The 13 Best Digital Banks For Small Business (USA)

digital banks for small business

Finding a good and reliable bank for your small business or freelancing can be challenging. Traditional banks usually snub you because you’re too small. So, why not try a digital bank?

There are plenty of digital banks that focus not only on personal accounts but also on small businesses. It’s easy to get an account, and you can start banking straight away with a host of business, tax, spending, budgeting, and analytics tools. 

We found the best digital banks for small businesses on the US market. They have no hidden fees. In fact, they charge hardly any fees at all, so that you can spend your money on things that really matter. 

Axos Bank 

axos bank
  • Basic Business Checking
  • Business Interest Checking
  • Business CDs
  • Up to 0.81% APY
  • Free bill pay and image statements
  • Dedicated Relationship Managers
  • $100 welcome bonus

Axos Bank was launched more than 20 years ago and offers not only small business, but also personal and commercial bank accounts. It’s the closest to traditional banks in terms of financial products on our list of digital banks for small businesses. 

They have two types of checking accounts – Basic and Interest. The Basic checking account has no monthly maintenance fees, gives you 50 checks for free and up to 200 free debit, credit, or deposit items for free. You also get unlimited ATM fee reimbursements and a dedicated relationship manager. 

On the other hand, the Interest Checking earns you up to 0.81% APY and has no monthly maintenance fee if you maintain an average daily balance of at least $5,000. It does have a $100 minimum opening deposit requirement.

Axos also has a range of business savings accounts, certificates of deposit, and commercial lending that includes revolving lines of credit and asset-based lending options. 

They’re a good choice for small business owners looking for competitive interest rates, low to no fees, and convenient access to their personal, small business, and commercial banking accounts, as well as commercial lending.

>> Read our Axos Bank review

Brex

brex
  • Free and Premium account ($49/m)
  • Easy online application
  • No minimum balance
  • No account fees
  • Send free ACH & wires worldwide
  • Unlimited users and cards
  • Builds business credit
  • FDIC insured
  • Accounting integrations
  • Expense tracking

Brex was founded in January 2017 and has since become a popular choice for many small businesses, offering them increasing flexibility where other business accounts and credit lines can’t.

They have a free and a premium account that costs $49 per month and adds functionalities such as automated invoice and payment processing and spending controls that save you time and money.

Every small business owner or freelancer knows that staying on top of your expenses can make or break you; that’s why with Brex, you can track them in real-time and issue cards, track transactions, approve them, or follow up on them.  

Brex effortlessly integrates with your accounting tools and makes it easy to automate reconciliation and avoid unnecessary manual work and, therefore errors. 

E-commerce sellers can get instant payouts on Shopify, Square, Amazon, Stripe, and more. Instant payouts can, in turn, boost your Brex credit card limit with the ability to spend your earnings before they’re deposited into your account.

Grasshopper Bank

grasshoper bank
  • No hidden fees
  • No minimum balance
  • Mobile check deposits
  • Unlimited ACH and wire transfers
  • Forecasting tools
  • FDIC insured

Grasshopper Bank was founded in 2016 and is said to be the first digital, commercial bank to launch in the US. The bank has a straightforward, secure, and user-friendly interface that makes it easy to transfer money, approve transactions, add users and manage their roles and permissions. 

The platform has forecasting tools that let you quickly run if-then scenarios with your business expenses to see the effects on the runway and fundraising needs. 

Besides having hardly any fees, the best thing about this digital small business bank is that you’ll get a dedicated business banker who will support you in your endeavor. 

hatch 

  • Easy to open online
  • $10 per month
  • Geared especially towards SMEs
  • No hidden fees
  • No NSF fees
  • Up to 5% cashback
  • Free Allpoint ATM withdrawals

Hatch rolled out their business checking account recently and already amassed more than 4,000 users. They serve a wide variety of small businesses, including first-time entrepreneurs. 

It will only take you a few minutes to apply for a Hatch account. For $10 per month, you’ll have almost no other fees that we’ve come to expect from established banks. Plus, you can get cash back at participating merchants. For instance: 4% on restaurants, 5% on car rentals, 4% on hotels, and 1% on gas. 

Eligible checking account customers can also get easy access to a line of credit via a Visa card that has 18-24% APR and no other hidden fees. 

Lending Club (Radius Bank)

  • $10 monthly fee
  • $100 minimum to open an account
  • No monthly fees for balances over $5,000
  • Earn up to 0.10% APY
  • Unlimited ATM fee reimbursements
  • Mobile check deposits
  • FDIC insured

Radius has merged with LendingClub, and now the new name is LendingClub Banking. They offer personal, business, and institutional accounts, including lending, savings and checking accounts, and much more. 

