How to choose a business bank account: 101 guide 

Key takeaways:

• In 2026, companies want more than ever from their bank account, with 85% of business owners preferring an account that offers digital features¹.

• To choose the right business bank account, consider software integrations, Federal Deposit Insurance Corporation (FDIC) insurance, fees, minimum balance requirements, and account type.

• Airwallex offers a modern, technology-driven business account, with a focus on companies that operate globally. Businesses can set up a multi-currency account to cost-effectively receive, hold, and send money across borders.

Banking is no longer just the domain of traditional financial institutions, and customers’ expectations are changing. A full 85% of business owners say they prefer a bank that provides digital solutions, up from 79% in 2024¹. New high-tech features are good news for ambitious companies, but the diversity on offer makes it harder than ever to understand how to choose a business bank account for your small business. 

This article covers everything you need to consider when comparing the best business bank accounts, including how to examine your needs, different kinds of accounts and banks on offer, features and costs to look out for, and how to apply.

Assessing your needs

A freelancer just starting and a startup with millions of dollars in seed funding most likely have distinct priorities and requirements. This is why it’s crucial to assess your needs before choosing a business bank account.

Transaction volume vs. cash deposits

Transaction volume includes all the payments, deposits, and withdrawals you make in your account, while cash deposits refer to the money you use to fund that account. Banks may set an upper limit on monthly transactions or cash deposits, so it’s important to know your requirements.

Also, businesses with a low transaction volume may benefit from an account with no maintenance fees and higher transaction fees, while businesses with a high transaction volume will likely prefer the opposite.

First-time vs. scaling businesses

First-time businesses have different requirements from established companies that are actively growing. The former generally prioritize keeping costs low and accessing basic features (like a checking account with a card and mobile app), while growing businesses often benefit from more advanced tools.

For instance, Airwallex excels in cost-effective currency conversions, making it one of the best business bank accounts for international business. It offers multi-currency accounts to hold foreign currency, competitive exchange rates, and useful payment features such as global invoicing. 

Credit card offerings

Most businesses want to use their bank account for card purchases, whether for client trips, equipment purchases, or subscription services. Sometimes a debit card will suffice, but a credit card is invaluable for greater security and cash flow.

Some aspects to consider are:

• Number of cardholders allowed

• Permissions for multiple cardholders

• Availability of virtual cards 

• Fees when using credit cards abroad 

Choosing the right bank for your business: traditional vs. digital vs. credit union

Today, there are more bank account providers than ever before, falling into three main categories.

Traditional banks

Starting with the obvious, we have traditional banks – this category includes household names like JPMorgan Chase, Citibank, and Wells Fargo.  

Traditional banks may be the best choice for companies that handle a lot of cash or for anyone who wants in-person customer service at a physical branch.

Digital-first

Traditional banking pitfalls have led to the emergence of a whole new breed of financial institution: digital-first financial companies. The best online business bank accounts offer ultra-convenient platforms that let businesses set up and run their accounts directly from their devices.​

They often feature modern technology. As a digital-first fintech, Airwallex has an advanced expense management system that provides real-time insights into employee spending worldwide. Plus, employees can submit their expenses through the app.

Credit unions

Whereas banks offer accounts to any businesses that meet their financial requirements, credit unions generally serve a specific group (such as customers in certain professions or residents of a particular area). In return, they may offer accounts with lower costs or more accessible lending.

Credit unions can be a good fit for smaller businesses or individual entrepreneurs, especially if they’re seeking flexible lending, but they tend to offer limited features for global businesses. 

Key features to consider when choosing a business bank account

Now, it’s time to get into the meat of the issue. What should businesses be looking for when choosing a business banking account?

Fees and minimum balance

Some of the most common business bank account fees include:

• Account maintenance fee

• Overdraft fees

• ATM withdrawal fees

• Transaction fees

• Wire transfer fees

Also, some banks have minimum balance requirements, meaning businesses must keep a certain amount in their accounts at all times. Going under this amount may result in a fee or, eventually, account closure.

Software integrations and tools

Integrations can turn a business bank account into a fully-fledged business companion.

Software integrations with accounting tools like QuickBooks and Xero are among the most common, but many business accounts also integrate with payroll systems, eCommerce platforms, expense management software, and more.

FDIC insurance and security

Most people like to think their money is safe once it’s in the bank, but this isn’t always the case. Federal Deposit Insurance Corporation (FDIC) insurance provides an extra security blanket. When banks are part of the network, all their customers get insurance for at least $250,000 of their deposits in case the bank loses it².

