Do you want to choose the finest bank for your company? The Really Useful Information Company (TRUiC) analyzed the best banks for small businesses in 2021 and can assist you in determining whether a national online, no-fee, or brick-and-mortar bank is best for your LLC or single 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?
- Bank criteria based on your company’s needs
- Other advantages
TRUiC has done some research and identified the best banks for small businesses in 2021. This was by no means an easy task considering all the competitive features. You can read more about their overall best choice here and why they consider it a great option.
Here is the list of banks they evaluated:
Navy Federal 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 company Certificates of Deposit. The only disadvantage to creating a bank account with Navy Federal is that you’ll require a personal checking account, which you can only get if you’re a member of the military. Credit unions, on the other hand, typically offer greater interest rates and cheaper costs than banks, thus this might be considered advantageous. Navy Federal’s lowest-tier business checking account pays .05 % interest. The vast majority of banks do not pay interest on their lowest-tier 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 assisting businesses based on where they are in their growth cycle.
BlueVine is a good online bank to look into. They’re a fantastic fit for organizations that don’t perform a lot of cash transactions but will eventually want a business lender. Blue Vine began as a small business loan before moving into the business banking sector. They excel at both. Opening a business account with BlueVine can be done on their website, as well as send your business formation documents, tax identification number/EIN, and other essential information to them. BlueVine Payments is a one-of-a-kind 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 cutting them a check or issuing an ACH payment. This service has a low fee of only 2.9 %.
Chase is the bank to check out if you own a retail or restaurant business that generates frequent substantial cash deposits. They’re an excellent fit for organizations that deal with a lot of cash and have many physical locations. Chase has about 4,700 physical locations across the United States. Chase also offers a variety of competitive account alternatives suited to various business sizes. There are various types of business checking accounts offered by Chase. Additionally, they provide a few business savings accounts. Each account they provide is tailored to assist various types of organizations in a variety of situations.
If your company needs funding or anticipates the need for one in the future, you should seek a bank that specializes in small business lending, specifically Small Business Administration (SBA) 7(a) loans. TRUiC did some research and discovered that Wells Fargo, the largest bank, is one of the best banks to work with if you’re looking for an SBA 7(a) loan. Wells Fargo offers a service called Simple Business Checking for small businesses. Additional business offerings from Wells Fargo include SBA 7(a) loans and credit cards. You can also use Card Studio Design, a free tool that allows you to personalize your company debit card with your logo and tagline. You can also apply for a merchant account and payroll services once your company is ready.
If you’re a new company with few monthly transactions, a no-fee bank account can be the best option. There are numerous banks that offer no-fee accounts, but one, in particular, stands out: US Bank. The sheer scale of the bank distinguishes US Bank from most other no-fee bank accounts. US Bank is the fifth-largest bank in the United States, making it an excellent choice for businesses in the Midwest and Western regions. US Bank operates 2,895 locations in 26 states.
A company bank account is required for a variety of reasons. One of the most important reasons to open a company bank account is to retain your limited liability protections and avoid piercing the corporate veil. Furthermore, you’ll need a company bank account to establish business credit as well as a mechanism to collect and preserve your revenue.For online business banking, TRUiC prefers BlueVine . If you keep a balance of $1000 in your online business checking account, you will receive a 1% interest rate.