factors and considerations to consider when choosing a business bank account. 

Let's dive in.

Monthly fees and fee structures

Business accounts often come with monthly maintenance fees ranging from $0 to $50+. Many banks waive these fees if you maintain a minimum balance or meet certain transaction requirements.

Consider: When comparing options, look beyond the advertised "no fee" claims and understand what conditions must be met to avoid charges. The monthly service fee can significantly impact your bottom line, especially for new businesses with limited cash flow.

Transaction limits and associated costs

Most business accounts limit the number of free transactions (deposits, withdrawals, transfers) you can make monthly. Exceeding these limits typically triggers per-transaction fees that can add up quickly for transaction-heavy businesses.

Consider: For growing startups with increasing transaction volume, generous limits can save thousands annually. Do your research and read the fine print to understand the transaction limits and fees.

Minimum balance requirements

Banks commonly require minimum balances to open an account or avoid monthly fees. These requirements can range from $0 to $10,000+ depending on the account type and institution.

Consider: Many banks assess fees based on your daily balance or average monthly balance. So, examine your typical cash flow patterns. Then, choose the institution that best aligns with your typical cash flow to avoid unnecessary fees. 

Interest rates on deposits

While traditional business checking accounts rarely offer significant interest, many banks, particularly online banks with lower overhead costs, now offer business accounts with competitive annual percentage yields (APYs).

Consider: The difference between 0.01% and 2.00% APY can be substantial for businesses maintaining substantial cash reserves. Some banks offer tiered interest rates based on your account balance.

ATM access and cash handling

Some banks offer limited cash deposit options or charge higher cash handling fees.

Consider: If your business frequently deals with cash, evaluate the bank's ATM network, cash deposit limits, and associated fees. Finding a bank that offers free cash deposits can save significant money for retail businesses.

Digital banking experience and mobile apps

Having access to a solid online and mobile banking experience is essential.

Consider: Look for features like mobile check deposit, real-time notifications, intuitive dashboards, and easy-to-navigate interfaces. The quality of these digital tools can significantly impact your day-to-day financial management and save you time if it's a good platform.

Integration capabilities

Modern business banking should seamlessly connect with your accounting software, payment processors, and other financial tools.

Consider: What platforms do you utilize to run your business? Direct integrations with platforms like QuickBooks, Xero, Stripe, and PayPal can save countless hours on manual reconciliation and improve your bookkeeping efficiency.

Additional business services

Financial institutions often offer valuable extras like:

• Business credit cards with rewards or cashback programs
• Merchant services and payment processing
• Payroll services
• Business loans and lines of credit
• Retirement plans for you and your employees
• Scalable credit limit

Types of business bank accounts you should consider

When setting up your business banking, you'll likely need more than just a checking account. Here's a breakdown of the different account types and how they serve your business:

Business checking accounts

The foundation of your business banking and checking accounts handles your day-to-day transactions. They typically offer:

• Debit cards for business purchases
• Check writing capabilities
• ACH transfer services for payroll and vendor payments
• Online bill pay features
• Wire transfer services (both domestic and international)
• Merchant services for accepting customer payments

Most entrepreneurs should start with a checking account that balances fee structure with transaction needs. Free small business checking accounts exist, but they often come with limitations on transaction volume or require minimum balances.

Business savings accounts

These accounts help you set aside funds for taxes, emergencies, or future investments while earning interest. Key features include:

• Higher APY than checking accounts
• Limited monthly withdrawals (typically 6 per month under federal regulations)
• Options for automated transfers from checking accounts
• Potential for sweep services that automatically move excess funds between accounts
• FDIC insurance coverage up to $250,000 per depositor

Maintaining both checking and business savings accounts creates a more sophisticated cash management system, allowing you to earn interest on funds not immediately needed for operations.

Specialty accounts

As your business grows, you might consider additional specialized accounts:

• Money market accounts: Higher interest rates than standard savings accounts with some check-writing privileges
• Certificates of deposit (CDs): Fixed-term savings options with higher APYs but penalties for early withdrawal
• Treasury management accounts: For businesses with complex cash flow needs and higher balances
• Currency accounts: For businesses engaging in international commerce

What are the best bank accounts for small businesses in 2025?

