7 Best Banks for Startups in November 2024

With the rise of digital banking, entrepreneurs have more options than ever before. However, it’s important for startup companies to consider their specific needs when choosing a business banking partner. Overall, entrepreneurs need a bank that can provide flexible and affordable solutions.

In our review of the best banks for startups, we explore some of the top business checking account services in 2024. We’ve also included a variety of neobanks, which are financial technology platforms that partner with FDIC-insured banks. Check out our picks below.

Unsure if Mercury is right for you? Continue reading our comprehensive review below to learn more and explore your options.

Business banking is a fundamental requirement for every startup and is a prerequisite for taking care of payroll, paying business insurance, collecting money, and having a merchant account to accept credit card payments. 

Your business type will determine the best business bank account or startup banking platform you might want to consider.

7 Best Business Checking Accounts for Startups

1. Mercury: Best bank for startups
2. Lili: Best bank for small businesses
3. Relay: Best for streamlined financial management
4. Novo: Great for ecommerce businesses
5. Brex: Optimum for venture-backed startups
6. Chase Bank: Good for in-person banking 
7. North One: Easy payment processing integration

Continue reading our full review of the best business bank accounts for startups below. You’ll find additional information about each banking platform, including fees, accessibility, notable features, and more. By the end of our comparison, you’ll be able to choose which one is right for your venture.

1. Mercury — Best Bank for Startups Overall

• Monthly Fees: $0-$350 per month 
• Minimum Balance: None
• APY: Up to 5.30%
• FDIC Insurance: Up to $5 million
• Account Opening Bonus: $200

Mercury is a robust digital banking platform engineered for startups, particularly high-growth tech companies. They prioritize providing a banking experience that complements the fast-paced, innovative nature of the startup ecosystem. For entrepreneurs seeking the best bank to open a business account, Mercury offers a compelling package of features tailored specifically for startup needs.

A significant advantage of Mercury’s platform is their innovative sweep network system: customer deposits are distributed across a network of FDIC-insured banks, rather than being held by a single banking institution. Startups need assurance that their operational cash and payroll funds are secure, and a standard $250,000 FDIC insurance often isn’t enough. Mercury’s sweep network enables them to offer up to $5 million in FDIC insurance through their partners Evolve Bank & Trust and Choice Financial Group.

Pros

Cons

• No physical locations — it’s entirely digital
• No option to deposit cash
• Not available to sole proprietorships

Pricing

Mercury offers three business banking account options: Mercury ($0/month), Mercury Plus ($35/month), and Mercury Pro ($350/month).

Who Is Mercury Best For?

Mercury is ideal for tech startups, digital entrepreneurs, and those who value programmable banking and advanced integrations. Their customer-focused approach and commitment to modern banking make them a standout choice for modern, high-growth startups.

Disclaimer: Mercury is a financial technology company, not a bank. Startup banking services are provided by Choice Financial Group and Evolve Bank & Trust, Members FDIC.

Read our full Mercury review to learn more.

2. Lili — Best for Small Businesses

• Monthly Fees: $0-$55 per month 
• Minimum Balance: None
• APY: 4.15%
• FDIC Insurance: Up to $250,000
• Account Opening Bonus: $300

Lili’s is a fintech company that offers digital banking services for small businesses and early stage startups. The Lili platform operates as an all-in-one banking solution, combining tax, accounting, and banking tools all on one intuitive dashboard. When considering business banking for startups, Lili’s comprehensive approach stands out for its ability to simplify financial management for new entrepreneurs.

The Lili banking platform offers a features, including an automatic “savings” tool for business taxes, as well as a service that prefills users’ 1040 Schedule C form annually; this saves time when you need to file it with your accountant or with the IRS.

Moreover, Lili users have the ability to get paid up to two days earlier on certain ecommerce platforms (e.g., Shopify, etc.). 

Pros

Cons

• Funding limitations can be very inconvenient unless you are a solopreneur or microbusiness (e.g., $5,000 a month in ACH Inbound, etc.)
• No 24/7 phone support
• Not for foreign owners of US businesses
• No checks available

Pricing

Lili’s online banking platform offers four packages — Lili Basic ($0/month), Pro ($15/month), Smart ($35/month), and Premium ($55/month).

Who Is Lili Best For?

Lili is best for microbusinesses, freelancers, and solopreneurs due to its low fees and banking limitations.

Disclaimer: Lili is a financial technology company, not a bank. Banking services provided by Sunrise Banks N.A., Member FDIC. The Lili Visa® Debit Cards is issued by Sunrise Banks N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc.

Read our full Lili review to learn more.

