The best online business banks should provide you with outstanding business checking options while also supporting your company with other products and services. While some of these providers have limited product offerings, others offer the same services you would receive from a traditional brick-and-mortar bank.
These providers are backed directly by the Federal Deposit Insurance Corp. (FDIC) or have an FDIC-insured backing bank. This gives you the confidence that your company’s finances will be insured to at least $250,000 per depositor, per bank.
Here are the 10 best online business banks for small businesses, with links directly to the providers:
- Bluevine Provider is a financial technology (fintech) platform backed by and FDIC-insured through a supporting bank partnership with Coastal Community Bank. : Best overall for interest-earning checking and line of credit
- Mercury Provider is a fintech platform backed by and FDIC-insured through supporting bank partnerships with Choice Financial Group and Evolve Bank & Trust : Best for tech companies, startups, and businesses that need additional FDIC insurance
- Novo Provider is a fintech platform backed by and FDIC-insured through a supporting bank partnership with Middlesex Federal Savings. : Best digital-only bank for rapid access to funds and faster payments
- Relay Provider is a fintech platform backed by and FDIC-insured through supporting bank partnerships with Evolve Bank & Trust and Thread Bank. : Best for businesses that need multiple accounts and debit cards
- Found Provider is a fintech platform backed by and FDIC-insured through a supporting bank partnership with Piermont Bank. : Best digital-only provider for self-employed professionals
- Grasshopper Member FDIC. : Best digital-only bank for integrated free payment software
- Lili Provider is a fintech platform backed by and FDIC-insured through a supporting bank partnership with Choice Financial Group, Inc. : Best for digital tax preparation assistance
- Live Oak Bank Member FDIC. : Best high-yield savings account
- NBKC Bank Member FDIC. : Best full-service business online bank
- Oxygen Provider is a fintech platform backed by and FDIC-insured through a supporting bank partnership with The Bancorp Bank. : Best digital-only provider for cash back on debit card purchases
Open an account with Grasshopper and earn up to 2.25% APY and 1% Cash Back. |
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Best Online Business Banks Basic Checking Accounts At a Glance
Monthly Fee | Transaction Fee | APY | Cash Deposit Fee | ||
|---|---|---|---|---|---|
 | Standard Business Checking | None | None | 2% on qualifying balances $250,000 or less | $4.95 (Green Dot locations) or $1 plus 0.5% of deposit (Allpoint+ ATM) |
 | Business Checking | None | None | N/A | Cash deposits not accepted |
 | Business Checking | None | None | N/A | None; cash is deposited through money orders |
 | Relay Standard | None | None | N/A | Accepted at Allpoint ATMs |
 | Business Checking | None | None | N/A | Available at 79,000-plus retail locations |
 | Innovator Business Checking | None | None | Up to 2.25% | Cash deposits not accepted |
 | Business Checking Basic | None | None | None | $4.95 per deposit (Green Dot locations) |
 | Business Savings | None | None | 4.0% | Cash deposits not accepted |
 | Business Checking | None | None | N/A | Free at NBKC and MoneyPass ATMs |
 | Business Checking | None | None | N/A | $4.95 per deposit (Green Dot locations); also through Plaid |
Bluevine: Best Overall for Interest-earning Checking & Business Line of Credit
What We Like
- Three checking options with competitive interest
- Integrates with QuickBooks
- Unlimited 1.5% cash back business Mastercard
Drawbacks
- No savings, money market, and certificate of deposit (CD) accounts
- No physical branch locations
- Fee for depositing cash
Features
- No monthly maintenance fee
- No minimum balance requirement
- Reduced standard payment fees for Bluevine Plus and Bluevine Premier checking
- Free debit card (with up to 4 free additional debit cards for authorized users) and two free checkbook orders per year
- Integrates with QuickBooks and Xero
- Connects with business payment solutions, including Wise, Venmo, and Expensify
- Has live customer support from dedicated professionals
- Offers line of credit & credit card product
- Automatic transfers with sub-accounts
 | |
|---|---|
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | Unlimited |
ACH Fees | None |
Monthly Fees | None |
ATM Withdrawal Fee | None for MoneyPass |
Domestic Wire Transfer Fees | $15 for outgoing, incoming are free |
International Wire Transfer Fees | $15 for outgoing, incoming are free |
ATM Fees | None at MoneyPass locations nationally; $2.50 plus operator fees for nonnetwork ATM use |
Cash Deposited |
|
APY | 2.0% on balances of up to $250,000, once qualifications are met |
Bluevine is a business fintech platform backed by FDIC-insured Coastal Community Bank. | |
When To Choose Bluevine
- You want to earn interest on your online business bank accounts: With Bluevine’s Standard business checking account, you can earn 2% APY on qualifying balances of $250,000 or less as long as you either spend $500 a month with the debit card or receive $2,500 in customer payments in a month. While Grasshopper’s top interest rate is now 2.25%, Bluevine’s higher rate at lower balances gives it a slight edge. That’s why Bluevine is one of the best small business checking accounts available.