Best for startups planning to scale: Rho

Best for: Growing businesses seeking sophisticated financial tools to save time and 24/7 support with real humans

Key features:

• Market competitive yields with Rho Treasury
• Advanced expense management and integrated AP/AR
• Commercial-grade treasury management
• Customizable corporate cards for card purchases
• Integrated lending options for qualified businesses
• FDIC insurance up to $250,000
• Scalable credit limit
• Seamless tech stack integrations
• 24/7 support with real humans
• Free ACH transfers and domestic wire transfers
• No overdraft fees
• No minimum opening deposit is required

Drawbacks: Rho operates entirely online and does not have any physical branch locations; businesses that prefer or require in-person banking services, such as face-to-face support or branch-based transactions, may find this limiting

Best for businesses seeking high APY: Bluevine Business Checking

Best for: Entrepreneurs maintaining larger cash reserves that want to earn a competitive interest and cashback rewards

Key features:

• 1.5% or up to 3.7% APY on balances with an upgraded plan
• No monthly fees or minimum balance requirements
• Unlimited transactions
• FDIC-insured up to $3 million per depositor
• Cashback on business card purchases at select merchants
• Manage cash flow with sub-accounts
• One free checkbook (with Standard plan)
• No overdraft fees
• No minimum opening deposit is required

Drawbacks: Limited cash deposit options; no physical branches

Best for tech-savvy entrepreneurs: Grasshopper

Best for: Tech-savvy entrepreneurs looking for a digital banking experience with strong tech integrations

Key features:

• Up to 2.25% APY (tiered based on account balance)
• No monthly maintenance fees
• Unlimited free transactions
• Free ATM access through MoneyPass network (37,000+ locations)
• Integrated invoicing and payment acceptance tools
• Built-in digital expense management
• FDIC insurance up to $250,000
• Dedicated business debit cards with spend controls
• Robust mobile app for managing card purchases and accounts
• $100 minimum opening deposit

Drawbacks: No physical branch locations; not suitable for businesses needing to make cash deposits

Best for a straightforward online banking experience: Novo

Best for: Freelancers, self-employed, and entrepreneurs seeking a simple yet powerful digital banking experience

Key features:

• $0 monthly fees and no minimum balances
• Powerful integrations with tools like Stripe, Shopify, and QuickBooks
• Discount marketplace with savings on business tools and services
• Built-in invoicing and budgeting tools
• No incoming wire fees
• Deposits are insured for up to $250,000
• Free ACH transfers to external accounts
• Refunds of ATM fees charged by other banks
• No minimum opening deposit

Drawbacks: Not suitable for businesses that handle frequent or large cash deposits; cash deposits are only available through third-party services. Limited lending options, though you do get access to working capital through Novo Funding in the form of merchant cash advances and invoice financing

Best for global, VC-backed tech startups: Silicon Valley Bank

Best for: Venture-backed tech startups and scale-ups, especially those with global aspirations or in specialized tech sectors

Key features:

• $0 monthly fee for early-stage startups (with qualifying VC backing)
• Tailored banking solutions for technology and innovation companies
• Dedicated relationship managers with tech industry expertise
• Specialized startup-focused lending options
• Currency management for international operations
• Multiple account types designed specifically for startups at different stages
• Member FDIC with standard deposit insurance
• Optimized for card purchases with expense tracking
• $25 minimum opening deposit

Drawbacks: Services are most valuable for VC-backed companies; less competitive for traditional small businesses; there are higher balance requirements for premium services

Best traditional bank: Chase Business Complete Banking

Best for: Businesses that handle cash regularly, value in-person banking relationships, and want access to branches nationwide

Key features:

• $15 monthly fee (waivable with a $2,000 minimum balance or other activities)
• Same-day deposits for Chase payment processing customers
• Access to 15,000+ ATMs and 4,700+ branches nationwide
• Robust mobile app with mobile check deposits
• Multiple options to waive monthly fees
• Business credit cards with cashback rewards for card purchases
• Member FDIC with standard deposit insurance coverage
• 20 free transactions per month

Drawbacks: Lower interest rates compared to online alternatives; transaction limits may not work for high-volume businesses. ACH and wire transfer fees can be substantial

Best for established small- to medium-sized businesses: Wells Fargo

Best for: Established small- to medium-sized businesses needing access to physical branches

Key features:

