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Running a successful Etsy business demands diligent financial management, and selecting the right bank account plays a crucial role in this process. Whether you’re just launching your shop or aiming to enhance your current setup, finding the optimal bank account for your Etsy business can streamline transactions, control expenses, and boost profits.
This guide will highlight the top bank accounts tailored for Etsy sellers, focusing on aspects like low fees, seamless Etsy integration, and essential business banking features.
Let’s explore the best options to help you grow and manage your Etsy business more efficiently.
10 Best Bank Accounts for Etsy Business
- Bluevine – Best Bank Account for Etsy Business Overall
- Lili – Best for One-Person Businesses
- Novo – Best for Low Fees
- American Express – Best for Membership Rewards
- Capital One – Best for Unlimited Transactions
- Bank of America – Best for Traditional Banking
- Axos – Best Full-Service Online Bank
- U.S. Bank – Best for Lending Options
- Oxygen – Best for Freelancers
- Chase – Best for Cash Deposits
Bluevine – Best Bank Account for Etsy Business Overall
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Bluevine shines as an excellent choice for Etsy business owners due to its tailored features for small online sellers. It offers a high-yield business checking account with no maintenance, NSF, or deposit fees, and no minimum balance or deposit requirements.
This accessibility and cost-effectiveness are perfect for new and smaller Etsy shops. Bluevine also allows unlimited transactions, letting Etsy sellers manage a high volume of sales and purchases without extra charges.
One of Bluevine’s standout features is its attractive interest rates. Account holders can earn up to 2.0% APY on balances up to $250,000 by spending $500 per month on their debit card or receiving $2,500 per month in customer payments.
For those seeking higher returns, Bluevine Plus and Bluevine Premier tiers offer up to 4.25% APY. Bluevine provides business lines of credit up to $250,000 at competitive rates, with a swift application process and no fees for opening, maintaining, prepayment, or closing the account.
Bluevine integrates seamlessly with popular financial tools like QuickBooks, making it easy for Etsy sellers to track income and expenses.
Its mobile app offers convenience for on-the-go banking. Coupled with excellent customer service, Bluevine helps Etsy business owners focus more on their creativity with minimal administrative hassle. Overall, Bluevine’s comprehensive features, high interest rates, no fees, and strong support make it the top banking choice for Etsy entrepreneurs.
- High APY on checking accounts
- Minimal fees and no monthly maintenance costs
- No opening deposit or minimum balance requirements
- Extensive ATM network access
- Customizable accounts payable platform
- Enhanced FDIC insurance up to $3 million
- No savings account option
- No physical branches
- Customer support only available on weekdays
- Fee for cash deposits
>> Use Bluevine’s Bank Account for Etsy Business >>
Lili – Best for One-Person Businesses
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Lili is ideal for solo entrepreneurs, especially those on Etsy. It offers financial tools tailored to one-person businesses, with no account fees, overdraft fees, ATM fees, or minimum balance requirements for its standard services. For $4.99 per month, Lili Pro includes additional features, making it a comprehensive financial management solution. Read our full Lili review.
Lili streamlines financial management with features like automated expense categorization, real-time expense tracking, and tax preparation tools, which are particularly beneficial for Etsy sellers. Although the standard offerings don’t include an APY, Lili Pro offers up to 1% APY with a savings account and an Automatic Savings feature.
Lili also provides a robust mobile banking experience, allowing Etsy entrepreneurs to manage their finances on the go. Features like instant transaction notifications and a built-in invoicing tool ensure efficient financial handling.
While lending options are limited, a free overdraft of up to $200 on debit card purchases is available. Lili’s advanced encryption and security measures protect users’ financial data, making it a secure choice for one-person businesses.
- Separates business and personal transactions easily
- Includes a tax optimization tool
- Enables creation and sending of invoices
- Operates as a virtual bank through Choice Financial Group
- Limited lending and merchant services
- Not ideal for larger businesses
>> Use Lili’s Bank Account for Etsy Business >>
Novo – Best for Low Fees
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Novo is an excellent option for Etsy business owners seeking minimal fees. This online bank eliminates traditional banking costs such as monthly maintenance fees, minimum balance requirements, and transaction fees, allowing Etsy sellers to keep more of their earnings.
Novo requires a low initial deposit of $50 to open an account and doesn’t charge for cash deposits, incoming wire transfers, or ACH transfers. Additionally, Novo refunds all ATM fees, offering a cost-effective banking experience.
While Novo doesn’t provide interest on checking account deposits, it focuses on fee-free banking, which is advantageous for Etsy businesses handling high volumes of small transactions. This reduces overhead costs and allows for reinvestment into the business.
