Best USA Banks for Startups in 2021
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It is unusual to hear of Latin American VCs investing in US-based startups, but one Berkeley-based fintech managed to raise $1.5 million in funding. The startup offers a solution for banks, fintechs and credit unions with the goal of helping them engage and retain clients.
When starting a business, every startup and entrepreneur needs good business banking. A business bank account is required to pay business insurance, for payroll, to collect money and to have a merchant account that accepts credit card payments. We have compiled a list of the best banks for startups that startups should consider in 2021.
BlueVine being the best online bank account for startups, is best for startups based online or businesses that don’t deal with physical money on a regular basis. BlueVine allows their clients to make an unlimited amount of feeless transactions and they do not charge a fee for hosting the account. This is extremely for startups that are low on capital. They also offer a 1% interest on the account balance, no ATM fees, no non-sufficient funds fees, two free checkbooks, the BlueVine mobile app and dedicated support.
Chase being the best national bank for startups, offers accounts suited to startup business needs. They require no minimum deposit requirement and have a large number of branches and ATMs across the country. They offer mobile and online banking, the ability to send and receive wire transfers, the option to pay bills online through online bill pay and they set up and monitor accounts for employees. They also require no fees from military members. Chase offers an additional, extremely unique feature: when opening a new Chase Business Complete Checking account you can earn $300.
Wells Fargo is the best bank for startups and entrepreneurs who need a local presence from their bank. Wells Fargo offers business bank accounts for every stage a business is at and allows businesses to upgrade their accounts as time progresses. If the goal is to form a limited liability company, it would be wise to start with the Wells Fargo Best Choice Checking account. Depending on the progression of the business, owners may upgrade up two more levels.
Wells Fargo offers Zero Liability Protection on debit cards and 24/7 fraud monitoring, they easily monitor business banking activity with account alerts, they allow businesses to access their account anytime on multiple devices or from one of more than 13,000 ATMs, and they offer fee waivers and discounts. Startups need to take into account that Wells Fargo only allows 50 transactions per month and charges a $10 monthly service fee if your account balance falls below $500.
Capital One is the best ecommerce bank for startups because it charges low fees due to their ability to leverage its internet-based banking institution. The benefits to having a Capital One Spark Business Checking Account, which have the highest interest rates, are that they offer unlimited transactions, there are no monthly service fees or minimum balance requirements, they charge no ATM fees and no cash deposit fees on amounts up to $5000 per month. Startups need to take into account that Capital One charges a monthly service if a balance of at least $2000 is not maintained and there is a $1 fee for every $1000 deposited after the allowed monthly $5000.
Silicon Valley Bank
The Silicon Valley Bank is the best bank for tech startups seeing that they have access to resources that are beneficial for tech companies, such as venture capital connections. Their business checking account is used by 50% of all venture-backed tech startups. The Silicon Valley Bank offers unlimited free wires, multiple checking accounts at no extra charge, they require no minimum balance requirements and offer practical finance and startup advice from a of startup experts. Startups need to take into account that there are no maintenance fees for three years. Once this period has expired, they charge a $50 monthly fee. The Silicon Valley Bank also has 12 brick and mortar locations only in California, which may not be ideal if the account holder’s business is not based in California.
The US Bank is the best bank for startups looking to build credit and get a startup loan. Other than assisting businesses in getting a needed loan and building credit, they do not charge monthly fees and offer great customer service. When opening a Silver Business Checking Package account, they offer 25 free cash deposits per month, 125 free transactions per month, 50% discount on the first check order up to $50 and a 50% discount on the personal Gold Checking Package monthly maintenance fee. Startups need to take into account that the Silver Business Checking Package account requires a $100 minimum opening deposit requirement, a $0.50 fee is charged for each transaction above the account’s limit and they charge a $5 fee for paper statements.
Consumers Credit Union
The Consumers Credit Union is the best bank for real estate investors since they offer business checking accounts with the highest interest rates. They charge no transaction fees up to the first 100 transactions per month and offer their customers business money market accounts, business credit cards, business loans, business savings accounts and other business services. Other benefits are that their current interest rate is 5%, there is a $0 monthly maintenance fee and they offer online banking and electronic statements. Startups need to take into account that although they offer online banking, their main credit union branch is in Illinois only.
The Best Choice for Startups
Out of all the banks listed, BlueVine would offer the best business bank account and Chase would be the best business bank for startups. Seeing that Bluevine offers a solid 1% interest rate on funds in the checking account, impressive business loan rates and impeccable customer service, BlueVine certainly offers the best business bank account. Seeing that Chase offers an ample amount of branch locations and an array of options, Chase has proven to be the best business bank for startups, especially for the long haul.