- You need either a business line of credit or a credit card: Bluevine has the best business line of credit on the market. Thanks to its excellent line of credit, it is also one of the leading banks for small business loans. In addition, the company is adding the Bluevine Business Cashback Mastercard to its product offerings, and new customers can choose to be notified when they are eligible. It earns 1.5% unlimited cash back on every business purchase.
- You want fee-free checking with great perks: Bluevine’s Standard Business Checking has great integrations and no monthly fees, transaction fees, minimum opening deposit requirements, and minimum balance requirements. Bluevine also provides two free checkbook orders per year. You can get extended FDIC insurance of up to $3 million, and the provider now offers automatic transfers between your subaccounts and main account.
When To Choose an Alternative
- You make regular cash deposits: Bluevine now gives you two options for making cash deposits—but there are fees with both. You can deposit cash at either one of over 90,000 Green Dot retail locations for $4.95 per transaction or one of more than 1,500 Allpoint+ ATMs for $1 per deposit plus 0.5% of the deposit amount. You may want to consider a traditional bank like Chase instead if you handle cash regularly. Check out our Chase Business Complete Banking review for more information.
Mercury: Best for Tech Companies, Startups & Businesses That Need Additional FDIC Insurance
What We Like
- No monthly maintenance fees
- No wire transfer fees
- Treasury product offers outstanding yield on balances over $500,000
Drawbacks
- Accounts unavailable to sole proprietorships and trusts
- No APY for checking accounts
- Limited lending options and no cash deposits
Features
- Earn interest with Mercury Treasury product if you have more than $500,000 in Mercury accounts and request Treasury
- Set customer user permissions for your team members
- Create auto-transfer rules for your accounts
- Integrate accounts with QuickBooks and Xero accounting software
- Virtual debit cards available right away, with physical debit cards arriving in the mail in a few days
- Physical checkbooks unavailable
- Business payment integrations with Shopify, Stripe, Zapier, Amazon, and PayPal
- Email customer service available
- Savings account provided when you open checking account
- Other products include Mercury Treasury, capital and venture debt, and credit card
| |
|---|---|
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | Unlimited |
Monthly Fees | None |
Domestic Wire Transfer Fees | None |
International Wire Transfer Fees | None as long as it is sent through Mercury’s structure |
ATM Fees | No charge for out-of-network ATMs, although operator fees apply; free access to Allpoint ATM network (55,000 locations worldwide) |
Cash Deposited | Cash deposits not accepted |
APY | N/A |
Mercury is a business fintech platform backed by FDIC-insured Choice Financial Group and Evolve Bank & Trust. | |
When To Choose Mercury
- Startups and tech companies and startups with larger balances: Tech companies and startups with larger balances will like Mercury’s Treasury product, which allows you to earn interest on balances greater than $500,000. In addition, Mercury has top-notch software integrations, ideal for both tech companies and startups, and its perks page allows you to advertise deals for your business on the Mercury website
- Businesses looking for additional FDIC Insurance: Like Bluevine, Mercury uses partner banks and a sweep network to offer extended FDIC Insurance. This program, called Mercury Vault, extends coverage up to $5 million.
- Businesses that want an exclusive cash back bonus for a new account: An exclusive to Fit Small Business readers, Mercury offers a cash back bonus by signing up for a new account using one of our affiliate links. You can get a $300 cash back bonus if you spend $2,000 on your debit or credit card within the first 90 days of account opening.
