Choose a business bank account based on your transaction volume, need for physical branches, integration requirements, and cash flow features. Neobanks like Mercury and Novo offer better tech and lower fees. Traditional banks like Chase offer branches and lending relationships. Many businesses use both.
Key Moves
- Neobanks (Mercury, Novo): Better tech, lower fees, no branches. Best for digital-first businesses.
- Traditional banks (Chase, Wells Fargo): Branches, lending relationships, in-person service. Best for cash-heavy businesses.
- Key features to compare: monthly fees, transaction limits, ACH fees, wire fees, integration options
- Look for: sub-accounts, automated savings rules, real-time notifications, API access
- Consider keeping two accounts: one for operations, one for tax savings
See a treasury management system for more on this.
Frequently Asked Questions
Should I use a neobank or traditional bank?
Neobanks for tech and low fees. Traditional banks for branches and lending. Many businesses use both.
How many business accounts should I have?
Minimum one operating account. Ideally: operating + tax savings + emergency fund. Sub-accounts within one bank achieve this.
What fees should I watch for?
Monthly maintenance, transaction limits, ACH fees, wire fees, overdraft fees, and ATM fees. Some neobanks charge zero fees.