Best banks for startups in 2024

Starting a new business comes with loads of challenges – finding the right team members, developing the right product offerings, crafting an effective business model, winning customers from competition and more. The biggest challenge of all, though? Cash. Research from Wilbur Labs shows that the number-one reason that startup businesses fail is running out of money.

Finding a bank isn’t going to solve that problem entirely – after all, you have to do the work to get the money into the account. However, it’s a step in the right direction to design a blueprint for business success. The best banks for startups have built product suites specifically to help startups lower their fees and take advantage of higher savings rates. And when you’re trying to get a business off the ground, every penny counts.

The best banks for startups

Our picks for the best banks for startups all have one key thing in common: They’re actually banks. While options such as Brex, Bluevine and Mercury all offer unique perks for startup businesses, they’re fintech companies – not banks. It’s wise to look at these companies, too, as many of their products can power a business, but we solely focused on banks insured by the Federal Deposit Insurance Corp. (FDIC).

Note: Annual percentage yields (APY) are as of Aug. 1.

American Express National Bank

American Express has made a name for itself as one of the best options for business credit cards, and the bank’s business checking account proves it’s an equally attractive place for startup businesses to store money. The account pays 1.30 percent APY on balances of up to $500,000, and the bank’s fee structure is more business-friendly than many banks: No monthly service fees or minimum balance requirements and no fees for standard ACH payments.

Why we chose it

• Limited fees for business checking customers
• Business lines of credit starting at $2,000, plus a corporate program for startups that limits your personal liability and offers enhanced rewards

Axos Bank

Axos Bank’s business offerings include options for startups with limited cash – a basic business checking account with no monthly maintenance fees, for example – and business with much deeper pockets including a premium savings account that pays a 4.01 percent APY. The bank also regularly runs new account bonus opportunities that can help you score an extra $400 to get your business up and running.

Why we chose it

• A wide range of account offerings designed for specific types of businesses, including non-profits
• Business interest checking pays 1.01 percent APY on balances below $50,000

Chase

Chase serves approximately five million small businesses, and the bank is working to hire the right people to help business owners. Chase plans to hire more than 500 small business bankers by the end of 2024, which can make a big difference for any entrepreneur who needs the personal touch and expertise to help make the right decisions in the early stages of growth. Speaking of growth, the bank offers small business loans up to $500,000 with no origination fee.

Why we chose it

• A commitment to hiring more staff specifically to help small business owners with their banking needs
• A wide variety of loan products and business credit cards with competitive rewards

LendingClub

LendingClub’s business checking account pays 1.50 percent APY on balances below $100,000, and you can also score 1 percent cash back on debit card purchases. You won’t pay any maintenance fees as long as your account balance is at least $500. When it comes to securing funds to grow your business, the name says it all: There are plenty of lending programs, including loans as small as $5,000 and SBA express lines of credit up to $500,000.

Why we chose it

• Competitive rate on checking accounts
• Wide range of business loan options

Live Oak Bank

Live Oak Bank’s business high-yield savings account is an ideal pick if you’re planning to stash away a healthy chunk of excess funds: It’s currently paying 4.00 percent APY, and there are no minimum balance requirements. You will, however, need to be mindful of meeting balance requirements for the bank’s business checking accounts. It’s also the biggest producer of SBA loans, according to 2023 figures. And if you need money faster to grow your business, the Live Oak Express option offers quick access to capital.

Why we chose it

• One of the highest savings rates available on a business account
• Focused more on business banking instead of personal banking

Silicon Valley Bank (First Citizens Bank)

Wait, you might say, didn’t this bank fail? Yes. However, it lives on as part of First Citizens Bank, and it has maintained its core focus of helping startup businesses – specifically those in technology, life sciences and healthcare – get their financial footing. The bank promises free checking for three years with no transaction fees or wire fees, and its startup money market account offers up to 5.10 percent APY with money market fund investments and FDIC-insured sweep options.

Why we chose it

• No fees on checking accounts for three years, plus sizable credit card reward opportunities
• Connections and advice for startups aiming for expansion outside the U.S.

How to set up a bank account when starting up your business

Setting up a business bank account isn’t quite as simple as opening a personal checking or savings account. In many cases, you can still open the account online, but there are scenarios that may require you to visit a physical branch. And if you’re opening the account with multiple owners or account controllers who will have full access to the money, you may need to either bring them to the branch or have their documents notarized.

Be sure to review the bank’s requirements prior to applying for a new account to verify that you have gathered all the necessary documents, which typically include multiple forms of identification, your tax ID number, a certificate that shows your business is in good standing in the state where it’s headquartered and/or articles of incorporation.

What types of accounts can benefit a start-up business?

Every start-up business needs a checking account to be able to accept money, but what else might you need to grow your business? The best bank accounts for startups tend to offer at least one of these types of accounts.

• High-yield savings account – When you’re starting a business, you might not be thinking about saving money. After all, this is the time when you’re living by the adage of ‘it takes money to make money.’ However, having a high-yield business savings account can help you make sure that you’re setting aside funds for a rainy day. When something goes awry in your business plan, the funds in your savings account can provide the cushion you need to weather the storm.
• Money market account – If you prefer to keep all your business’ cash in one account, a money market account can offer the best of both worlds: the ability to access cash easily while earning interest on the balance.
• Cash sweep account – Sweep accounts shuffle money around to make sure you’re earning the highest potential rate of return while accepting the lowest possible risk. You’ll maintain the balance you need in the business checking account while taking advantage of ways to grow the business’ bottom line by investing in money market funds, U.S. Treasury bills or some other type of account.

Bottom line

Starting a business comes with plenty of uncertainties, but choosing the right bank can help you feel more confident as you work to carve out a niche for your company. Finding a bank as a startup comes with more considerations than finding a bank for your personal needs. In addition to thinking about fees, do your research to find a bank with experience helping other entrepreneurs navigate their early days in business.

Research methodology

Bankrate’s editorial team regularly surveys around 70 widely available financial institutions, made up of the biggest banks and credit unions, as well as a number of popular online banks. To find the best business checking accounts, our editorial team analyzes various factors, such as annual percentage yield (APY), minimum balance requirements and broad availability. All of the accounts below are insured by the Federal Deposit Insurance Corp. (FDIC) at banks or by the National Credit Union Share Insurance Fund (NCUSIF) at National Credit Union Administration (NCUA) credit unions.

• Banks we monitor

  These financial institutions are featured in our CD rate research: Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank5 Connect, Bank of America, Barclays, Bask Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO, Bread Financial (formerly Comenity Direct), BrioDirect, Capital One Bank, Chase Bank, CIBC USA, CIT Bank, Citibank, Citizens, Citizens Bank (Rhode Island), Comerica Bank, Customers Bank, Delta Community Credit Union, Discover Bank, Emigrant Direct, Fifth Third Bank, First Citizens Bank, First Internet Bank, First Technology Federal Credit Union, FNBO Direct, Golden 1 Credit Union, Marcus by Goldman Sachs, Morgan Stanley Private Bank, Huntington National Bank, Investors Bank, Investors eAccess, KeyBank, Limelight Bank, Live Oak Bank, M&T Bank, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, PenFed Credit Union, PNC Bank, Popular Direct, PurePoint Financial, Quontic Bank, Randolph-Brooks Federal Credit Union, Regions Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, State Employees’ Credit Union, Suncoast Credit Union, Synchrony Bank, TD Bank, TIAA Bank, Truist Bank, UFB Direct, U.S. Bank, USAA Bank, Vio Bank, VyStar Credit Union, Wells Fargo and Zions Bank.