When To Choose an Alternative
- You are a sole proprietor or a trust: Online businesses organized as a sole proprietor or trust won’t be eligible for an account with Mercury. Sole prop businesses can open accounts with Bluevine, Relay, or Found. Meanwhile, businesses organized as a trust may want to consult a traditional bank like Chase for a business account. For details, read our Chase Business Complete Banking review.
Note: Deposits in Mercury checking and savings accounts are held by their partner banks, Choice Financial Group and Evolve Bank & Trust, Members FDIC. Through sweep networks, these funds become eligible for up to $5M in FDIC Insurance. Visit Mercury’s website for more information.
Novo: Best Digital-only Bank for Rapid Access to Funds & Faster Payments
What We Like
- Monthly refunds up to $7 in ATM fees
- No maintenance fees
- Novo Boost and Express ACH allow faster access to your funds
Drawbacks
- Unable to deposit cash directly
- Lack of savings accounts
- Noninterest drawing account
Features
- Integrates with other business tools, such as QuickBooks, Slack, Xero, Stripe, Square, PayPal, Wise, and Shopify
- Set aside funds for taxes and other large business expenses with Novo Reserves
- Deposit checks directly through the mobile app
- Online banking includes unlimited invoicing and bill pay
- Novo Boost in coordination with Stripe allows you to access funds faster
- Express ACH lets you accept or receive same-day ACH payments
- Quick financing option, merchant cash advance up to $75,000
- Virtual debit card available immediately, one free physical debit card per user
- Paper checks can be sent straight from the app
- Live customer support from dedicated professionals
 | |
|---|---|
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | Unlimited |
ACH Fees | None |
Monthly Fees | None |
Domestic Wire Transfer Fees | None to receive; cannot send wires domestically but can send fee-free ACH transfers |
International Wire Transfer Fees | Novo partners with Wise to send international wires for a “low” fee |
ATM Fees | Up to $7 refunded at the end of the month |
Cash Deposited | None; money orders can be purchased and deposited through the app |
APY | N/A |
Novo is a business fintech platform backed by FDIC-insured Middlesex Federal Savings. | |
When To Choose Novo
- You use Stripe, Square, or PayPal and want faster access to your funds: Novo Boost allows you to accept payments from popular online payment processors and receive payments faster than other fintechs on this list. You can connect Stripe, Square, or PayPal and get paid via card, Apple Pay, Google Pay, PayPal, or Venmo.
- You need to send or receive same-day ACH payments: Novo’s Express ACH enables you to accept or send same-day ACH payments. The combination of Express ACH and Novo Boost is why Novo is one of the best banks for small businesses.
- You want a great online banking product: Novo’s business checking has no monthly fees or transaction limits. One of its biggest perks is its digital integrations, with unlimited free invoicing and excellent accounting and payment software integrations. In addition, Novo allows you to apply for an account even if you don’t have an employee identification number (EIN) or limited liability company (LLC). Finally, Novo refunds up to $7 in ATM fees at the end of the month.
When To Choose an Alternative
- You want to earn interest: While Novo has an excellent business checking product, it doesn’t offer any interest-bearing accounts. You should consider Bluevine or Grasshopper for interest-bearing checking or Live Oak Bank or Relay for interest-bearing savings.
Relay: Best for Businesses That Need Multiple Accounts & Debit Cards
What We Like
- No minimum balance or opening deposit required
- Wire transfers are very inexpensive and are free with Relay Pro
- No ATM fees charged by Relay, although third-party fees may apply out of network
Drawbacks
- No physical locations
- No interest-bearing checking
- No lending products
Features
- Fee-free online banking and money management platform
- Open up to 20 individual business checking accounts
- Issue up to 50 Visa debit cards
- Send and receive ACH transfers, checks, and wires
- Collect payments from PayPal, Stripe, Square, and more
- Relay Pro account available, which offers same-day ACH delivery, free wire transfers, and accounts payable support
- Customer service via email, mail, and web contact form, and the app
- Checks can be sent on users’ behalf for free; third-party checks unavailable
- Accounting software integrations with QuickBooks, Xero, and Plaid
- No lending product
| |
|---|---|
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | Unlimited |
Monthly Fees | None |
Domestic Wire Transfer Fees | Free for incoming; $5 for outgoing |
International Wire Transfer Fees | Free for incoming, $10 for outgoing |
ATM Fees | None at Allpoint ATMs; Relay doesn’t charge out-of-network ATM fees, although third-party fees will apply |
Cash Deposited | Accepted at Allpoint ATMs |
APY | N/A |
Relay is a business fintech platform backed by FDIC-insured Evolve Bank & Trust and Thread Bank. | |
When To Choose Relay
- You need the ability to use subaccounts to manage business funds: For businesses that need multiple accounts to separate business finances, Relay is an excellent choice for an online business bank. You can get up to 20 checking accounts, which allows you to use accounts to set aside reserves for different expenses.