Other security features to look for in a business bank account include data encryption, robust account monitoring, automatic alerts, and Multi-Factor Authentication (MFA). 

The type of business bank account

A checking account is a general-purpose account designed for making and receiving most kinds of everyday payments. Some businesses may want to supplement their checking account with a savings account so they can earn interest on their holdings.

A less common account type is a cash management account (CMA), which combines the two. Finally, a merchant account is a different category of account, used in the short term to hold money before it is transferred elsewhere.

How to choose a bank for your small business in 5 steps

Once you have an idea of the kinds of accounts out there, you can start to figure out which one is right for your business and fill out that all-important application. Here’s how to open a business bank account: 

1. Review your monthly activity

Your transaction volume and the types of transactions you make (such as international payments or cash deposits) determine which bank account has the most favorable fee structure.

If you're already operating and want to switch your bank account, simply gather your account statements over the last six months and analyze transaction volume and types. Brand-new businesses will have to make an estimation or forecast instead.

2. Consider your long-term needs

Maybe today your business brings in $5,000 a month, but that doesn't mean revenue will remain that way forever. If you have ambitions to triple that (or more) over the coming years, you should choose a bank account accordingly.

Similarly, there may be certain features you don’t need today that would help your future plans. For example, you may want to expand globally in the future, meaning cost-effective money transfer services would be a valuable feature for your bank account.

3. Review available options and online reviews

Now that you have a basic idea of what you're looking for in a bank account, you can start to create your shortlist. But don’t forget to look at online reviews before you choose “The One.” The Better Business Bureau (BBB) and Trustpilot are both useful resources for third-party reviews and customer service ratings. 

4. Gather your documents

While exact requirements vary, typical documents banks ask for to open an account include:

• Business name

• Mailing address

• Personal details 

• Identification

• Articles of incorporation or organization

• License and permits, if relevant 

5. Apply to the bank

The final stage is to submit your application. Given everything you've already done, this should be a fast, easy process: you simply submit the documents you gathered in the previous step.

Your provider may request further information, including a partnership agreement, certificate of formation, or statement of qualification³.

Access your global potential with Airwallex

An Airwallex business bank account offers all the standard features of a checking account and so much more, with tools to scale your business internationally. These include:

• Competitive foreign exchange rates

• A multi-currency account to send, hold, and receive money in other currencies

• Advanced expense management features to track how your team is spending

• Various ways to receive payments, including payment links and global invoicing

Plus, there are no monthly maintenance fees or minimum transaction volumes to open an account.

Frequently asked questions about how to choose a business bank account

What are the different types of business bank accounts? 

Checking accounts are a standard business bank account, used for everyday transactions. Savings accounts let businesses earn interest on their cash stores, and merchant services accounts are used to hold customer payments before transferring them to a checking account. 

How do I choose the best bank for an LLC? 

To find the best business bank account for LLCs, consider fees, useful features like global coverage or software integrations, and minimum deposit or balance requirements.

Is it better to open a business account online or in person?

Many businesses prefer to open their accounts online for greater flexibility, convenience, and time savings. For owners with questions or complex requirements, it may be better to open an account in person.

Does my business bank account need to be in the same state as my LLC?

There’s no requirement that a business bank account be in the same state as the LLC. However, some banks may impose this rule. Sometimes, banks care about where the LLC does business and not where it is registered.

Can I use my personal bank for my business?

Federal law doesn’t require you to hold a separate bank account for your business. Still, it’s generally considered a best practice to shield you from certain liabilities and prevent the co-mingling of business and personal funds. Many banks prohibit using a personal account for business transactions.  

What is the difference between a Fintech platform and a Real Bank?

Fintech platforms can offer all kinds of money-related services, such as payment processing or investment solutions. But the word “bank” can only be used for institutions that meet banking regulations.

What are “Soft” vs. “Hard” credit pulls for business banking?

In a soft credit pull for business banking, lenders check your credit, usually for pre-qualification purposes, without it appearing on your business credit report or affecting your business credit or future lending applications. A hard credit pull is a more thorough check that providers usually require for a full application, and it will appear on your business credit report and can ding your credit score.

Sources:

1. https://www.usbank.com/dam/en/documents/pdfs/about-us-bank/leading-through-change-shaping-a-legacy.pdf 

2. https://www.fdic.gov/resources/deposit-insurance/faq 

3. https://www.wellsfargo.com/biz/required-documents/