WEB TECH TALKS: Best Online Business Banking for 2020

Want to jump straight to the answer? The best online business banking accounts comes from Novo Bank.

What makes a great bank for business purposes?

A good bank needs to have online banking capabilities. There are online-only banks as well as physical branches offering online banking services.

While most banks today have some type of online portal, not all of these are created equal.

The best business checking accounts have dozens of online features, like mobile deposits, digital bill pay, and fraud alerts.

You’ll also need to consider other banking products that you can access online. I’m referring to things like business savings accounts, merchant services, credit cards, and small business loans.

Whether you run a startup or a multi-million dollar well-established corporation, I’ll show you the best online business banking solutions to fit your needs.

Top 10 Online Business Banking Accounts For 2020

There are hundreds of different online business bank accounts on the market today. But these are the top ten that I recommend:

I’ll highlight the type of online accounts offered, prices, benefits, and other online banking solutions for each one below.

The Best Online Business Banking Reviews

Novo

If you’re a small business owner, freelancer, or entrepreneur seeking an online-only business banking solution, look no further than Novo.

Novo is a modern and simple way to handle your business banking needs. Here’s an overview of top features and benefits of this online bank:

No monthly service fees
Refunds at all ATMs
Free incoming and outgoing ACH transfers
Free domestic and foreign wires
Free mailed bank checks
No minimum balance requirement

It takes less than ten minutes to apply for a Novo online business bank account. The minimum to open one is $50.

Novo offers a great mobile app that lets you handle all of your business banking needs from your phone. It integrates with business tools that you’re already using, like Slack, Xero, and Zapier.

You’ll also benefit from discounts on business tools like HubSpot, Salesforce, Zendesk, Google Cloud, and Stripe.

Overall, Novo is a basic online-only bank for business owners seeking simplicity. But it does lack other banking tools beyond a checking account.

Axos Bank

Axos Bank is a top online business banking solution.

They offer a suite of business banking solutions, including multiple account types and additional services.

Basic Business Checking
Business Interest Checking
Business Premium Savings
Business Money Market
Business Savings
Business Certificate of Deposit (CDs)
Certificate of Deposit and Registry Service (CDARS)

Axos also offers treasury management solutions to streamline your payment processing. They provide additional merchant services like POS terminals, mobile commerce, and PCI compliance.

An Axos business checking account requires a minimum of $1,000 to open.

Your account comes with 200 free transactions per month. There are no monthly maintenance fees, and you’ll have access to a surcharge-free ATM network.

Axos has everything you’d expect from an online business banking solution, including a mobile app with remote check deposit capabilities.

But like any online-only bank, this isn’t for businesses that need to deposit cash.

Chase Bank

Chase Bank offers some of the best business banking solutions on the market today. They have physical bank branches in addition to the online banking services.

Here’s an overview of the three different business checking accounts offered by Chase. All three of these can be opened and managed online.

Chase Total Business Checking

$15 monthly service fee
Unlimited electronic deposits
$5,000 free cash deposits per billing cycle
100 free transactions per month

Chase waives the $15 service fee if you maintain a daily balance of $1,500. If you link a personal Chase checking account to your business account, the combined balance counts towards this minimum.

Chase Performance Business Checking

$30 monthly service fee
Unlimited incoming wires and electronic deposits
250 free transactions per month
$20,000 free cash deposits per billing cycle
Two free outgoing domestic wires per cycle

Chase waives the $30 service fee if you maintain a $35,000 minimum daily balance in qualifying business deposit accounts.

Chase Platinum Business Checking

$95 monthly service fee
500 free transactions per month
$25,000 free cash deposits per billing cycle
Four free outgoing wires per cycle (your most expensive ones)

Chase waives the $95 service fee if you maintain a daily balance of $100,000 or more between qualifying business deposit accounts.

Chase offers business banking for businesses of all sizes. That means their easily scalable. As your business grows, they grow with you.

It’s easy to determine which Chase business account is best for you based on the minimum balance requirements and free cash deposits per month.

In addition to checking accounts, Chase also has some of the best business credit cards on the market today. You’ll also benefit from merchant services and online business lending solutions if you need them.

TIAA Bank

TIAA Bank is a top option for those of you looking for an online-exclusive business banking solution. They offer checking accounts and treasury services for commercial businesses, small businesses, and nonprofit organizations.

If you’re a single-owner LLC or sole proprietor, you can get a high-yield small business checking account. As of February 2020, the intro APY rate is 1.21% for the first year.