- You have large teams that require debit card access: In addition to the large number of checking accounts, Relay provides up to 50 Visa debit cards. Relay helps you keep track of those accounts with a great app, which gives you additional tracking power for individual business expenses.
- You are willing to pay for additional account perks: For businesses that want extra features, Relay Pro costs $30 per month, which is not waivable. However, the premium tier comes with a wide variety of business tools, including accounts payable support, multistep approval rules for bill payments, batch payments for bills, one-click reconciliation of bills, same-day ACH delivery, and free wire transfers. Depending on which features you use, the $30 monthly fee may be less than what you would spend on these with other providers.
When To Consider an Alternative
- You want to earn interest from your business checking: Relay has many great features, but interest-bearing checking is not one of them. However, it does offer an automated savings account that earns between 1% and 3%. If you want interest-bearing checking from your online banking provider, Bluevine and Grasshopper are your best options.
Note: Relay is a financial technology company, not an FDIC-insured bank. Banking services and FDIC insurance are provided through Thread Bank and Evolve Bank & Trust; Members FDIC. The Relay Visa® Debit Card is issued by Thread Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa® debit cards are accepted.
Found: Best Digital-only Provider for Self-employed Professionals
What We Like
- No monthly fees, minimum balances, account fees, and sign-up fees
- Excellent expense tracking on both its desktop and mobile apps
- Helps you track tax write-offs and gives you real-time tax estimates
Drawbacks
- No free cash deposits
- Interest earning only through paid-tier Found Plus
- Cannot purchase checks or issue them from the app
Features
- Provides a business debit Mastercard, which allows you to track expenses and receive purchase alerts
- Debit cards can be frozen in the Found app
- Desktop and mobile apps
- Connect to accounting software and payment apps, such as Cash App, PayPal, Square, Venmo, and eBay
- Integrated bookkeeping allows you to categorize expenses, customize invoices, capture receipts, and set custom rules
- Track tax write-offs in the app
- View your tax estimate update in real-time
- Pay your taxes directly from the app
- Send your Schedule C directly from the app
- Customer service via email, online form, and support guides on the website
| |
|---|---|
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | Unlimited |
ACH Fees | None |
Monthly Fees | None |
Domestic Wire Transfer Fees | Free incoming wires; outgoing wires only sent to Found customers |
International Wire Fees | Unavailable |
ATM Fees | Found doesn’t charge for ATM usage; third-party ATM fees will likely apply |
Cash Deposited | Accepted at more than 79,000 retail locations; list available in the Found app |
APY | N/A |
*Found is a business fintech platform backed by FDIC-insured Piermont Bank. | |
When To Choose Found
- Freelancers looking for detailed expense tracking with integrated bookkeeping: If you’re looking for a business checking account with robust built-in bookkeeping software and excellent tax tracking and preparation, Found is a great option. The integrated bookkeeping solution allows you to categorize expenses, capture receipts, and set custom rules within the Found app. Found also allows you to complete and send your Schedule C directly from the app and pay your tax bill directly.
- Business owners looking for contractor management: Another major perk of Found is built-in contractor management. Found allows you to request and manage W-9s, 1099 payment reports, contractor tax forms 1099-NECs, and more.
- Self-employed professionals looking for tax preparation assistance: In addition to fee-free business checking options without transaction limits, Found offers robust tax tracking and preparation software in the app. You can complete and send your Schedule C directly from the app and pay your tax bill directly.
When To Choose an Alternative
- You want to earn interest without upgrading to a paid account: Found’s interest-bearing checking product is only available in its premium checking product, Found Plus, which is $19.99 a month or $149.99 a year. You can earn 1.5% APY on balances up to $20,000 with Found Plus. If you want interest-bearing checking included with your standard business checking account, Bluevine and Grasshopper are great alternatives.