• $10 monthly fee (waivable with a $500 minimum balance or $1,000 average daily balance)
• 100 free transactions per fee period
• Extensive nationwide branch and ATM network (approximately 4,700 branches)
• Comprehensive suite of business services (payroll, merchant services, business credit cards)
• Strong lending options for various business needs
• Cash management solutions for complex businesses
• Business savings accounts
• Wells Fargo operates as both a bank and lender for various business needs

Drawbacks: Digital experience is less innovative than online-only competitors; additional fees can accumulate for specialized services

Best for businesses with a high volume of transactions nationwide: Bank of America

Best for: Small to medium businesses that have a high volume of transactions, need extensive branch access, and want integrated financial services across multiple states

Key features:

• $16 monthly fee (waivable with a $5,000 combined average monthly balance or qualified Preferred Rewards for Business enrollment)
• 200 free transactions per month with Business Advantage Fundamentals
• Access to 15,900+ ATMs and approximately 4,300 financial centers nationwide
• Cash Flow Monitor tool for tracking business finances
• Preferred Rewards for Business program with tiered benefits
• Integrated merchant services and payroll processing
• Zelle for Business for quick payments
• Multiple business credit card options with rewards for card purchases
• $100 minimum opening deposit

Drawbacks: Higher balance requirements to waive fees compared to some competitors; can be challenging for smaller businesses to qualify for premium features; inconsistent customer service reported across different locations

Best for Midwest/Western US regional presence seeking big-bank capabilities: US Bank

Best for: Growing businesses in the Midwest and Western US seeking personalized service with robust digital tools

Key features:

• No monthly fee (with Silver Business Checking) or $20 waivable monthly fee (with Gold Business Checking)
• 125 free transactions per month with Silver Business Checking
• 25 free cash deposits per month
• Strong regional branch presence with approximately 2,400 locations
• Payment Solutions Center for merchant services
• Industry-specific banking packages for healthcare, nonprofit, and other sectors
• Digital financial reporting tools for business performance tracking
• Digital expense management tools for tracking card purchases
• $100 minimum opening deposit

Drawbacks: Less nationwide coverage than some national competitors; higher balance requirements to avoid fees; transaction limits may not suit high-volume businesses

Common bank fees to watch out for

Managing your business finances effectively means understanding and minimizing unnecessary banking costs. Here are the most common fees that can impact your bottom line:

Monthly maintenance fees

These regular charges ($10-$50 monthly) can be waived by maintaining minimum balances or meeting other requirements. Calculate whether maintaining the required balance makes financial sense versus paying the fee.

Transaction fees

After exceeding free transaction limits, banks typically charge $0.30-$0.50 per additional transaction. High-volume businesses should prioritize accounts with generous transaction allowances or reasonable per-transaction costs.

Wire transfer fees

Domestic wire transfers typically cost $15-$35, while international transfers can range from $35-$50. Some online banks now offer free domestic wires, which can create substantial savings for businesses regularly transferring large sums.

ACH transfer fees

Though generally cheaper than wires ($0-$10), ACH transfer costs can accumulate for businesses making frequent transfers. Some banks offer free ACH transfers, which is particularly valuable for companies using direct deposit for payroll.

Overdraft fees

These punitive charges ($25-$40 per occurrence) can cascade if multiple transactions hit an overdrawn account. Look for banks offering overdraft protection, fee-free overdrafts, or those that simply decline transactions without charging fees.

Cash deposit fees

Some banks charge for cash deposits exceeding certain monthly limits (often after $5,000-$10,000). Retail businesses should prioritize accounts with generous free cash deposit allowances.

ATM fees

Out-of-network ATM usage typically incurs both a fee from your bank ($2-$3) and the ATM operator ($2-$5). Some business accounts refund these fees, creating significant savings for businesses operating in areas without convenient in-network ATMs.

Early account closure fees

Many banks charge $25-$50 if you close your account within 90-180 days of opening. Be certain about your choice before committing, or confirm whether your bank charges this fee.

How to separate personal and business finances

Maintaining separate personal and business finances is essential for tax compliance, legal protection, and accurate financial reporting. 

Here's how to establish proper separation:

1. Establish a proper business structure

Before opening accounts, form the appropriate legal entity (LLC, S-Corp, etc.) and obtain your Employer Identification Number (EIN) from the IRS. This establishes your business as a separate legal entity.

