In a digital world, financial institutions are providing online solutions to accommodate the growing needs of businesses and customers. Online business checking accounts offer low fees, software integrations, and great customer service. We reviewed the top options based on their features, fees, and overall quality.
Relay offers a simple two-tier pricing plan. You can get started with no monthly fees and no account minimums. When you upgrade to the Pro plan, you’ll benefit from additional features such as free domestic and international wire transfers, or the ability to auto-import bills from QuickBooks and Xero.
Bluevine business checking comes with no monthly fees. Plus, the account provides an impressive list of benefits such as integration with online business tools, sub-accounts to help you manage your finances, and two free checkbooks.
Chase Business Complete Checking comes with Chase QuickAccept which allows card payments to be processed on your mobile device, so you receive deposits the same day to help manage cash flow within your business.
What we like
In person customer support (except Alaska & Hawaii)
Axos Bank business interest checking account earns a competitive rate for cash held within the account, and you'll get your $10 monthly fee waived by holding a minimum balance of $5,000. If you keep a decent amount of cash in your account, this could be an ideal account.
Lili’s business checking account comes with features that help users keep their banking costs low, optimize their taxes, and manage their business’s finances.
Novo allows easy integration with third-party accounting software, including Quickbooks and Xero. You can also link your Novo debit card to your Google Pay or Apple Pay Wallet. Novo also syncs with your Stripe processing account and easily integrates with Slack to get automated updates on your bank account.
If you are looking for a business checking account that is easy to use and with almost no fees, you might want to consider Novo. The bank account is also accessible in the app store for both iOS and Android devices.
What we like
Free ACH transfers, mailed checks, and incoming wires
NorthOne helps you manage your finances with its invoicing app, budgeting tool by creating an unlimited number of sub-accounts with the envelope functionality, and integrating with a suite of business tools and software.
What we like
Budgeting tool to help manage your finances
Smart integrations with business tools
Send invoices from the app
Low minimum deposit
No hidden fees
Unlimited transactions with no fee
What we don't
$10 monthly fee
No in persona customer support
What is an online business checking account?
An online business checking account can be accessed through a web browser or a mobile app. Some accounts may be online-only, meaning that there is no branch access. Online business checking accounts typically stand out for their convenience and ease-of-use providing a digital banking experience that streamlines business finances and operations.Â
Who needs an online business checking account?
Business owners looking for a fast and easy application process would benefit from an online business checking account. Plus, depending on the structure of your business, you may be legally required to separate personal and business finances.
What are the pros and cons of an online business checking account?
There are many pros and cons of opening an online business checking account. Here are a few for you to consider before applying:
Pros
Convenience: You don’t need to wait for branch opening hours to complete a transfer or deposit a check. Online accounts allow you to deposit a check electronically by taking a picture with your phone or sending a payment through online banking any time of day.Â
Enhanced features: Many online banks offer tools and accounting integrations that traditional banks do not offer. Look out for business tools such as Stripe, PayPal, Wise, FreshBooks, Zapier, and QuickBooks. These integrations can help you organize your cash flow and expenses, giving you a clearer picture of where your business stands and simplifying tax reporting.
Go paperless: Don’t worry about having to invest in a paper shredder. You’ll be able to access statements online and print what you need.Â
Low-cost banking: Many online business checking accounts have a low monthly fee or are even fee-free due to lower overheads. Â
Faster application process: With certain online financial institutions, you can open an account within minutes when you provide some basic information.Â
Bank from anywhere: Businesses that are location independent or require frequent travel can benefit from banking services without being physically present.Â
Earn interest on balances: Some online business checking accounts pay interest on balances in your account which are typically higher than traditional banks.Â
Cons
Cash deposits: It can be difficult to carry out cash deposits as many online banks do not have physical branches.
No in-person support: If you prefer to have face-to-face customer support, in other words, speak to a real human, you might prefer opening an account with a traditional bank.
Limited services: Newer online banks may offer limited services such as business credit cards or loans that could help you cover cash flow shortfalls or grow your business.
Poor internet connection: If you’re in an area with a poor signal, you may struggle to access your account.
What are the fees for an online business checking account?
When researching online business checking accounts, it’s important to consider the fees imposed and how they might affect you. Here are a few fees for you to consider when looking into an account for your business:
Monthly account fee: You can expect to pay approximately $10 – $15 to help cover the costs of your account each month. Many online business checking accounts waive this fee or require you to maintain a minimum balance to qualify for no fee.
ATM fees: Many banks assign a fee to out-of-network ATM withdrawals. If you think your business will require frequent use of an ATM, look for accounts that reimburse you for ATM fees.
Monthly transaction limits: You can expect business checking accounts to have monthly transaction limits. Types of transactions include card payments, check payments, and electronic transfers. If you exceed the limits, a small fee (typically between $0.10 – $0.50) may apply to each additional transaction over the limit. Some online banks offer unlimited fee-free transactions.
Overdraft or insufficient funds fee: If your available balance becomes negative, an overdraft or insufficient funds fee may apply.
Wire transfer fees: Domestic wire transfer fees can be cheaper with an online account. In some cases, domestic and international wire transfers may be free.
Depending on the type of business you run, you should also consider foreign transaction fees, replacement debit card charges, and cash deposit fees.
What are the alternatives to an online business checking account?
Alongside an online business checking account, you may want to consider opening additional accounts to help support your business.
A business savings account can come into use if you’re looking to save money and invest later. Plus, having spare cash on hand can help cover cash flow shortfalls during a period of economic hardship or if you have unexpected expenses. While many business savings accounts require a minimum balance, you can earn interest that can help offset some of the costs of business banking. Typically, a high yield savings account offers an interest rate above the national average.
Alternatively, if you run a business that receives international payments, a foreign currency account could help minimize any conversion fees. It can also simplify the payment process for overseas customers.
How to choose an online business checking account
When looking for the best online business checking account, here are some key factors to take into consideration before you choose an account provider:
Structure of organization: The financial institution you choose can depend on your industry and business structure. There are online business checking accounts geared towards eCommerce stores, freelancers, partnerships, and limited companies. Consider the financial products and services offered by the bank and if they are suited towards helping you grow your business.Â
Customer support: While online banks can provide low fees and niched services, physical banks can provide personalized customer support where you can talk to a customer support agent face to face. This can help you build a long-term relationship with your bank.Â