Note: Found is a financial technology company, not a bank. Banking services are provided by Piermont Bank, Member FDIC. The Found Mastercard debit card is issued by Piermont Bank pursuant to a license from Mastercard Inc. Found’s core features are free. Found also offers a paid product, Found Plus.
Grasshopper: Best Digital-only Bank for Integrated Free Payment Software
What We Like
- Cash back on debit card purchases
- Interest-bearing account
- No monthly fees or transaction fees
Drawbacks
- No physical locations
- Minimum deposit required to open
- Cash deposits not accepted
Features
- Free physical and virtual Visa® rewards debit cards
- Unlimited 1% cash back on online and signature-based purchases
- Free bill pay, check deposit services, and digital invoicing tools
- Free domestic ACH and wire transfers when a balance greater than or equal to $25,000 is maintained
- International US dollars (USD) and foreign exchange (FX) wire transfers also available
- Autobooks, QuickBooks, and Plaid integrations with additional financial data management tools available
- Access to multimillion-dollar FDIC insurance up to $125 million
- Earn up to 4.0% APY on balances greater than $50,000 when bundled with an Accelerator Savings Account
- Personalized support from a US-based Client Services team available by phone, email, chat, and secure message
- Other products include savings accounts, startup banking services, treasury management, CRE loans, and SBA loans
 | |
|---|---|
Required Opening Deposit | $100 |
Required Balance Minimum | None |
Transaction Limit Before Fees | Unlimited |
ACH Fees | None |
Monthly Fees | None |
Domestic Wire Transfer Fees | Free if account balance is $25,000 or greater; no incoming wire fees; $10 for outgoing |
International Wire Transfer Fees | $5 for incoming, $25 for outgoing |
ATM Fees | Free at 45,000 MoneyPass & Sum network ATMs |
Cash Deposited | Cash deposits not accepted |
APY |
|
When To Choose Grasshopper
- You want digital-only banking that includes great integrations: Grasshopper’s biggest perk is the inclusion of Autobooks for free with each account. This gives each user free integrated payment and invoicing software.
- You want to earn interest on your business checking account: Grasshopper offers up to 2.25% APY uncapped with its business checking. Balances less than $25,000 or greater than $250,000 earn 1.51% APY, while balances of $25,000 to $250,000 earn 2.25%. To qualify, you must maintain a minimum average balance of $10,000 with no nonsufficient funds (NSF) items during the preceding 12 calendar months to earn interest.
- You need a wide range of business lending products: Where Grasshopper shines is in its offer of both traditional and nontraditional business financing, including SBA lending, commercial real estate lending, yacht lending, and venture capital and private equity lending.
When To Choose an Alternative
- You need to deposit cash: Grasshopper doesn’t allow cash deposits into its business accounts. A traditional bank like Chase is always going to be a great option if you handle cash regularly. See our Chase Business Complete Banking review for information on Chase’s entry-level account. You can also choose fintechs like Bluevine and Relay for cash deposits.
Lili: Best for Digital Tax Preparation Assistance
What We Like
- No monthly fees for basic tier
- Lili Pro plan includes an automatic savings account that earns 4.15% APY on balances of $100,000 or less
- Tax Optimizer helps with tax preparation for small businesses
Drawbacks
- No physical locations
- Some of the best features are in higher-tier Lili Pro account
- No outgoing wire transfers
Features
- Free Visa business debit card
- Mobile banking
- Invoice software: Unlimited invoice creation
- Tax Optimizer: Tracks tax write-offs
- Balance Up: Fee-free overdraft coverage feature
- Physical checks unavailable
- Integrations with QuickBooks, Venmo, PayPal, and CashApp, among others
- Toll-free phone support Monday through Friday, 9 a.m. to 7 p.m. Eastern time, and by email
- Lili Pro available for $9 per month
 | |
|---|---|
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | None |
Monthly Fees | None |
Domestic Wire Transfer Fees | Incoming are free; Outgoing unavailable |
International Wire Fees | Unavailable |
ATM Fees | None at 38,000 MoneyPass ATMs (third-party ATM fees may apply); $2.50 for out-of-network |
Cash Deposited | $4.95 fee per transaction, available through Green Dot retail locations |
APY | None |
Open an Account | |
*Lili is a business fintech platform backed by FDIC-insured Choice Financial Group, Inc. | |
When To Choose Lili
- You want the option to upgrade to a premium account with extra perks: Lili offers two business checking products with no monthly fees or transaction limits. Lili Basic is free, while Lili Pro is $9 a month. Both provide a debit card, the option to get paid faster with direct deposit two days early, built-in expense tracking, and no hidden fees. Lili Pro includes 1% cash back rewards on all purchases, fee-free overdrafts up to $200, a savings account with a 4.15% APY on balances of $100,000 or less, and the ability to create and send unlimited invoices.
