Finding the right bank for your small business will streamline your finances and separate your personal needs from your business needs. The right small business bank can also allow you to focus on all the other tasks you'll face as a business owner. We looked at loans, deposit accounts, credit cards and business resources to find the best bank for small businesses in each category.
- Best for small business loans: Huntington National Bank
- Best for highest business checking account APY: Lafayette Federal Credit Union
- Best for small business checking account options: Capital One
- Best for avoiding fees: PNC Bank
- Best for small business credit cards: Chase Bank
- Best for branch access in the Midwest: U.S. Bank
- Best for branch access in the Northeast: TD Bank
- Summary of the best banks for small business
- Finding the best bank for your small business
- Methodology for determining best banks for small business
Best for small business loans: Huntington National Bank
Huntington National Bank is not only a top provider of various loans for small businesses, but it’s also a top provider of U.S. Small Business Administration (SBA) 7(a) loans, which are the primary types of loans the SBA provides to assist small businesses. They can be used for real estate, short- and long-term working capital and the purchase of furniture, fixtures and supplies for your business.
Small business products and services: Besides leading in SBA-guaranteed business loans, Huntington National Bank also offers other small business loans. If you need help expanding your business, you might benefit from one of the bank’s business term and real estate loans — and they also offer loans designed specifically for dental and veterinary practices. Huntington National Bank also provides business lines of credit for managing cash flow and purchasing inventory.
In addition, Huntington National Bank offers small business checking and savings accounts, money market accounts, small business insurance and payables and receivables management resources.
Customer experience: Huntington National Bank has a network of more than 1,100 branches and 1,700 ATMs. Customers can bank in-person in Ohio, Colorado, Illinois, Indiana, Kentucky, Michigan, Minnesota, Pennsylvania, South Dakota and West Virginia — or online and through the bank’s mobile app.
Best for highest business checking account APY: Lafayette Federal Credit Union
Lafayette FCU’s Business Performance Checking account requires $1,000 to open and has a $20 monthly maintenance fee — but comes with a 1% APY on balances $1,000 and above. To qualify for the APY, you must either open a Lafayette Federal Business credit card or line of credit or use one or more business service products, which include remote deposit capture, ACH SmartPay, Paychex Payroll or FirstData Merchant Services. This account also includes unlimited transactions.
Small business products and services: In addition to the high APY for its business checking account, Lafayette FCU offers small business owners a basic business checking account that does not earn interest, in addition to money market accounts and CDs. Small business owners can also apply for business credit cards and loans with the credit union, and have the option to offer employee compensation packages through Lafayette FCU, if you enroll your business as a Select Employee Group.
Customer experience: Lafayette FCU requires membership. You’re eligible if you live or work in Maryland, D.C. or Virginia, or become a member of the American Consumer Council for $8 or the Home Ownership Financial Literacy Council for $10. There are 6,000 shared branches nationwide along with an extensive network of fee-free ATMs. You can also bank online or through the credit union’s iPhone or Android mobile apps.
Best for small business checking account options: Capital One
Capital One offers two business checking accounts.
|Account||Spark Business Basic Checking||Spark Business Unlimited Checking|
|Cash deposits||Free up to $5,000 per month, then $1 for each additional $1,000||Free|
|Wire transfers||$15 per incoming domestic or foreign wire $25 per outgoing domestic wire $40 per outgoing foreign wire||First five domestic wires per month are free (after that, $15 per incoming domestic wire and $25 per outgoing domestic wire) $15 per incoming foreign wire $40 per outgoing foreign wire if in foreign currency $50 per outgoing foreign wire if in U.S. dollars|
|Monthly fee||$15 (or $0 if you maintain an average 30- or 90-day minimum balance of $2,000)||$35 (or $0 if you maintain an average 30- or 90-day minimum balance of $25,000)|
Small business products and services: Capital One’s small business products and services also include its Spark business credit cards (which allow you to earn miles or cash back on your purchases), small business loans, merchant services and cash flow management tools.
Customer experience: Capital One customers have access to more than 70,000 fee-free ATMs, which includes Capital One, MoneyPass® and Allpoint® ATMs and more than 770 branch locations. The bank also offers several tools for banking online such as mobile deposits, digital payments through Zelle and online billpay if you aren’t near any branches or ATMs.
