Business checking accounts and savings accounts for self-employed creators.

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.

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 future business goals, then a business savings account might also be useful. Business savings accounts earn interest and are usually FDIC-insured up to $250,000.

Business bank account options for creators

Mercury

Mercury is a fintech banking platform for startups and online businesses. It’s popular with creators and digital businesses. Here’s a breakdown of their business bank accounts:

• Mercury checking and savings account: Mercury’s checking and savings accounts are free, but you have to open both accounts together. They have no minimum deposit requirement, no minimum balance requirement, and no monthly fees. They offer up to 5.22% interest rate (APY) on their savings account. Mercury is FDIC-insured up to $5 million through their banking partners. 
• Mercury Treasury: Mercury also offers a Treasury account for businesses with $500k+ in assets. This is a more sophisticated account that’s not FDIC-insured, but instead invested in government money market funds and US government securities. The interest rate can vary significantly, but has been over 5% for some periods.

Mercury is one of the best banks for creators, especially for those who like a clean, modern user interface. The platform can integrate with accounting software like QuickBooks and Xero. 

Relay

Relay is a financial technology company (fintech) that’s not itself a bank, but offers business checking accounts that are FDIC-insured up to $3 million through their banking partners. They offer a free and a paid plan, and their checking accounts have no minimum balance. Their free plan doesn’t earn interest, but their paid plan, Relay Pro, earns 1-3% interest on checking accounts. Relay Pro costs $30/month. 

Relay has some features specifically designed for small business owners, like the ability to open up to 20 business checking accounts and up to 50 virtual debit cards. They also offer the ability to pay contractor via ACH and to set spending limits per card, which could be helpful for creators who use personal assistants or other contractors. Relay doesn’t have a savings account. 

Bluevine

Bluevine is another fintech that offers a business checking account with a solid APY. Their business checking account offers up to 2.0% APY for accounts that meet at least one of their three monthly eligibility requirements. These requirements include spending $500 a month on their Bluevine debit or credit card, receiving $2,500 in customer payments per month, or spending $500/month on their Bluevine Business Cashback Mastercard. Their account is FDIC-insured up to $3 million through their banking partners. Bluevine doesn’t have a savings account. 

Lili

Lili is a banking app specifically designed for self-employed individuals like freelancers and creators. Lili offers business checking accounts with no minimum balance and FDIC-insured up to $250,000. They offer a free checking account and a paid one (Lili Pro) that costs $17/month. The paid plan includes earned interest, while the free plan doesn’t. They also offer a business savings account that earns interest.

Lili has some features specifically for the self-employed, including a bucket for setting aside money for taxes and the ability to tag expenses for business vs. personal.

Found

Found offers free business banking for the self-employed, with no minimum balance and FDIC insurance up to $250,000 through their banking partner, Piermont Bank. Found offers both a free and paid plan. Their paid plan, Found Plus, costs $19.99/month. Found offers business checking accounts that don’t earn interest, and business savings accounts that earn interest (1.5% APY on the free plan and 3.0% APY on the paid plan).

Found also has a number of features for the self-employed, including automated bookkeeping, expense tagging for business vs. personal expenses, built-in invoicing, and tax tools that automatically identify tax deductions and estimate your quarterly and annual tax payments. 

Traditional banks

If you prefer to go with a traditional bank instead of a fintech, you can also open business checking and savings accounts with traditional banks. Some common ones include Chase, Wells Fargo, Bank of America, and Citibank. Traditional banks often have a wider range of products and services, including business credit cards, loans, and investment accounts. However, they may have more fees than fintechs, higher minimum deposit and balance requirements, and lower (or no) interest on their checking accounts. 

Summary

The best business bank accounts for creators include Mercury, Relay, Bluevine, Lili, and Found. Each of these banking platforms offers unique features and benefits for creators and self-employed individuals. The best choice for you will depend on your specific needs and preferences.