Here’s a quick overview of the key features for each TIAA Business Checking account:

Business Checking

$1,500 minimum to open
200 free transactions per month
Ten free online bill payments per month
$14.95 monthly maintenance fee (waived with $5,000 daily balance)

Small Business Checking

$1,500 minimum to open
No monthly maintenance fee
Free ATM reimbursements up to $15 per month (unlimited with $5,000 daily balance)
High yield on all balances

Nonprofit Checking

$1,500 opening deposit minimum
Interest-bearing checking
Overdraft protection
$14.95 monthly maintenance fee (waived with $5,000 minimum daily balance)

Analysis Checking

Two different types of accounts available
Interest-bearing checking
$1,500 minimum opening deposit
Offset fees with earnings credit rate

While TIAA Bank does offer a wide range of checking account types, I wish the nonprofit monthly maintenance fee was waived regardless of the balance.

The best account here is the high-interest checking account for sole proprietors and single-member LLCs.

US Bank

US Bank is a national chain with 3,000+ branches and more than 4,800 ATMs throughout the country. In addition its online banking solutions, you’ll be able to do some in-person banking if your business needs to make cash deposits.

There are four different business checking accounts offered by US Bank. All of which have online banking capabilities.

Silver

No monthly fee
$5 paper statement fee
125 free transactions per month ($0.50 per transaction after)
25 free units of cash deposits per month

The US Bank Silver business checking account is simple and made for startups and small businesses.

Gold

$20 monthly fee (waived with qualified balances)
Free paper statements
300 free transactions per month ($0.45 per transaction after)
100 free units of cash deposits per month
Interest-bearing

The Gold business checking account is for small to mid-sized businesses with moderate transaction volumes.

Platinum

$30 monthly fee (waived with qualified balances)
500 free transactions per month ($0.40 per transaction after)
200 free units of cash deposits per month

US Bank’s Platinum business checking account rewards business owners with higher balances.

Premium

The Premium account is unique. It’s an analyzed account; meaning fees can be offset by credits from your account activity. It’s unclear on the website what those fees, credits, and activity would be. But the account is made for larger organizations with high checking balances and lots of activity. You’ll need to contact US Bank directly for more information.

In addition to these four online checking accounts, US Bank also provides small business loans, credit cards, and merchant services. You’ll have access to everything you’d expect from a national bank.

Navy Federal Credit Union

Navy Federal is another national chain with physical branches in addition to online business banking. Business owners with ties to the US Armed Forces, National Guard, and DoD can open an online checking account with Navy Federal Credit Union.

They offer business checking, business savings, and CDs. Here’s an overview of Navy Federal’s three business checking accounts:

Business Checking

Best for new businesses with limited cash flow activity
No monthly maintenance fee
Two signers
30 free non-electronic transactions per month ($0.25 per transaction after)

Business Plus Checking

Best for growing businesses with multiple owners
$8 monthly service fee (can’t be waived)
Accommodates steady banking activity
50 free non-electronic transactions per month ($0.25 per transaction after)

Business Premium Checking

Best for large businesses with high deposit balances
$20 monthly fee (waived with average daily balance of $5,000)
Great for large transaction volumes
100 free non-electronic transactions per month ($0.25 per transaction after)
Up to 0.45% APY (based on balance)

I’d recommend Navy Federal online banking to business owners who are seeking a small business loan. Navy Federal has some of the best interest rates and approval rates on the market today. So you can get your checking account and loan from the same bank while managing everything online.

Azlo

If you’re a freelancer or launching a startup, Azlo is a top online-exclusive business bank to consider. It’s only a viable option if you’re not accepting cash.

Highlights of an Azlo business banking account include:

No monthly fees
No overdraft fees
No minimum balance requirements
Unlimited transactions
No incoming wire fees

Azlo integrates with business tools like Square, Stripe, and QuickBooks.

You can deposit checks remotely with Azlo’s intuitive mobile app. You’ll also be able to create, send, and manage digital invoices to your clients through the Azlo platform. This is ideal for clients who want to pay via bank transfer.

If you’re looking for an online bank that offers loans, savings accounts, and other banking services, Azlo is not for you.

Radius Bank

Radius Bank has a wide range of online business banking solutions. Here’s a quick list of the online services you’ll have access to with a Radius business account:

Four different business checking accounts
Money market savings
CDs and CDARS
Statement savings accounts
SBA loans
Commercial real estate loans
Equipment financing
Credit cards
Escrow services
Nonprofit services

As you can see, Radius offers everything you could possibly need and more from an online business bank.

One standout is the Tailored Checking account, which is made for growing businesses. Tailored accounts come with:

Unlimited transactions
0.75% APY for balances above $5,000
Unlimited transactions
$10 monthly fee (waived with balances over $5,000)
No minimum balance requirements ($100 to open)
Free ATM network worldwide

You can apply online in less than ten minutes without uploading any documents. Between the online services and mobile banking tools, Radius Bank is a top choice to consider.

