Sections of this topic
If you think that your bank account is simply a place used to store your earnings, think again! By selecting the best business bank accounts for sole proprietors with the right rewards, digital banking tools, and affordable fee structure, you can effectively grow your savings while making the financial management of your business a whole lot easier.
Best Business Bank Accounts for Sole Proprietor
- Lili – Best Overall
- Bluevine – Best for earning interest
- Novo – Best for rewards
- LendingClub – Best for savings
- Bank of America – Best for financial management
Methodology Summary
While the size of your income may be important, maximizing your profit also depends on your ability to limit your expenses, which is why we chose to focus on bank accounts that offer affordable fees. We also focused on banks with competitive interest rates to help you grow your savings.
Other important factors were online features that help you to not only keep on top of your transactions but also optimize the financial management of your business as well as rewards programs and other money-saving benefits.
Bank
Pricing
(Per Month)
ATM Fees
APY
Cash/Check Deposit Fees
Digital Banking Features
$0 for basic
$0 for Pro
$0 in-network
($2.50 out-of-network)
Up to 1.5%
$0
- Tax optimizer
- Receipt scanner
- Multiple app integrations
- Invoicing software
- Prefilled Schedule C
- Automated expense reports
$0
$0 in-network; $2.50 out-of-network
2.0%
$0
- Automated bill payments
- Quickbooks integration
- Sub-accounts
- Mobile check uploads
$0
$0 (unlimited reimbursements)
N/A
0% for check deposits; cash deposits not available
- Invoicing software
- Multiple app integrations
- Automated budgeting
- Virtual debit card
- Apple Pay and Google Pay
$10; waived with $500 account balance
$0 (unlimited ATM rebates for both withdrawals and deposits)
Up to 1.5%
$0
- Mobile check deposits
- Financial report generation
- Invoicing software
$29.95 or $0 if waived
$0 for withdrawals
From 0.01% upwards
Free for first $20,000 in deposits, then $0.03 per $100 deposited
- Cash flow monitor
- Digital financial assistant
- Zelle payments
- Quickbooks integration
Lili: Best Overall
5.0
In order to reach your potential as a sole proprietor, you’ll want a reliable, user-friendly bank so that you can focus less on mundane banking tasks and more on growing your business. Over 85% of Trustpilot users have awarded Lili five-stars, with much praise being directed at the user-friendly layout of its online banking platform and app.
Why we chose it:
In addition to making banking easy, Lili’s intuitive digital features such as its invoicing platform and tax optimizer help to streamline your tax filing and payment system. What’s more, its low fees, cashback rewards, and the competitive interest rate of its savings account mean that account holders receive benefits across the board, thereby earning Lili the title of best business bank account for sole proprietors overall.
- No overdraft fees
- Cashback rewards
- Tax optimizer
- Built-in invoicing
- Expense categorization
- Receipt scanner
- Third-party app integrations
- Lili Pro required for cashback and APY
Fees
While the basic account has no monthly fee, the Lili Pro account costs $9 per month. What’s particularly useful about Lili, however, is that no matter what account you have, there are never overdraft fees.
ATMs within the MoneyPass Network provide free cash deposits and withdrawals, while out-of-network withdrawals and deposits cost $2.50 per transaction. Although Lili does not allow wire transfers, this does not pose an obstacle as unlimited inbound ACH transactions and up to $60,000 of outbound ACH transfers per month can be performed, both of which are free of charge.
Interest
While the checking account does not offer interest, Lili does offer a savings account for all clients that can earn up to 1.5% APY.
Important to note, however, is that in order to qualify for this rate, you’ll not only have to be a Lili Pro account holder but also transfer at least $1 per day from your checking account to your savings account.
Digital Banking Features
Lili’s Tax Optimizer is designed to maximize the efficiency of your tax filing. While its write-off tracker categorizes expenses and determines their eligibility for tax write-offs, it also automatically generates quarterly and yearly expense reports and provides a prefilled Schedule C to make tax preparations easier.