Novo integrates seamlessly with e-commerce platforms, including Etsy, simplifying financial management by syncing sales data directly with the bank account. The mobile banking features, such as invoicing, expense tracking, and instant notifications, enable Etsy sellers to manage their finances on the go.
Novo also provides access to business tools and resources, including discounts on services like marketing, accounting, and shipping, enhancing its value for Etsy sellers.
- Unlimited transactions without fees for business checking
- Refunds all ATM fees
- Compatible with third-party software like Shopify and QuickBooks
- No lending services
- Cannot accept cash deposits
- Lacks lines of credit or loans
>> Use Novo’s Bank Account for Etsy Business >>
American Express – Best for Membership Rewards
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American Express (Amex) is a top choice for Etsy business owners due to its robust Membership Rewards program. Amex business credit cards allow Etsy sellers to earn substantial points on various purchases, such as advertising, shipping, and supplies.
These points can be redeemed for travel, gift cards, or statement credits, reducing business expenses. Additionally, Amex offers valuable business management tools like detailed expense tracking and customizable employee cards.
Amex Business Checking enhances its appeal with a fee-free structure, including no monthly fees, no minimum opening deposit, and no online transaction fees. The account offers free access to all MoneyPass ATMs, although out-of-network ATM use incurs a small fee. Despite not supporting cash deposits, the account provides a competitive APY of 1.30% on balances up to $500,000.
Amex’s partnership with Kabbage Funding offers easy loan approvals for lines of credit up to $250,000, even for those with lower credit scores. The simple application process and the ability to use banking history for credit approval make it a convenient option for Etsy sellers.
Overall, American Express provides a comprehensive package of benefits, from lucrative rewards and fee-free checking to competitive interest rates and accessible lending, making it ideal for managing and growing an Etsy business.
- Accessible line of credit with no prepayment penalties
- No minimum balance requirement
- Straightforward application process
- Mobile check deposits are limited to iOS users
- Doesn’t accommodate cash deposits
- Only available to American Express customers
>> Use American Express’s Bank Account for Etsy Business >>
Capital One – Best for Unlimited Transactions
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Capital One is a top pick for Etsy business owners due to its unlimited transaction capabilities, allowing seamless financial management without transaction limits. This feature is beneficial for Etsy sellers handling numerous small transactions.
Capital One offers flexible checking accounts with no fees on everyday transactions, robust online and mobile banking platforms, and reliable customer service, making it an attractive option for small business owners.
Despite being a traditional bank, Capital One offers a modern and convenient banking experience through its user-friendly app and accessible account management.
It also provides a variety of financial products, such as credit cards, which may be available to business checking account holders. However, note that Capital One’s business checking accounts are only available in select states and require an in-person visit to apply.
Fees and Accounts
- Basic Checking: $15 monthly fee, waived with a balance over $2,000; free cash deposits up to $5,000 per month
- Unlimited Checking: $35 monthly fee, waived with a $25,000 balance; unlimited free cash deposits, free incoming wires, and five free outgoing wire transfers per month
- Savings Accounts: Offer a 0.2% APY
Capital One provides small business loans and lines of credit, including substantial credit lines up to $5 million, with options for longer repayment terms and fixed rates through SBA 504 and SBA 7(a) loans for those with a checking account.
- Experienced support from a major bank
- Self-service escrow services
- Unlimited checking includes two Basic accounts
- High account balances required to waive fees
- Limited availability in multiple states
- Account applications must be made through a branch visit
>> Use Capital One’s Business Bank Account >>
Bank of America – Best for Traditional Banking
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Bank of America is a top choice for Etsy businesses seeking traditional banking. It offers a comprehensive suite of financial products, including business checking and savings accounts, credit cards, and loans. The extensive network of branches and ATMs provides convenience for business owners preferring in-person banking. Read the full Bank of America review.
Their highly-rated online and mobile banking platforms enable Etsy sellers to manage their finances efficiently with features like mobile check deposit, bill pay, and real-time account monitoring. The Small Business Community offers valuable resources, including expert advice, guides, and tools to help small businesses grow.
Fees and Accounts
- Business Advantage Fundamentals: $16 monthly fee, waivable
- Business Advantage Relationship Banking: $29.95 monthly fee, waivable
- Savings Accounts: $10 monthly fee, waivable with a minimum daily balance
Despite the fee structures, the lack of interest earnings on checking accounts and the minimal 0.01% APY on business savings accounts may be a drawback for some businesses. Bank of America also provides specialized merchant services, competitive fee structures, and extensive lending options, including business credit cards, secured business loans, and lines of credit.