2. Open dedicated business accounts

Never use personal bank accounts for business transactions. Even sole proprietors should maintain separate small business checking accounts for business activities to simplify accounting and tax preparation.

3. Use business credit cards

Apply for business credit cards rather than using personal cards for business expenses. This builds business credit while creating a clear separation of expenses and tracking card purchases.

4. Pay yourself properly

Instead of taking money from the business account as needed, establish regular "payroll" for yourself through transfers from your business to your personal account.

5. Track business expenses meticulously

Use accounting software that integrates with your business bank account to automatically categorize and track expenses.

6. Consider separate savings strategies

While personal finances might focus on retirement and emergency funds, business savings strategies should prioritize tax obligations, capital expenditures, and growth opportunities.

7. Work with specialized professionals

Find accountants and financial advisors who specialize in small business finances rather than personal financial planning.

How to open a small business bank account

Opening a business bank account requires more documentation than personal accounts. Here's what you'll need:

Required documentation

• Business formation documents: Articles of incorporation, LLC formation papers, or partnership agreements
• Employer Identification Number (EIN): Your business's tax ID number (sole proprietors may be able to use their SSN)
• Business license: If required in your jurisdiction
• Personal identification: Government-issued ID for all owners/signatories
• DBA certificate: If you're operating under a name different from your legal business name
• Initial deposit: Amount varies by institution, with minimum opening deposit requirements ranging from $0-$100

The application process

1. Research and select the best institution based on your specific business needs
2. Gather all required documentation before beginning the application
3. Apply online or in person, depending on the institution and your preference
4. Complete account opening paperwork and establish account features
5. Fund your new account with the initial deposit meeting minimum opening deposit requirements
6. Set up online banking access and additional services
7. Order business checks and debit cards if needed

Most traditional banks require in-person visits to complete business account opening, while online banks typically allow the entire process to be completed digitally. Opening timeframes range from same-day approval with online providers to 1-2 weeks with traditional institutions.

How do business bank accounts work for small companies?

Business bank accounts are very similar to personal accounts, but business accounts offer additional features specifically designed for commercial activities.

The account structure of a business bank account typically includes a primary checking account for day-to-day operations, optional savings or money market accounts for reserves, merchant services for processing customer payments, access to lending products like lines of credit, and cards for business expenses and employee spending.

Maintaining separate business accounts is not just good practice for legal and tax reasons. It's essential to establish your business as a separate legal entity, simplify tax preparation and documentation, limit personal liability, and build business credit.

In addition, it can help you present a professional image to clients and vendors.

Now, unlike personal accounts, business accounts can have multiple authorized users with various permission levels. This allows owners to grant employees limited access to funds, track departmental spending, set spending limits for card purchases, and monitor all financial activity from a central dashboard.

In the beginning of the startup lifecycle, the general recommendation is to focus on low fees and good services. In the growth phase, seek higher transaction limits and integration capabilities. In the established phase, look for cash management tools and more sophisticated lending options.

What are the pros and cons of business bank accounts?

Advantages

Creating boundaries 

Having separate business accounts creates clear boundaries between personal and business finances. It can make accounting and tax preparation significantly easier.

Establishing credit 

A business bank account is often the first step toward establishing business credit, which will be crucial for securing financing as you grow.

Commercial features

Small business checking accounts typically offer features tailored to commercial needs, such as higher transaction limits, merchant services, and multi-user access.

Building professional credibility

Paying vendors and accepting customer payments through a business account enhances your professional image and builds trust with stakeholders.

Drawbacks

Needing documentation

Opening a business account typically requires additional documentation such as business formation papers, EIN, and sometimes business licenses.

Meeting minimum balances

Many business accounts require maintaining minimum balances, which may be challenging for early-stage companies with variable cash flow.

How do online banks compare to traditional banks for small businesses?

Online banks

Online banks have revolutionized business banking with their low-cost, high-tech approach. These digital-first institutions typically offer significantly lower fees (often waiving monthly maintenance charges altogether) while providing much higher interest rates on deposits, a major advantage for businesses with substantial cash reserves.

Their digital interfaces tend to be more intuitive and user-friendly, designed from the ground up for modern businesses rather than being adaptations of legacy systems. Integration with contemporary business tools like accounting software, payment processors, and e-commerce platforms is usually seamless, saving hours of manual reconciliation work.