Should you already have existing accounting software, then Lili can still come in use. This checking account is capable of multiple app integrations, including to accounting software such as Xero and Quickbooks, while its receipt scanner enables you to capture any expenses not incurred through your checking account. Lili also provides built-in personalized invoicing software.
Rewards
Through Lili’s cashback rewards program, you can enjoy discounts and cashback from a range of participating merchants. This program is provided through Visa SavingsEdge, meaning that beneficiaries are eligible to receive benefits from all retailers that are part of the SavingsEdge network.
Although this benefit is only open to Lili Pro account holders, the potential benefits far outweigh the $9 monthly fee that you’ll pay for a Pro account.
Bluevine: Best for earning interest
4.9
As a sole proprietor, maximizing your profit is a priority. By offering a relatively high 2% interest rate and low fees, the Bluevine business checking account helps you do just that. Add Bluevine’s business lending options and you’ll have all the tools you need to elevate your financial performance.
Why we chose it:
While this checking account’s decent interest rate and low costs help you to safeguard and grow your savings, it also provides several online tools to optimize your financial management, including automated bill payments and integrations with Quickbooks accounting software. Add in this checking account’s easy sign-up process and multiple lending options and you have a business bank account that provides perks across the board.
- 2.0% interest rate
- Automated bill payments
- Quickbooks integration
- Zero monthly and transfer fees
- Sub-accounts
- No in-network ATM fees
- No overdraft fees
- No invoicing software
- No rewards programs
Fees
In addition to no monthly maintenance fee and no overdraft fees, Bluevine also offers zero fee withdrawals at in-network ATMs as well as free cash deposits at ATMs that are a part of the Green Dot Network. Out of network ATM fees are $2.50 per transaction.
While outbound domestic wire fees cost $15, inbound wires are free. Although Bluevine does not allow international wires, you can perform ACH transfers at no cost. Check deposits are also free; simply upload a photograph of the check to the mobile app.
Interest
Offering up to 2.0% interest, the Bluevine business checking account provides one of the best interest rates of any business checking account. It’s important to note, however, that in order to qualify for this rate, you’ll need to either spend at least $500 per month on your Bluevine debit card or receive $2,500 per month in customer payments to your Bluevine account.
Digital Banking Features
Available from Bluevine’s online banking platform and mobile app, Bill Pay enables you to set up one-time or recurring payments, track expenses, and sync them with Quickbooks accounting software so that you have less work to do during tax season.
Bluevine also enables you to create up to five sub-accounts to make it easier for you to budget for your expenses.
Rewards
Although Bluevine does not provide an in-house reward program, its Bill Pay feature is geared to enabling you to maximize your credit card rewards by providing you the ability to pay all of your bills by credit card.
Novo: Best for rewards
4.8
With a wide range of popular app integrations, invoicing software, and its Reserves feature for automated budgeting, Novo is designed to optimize the management of your business. What’s more, rewards for business software such as Quickbooks, HubSpot and Google Cloud enable you to manage your business more efficiently while saving money in the process.
Why we chose it: Aside from automating your financial management tasks, this business checking account offers up to $4,000 in rewards benefits as well as free ATM transactions and $5,000 in fee-free processing when customers pay you via Stripe, thereby cutting your costs and getting you more for your money.
- Free domestic and international ACH transactions
- Unlimited ATM fund reimbursements
- $4,000 in rewards
- Built-in invoicing
- Multiple app integrations
- Automate fund allocation with Reserves
- No APY
- No cash deposits
Fees
Novo carries no monthly fee and requires no minimum deposit to open an account. Check deposits are performed by scanning checks with the Novo mobile app and carry no associated fees.
Fees from ATM withdrawals come with unlimited fee reimbursements, however, cash deposits via ATM are not possible. Instead, you would have to purchase a money order from a third-party vendor. This checking account only allows account holders to receive wire transfers and not send them, it does offer free ACH transfers as an alternative.