- You want an online banking provider that offers tax preparation assistance: Lili Pro’s biggest perk is its Tax Optimizer. It lets you track potential tax write-offs, set aside money in a tax bucket, scan receipts, complete your Schedule C automatically, and produce quarterly and annual expense reports. Considering that it’s built into your banking product, it’s a powerful tool, especially for small businesses without huge financial departments.
- You want an online banking provider that services most business organization types: Lili allows multimember LLCs, S corporations (S-corps), general partnerships, and limited liability partnerships to sign up for an account. This is in addition to sole proprietors (with or without a DBA) and single-member LLCs, which were already eligible for an account. However, the account is unavailable to B corporations (B-corps), C corporations (C-corps), and nonprofit organizations.
When To Choose an Alternative
- You need to send wires or deposit cash regularly: Unfortunately, Lili doesn’t allow you to send wire transfers, and you cannot order checks or send them from the app. You can deposit cash, but it must be done through Green Dot retail locations for $4.95 a transaction. Bluevine is a great alternative for businesses that send wires regularly, while a traditional bank like Chase is better for cash deposits. Read our Chase’s Business Complete Banking review if your business handles cash regularly.
Live Oak Bank: Best High-yield Savings Account
What We Like
- No minimum balance requirements
- No monthly maintenance fees
- High-yield return on both savings and short-term CDs
Drawbacks
- No debit card for savings product
- No free outgoing wires
- No cash deposits
Features
- High-yield CDs
- Small Business Administration (SBA) and other loans available
- Free online and mobile banking
 | |
|---|---|
Required Opening Deposit | None |
Required Balance Minimum | 1 cent to earn interest |
Transaction Limit Before Fees | No limit |
Automated Clearing House (ACH) Fees | None |
Monthly Fee | None |
Domestic Wire Transfer Fees | None for incoming; $19 for outgoing |
International Wire Transfer Fees | Unspecified |
ATM Fees | No debit card for savings product. Must transfer cash to Live Oak business checking and then withdraw from ATM |
Cash Deposited | None; bank doesn’t accept cash deposits |
APY | 4.00% |
Customer Service | By phone or fax during weekdays from 8 a.m. to 8 p.m. Eastern time or through its support page |
Other Products | Business checking, SBA loans, United States Department of Agriculture (USDA) loans, and commercial lending |
When To Choose Live Oak Bank
- For businesses that want to earn maximum returns off of company reserves: Live Oak Bank is a great choice. Its business savings earn 4.0% APY and business CDs earn as much as 5.00% APY. The company gears its product offerings toward self-employed business owners—specifically startups, entrepreneurs, gig workers, freelancers, and side hustlers.
- You want an online banking provider that is a traditional bank: Live Oak Bank is a member FDIC bank, although all of its accounts are online only. This makes it stand out from the fintechs on this list that are backed by FDIC-insured banks. Once your account is open, you can deposit checks, pay bills, and initiate transfers entirely online. Live Oak Bank’s accounts are available to businesses nationwide.
When To Choose an Alternative
- You want to withdraw cash from your account or deposit cash: Live Oak Bank doesn’t provide a debit card with its savings now that it has brought back its business checking product. You’ll have to transfer funds to a business checking account first. Live Oak also doesn’t accept cash deposits. Consider Bluevine as an alternative if you need ATM access to your funds.
