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Why do creators need business bank accounts?
At a certain point in their careers, creators should think about opening separate business bank accounts from their personal accounts. If you’re earning money as a creator and on your way to turning it into a full-fledged small business, then you should definitely consider opening business bank accounts. But If you still view your job as a creator as more of a side hustle, then you probably don’t need one.
A business bank account offers a lot of perks to creators. It separates your business finances from your personal finances, which makes filing taxes easier. It can also help protect you from legal liabilities, because if your business and personal assets are commingled, it can be difficult to parse out even if you’re a protected LLC. Having a business account can also make it easier to grow because it makes it easier to handle the administrative side, such as accounting and payroll.
Here is a list of the best business bank accounts for creators and self-employed individuals.
Business checking, business savings, or both?
Creators can get a business checking account, a business savings account, or both.
A business checking account works pretty similarly to a personal checking account, except that most business checking accounts charge fees. Business checking accounts may also have higher minimum deposits and/or balances and may not earn much interest, if any.
The perk is that all the money in that account is designated for business expenses, which makes it a lot easier for accounting and tax purposes.
If you’re a creator who can afford to put aside funds for their business, it could be a good idea to open a business savings account. You can not only use that money to earn interest income, it’s also set aside a rainy day fund in case of any business emergencies.
Business savings accounts tend to be less flexible and may require a minimum balance, or else they might incur a maintenance fee. Creators also need to consider the opportunity cost of putting that money into a savings account instead of putting it back into their business. So, if you think you’ll get better returns investing this money elsewhere, then you should probably skip opening a business savings account for now.
The best business bank accounts for creators
There is no one-size-fits-all “best” business bank account, but there are options that are right for your specific needs.
We’ve searched high and low for the best business bank accounts to fit whatever your needs may be.
Best overall business checking account
Bluevine Business Checking: There’s a reason why Bluevine Business Checking tops so many lists. With no monthly or overdraft fees, account minimums, unlimited transactions, and a 2% APY, it’s a great all-around option for creators and self-employed workers.
Best business checking accounts for earning interest + integrated business tools
LendingClub Tailored Checking: Creators can earn 1.50% APY on account balances below $100,000 and 0.10% APY on any balance above $100,000 with a LendingClub Tailored Checking account. Other perks include 1% cashback on qualified purchases made with a Tailored Checking debit card, unlimited transactions, and integrated accounting and bill pay.
Grasshopper Business Checking: Grasshopper offers one of the higher business checking interest rates, with up to 2.25% APY and 1% cashback on debit card purchases. A major perk is the digital banking aspect: you can apply for an account online in as little as 5 minutes and have 24/7 access to online and mobile banking, which is great for busy creators.
Best business checking account for cash bonuses
Chase Business Complete Checking: Who doesn’t want to earn a quick and easy $400 for just depositing money? There is no minimum opening deposit, but you need to maintain a minimum $2,000 daily ending balance in your account if you want to waive the $15 monthly maintenance fee. But if you want that big bank experience, then Chase Business Complete Checking could be for you.
Best business checking accounts for business tool integration
Lili Business Banking: Lili is actually a fintech, not a bank, but they offer four different tiers of business banking plans. Lili Basic is the free option, which doesn’t differ too much from other business checking accounts except creators can receive payments up to 2 days early. If creators want integrated business tools like accounting and expense management, they’ll have to opt for one of the paid plans.
Found Business Banking: Found is also a fintech but one that was started with self-employed individuals at the focus. Found offers two different plans, one free and one paid, but both offer comprehensive business management tools like bookkeeping, auto-save features for tax planning, and more.
Best high-yield business savings accounts
Axos for Nationwide Business Premium Savings: With a 4.01% APY, Axos’ Business Premium Savings account offers one of the highest returns for creators and small business owners. Other perks include no monthly maintenance fee, no minimum balance fees, and free online banking – but they do require a minimum $5,000 opening deposit.
Live Oak Bank Business Savings: In a very close second-place for highest APY is Live Oak Bank Business Savings at 4.00%. Live Oak also doesn’t charge maintenance fees, in addition to integrating with Quickbooks, which is helpful if you use that for accounting.