Best for avoiding fees: PNC Bank
Of the business checking accounts that PNC Bank offers (Business Checking, Business Checking Plus, Treasury Enterprise Plan and Analysis Business Checking), we’ve chosen its Business Checking Plus as the best for avoiding fees. There’s no monthly maintenance fee for the account’s first three statement cycles. After that, the fee is $20 a month, but there are several options for waiving it:
- Maintain an average of $5,000 monthly collected balance
- Deposit a minimum of $5,000 monthly payment proceeds from a PNC Merchant Services account
- Make $5,000 in purchases with a linked PNC business credit card
- Maintain $20,000 average combined balance in a linked PNC business checking and money market account
There is also no fee to set up overdraft protection for this account.
Small business products and services: PNC Bank offers a wide range of other small business products, such as business credit cards, loans and merchant services. Cash Flow Insight provides tools for operating your business through monitoring, planning and budgeting your spending.
Customer experience: There are 2,300 PNC Bank locations and 18,000 PNC and partner ATMs throughout the U.S. You can also bank online or through PNC’s mobile app, which provides access to Cash Flow Insight and Pinacle, a tool that helps streamline payments you make and receive. Pinacle also gives you access to PNC’s online treasury management services.
Best for small business credit cards: Chase Bank
Chase Bank not only provides popular credit card rewards programs for consumers, but it also provides some of the best credit cards for small businesses. Chase Bank’s Ink line of business credit cards — detailed below — offer some of the highest rewards rates for business-related expenses. Rewards points can be used for cash, gift cards, travel and more. Even if your business expenses are low, you’ll likely find Chase offers more than one credit card option that can fit into your finances.
|Card||Ink Business Unlimited® Credit Card||Ink Business Cash® Credit Card||Ink Business Preferred℠ Credit Card|
|APR||0% Intro APR on Purchases for 12 months (then 13.24% - 19.24% Variable APR after that)||0% Intro APR on Purchases for 12 months (then 13.24% - 19.24% Variable APR after that)||15.99%-20.99% Variable APR|
|Rewards||Earn unlimited 1.5% cash back on every purchase made for your business||Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year. Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other card purchases with no limit to the amount you can earn.||Earn 3 points per $1 on the first $150,000 spent in combined purchases on travel, shipping purchases, Internet, cable and phone services, advertising purchases made with social media sites and search engines each account anniversary year. Earn 1 point per $1 on all other purchases—with no limit to the amount you can earn.|
In addition, Chase Bank offers co-branded Southwest and United credit cards.
Small business products and services: Chase Bank also offers small business loans and lines of credit, business checking and savings accounts, equipment and trade financing, merchant services and resources for starting, managing and growing your business.
Customer experience: Chase Bank has more than 4,700 branches and 16,000 ATMs. You can also access additional services online and through the bank’s mobile app.
Best for branch access in the Midwest: U.S. Bank
U.S. Bank is our first choice for small business owners located in the Midwest because of its large branch and ATM network around the U.S. — including throughout the heartland. It offers a vast selection of loans, and its Silver Business Checking Package comes with no monthly fee, a rare benefit you won't find at many other banks.
Given the importance of branch access to a strong business banking experience, U.S. Bank's locations make it a better choice for businesses operating in areas that may be neglected by the other national banks. In addition to participating as a lender in the SBA Express loan and 7(a) loan programs, U.S. Bank has its own loans for business development, commercial real estate and capital equipment.
Small business products and services: U.S. Bank also has three tiers of checking options for businesses, as well as a nonprofit checking account and a premium business checking account. Other business products and services include loans, credit cards, money market accounts and cash management and payroll services.
Customer experience: With one of the largest ATM networks in the U.S. and thousands of branch locations, you don’t have to be limited to living in the Midwest to get the most out of U.S. Bank’s business services. U.S. Bank also offers online banking and banking through its mobile app. You can also contact customer service 24/7 by phone.
Best for branch access in the Northeast: TD Bank
TD Bank is one of the 10 largest banks in the U.S. and has most of its more than 1,200 branch locations in Northeastern states including Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Vermont.
Whether you're looking to expand your business with additional equipment purchases or new real estate, TD Bank offers loans with fixed rates based on your credit rating. More detailed information will require visiting a branch and speaking with a banker about your specific needs.
Small business products and services: TD Bank’s Business Premier Checking account is one of the best available for the value. It includes higher monthly limits on your free transactions and cash deposits, a lower transaction fee and discounts on the bank's merchant services. TD Bank also offers small business loans, credit cards and prepaid cards as well as online accounting, payroll and merchant services.