- Zelle money transfer integration
- Compatibility with online accounting applications
- Provides payroll services
- High balances needed to waive fees
- Mobile app usability lags behind competitors
- High monthly service fees
>> Check Out Bank of America’s Business Bank Account >>
Axos – Best Full-service Online Bank
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Axos Bank is ideal for Etsy business owners seeking a comprehensive and convenient online banking solution. Known for its user-friendly digital platform, Axos allows business owners to manage finances entirely online, saving time and simplifying financial management.
It offers various accounts tailored to small businesses, including Basic Business Checking with no monthly fees and Business Interest Checking with a minimal $10 monthly fee. Axos also provides valuable business loan options through partnerships, such as Centerstone SBA Lending for SBA loans, and offers commercial lines of credit and term loans.
Interest Rates
- Interest-Bearing Checking Account: 1.01% APY for balances of $5,000 or more
- Basic and Premium Business Savings Accounts: 0.20% yield
Axos Bank’s features are particularly beneficial for Etsy sellers, such as unlimited domestic ATM fee reimbursements and integration with popular accounting software, streamlining bookkeeping and financial management.
The standout feature of Axos Bank is its robust online and mobile banking platform, offering 24/7 access to accounts, enabling Etsy business owners to manage transactions, pay bills, and monitor cash flow from anywhere. The bank excels in customer service, providing personalized support from dedicated representatives who assist with financial matters and specific banking transactions.
- No monthly fees and unlimited transactions
- Supports cash deposits at MoneyPass and Allpoint ATMs
- Offers a selection of interest-bearing accounts
- No physical branches available
- Limited integration capabilities
- APYs aren’t the highest on the market
>> Check Out Axos’s Business Bank Account >>
U.S. Bank – Best for Lending Options
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U.S. Bank stands out for Etsy business owners due to its extensive lending options and competitive checking account packages. The bank offers solutions like business credit cards, lines of credit, and SBA loans, catering to various financing needs such as inventory purchases, business expansion, and cash flow management.
U.S. Bank’s SBA loan program is particularly appealing, offering attractive rates and longer repayment terms, ideal for significant business investments.
Checking Accounts
- Silver Business Checking: No monthly fee with 125 free transactions per month
- Gold Business Checking: $20 per month with 300 free transactions
- Platinum Business Checking: $30 per month with 500 free transactions
Although these fees are higher than some competitors like Bluevine, which charges no fees, U.S. Bank’s comprehensive financial services may justify the costs for many businesses.
U.S. Bank’s deposit interest rates are modest, with a 0.01% APY on savings accounts. However, its diverse lending products and excellent customer service stand out.
Business credit cards offer features like cash back, no annual fees, low-interest rates, and rewards programs, enhancing financial flexibility for Etsy business owners. Overall, U.S. Bank’s robust lending options and dedicated support make it an excellent choice for Etsy sellers seeking effective financing and business management solutions.
- Customized lending solutions
- Merchant services for various industries
- Dedicated small business specialists
- Charges transaction fees
- No APY on checking accounts and low APY on savings accounts
- Harsh penalties for early CD withdrawals
>> Check Out U.S. Bank’s Business Bank Account >>
Oxygen – Best for Freelancers
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Oxygen is an excellent digital banking solution for freelancers, especially those running Etsy businesses. It offers features designed to streamline financial management, reduce administrative burdens, and enhance efficiency.
Freelancers can easily track expenses, manage income, and separate personal and business finances, crucial for effective financial management and tax preparation. Oxygen also provides robust invoicing capabilities, allowing users to create, send, and manage invoices directly from the app.
Fee Structure and Loyalty Tiers
- Earth Tier: No fees, 0.50% APY on savings
- Water Tier: $19.99 per year, 1.00% APY
- Air Tier: $49.99 per year, 2.00% APY
- Fire Tier: $199.99 per year, 3.00% APY
These interest rates are higher than those of competitors like Bluevine and American Express Business Checking.
Oxygen’s user-friendly mobile app is another highlight, enabling freelancers to manage their finances on the go. This is particularly beneficial for Etsy sellers who work from various locations or attend craft fairs.
The app provides real-time transaction alerts, detailed financial reports, and other comprehensive features that help users stay on top of their finances effortlessly. Overall, Oxygen offers tailored features, competitive fees, high-interest savings options, and a convenient mobile interface for Etsy freelancers.
