Best banks for small businesses in 2025

Choosing the right bank is one of the most important financial decisions a small business owner can make. In 2025, digital tools, low fees and access to flexible lending solutions are more crucial than ever, especially as over 34 million small businesses across the U.S. continue to drive innovation and job creation, according to the U.S. Small Business Administration.

Whether you’re managing cash flow, securing financing or streamlining day-to-day transactions, your bank should support your business’s growth, not slow it down.

Our team at Bankrate evaluated dozens of financial institutions, from national banks to fintech startups, to find the best options for small business owners in 2025. We’ve considered factors like account features, customer service, lending options and digital banking tools to evaluate the best places to do your small business banking.

Opening a bank account for a small business is an essential step to help manage the business and keep its finances in order. If you’re a small business owner looking to find the right business account, here’s where to get one, what to look out for and how one of these accounts can help you.

Key statistics about small business banking

Best small business bank accounts

Several banks and credit unions offer business checking accounts that are especially suited to small business owners.

Here are some of the top options to choose from, along with what fees to look out for and what perks they come with.

Benefits of a small business banking account

There are five primary benefits of having a business account for your small business that: protection, professionalism, preparedness, purchasing power and tax benefits.

Protect your business

Keeping a business account separate from any personal accounts can help protect business transactions from getting lost or mixed up with a personal transaction.

It’s easier to track expenses and look out for errors when you have all your business transactions in one place. Plus, if you face a personal financial crisis, it won’t negatively affect the business’s credit score.

Keep it professional

Business accounts help give businesses a more professional image. Clients can write checks out to the business, rather than to a personal account.

A professional account may also mean securing better deals for your business, not the least of which is being approved for a business loan. With 70 percent of business owners getting turned down for a loan if they don’t have a business account, whether you have one of these accounts can have a serious impact on your ability to cover business-related costs.

Be prepared

Many business accounts come with lines of credit in case of emergencies.

The U.S. Small Business Administration states that business accounts help business owners stay better prepared for emergencies because these accounts often come with a line of credit option.

U.S. Bank, for example, offers four types of lines of credit for businesses, which can help manage cash flow, protect from overdraft charges and purchase materials.

Create purchasing power

A business account can also lend the owner more purchasing power by establishing a good credit history.

With a separate bank account comes a separate business credit score, which lenders use to assess the creditworthiness of a business. Better credit may provide access to more funding – therefore, more purchasing power.

Take advantage of tax benefits

One final benefit of having a business account is taking advantage of tax deductions. If you report tax deductions for a business from a personal account, it may trigger an audit. Some valuable small business tax deductions include utility costs, inventory expenses and loan interest.

Small business checking accounts vs. small business savings accounts

While business checking accounts are a must for managing the daily expenses and transactions for the business, it can also be a good idea to open a business savings account to store earnings that won’t be needed on a whim. The money in a business savings account can serve as an emergency fund or savings for large future expenses.

Business savings accounts may also come with benefits that aren’t offered through a business checking account, such as higher annual percentage yields (APYs). They may not be worth it, though, if you can’t meet the minimum balance requirement to avoid a fee.

Here’s a breakdown of the different uses and benefits between business checking and savings accounts:

Bottom line

Finding a business account that suits the business’s needs can help make managing its finances smoother.

It’s important for small business owners to open a business checking account that can be used for sending and receiving payments under the business name and for taking out business loans. When shopping around for the right business account, look for what fees it comes with, transaction limits and what features the account has to offer.

Frequently asked questions

• What is a small business bank account?

  A small business bank account is designed for managing a company’s financial transactions separately from the owner’s personal funds. It allows for payments in the business’s name and offers services like salary processing, foreign currency transactions and credit checks on businesses and suppliers. These accounts cater to various business structures, from sole proprietors to partnerships and limited companies.

• What should you look out for when choosing a small business account?

  Different business accounts are suited to different needs. There may be minimum balance requirements the bank imposes to avoid a monthly fee — look for an account with a minimum balance you know you can meet. Many accounts also come with transaction limits. Consider how many transactions you expect to make or whether you can afford to pay the bank’s transaction fees.

  You’ll likely come across a variety of unique features offered by different accounts, such as ATM reimbursements or enhanced fraud protection services. These extra features may be more or less important to you, but sometimes they come with certain requirements for the customer to be eligible for them.

• Do you need a business checking and business savings account?

  It’s not always necessary to have both a business checking and business savings account, but it can make it easier to track spending and incentivize you to store away extra earnings.

  A business checking account is primarily used for frequent, everyday transactions while a business savings account is primarily for storing the money you don’t need right away. It’s more likely that you’ll need a business checking account.

  A business savings account is a good idea if you have some extra revenue that can be saved for future expenses or emergencies. Business savings accounts also tend to offer higher APYs, which can help boost your savings.

• What’s needed to open a business account?

  First, you’ll need to have a federal Employer Identification Number (EIN). The EIN is needed for verifying the business and managing taxes. If the business is a sole proprietorship, then a Social Security number will suffice in place of an EIN. Also, you may need an initial deposit amount for the account if it has a minimum opening deposit requirement.Other documentation a bank may ask for includes:

  • The business’s formation documents
  • Ownership agreements
  • A business license
  • Personal identification, such as a passport or driver’s license.