As a small business owner, you want a bank account that best suits the needs of your business. Must-have features include 24/7 access, free banking, and the ability to send and receive payments online
The good news is that many online banks offer accounts designed specifically for small businesses.
In this article, we'll show you how to choose an online bank account for your small business and share some of the best online banking options available today.
The Importance of Online Banking for Businesses
Online banking has made the lives of small business owners easier. Here’s a look at some of the most important features of online banking for businesses:
24/7 Access
Instead of having to do your banking between 9 and 5, online banks give you the ability to manage your banking when it's convenient for you.
Ease of Transactions
Many online banks make it easy for customers to send you payments on time. As a small business owner, it’s easy to appreciate how easy access to different payment methods can streamline your business operations.
Cost-Effectiveness
Online banks have lower overhead than traditional banks, which need to manage large branch networks and high labor costs. These savings are passed on to online bank customers in the form of lower account fees and more attractive interest rates on savings.
Criteria for Selecting the Best Online Banks for Small Business
Small business owners have unique banking needs. As you seek out the perfect bank account for your situation, consider the following factors:
- Customer service: It’s natural to run into questions when managing your business bank accounts. Easy access to customer service can help you resolve questions quickly.
- Fees: Extra fees eat into your business’ profits. Always look for an account that provides the services you need at a minimal cost, or even free.
- Perks: Many online banks offer additional features, like higher than average interest rates or cash back rewards. The right perks can point you toward the best bank account for your needs.
- Accounting software integration: Some online banks offer accounting software integrations that can streamline your bookkeeping processes. If you already use a particular accounting software, look for bank accounts that offer an integration.
- Account types: Many businesses need multiple types of bank accounts, such as a checking account, saving account, business credit card, etc. Make sure the bank you choose has all of the products you need.
Top-Ranked Online Banks for Businesses
If you are looking for the best online banks for small businesses, you are in the right place. Here’s a closer look at the top options:
Novo
Standout feature: Software integrations make your life easier.
Pros
- No monthly fees
- Third-party integrations
Cons
- No interest-bearing features
- No loan opportunities
Novo is an online banking platform designed with small business owners in mind. First, the platform’s checking account doesn’t come with any monthly fees.
But the stand-out feature is the suite of software integrations that can make any small business owner’s life easier. A few popular tools that you can integrate include Stripe, Shopify, Xero, and Quickbooks. Additionally, the platform makes it easy to get paid via Apple Pay, Google Pay, PayPal, Venmo, and credit card.
Another perk is that you’ll have the opportunity to send invoices directly through the platform, which makes it easier to stay on top of incoming payments.
As an important note, Novo itself isn’t a bank. The banking services available on the platform are provided by Middlesex Federal Savings. Learn more about Novo in our full review.
⚠︎ This Is A Banking Service Provider, Not A Bank.
Novo is a financial technology company, not a bank. While it uses partner banks to provide banking services, your FDIC-insurance protection may be limited. Read this article from the FDIC to understand the risks of using a non-bank company.
Lili
Standout feature: Earn interest on your savings and enjoy tax planning tools.
Pros
- Free plan option
- Tax planning features
Cons
- Most features require a monthly fee
- Mobile check deposit limits
Lili is an online platform designed with freelancers and solo entrepreneurs in mind. Most of the features come with a monthly fee attached, with plans ranging from $0 to $55 per month.
As a paid user, you’ll have access to an interest-bearing account, which offers 4.15% APY on your savings. Plus, Lili makes managing your books easier. Through their tax feature, you can automatically save for taxes, produce expense reports, and complete your Schedule C
Lili also offers a way to build an emergency fund for your business, with the help of an Emergency Bucket. Lili will automatically transfer funds into this account, giving you peace of mind as it grows.
Learn more about Lili in our full review.
⚠︎ This Is A Banking Service Provider, Not A Bank.
Lili is a financial technology company, not a bank. While it uses partner banks to provide banking services, your FDIC-insurance protection may be limited. Read this article from the FDIC to understand the risks of using a non-bank company.
Bluevine
Standout feature: Earn interest on your savings with this fee-free account.
Pros
- No monthly fee
- Earn interest on your savings
Cons
- Fee to deposit cash
Bluevine offers an attractive, no-fee business checking account to small business owners looking for an online banking platform. Some Bluevine customers can also enjoy an interest-bearing feature, with 2.00% APY on balances up to $250,000.
To qualify for the interest, you must receive at least $2,500 in customer payments per month or spend at least $500 per month with the BlueVine Business Debit Mastercard.
For business owners who need to deposit cash, this is an option at GreenDot locations for a $4.95 fee. Learn more about Bluevine in our full review.
⚠︎ This Is A Banking Service Provider, Not A Bank.
Bluevine is a financial technology company, not a bank. While it uses partner banks to provide banking services, your FDIC-insurance protection may be limited. Read this article from the FDIC to understand the risks of using a non-bank company.
How to Set Up an Online Business Bank Account
If you are ready to set up an online business bank account, here are the basic steps you’ll need to take.
- Gather your documents: Banks often require some legal paperwork to open your account. Be prepared to provide your business formation articles, an EIN, a business address, and an email.
- Submit the application: With all of your documents ready, you should be able to breeze through the application process.
- Wait for approval: The speed of approval varies based on the bank. It might take a few minutes or a few weeks to receive your account approval.
Final Thoughts
The right online banking platform can make all the difference to your business needs. As you explore your options, look for the features that will make managing your small business finances easier.
For even more options, check out these top business checking accounts.
Sarah Sharkey is a personal finance writer covering banking, insurance, credit cards, mortgages and student loans. She has written for numerous finance publications, including MagnifyMoney, Business Insider and ChooseFI. Her blog, Adventurous Adulting, helps young adults get a handle on their finances.
Editor: Colin Graves Reviewed by: Chris Muller