Customer experience: TD Bank has over 1,200 branch locations and 700 ATMs. TD Bank also offers Small Business Online Banking and its mobile app for online accounting and making and receiving payments.
Summary of the best banks for small business
|Small business loans||Huntington National Bank||Top provider of U.S. Small Business Administration (SBA) 7(a) loans and other small business loans|
|Highest business checking account Annual Percentage Yield (APY)||Lafayette Federal Credit Union||Business Performance Checking earns 1% APY ($1,000 minimum opening deposit)|
|Small business checking accounts||Capital One||Two small business checking accounts with unlimited free business transactions and waivable monthly fees|
|Avoiding fees||PNC Bank||Business Checking Plus includes multiple ways to waive monthly fee and has no overdraft protection fee|
|Small business credit cards||Chase Bank||Ink line of business credit cards offers various reward points and cash back options|
|Small businesses in the Midwest||U.S. Bank||Vast number of branches and ATMs in the Midwest|
|Small businesses in the Northeast||TD Bank||1,200+ branches, with a large number in the Northeast|
Finding the best bank for your small business
Many banks are ready to provide support to local businesses, so it's important to know how to evaluate your small business banking choices. Keep a few basic principles in mind as you continue your search for the best bank for your business.
- Determine your needs: Banks provide businesses with three key products: loans, deposit accounts and payment processing. Breaking down your banking requirements along these categories can help you determine which bank is the best fit for your financial situation and business patterns.
- Consider local: Like many aspects of operating a business, an effective banking relationship relies on cultivating personal relationships with your partners. Finding the best bank for a small business might mean shopping locally. While online banking and lending options can be helpful to people with lower credit scores, being able to meet with a banker in person can lead to more personalized services and terms that are more tailored to your specific needs.
- Be flexible: While doing all your banking in one place can greatly simplify your finances, there's no reason to accept your current bank's solution to your business’s every financial need. For example, one bank might provide a better business credit card while another offers better terms on a commercial lease. As your business expands and your operating model changes, the way you need to handle money will probably change too. Being ready to reassess your banking setup is important to avoid stifling your growth at a key moment.
Methodology for determining best banks for small business
To find the best banks for small business, ValuePenguin looked at financial institutions from small community banks and credit unions to traditional brick-and-mortar banks and online banks. We update our list on a regular basis to ensure we’re providing readers with the most recent information.
We determined our list and rankings by considering the following factors:
- Small business products and services: The most heavily-weighted feature of the best small business banks are the number and quality of products and services offered specifically to small business owners. This includes options for small business checking accounts, business credit cards and business loans. Banks with free or low-fee accounts and low minimum requirements, and low-fee/low-APR loans and credit cards are ranked higher than those that offer products with monthly or maintenance fees and high APRs for financing.
- Small business benefits: Banks that also provide extra resources, such as tools, business software and guides for payroll and taxes that help small business owners manage their businesses are also ranked higher.
- Accessibility: It is crucial for small business owners to access not only the bank or credit union for banking purposes but also customer service when there are questions or assistance is needed. We considered only banks and credit unions that are available nationally, online or through mobile apps.
- FDIC-insured and NCUA-insured: It’s important for your business banking to be protected by FDIC and/or NCUA insurance in the case your financial institution were to fail. As such, we only included FDIC-insured and NCUA-insured banks and credit unions on our list.
What is the best bank for small business?
The best bank for a small business will vary depending on what you need to grow and manage your business. If you need access to loans or lines of credit, you might choose the bank that offers the best small business lines. Likewise, if you’re looking for small business credit cards to use for making purchases and earning rewards, the bank offering the best credit cards for small businesses might be the best bank for you.
What is the best bank for small business checking?
We’ve determined that the best bank for small business checking, based on our methodology, is Capital One because it offers unlimited business transactions. Most other banks and credit unions carry limits to the number of transactions you can have each month, which can lead to racking up extra transaction fees. Plus, Capital One offers a range of other small business services and products that can work alongside the checking account at either low or no fee.
Which is the best bank for small business loans?
When considering a small business loan, it’s important to weigh the types of loans that a bank offers as well as what you need the loan for, whether it’s for start-up costs or expansion. We determined Huntington National Bank to be the best bank for small business loans because it not only leads in SBA loans at the moment, but it offers other types of loans that might be helpful for small business owners.