Best Free Business Accounts for July 2024

The Bottom Line

When it comes to the top free business checking accounts, there are a few options available for customers. American Express’ offering tops out with a decent welcome bonus, the ability to earn points on purchases, and very few fees.

However, if you’re looking for the absolute best when it comes to interest rates—and you don’t have more than $100,000 in your account—nothing will beat Bluevine’s 2% APY.

Axos Bank is best for those who move money around a lot, with unlimited ATM fee reimbursements and no charges on income domestic wire transfers.

Compare the Best Free Business Accounts

Guide to Choosing a Free Business Checking Account

What Is a Business Checking Account?

A business checking account is specifically designed to meet the banking and financial needs of small, medium, and large businesses. Opening a business checking account allows companies to conduct their day-to-day transactions, including deposits, withdrawals, transfers, writing checks, bill payments, wire transfers, and payroll services.

Business banking customers may need to meet certain requirements for their business checking accounts like minimum initial deposits and/or monthly minimum balances. Some banks may offer interest on the balance and there may be fees and other charges associated with certain accounts.

Business checking accounts are also a great way for businesses to establish relationships with financial institutions. This can pave the way for businesses to open other products with their banks, such as loans, lines of credit (LOCs), and credit cards.

Why Do You Need a Business Bank Account?

As soon as you start sending or receiving money as a business, you should open a business bank account. Not only does this help you separate your business finances from your personal finances, but many business bank accounts come with perks that aren’t offered with personal bank accounts.

As noted above, these can include benefits such as reimbursement for wire transfers, free notarizing, and waived fees for overdrafts or insufficient funds.

Factors to Consider When Choosing a Business Checking Account

• Fees and account requirements: Knowing what types of fees your account will charge is imperative, especially when it comes to monthly maintenance fees. Understanding what will be charged and when can make a big difference in how much you’ll be paying each month in fees (if anything).
• Account features and tools: A bare-bones account may be simple to navigate, but taking advantage of perks such as 24/7 customer service can make life easier for account holders.
• Software integration: Some business accounts come with integration tools such as Quickbooks, which can save tons of time when it comes to navigating payments.
• Cash benefits and discounts: Take advantage of a cash bonus or the ability to earn points with your business account.
• ATM access: Depending on how you run your business, you may need access to many different ATMs. Finding fee-free options—or receiving reimbursements—may make a big difference each month.
• Location: Not all banks operate nationwide. You’ll want to find one that services your location.
  

Business Checking Accounts vs. Personal Checking Accounts

Business and personal checking accounts are very similar. They are both designed to give you a place to hold your money and do routine banking transactions. The major difference between the two is that a business checking account is designed to help you meet the needs of your business while personal accounts allow you to manage your personal finances.

Business checking accounts may also come with slightly different features. For instance, banks may include a different number of transaction limits and different monthly balance requirements, along with optional perks like a line of credit. Fees also tend to be different for business accounts.

Business Checking Accounts vs Business Savings Accounts

You may need to look into getting a business savings account along with your business checking account. While a business checking account can serve your everyday banking needs, you can use a business savings account to stash additional cash earned by your business.

A business savings account gives you a place to park your cash reserves while you earn interest on the balance. You should handle this the same way you would as a rainy day fund for your personal expenses, which means you should have anywhere between three to six months' worth of expenses set aside.

So what should you look for in a business savings account? Consider the following factors:

It's important to remember that (business) savings accounts should be reserved for emergencies only—not to pay everyday expenses. Another thing to note is that savings accounts come with monthly withdrawal limits. The point is to encourage saving rather than spending, which is the reason for your business checking account.

We have a list of high-yield business savings accounts to start you off.

Benefits of a Business Checking Account

Does it make sense to have a separate business account? In most cases, the answer is yes. We've highlighted some of the key reasons why it's important to have a business checking account in addition to your personal account below.

• Separate your business and personal finances: Having two different accounts for business and personal transactions helps you understand where your business and personal expenses are going and adds a layer of protection to your personal assets if something happens with your business.
• Ease in bookkeeping: Having your expenses separate allows you to manage your books more easily because you can easily identify the expenses that are related to your business, especially when it comes to tax time.
• Build a history for your business: It's important to establish your company's financial and credit history, including deposit and balance histories.
• Build a relationship with your financial institution: When you conduct your transactions and build an account history with your account provider, it may open up possibilities for credit, such as loans and lines of credit.

Fees Associated with Free Business Checking Accounts

Although the accounts we've listed are free (meaning there are no minimum deposits or balances), you may have to foot the bill for other fees. The table below highlights some of the common fees associated with business checking accounts. Be sure to check with each institution to verify what charges may apply to your business checking account.

How to Open a Free Business Checking Account

The documentation you’ll need to open a business checking account can vary, especially if you’re applying as a sole proprietor. Check with your bank, but be prepared to have proof of your business on hand, such as your Employer Identification Number or your business license.

Once you’ve got your documentation in order, you can usually apply online for an account. You can also call, or, if possible, head to an in-person branch.

Why You Should Trust Us

Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of the best free business checking accounts. We collected data points across a dozen lenders to ensure that we help readers make the right borrowing decision for their business banking needs.

We used this data to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their needs. Investopedia launched in 1999 and has been helping readers find the best free business checking accounts.