NBKC Bank: Best Full-service Business Online Bank
What We Like
- No monthly fees, minimum balance, or initial deposit required
- No fees for incoming domestic wires
- ATM fee reimbursements of up to $12 per month
Drawbacks
- Limited branches (only in Kansas and Missouri)
- No interest-earning checking
- Steep international wire transfer fees
Features
- Free Business Debit Mastercard
- Business account add-ons, such as business fraud tools and desktop deposits
- Deposit checks and pay bills via the NBKC app on mobile, tablet, or desktop
- Autobooks software integration
- Integration with QuickBooks and Quicken
- Customer service available by phone from 8 a.m. to 5 p.m. Central time, Monday through Friday, and by email
- Other products include money market, CDs, credit cards, lines of credit, commercial real estate lending, equipment loans, and SBA loans
| |
|---|---|
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | No limit |
Monthly Fee | None |
Domestic Wire Transfer Fees | Incoming: None Outgoing: $5 |
International Wire Transfer Fees | Incoming: $45 Outgoing: $45 |
ATM Fees | None at NBKC and MoneyPass ATMs; refunds up to $12 per month |
Cash Deposited | Free at NBKC and MoneyPass ATMs |
APY | N/A |
When To Choose NBKC Bank
- You want an online full-service bank: For a small business owner looking for a full-service online bank, NBKC Bank is a great option. In addition to business checking products, it offers business money market, CDs, commercial lending, business solutions, and credit card products. Its business checking is a fee-free account with no monthly fees or minimum opening deposit requirements. Transactions are free with no limit.
- You handle cash regularly: You can deposit cash for free at both NBKC and MoneyPass ATMs or at one of its four branch locations in two Missouri cities (Kansas City and Liberty) or two Kansas cities (Overland Park or Leawood). In addition, NBKC refunds up to $12 in ATM fees each month. It’s one of the few online business banks on this list.
When To Choose an Alternative
- You need customer service outside of banking hours: As a traditional bank, customer service by phone is only available during business hours. You can reach out via email, but those are likely only answered during business hours as well. Bluevine, Novo, and Mercury are among the providers on this list that offer customer service outside of traditional banking business hours.
Oxygen: Best Digital-only Provider For Cash Back on Debit Card Purchases
What We Like
- Rare fintech that offers both personal and business banking
- No monthly fees or transaction fees
- Single-use virtual cards available for online shopping provide extra security
Drawbacks
- No free cash deposits
- Only one authorized user allowed per account
- No physical locations
Features
- Nationwide limited liability company (LLC) creation available through the Oxygen App
- 5% cashback rewards on everyday purchases with your debit card
- Ability to create single-use virtual cards to keep your business bank account secure
- Business savings product available with 1% APY on balances up to $20,000
- Multiple personal checking accounts available
- Free Oxygen Visa Business Debit Card and an unlimited amount of virtual cards
- Integrations with QuickBooks, Xero, Plaid, and Gusto
- Customer service via a toll-free phone number, email, social media support, and online help articles
| |
|---|---|
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | None |
ACH Fees | None |
Monthly Fees | None |
Domestic Wire Transfer Fees | No fees incoming; outgoing unavailable |
International Wire Transfer Fees | N/A |
ATM Fees | None at Allpoint ATMs; $3 out-of-network domestically; $5 out-of-network internationally |
Cash Deposited | $4.95 fee per transaction, available through GreenDot retail locations; can also deposit through link to external bank via Plaid |
APY | N/A |
Oxygen is a business fintech platform backed by FDIC-insured The Bancorp Bank. | |
When To Choose Oxygen
- You want to earn great cash back rewards on debit card purchases: Oxygen is a digital-only bank geared toward freelancers and creatives, among other small businesses. For businesses that use a debit card frequently, it is a great option for a business bank account since it offers 5% cash back rewards on all debit card purchases.
- You want to incorporate your business: For businesses considering becoming LLCs, Oxygen offers nationwide LLC creation in the Oxygen app powered by CorpNet, Inc. There are fees involved, which is one of the few services with a fee.
When To Choose an Alternative
- You need to send outgoing wires or set up multiple users in the app: Oxygen has no outgoing and international wire transfers, and you cannot set up multiple users in the app. If you need to set up multiple users, Relay is a great alternative.