LendingClub is part of two shared deposit ATM networks – MoneyPass and NYCE. That means you can use any ATM of other partner institutions to make deposits. The good news is that all ATM withdrawal fees are reimbursed at the end of each month.

Your deposits are FDIC-insured up to $250,000 if something were to happen with the bank. Every client also gets 1% cashback, earns up to 0.10% APY, $50 for referring your network to Radius, and access to their Marketplace.

The Marketplace has some cool apps that help you automatically save money for your goals, for instance. There’s also the bill-negotiating service Billshark that enables you to lower your bills to service providers like cable and internet.

If you opt for their small business checking account, you’ll get the ability to make and send professional-looking invoices, real-time transaction alerts, bill payments, mobile check deposits, transfers, wires, etc.

lili 

lili bank
  • Free account
  • Easy to register online
  • No minimum balance
  • Free ATM withdrawals
  • Early paycheck
  • Deposit check by mobile
  • Expense reports
  • No overdraft fees
  • No FX fees

lili was designed with freelancers and small business owners in mind. You can do all your banking, invoices, taxes, savings, and more in the lili app. There are no account fees, and you get a Visa debit card, early payment options, and automatic savings.

The free account offers essential tax planning tools, an easy “swipe left or right” expense management process, and an extensive ATM network.

Everyone who’s over 18 and has a valid SSN can open a bank account with lili that won’t affect their credit score. 

If you hate fees (who doesn’t), you’ll be happy to know that apart from the free account, there are no foreign transaction fees or even overdraft fees. Plus, lili doesn’t require you to make an initial deposit. 

For someone who wants to organize their finances, lili helps them focus on what matters – producing meaningful work. Although the service is mobile-only, it makes up for it with its no-fee features.

>> Read our lily review

NorthOne

northone
  • Hassle-free deposit account
  • Freelance, small business, startups
  • Load cash at one of 90k Green Dots
  • Mobile check deposits
  • Sort money into Envelopes
  • Local customer support

NorthOne was founded in 2017 by Eytan Bensoussan and Justin Adler. It was tailor-made using “an army of accountants and bookkeepers” for freelancers, small business owners, and startups. 

Apply for an account in minutes without waiting in line and put your finances on autopilot.  Get automatic categorization for purchases seconds after you leave the store or website and see a full history and manage receipts with ease. 

Almost 200,000 businesses use NorthOne to manage their day-to-day finances and to keep their money safe. Your deposits are, of course, FDIC insured up to $250,000 through The Bancorp Bank, NorthOne’s partner bank. 

But perhaps the best thing about NorthOne is its customer support. You can reach them by chat, email, or phone and not have to wait on hold by picking a time when they’ll call you. How good is that? 

Novo 

novo bank
  • No monthly maintenance fees
  • Easy to apply in under 10 minutes
  • ATM fees reimbursed
  • $50 initial deposit
  • Free ACH transfers
  • Supports Wise, Xero, Quickbooks…
  • FDIC insured

The Banker magazine named Novo the “Most Innovative Bank in North America” in their 2021 Innovation in Digital Banking Awards.

The company was founded in 2016 by Michael Rangel (CEO) and Tyler McIntyre and has headquarters in New York, but the app was launched in 2018. 

It’s a good choice for small businesses and freelancers because you get all the tools that small businesses need with the safety and FDIC insurance of a traditional bank. 

For example, there’s a great tool that’s called Novo Reserves which allows users to set money aside in the app for taxes, profit, payroll, and other significant business expenses. This tool is great for budgeting and setting goals for your business.   

Unlike lili, Novo does charge fees for overdraft ($27), but you can easily notice when you’re nearing a low balance with alerts and their smaller-items-first policy.

Although we like the simplicity of the app and the platform as a whole, we’d like to see more options. With Novo being an extension of an already established bank, they only offer one type of account, and that’s their business checking account.

>> Read our Novo Bank Review

Mercury

mercury bank
  • Aimed at US startups
  • No minimum deposit 
  • Virtual cards
  • Mercury Raise program
  • API access

Mercury designed its online banking service for start-ups and tech-based businesses. It was launched in April 2019 by Immad Akhund, Max Tagher, and Jason Zhang and backed by lead investor Andreessen Horowitz.

Not only does this fintech provide checking and savings accounts, but also different financial tools like investing. For instance, Mercury Treasury will put your extra cash into the US. 

Government securities and money market funds for improved yield and security where you can get up to 0.1% APY for your idle money.  