3. Relay — Best For Streamlined Financial Management

• Monthly Fees: $0-$30
• Minimum Balance: None
• APY: 1% to 3%
• FDIC Insurance: Up to $3 million
• Account Opening Bonus: None

Relay is an online banking and money management platform. We placed it as one of the best small business banking options because of its very low fees, high flexibility, premium customer reviews, and rewarding accounting and payment processing integrations. For those in search of a startup business bank account that offers robust financial management tools, Relay provides an attractive solution.

Relay offers two business checking accounts, both of which include no monthly checking account fees, no minimum balance requirements, up to 50 virtual or physical debit Visas, up to 20 business accounts or sub-accounts for easy budgeting, and much more. 

It also has a decent amount of third-party integrations, including Quickbooks Online, Xero, Expensify, Gusto, Plaid, and Venmo. 

Pros

Cons

• Relatively high monthly maintenance fee for the Pro plan, although this is made up through unlimited fee-free transactions.
• No option to deposit cash
• No brick-and-mortar locations

Pricing

Relay offers two banking packages for small businesses: Relay ($0/month) and Relay Pro ($30/month).

Who Is Relay Best For?

Relay is ideal for all small businesses, but it should be noted that its accountancy and payment-processing integrations make it particularly effective for both ecommerce and accounting businesses.

Disclaimer: Relay is a fintech company, not a bank. It partners with Thread Bank, Member FDIC, to provide banking services.

Read our full Relay review to learn more.

4. Novo — Great for Ecommerce Businesses

• Monthly Fees: None
• Minimum Balance: None
• APY: None
• FDIC Insurance: Up to $250,000
• Account Opening Bonus: None

Novo is a digital banking platform built for businesses to open business bank accounts, get debit cards, secure funding, and more with no monthly fees. Additionally, Novo’s startup business account has no fees for international incoming wires, mailed checks, or ACH transfers.

One of the largest benefits of Novo is its high number of online service discounts. These are highly diverse and include bookkeeping services and online ad discounts, which provide startups with valuable services they need to launch and grow their businesses.

Pros

Cons

• Novo is only available for US registered businesses and sole proprietorships that are owned by US citizens.
• Some Novo account apps’ advanced functionalities may incur fees charged by Novo’s partners (e.g., Wise integration, etc.)
• Novo is not available to small business owners who work with cryptocurrencies, privately-owned ATMs, or gambling.

Pricing

Novo’s banking services are free, requiring no monthly fees to maintain.

Who Is Novo Best For?

Due to its high number of discounts, integrations, and almost non-existent fees, we believe Novo is the best small business banking platform for ecommerce businesses.

Disclaimer: Novo is a fintech platform, not an online bank. Banking services provided by Middlesex Federal Savings F.A.; Member FDIC.

Read our full Novo review to learn more.

5. Brex — Built for Venture-Backed Startups

• Monthly Fees: $0-$12+
• Minimum Balance: $50,000
• APY: 4.88%
• FDIC Insurance: Up to $6 million
• Account Opening Bonus: 10,000 points (conditions apply)

Brex is a cash management account ideal for venture-backed tech startups; its extraordinarily low fees and large number of bonus-based initiatives make it a great business banking platform.

Brex is an exciting new option for the right startup. It does away with some of the features of traditional business banking while adding other features that certain companies will find very appealing.

Pros

Cons

• Needs a pre-existing business bank account — you must connect at least one Linked Account to your Brex account, these are required to be business bank accounts
• Must be in business for six months and be venture-backed to be considered for an account
• Cannot be used to withdraw money from an ATM
• Cannot deposit cash into your Brex account

Pricing

Brex’s banking services are available in three package types: Essentials ($0/month), Premium ($12/month), and Enterprise (custom pricing).

Who Is Brex Best For?

We found that Brex was the best online business banking option for tech startups and other ecommerce businesses.

Disclaimer: Brex is a fintech company, not a bank. Brex partners with multiple FDIC-insured program banks.

Read our full Brex review to learn more.

6. Chase — Good for In-Person Banking

• Monthly Fees: $0-$95
• Minimum Balance: $2,000 to $100,000
• APY: 0.01%
• FDIC Insurance: Up to $250,000
• Account Opening Bonus: $300

Chase is one of the most “conventional”, brick and mortar startup bank account options on our list. It operates in similar ways to other eminent bank and money management account services (e.g., US bank, etc.).

Chase’s business checking account offers “everything you will need” as a small business.

They offer no minimum deposit requirement for opening an account, as well as convenient access to 17,000 ATMs and more than 5,200 branches.

Pros

Cons

• Business savings account interest rates are on the lower end.
• Premium business checking is expensive — their Platinum Business Checking account costs approximately $95 per month.
• No free business checking account option — the Business Complete Checking account incurs a $15 monthly fee unless otherwise waived.