Transaction limits are generally more generous, and you'll have 24/7 access to most banking features through well-designed mobile apps and online dashboards.

However, online banks do come with trade-offs.

The lack of physical branches means in-person support isn't an option when complex issues arise. Some online banks, however, offer 24/7 support over the phone.

Additionally, many online banks offer a more limited range of financial products, particularly when it comes to specialized lending options that might benefit growing businesses.

Traditional banks

Traditional banks are typically attractive to entrepreneurs who deal with cash regularly or value relationship banking. At traditional banks with in-person branch locations, cash handling is typically straightforward and convenient, and deposits are available same-day.

Urgent issues can often be resolved in-branch rather than through online or over-the-phone support systems.

These institutions typically offer more established and diverse lending programs (CDs, MMAs, etc.).

Many traditional banks function as comprehensive financial hubs, offering everything from business insurance to retirement plans under one roof. Their fraud resolution processes also tend to be more robust, with dedicated departments that can quickly address security concerns.

The downside of traditional banking comes primarily in the form of higher costs and less technological agility.

Fee structures are typically more expensive, with more triggers that can result in unexpected charges. 

Another downside is that interest rates on deposits are notoriously low, often fractions of what online competitors offer. Also, transaction limits are often strict, potentially causing friction for high-volume businesses.

Also, while digital interfaces are improving, they frequently lag behind online-only options in terms of user experience and functionality.

Lastly, for in-person support, the bank's business hours limit when you can resolve certain issues.

Bank offers and promotions: Getting value when opening an account

Many financial institutions offer special promotions to attract new business customers. These offers can provide significant value if they’re aligned with your banking needs:

Common bank offers in 2025

• Cash bonuses: Many banks offer $300-$1,000 for opening new accounts and meeting certain requirements
• Fee waivers: Extended periods (3-12 months) without monthly service fees
• Free transactions: Increased transaction limits for initial periods
• Discounted services: Reduced rates on merchant services, payroll processing, or wire transfers
• Software integration perks: Free subscriptions to accounting or financial management tools
• Business tool discounts: Special offers for business software through bank partnerships

How to evaluate promotional offers

1. Calculate the real value: A $500 bonus may seem attractive, but not if you'll pay $300 in fees during the qualification period or if it’ll incentivize you to spend more than you would have otherwise
2. Understand requirements: Most offers require maintaining minimum balances, completing specific transaction volumes, or using particular services
3. Consider the long-term fit: Choose a bank that meets your ongoing needs, not just one offering an enticing short-term promotion; consider your growth as well and whether the bank’s features will fit your scaling business in the future
4. Watch for clawback provisions: Some offers require maintaining the account for 6-12 months to avoid bonus recapture

Be on the lookout. The most valuable promotions align with banking services you already need rather than incentivizing behavior that doesn't match your business operations.

Conclusion: Finding the best bank account for your business needs

Choosing the right business bank account is not a one-size-fits-all decision. The best choice depends on your business model, growth trajectory, transaction volume, cash flow patterns, and technology stack.

Retail businesses need features that are different from those of service-based companies or e-commerce operations. A fast-scaling startup has different needs than a stable small business.

High-transaction businesses should prioritize unlimited transactions or high free transaction thresholds. 

Also, evaluate how seamlessly the bank integrates with your existing business tools.

In terms of fees, consider how your typical cash reserves align with minimum balance requirements. 

Take the time to thoroughly research your options, considering both immediate needs and long-term growth plans.

Make sure you understand how separating your personal finances from business accounts will benefit your operation both legally and practically. The right business banking relationship should provide not just a place to store money but tools that enhance your financial management, support your growth, and ultimately contribute to your business success.

Whatever option you choose, regularly reassess as your business grows. The right banking partner should scale with your success and offer value that exceeds its cost.

Explore Rho's business banking solutions

If you're looking to get up and running in minutes with enterprise-grade product offerings that grow with you, consider Rho. Rho has an all-in-one solution with accounting integrations that save finance teams time and money.

And, with quick self-serve, you probably won't need to talk to someone. But for the moments you do, Rho offers 24/7 award-winning human support that you can connect with in seconds. Apply for Rho today!