How We Evaluated the Best Online Banks for Small Businesses
When we evaluated the best online banks for small businesses, we considered:
- Monthly fees, if any, and how easily they are waived
- Required opening deposit and balance minimums
- Transaction limits before fees
- ACH and wire transfer fees
- ATM fees and availability
- Cash deposit fees and availability
- Interest yield, if applicable
- Other checking account perks
- Software integrations
- Other business services provided
- Lending products provided
- Customer service and customer reviews
What To Consider When Choosing an Online Business Bank
While we used our own criteria to select the best online banks for small businesses for this list, here are some things you should review before making a selection.
1. Ensure Your Account is Covered by FDIC Insurance
After the recent bank failures of Silicon Valley Bank, Signature Bank, and First Republic Bank, business owners were reminded of how vital FDIC insurance is to a company’s financial security. Given, the idea of an online-only bank can be a little scary to some, especially in the wake of recent bank failures; however, every bank on this list is either directly insured by the FDIC or backed by an insured bank.
If your business needs extra FDIC insurance, several providers on this list offer extended FDIC insurance. Mercury is a great choice, thanks to its Vault product. Mercury uses a sweep network and partner banks to extend your FDIC insurance to $5 million.
2. Determine if the Online Bank Has the Products & Services You Need
While all the online banks listed above offer great business checking products, the quantity of additional business banking products varies. NBKC Bank, for example, offers the same type of full-service banking products and services you would expect from a traditional, brick-and-mortar bank. Meanwhile, Bluevine only offers business checking and a line of credit product. However, if you need a bank that offers more than just a couple of products and services, you should consider another option.
3. Consider How Often Your Business Handles Cash
While several online banks in this guide accept cash deposits—either through Green Dot retail locations, ATM deposits, or money orders—these can get pricey. In addition, if your business handles cash regularly, it may not be the most convenient way to deposit cash. You should consider a traditional bank instead. There are several great traditional banks in our roundup of the best small business checking accounts.
4. Determine if the Online Bank Has Strong Security Protocols
While all of the online banks on this list have a strong reputation for online security, this may not be true of every online bank you might find on the internet. Before you move your business funds into an online account, check out the security reputation of the online bank in question. Reading customer reviews can also help, as any online bank with a past security breach would be easy to find out about.
5. Read Customer Reviews
While reviews might not tell the whole story, it is good to see what other business customers have said about an online bank. Each individual bank review on Fit Small Business includes a customer review section.
Reviews often include both business and personal accounts, so some might not apply to your potential business account. However, it should alert you of any potential red flags to avoid before choosing a new online bank.
For more information, see our guide on how to choose a bank for your small business.
What You Need to Open a Business Bank Account
Each provider on this list may require different documents to open a business bank account. Generally, you will need:
- Employer identification number (EIN) or Social Security number if you’re a sole proprietor
- Fictitious business name certificate or doing-business-as (DBA) certificate
- Business formation documents
- Organization documents, including your ownership agreements
- Business licenses
- Government-issued photo ID, such as a passport or driver’s license
Our guide on how to open a business bank account will walk you through the process. It includes a downloadable checklist of documents that banks typically require when opening an account.
Frequently Asked Questions (FAQs)
The best online bank for small business is Bluevine, thanks to its 2.0% APY on all balances of $100,000 or less and the best small business line of credit on the market. It is also one of the leading banks for small business loans.
Chase is the best bank for startup businesses, with full-service banking products that can scale with your growing business. If you are looking for an online-only bank for your startup, Mercury provides free business checking and savings accounts and excellent software integrations.
As long as the online bank you’re using is directly backed by either the FDIC or an FDIC-insured bank, your money is as safe in it as it would be in a traditional bank. However, it is essential to research online banks to ensure you choose a bank with FDIC protection. Bluevine, Novo, and Mercury are our top three choices for online business banks.
It ultimately depends on the type of banking your business will conduct. If your business handles cash regularly, you should choose a bank with a physical location. An online bank would be a great choice if most of your transactions are digital. Online banks, as long as they are FDIC-insured or backed by an FDIC-insured bank, are as safe as traditional banks.
Bottom Line
For businesses that don’t need physical access to a branch bank, online business banks can provide your company with all the products and services you need, with the convenience of 24/7 account access from anywhere. Each provider offers great business checking products combined with other products and services. Decide what your company needs from its business bank and choose the provider that best aligns with your business needs.