Citizens Bank

Citizens Bank is a top choice for business owners that want access to lots of different online banking solutions. Furthermore, Citizens has 1,100+ branches and 3,100+ ATMs (mostly on the east coast). So it’s a good option for those of you with in-person banking needs as well.

Let’s take a closer look at the company’s business checking accounts:

Clearly Better Business Checking

Best for small businesses with moderate account activity
No monthly fee
No minimum opening deposit
200 free transactions per billing cycle ($0.50 per transaction after)

Business Advisor Checking

Best for businesses with higher account activity
$25 monthly fee (waived with $10,000 average daily balance)
No minimum opening deposit
500 free transactions per billing cycle ($0.30 per transaction after)

Citizens Analysis Business Checking

Best for large businesses that need ACH, transfers, wires, and cash management
$20 monthly fee (can’t be waived, but can be offset with earnings credits)
No minimum opening deposit
Custom transactions (must speak to a representative for details)

In addition to these checking accounts, Citizen offers credit cards, investing options, business benefits, healthcare banking, and a wide variety of business resources. Large organizations will have access to commercial banking solutions as well.

First Internet Bank

As the name implies, First Internet Bank is an online-only bank. There are three different types of banking solutions offered by this bank.

Small business checking
Commercial checking
Business savings and CDs

Overall, the commercial checking accounts stand out the most.

Lots of online-only banks on the market today are geared towards startups and small business owners. But First Internet Bank has a wide range of banking services for large organizations and enterprises.

Businesses opening a commercial checking account will benefit from features like:

Dedicated business banking experts
Treasury management services
Merchant services
Sweep services
Wire services
Zero balance accounts

Contact First Internet Bank to ask about a custom business banking solution to meet the needs of your large organization.

How to Find the Best Online Business Bank Account For You

All of the online banks on our list won’t be a viable solution for your business. You’ll need to narrow down your options based on certain factors. This is the methodology that we use here at Quick Sprout to find the best online bank for you.

Business Type

You can start by narrowing down your choices based on the size and structure of your organization. Some online banking accounts are geared towards startups, sole proprietors, and freelancers. Others are designed for small businesses to mid-sized and larger organizations.

For example, if you have a small business with three locations and 30 employees, you can immediately eliminate the accounts designed for freelancers and single-member LLCs.

Fees

Lots of online business bank accounts come with monthly fees. Some banks do offer free banking, and others let you waive the monthly fee by maintaining a minimum daily balance.

Unlike personal checking accounts, business accounts typically come with monthly transaction limits. You might have to pay up to $0.50 per transaction once you exceed those limits.

Regardless of your situation, you can find a way to avoid these fees by finding an account that falls within your banking activity.

Checking Accounts and Banking Solutions

What do you want to get out of your online bank? You’ll need a checking account, at a minimum.

But the day might come when you’ll need access to other banking solutions.

Business savings accounts
Business CDs and CDARS
Merchant services
Business loans
Business credit cards

It’s easier to get all of this under one roof, as opposed to searching for another bank at a later time.

In-Person Banking Availability

Online-exclusive banking isn’t for everyone. If you have physical store locations that accept cash, you’ll need the ability to deposit those funds at a branch.

Banks like Chase, US Bank, Citizens Bank, and Navy Federal Credit Union all have branches for in-person business banking. Just verify that there is a branch in your area.

Mobile Accessibility

Part of being a great online bank means having an excellent mobile app. The majority of your online banking activity can be done from the palm of your hand.

Mobile apps are used for things like remote check deposits. But you’ll want an app that goes beyond this basic feature. All of the banks on our list have modern and efficient mobile apps for your business banking needs.

Conclusion

Here’s a recap of the ten best online business banking solutions on the market today:

Novo — Simple online-only business checking account with no hidden fees.
Axos Bank — Online-exclusive bank with interest-bearing checking solutions.
Chase Bank — Best online business checking accounts for businesses of all sizes.
TIAA Bank — Best high-interest checking for sole proprietors and single member LLCs.
US Bank — National bank with four online checking accounts and banking services.
Navy Federal Credit Union — Best online banking for business owners with ties to the Armed Forces, National Guard, and DoD.
Azlo — Best online-only business bank for freelancers.
Radius Bank — Best online banking solution for growing businesses.
Citizens Bank — No minimum balance requirements and free checking available.
First Internet Bank — Best online commercial checking account for complex business banking needs and high transaction volumes.

I purposely included banks for all types of businesses on here. From freelancers to enterprises, and everything in between, I know you can find what you’re looking for on this list.

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WEB TECH TALKS

Wednesday, September 16, 2020

Best Online Business Banking for 2020