- 5% cashback rewards on purchases
- Creation of virtual, single-use debit cards
- Business savings account with 1% APY
- Operates as a virtual bank without cash deposit capabilities
- Fewer integration options compared to competitors
- Lacks lending options
>> Check Out Oxygen’s Business Banking Options >>
Chase – Best for Cash Deposits
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For Etsy sellers handling significant cash transactions, Chase Bank offers a comprehensive solution with its extensive network of ATMs and branches, making cash deposits convenient and accessible.
Their business checking accounts feature a business debit card, online banking, mobile deposits, and robust security measures, ensuring smooth and secure financial transactions. Chase provides tools for tracking expenses, aiding Etsy sellers in managing their finances and maintaining accurate records for tax purposes.
Checking Accounts:
- Chase Business Complete Checking: $15 monthly fee, waived with a $2,000 minimum daily balance
- Chase Performance Business Checking: $30 monthly fee, waived with a $35,000 combined average beginning day balance
- Chase Platinum Business Checking: $95 monthly fee, waived with a $100,000 combined average beginning day balance
While these fees can be a drawback, Chase’s comprehensive services, including various lending options and merchant services, might outweigh the costs for many Etsy sellers who regularly deposit cash.
Overall, Chase is well-suited for Etsy sellers who handle and deposit cash frequently, offering tailored business solutions and excellent customer service. Despite the fees and lack of APY on checking accounts, Chase’s extensive physical presence, robust security, and comprehensive support make it a valuable option for Etsy sellers seeking traditional banking services.
- Accepts payments through the Chase mobile app
- Broad international presence
- Strong fraud protection measures
- Higher fees than some competitors
- Requires a high minimum balance to waive fees
- Unclear APY on savings accounts
>> Use Chase Business Checking Account >>
How to Open a Bank Account for Etsy Business
Opening a bank account for your Etsy business is essential for managing your finances effectively and keeping your business transactions separate from personal ones. Here’s a step-by-step guide to help you through the process:
1. Determine Your Business Structure
Decide on your business structure before opening a bank account. Common structures for Etsy sellers include:
- Sole Proprietorship: The simplest structure, where you and your business are the same legal entity.
- LLC (Limited Liability Company): Provides liability protection and is separate from your personal assets.
- Corporation: More complex, offering the highest level of protection and potential tax benefits.
2. Obtain an EIN (Employer Identification Number)
Even if you don’t plan to hire employees, obtaining an EIN from the IRS is beneficial. It acts like a Social Security number for your business and is often required to open a business bank account.
>> Use Bluevine’s Bank Account for Etsy Business >>
3. Choose the Right Bank
Consider these factors when choosing a bank for your Etsy business:
- Fees and Minimum Balance Requirements: Look for a bank with low or no monthly fees and reasonable minimum balance requirements
- Online Banking Features: Ensure the bank offers robust online banking features, including mobile deposits, bill pay, and integration with accounting software
- Customer Service: Good customer service is crucial, especially if you encounter issues
4. Prepare Required Documents
Banks typically require the following documents to open a business account:
- Personal Identification: Government-issued ID like a driver’s license or passport.
- EIN: Your business’s EIN
- Business License: If applicable, your business license or registration
- Operating Agreement: Required for LLCs
- Partnership Agreement: If applicable, a partnership agreement
5. Visit the Bank or Apply Online
Many banks allow you to open a business account online, while others might require a branch visit. During the application process, provide the required documents and fill out an application form.
6. Set Up Your Account Features
Once your account is open, set up necessary features like:
- Online Banking: Ensure access to online banking for easy management of transactions
- Linked Accounts: Link your business bank account to your Etsy account and other payment processors
- Debit/Credit Card: Request a business debit or credit card for business-related purchases
7. Maintain Good Financial Practices
To make the most of your new business bank account:
- Separate Business and Personal Expenses: Use your business account exclusively for business transactions to simplify bookkeeping and tax filing
- Track Your Expenses: Use accounting software to monitor your income and expenses
- Review Statements Regularly: Regularly review your bank statements to ensure all transactions are accurate and spot any discrepancies early
Opening a bank account for your Etsy business helps you manage your finances more effectively, provides a clear record of your business transactions, and simplifies your tax preparation. By following these steps, you can ensure a smooth and efficient process.
>> Use Bluevine’s Business Bank Account >>
Best Bank Account for Etsy Business – FAQs
Choosing the right bank account is crucial for managing your Etsy business effectively. Consider your specific needs, compare options, and select the account that offers the best combination of features and benefits for your business. The right bank account can simplify transactions, help you keep track of expenses, and ultimately contribute to the success of your Etsy venture.
Take the time to evaluate your options and choose a bank account that aligns with your business goals, setting you up for long-term financial health and prosperity.
>> Try Bluevine’s Business Banking Options >>