Pricing

Chase offers three business banking options: Chase Business Complete Banking ($15/month), Chase Performance Business Checking ($30/month), and Chase Platinum Business Checking). Each of these packages offer waived monthly fees if customers maintain a specific minimum balance.

Who Is Chase Bank Best For?

You can “bank” on Chase bank (pun intended) as being the best financial institution for startups and entrepreneurs for those looking for an in-person experience at a branch.

Read our full Chase Business Checking Account review to learn more.

7. North One — Easy Payment Processing Integration

• Monthly Fees: $0-$20
• Minimum Balance: None
• APY: None
• FDIC Insurance: Up to $250,000
• Account Opening Bonus: None

North One is an innovative banking solution. The company aims to provide a “connected bank account,” that seamlessly works within a business’s existing tech stack.

North One offers all of the standard business banking features you’d expect along with a variety of accounting and ecommerce integrations. But, North One’s largest selling point is its high number of fintech integrations. This includes expedited payment integrations with Amazon Pay, PayPal, Shopify, and Stripe. 

Pros

Cons

• Sending and receiving domestic wires is relatively expensive to other providers (i.e., $15 per wire, etc.)
• North One is not available to foreign owners of US businesses. 

Pricing

North One business banking comes in two packages: North One Standard ($0/month) and North One Plus ($20/month).

Who Is North One Best For?

North One is best for businesses that need a high number of fintech integrations (e.g., online businesses, ecommerce businesses, etc.).

Disclaimer: NorthOne is a financial technology company, not a bank. Banking services are provided by The Bancorp Bank, Member FDIC.

Read our full NorthOne review to learn more.

Why Open a Business Bank Account?

One of the most important aspects of running an incorporated startup is opening a business bank account. Besides the financial benefits, this can ensure that you do not accidentally pierce your corporate veil. 

“Piercing the corporate veil” refers to a legal situation in which the courts get rid of your incorporated benefits, including your limited liability under the law. This means that you would potentially be risking your personal assets if your startup happens to accrue debt. 

Having a startup bank account protects the owners because it ensures that all business-related expenses are kept separate from personal expenses. From a legal standpoint, this can act as proof that you have been treated your business and yourself as separate legal entities. 

There are additional benefits to opening a business bank account. It helps you build business credit, establish a working relationship with the bank, and helps ensure you do not pierce the corporate veil.

How to Choose the Right Startup Bank

When choosing a business bank account, several factors come into play. It’s essential to consider not only the basic banking services, but also the additional features and support that can help your venture thrive.

• Fees and requirements: Look for accounts with low or no monthly maintenance fees. Some business banks waive these fees if you maintain a minimum balance or meet certain transaction requirements. Be aware of any opening deposit minimums or transaction limits that could affect your business operations.
• Insurance: Ensure your deposits are protected by FDIC insurance, which typically covers up to $250,000 per depositor. The collapse of Silicon Valley Bank in 2023 highlighted the importance of understanding your bank’s financial stability and insurance coverage.
• Additional business tools: Many banks offer valuable tools like invoicing software, payroll services, or cash flow management features. These can streamline your financial operations and save you time and money on separate software subscriptions.
• Integrations: Check if the bank’s platform integrates with your existing accounting software or other tools. Seamless integration can significantly reduce manual data entry and improve accuracy in financial reporting.
• Customer service: Responsive and knowledgeable customer support can be crucial — especially for small businesses. Look for banks that offer dedicated support, extended hours, and multiple contact methods like phone, email, and chat.
• Funding options: Some banks provide access to business loans, lines of credit, or other financing options. Having these readily available can be beneficial if you anticipate needing additional capital for growth or managing cash flow.
• Business credit cards: Many banks offer business credit cards with rewards programs tailored to common business expenses. These can help you manage expenses while potentially earning cash back or travel rewards.

Ultimately, the right business bank account should align with your specific needs and growth plans. Take the time to compare options and don’t hesitate to ask questions about features that matter most to your business. Remember, a good banking relationship can be a valuable asset as your startup grows and evolves.

Our Choice for the Best Business Bank Account

Choosing the best banks for startups and entrepreneurs was no easy feat; however, with loads of determination and countless hours of analysis, we feel sure we’ve picked the best business checking accounts for startups and entrepreneurs. 

The top two banking options, Mercury and Lili, are the most notable solutions for startups and entrepreneurs because of what they offer in particular.

Mercury is the best business bank for tech startups due to its customer-focused approach, tech integrations, and powerful digital tools.

Lili is the best digital banking platform for small businesses due to its tailored features and hassle-free user experience.

Chase is huge in terms of branch locations and the options they provide businesses for the long haul. Many businesses get started by opening a Chase business bank account and then staying with Chase as their company grows. They have case studies on their website to inspire the entrepreneurial spirit, and we feel they really get the mindset of investors overall.

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