The 14 best small-business bank accounts and credit cards for entrepreneurs who care about high interest rates, rewards, and low feesApril 29, 2021
- Despite the pandemic, a record number of people started new businesses in the US last year.
- Choosing the right business bank account and credit card is critical for success.
- WalletHub recently ranked both for entrepreneurs, comparing low interest rates and reward programs.
- See more stories on Insider’s business page.
Despite the pandemic, a record number of people started new businesses in the US last year.
New applications for an employer ID reached 1.1 million through mid-September last year, a 12% increase from the year prior, found a Wall Street Journal analysis of US Census Bureau data.
Whether you’ve recently launched a startup or are looking to reevaluate your existing company’s finances, choosing the right business bank account and credit card is critical for success. The personal-finance website WalletHub recently ranked both for entrepreneurs.
The 6 best small-business bank accounts
WalletHub compared more than 260 small-business checking and savings accounts to rank the highest interest rates, lowest fees, and best offers for entrepreneurs. Here are the site’s top picks, in no particular order.
Best business checking account: Axos Bank business interest checking
Axos Bank’s business interest checking account offers customers 50 free account transactions per month, a $10 monthly fee that’s avoidable with a $5,000 average daily balance, and a 0.81% annual percentage yield, also known as an interest rate.
Best business savings account: Capital One business advantage savings
With one of the highest APYs on the market — it offers 0.20% on balances up to $5 million — this is the top-rated pick for savings accounts. Additionally, users only need a $250 deposit to open an account.
Best for unlimited transactions: Capital One Spark business unlimited checking
If your business will maintain a balance of at least $25,000 and deposit less than $40,000 a month, consider this account. The $35 monthly fee is waived if users keep their average 30-day or 90-day balances above $25,000. What’s more, you get two Spark Business basic checking accounts without the $15 monthly fee.
Best for low fees: BBVA business connect checking
If you’re just getting started, and aren’t sure where to start, consider this low-fee account. It doesn’t charge monthly, ATM, or online-bill-pay fees, which may seem small but can lower your initial expenses.
Best for initial bonus: Chase business complete banking
Users get a $300 bonus for opening a business interest checking account, which pairs nicely with the fact that it doesn’t require a minimum deposit or balance requirements. What’s more, it offers unlimited electronic deposits and waives the $15 monthly fee if customers keep their balances above $2,000.
Best for cash businesses: Bank of America business advantage checking
Entrepreneurs with cash businesses should seek out accounts with high limits on transactions and low costs for over-limit transactions. This account doesn’t charge fees for the first $20,000 deposited each statement cycle, and after that, it charges $0.30 for every $100 you deposit over the monthly limit.
The 8 best small-business credit cards
WalletHub compared more than 1,500 credit cards to rank the ones that would best suit certain entrepreneurs. Some come packed with rewards, while others offer low rates for business owners with bad credit. Here are the site’s top picks, in no particular order.
Best for startups: Capital One Spark classic for business
Users can get approved for this account with limited credit history, and there’s no annual fee. What’s more, it offers an average cash-back earning rate and doesn’t make collecting rewards difficult.
Best for bonus cash back: Capital One Spark cash for business
Users get 2% cash back on all purchases and an initial bonus of $500 if you spend $4,500 in the first three months, making this a top pick if you’re looking to net some rewards.
Best for business travel rewards: Capital One Spark miles for business
Business owners who are focused on traveling again as part of work should consider the perks of this card. Users get unlimited double miles on every purchase, which won’t expire for the life of the account.
Best for hotel rewards: The Hilton Honors American Express business card
Similarly, entrepreneurs who spend a lot of time on the road may consider this card as a strategic pick. An initial reward bonus gives users hundreds of dollars in free Hilton reservations if they charge a few thousand dollars to their card in the first few months. Additionally, cardholders earn 12 points per $1 spent on Hilton purchases.
Best for bonus airline points: JetBlue Business credit card
Business owners who fly frequently and who can commit to a single airline should consider this card as a way to reduce travel costs and earn miles. It offers an initial bonus of six points per $1 spent with JetBlue, two points per $1 spent at restaurants and office-supply stores, and one point per $1 on everything else.
Best for initial bonus: Ink Business Preferred credit card
Entrepreneurs who focus on initial bonuses for credit cards should consider this account, which gives new users who spend $15,000 in the first three months a bonus of 100,000 points.
Best for 0% APR: US Bank business platinum
Small-business owners concerned about their credit card’s interest rate, called the annual percentage rate, should consider this card. The account offers a 0% APR for 15 billing cycles on new purchases and 0% for 15 billing cycles on balance transfers.
Best for repairing bad credit: Wells Fargo business secured credit card
Don’t let bad credit stop you from financing your business. Entrepreneurs who are trying to build credit or repair bad credit should look at cards with low fixed costs rather than ones with substantial perks. This account offers low APR and even some rewards.
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