After registering an account, each account user gets a physical Mastercard issued, provided they are in the United States. The card usually arrives within 8-10 business days. The card doesn’t have international transaction fees and can be connected to Apple Pay. 

Both your savings and checking accounts are insured up to $250,000 with FDIC.

>> Read more in our Mercury review

Oxygen

oxygen bank
  • Cashback on rideshare, gas, and more
  • Tag expenses
  • Get paid early
  • Virtual cards with spending controls
  • Business Savings Account
  • Form an LLC inside the app

Oxygen was founded in 2018 by Hussein Ahmed and offers a business account for freelancers, sole traders, digital nomads, and small businesses. There are no transaction fees, no minimum balance or minimum deposit, up to 5% cashback on shipping and gas, for example, but also no monthly or annual fees.

If you or your business have a US address, you are eligible for the Oxygen account. But Oxygen can also help you open an LLC if you need one. You can rush through the incorporation process in the Oxygen app with their turn-key service – wherever you are in the US.

Although Oxygen is not actually a bank, its banking services are provided by The Bancorp Bank, and deposits are insured up to $250,000 by the FDIC.

To summarize, Oxygen offers a free small business account with no fees, no minimum balance, and on top of that get’s you 5% cashback on business purchases and free ACH transfers. 

>> Read our Oxygen.us review.

Revolut

revolut
  • Multicurrency account
  • Free international and local payments
  • Real (interbank) exchange rate
  • Unlimited accounts
  • View and control payments and transfers
  • Set spending limits
  • Block and freeze cards
  • Accept payments on your website

More than 500,000 businesses worldwide already trust Revolut with their business account. And it’s easy to see why. They offer plenty of features that freelancers and small business owners will appreciate. Revolut for business is available in 48 countries, including the United States, the UK, Australia, etc.

You can make unlimited bank account in up to 28 currencies. If you deal with multiple currencies in your business ventures, you should really look no further. 

Prices start from $0 up to $39.99 per month for freelancers. Companies can also get a free account or pay up to $149.99/m as they grow and need to raise their limits. 

Small business owners and freelancers can sign up using an email address with a laptop or phone in minutes and have the account approved in 24 hours or less. You’ll automatically get both a GBP and a Euro bank account with a sort code, account number, and an IBAN.

For all the reasons mentioned, we recommend Revolut if you are doing business with international customers or you need a bank account in a currency that’s not USD. 

>> Read our Revolut Business review.

Rho Business Banking

  • Free to open
  • No monthly fees
  • Checking account
  • Treasury Management Account
  • Up to 1.75% cashback
  • Expense management
  • Quickbooks, Wave, and Sage integration
  • Dedicated business banker

Rho is a modern business bank account that helps entrepreneurs control their spending with state-of-the-art analytics and budgeting tools and charges hardly any fees.

There are no monthly maintenance fees, no ACH fees, no international USD wire fees, bill pays, and additional cards, and users are also free. Foreign transaction fees are among the lowest on the market; only 0.5% for most currencies and 0.75% for Asia-Pacific currencies.

If you need cards for you and your team, Rho can provide free unlimited cards that are either virtual or physical with built-in controls like smart limits and restrictions. The only thing you can’t do is withdraw cash from an ATM, as Rho doesn’t support that yet. 

>> Read our Rho Business Banking review

Wise

wise
  • Easy to open online
  • For small businesses and freelancers
  • Multicurrency account
  • Cheap international transfers
  • Xero integration
  • Business Mastercard
  • Hold 55+ currencies

It’s easy to open a Wise (TransferWise) account that will offer you plenty of features and benefits no matter if you’re a freelancer or you own a small business. 

Wise lets you make one-off payments, recurring payments, and even mass payouts with excellent rates. By getting a Wise account, you’ll get local bank account details for eight countries, including GBP, EUR, USD, AUD, and others. 

Your team can spend in-store and online with no foreign transaction fees with virtual and real debit cards around the world. 

Your business can save a fair amount of money with Wise’s renowned low-fee transfers when you’re paying for contractors, freelancers, or importing goods from overseas. 

If you hate to leave your hard-earned wealth on the table for the big banks to scoop up, a simple Wise application is a few clicks or taps away. Their transparent fee structure will not leave you guessing.

>> Read our Wise for business review

The bottom line

It doesn’t have to be hard to find a digital bank that supports small businesses and freelancers. If you choose any of the banks from our list, you’ll know exactly what you’re getting; a capable bank account focused on you that offers tools to make your life easier and lets money stay in your pocket (and not the bank’s). 

Traditional, brick and mortar banks will start bleeding customers if they don’t adapt to digital banking and start focusing on rising numbers of young entrepreneurs that work either as freelancers or open small businesses.