Interest
Currently, Novo’s business checking account does not offer an APY. It does, however, help you safeguard your savings through a range of rewards and perks.
Digital Banking Features
Novo’s banking site and mobile app offer app integrations with accounting platforms Xero and Quickbooks as well as popular eCommerce platforms such as Amazon, eBay, and Etsy, thereby helping to streamline your sales and accounting processes.
Reserves is a feature that enables you to create multiple sub-accounts and set up automatic fund allocation, thereby automating your budgeting. Novo also comes with invoicing software that automates payment transactions from the submission of an invoice to clients to the arrival of the funds in your account.
The mobile app also comes with a virtual debit card and is Apple Pay and Google Pay enabled.
Rewards
With up to $4,000 in rewards, one of Novo’s most attractive perks for sole proprietors is that it provides up to $5,000 in fee-free card processing when clients pay you via Stripe.
If you use Quickbooks accounting software, this checking account gives you a 30% discount on your first six months using any Quickbooks package. You also receive discounts for business software such as Google Cloud, HubSpot, Constant Contact, and Gusto.
With LendingClub’s Tailored Checking account, you receive the rare opportunity to earn an APY of up to 1.5% while earning 1% cash back on all qualified purchases, thereby providing you with the ability to both grow your savings and cut your business expenses simultaneously.
Why we chose it:
Aside from its favorable interest rates and cash back rewards, LendingClub provides numerous online banking features to boost the efficiency of your business. This includes Autobooks, LendingClub’s invoicing software with a built-in payment portal, digital check deposits via the mobile app, and integrations with Mint, QuickBooks, and Quicken to streamline your financial management
- 1% cashback on all qualifying purchases
- Unlimited ATM fee rebates
- Mobile check deposit
- Built-in invoicing software
- Mint, QuickBooks, and Quicken integration
- Free ACH transactions
- $500 balance required to waive monthly fee
- High requirements to be eligible for cashback
Fees
While the Tailored Checking account carries a monthly fee of $10, this fee is waived for accounts holding more than $500. There is no minimum monthly balance, however, nor are there ACH transfer fees.
LendingClub offers unlimited ATM rebates, meaning that you’ll be reimbursed for all ATM withdrawals and cash deposits that you perform, with the unique advantage of this benefit applying to all ATMs, regardless of vendor. Check deposits made through the mobile app are free, while wire transfers cost $18 domestically and $40 internationally.
Interest
With an APY of up to 1.5%, LendingClub offers one of the more high-yielding business checking accounts available. To earn the maximum interest rate, however, your account will need to hold $100,000 or less.
Digital Banking Features
LendingClub’s online banking site and mobile app both offer account holders the ability to generate financial reports that can be used for accounting purposes, thereby making tax filing easier. Another advantage of the mobile app is that account holders can deposit checks simply by uploading a photo.
The Tailored Checking account provides clients with free access to Autobooks — LendingClub’s digital invoicing software. This platform enables you to send digitally secure invoices to customers, track their status, and receive next-day payments directly to your account.
Rewards
With this business checking account, you’ll receive 1% cashback on all qualified purchases made with your LendingClub debit card. It is important to note, however, that in order to qualify for this benefit, you will either need to have an average monthly balance of at least $2,500.00 or receive $2,500.00 in direct deposits.
If you’re looking for a business bank account with the means to help you improve the management of your business, then Bank of America’s Business Advantage Relationship Banking account is worth a look.
From its digital financial assistant and Zelle integration to complementary financial consulting services, this checking account is geared towards helping you grow your business.
Why we chose it:
Bank of America offers a wide range of digital tools to help sole proprietors optimize their business, including its cash flow monitor that tracks and categorizes account activity as well as its team of small business specialists that provide on-demand business management consultations.
- Zelle secure payments
- Cash flow monitor
- On-demand small business specialists
- Free savings account
- Free second checking account
- Not mobile friendly
- High monthly fee
- High requirements to join Prefered Rewards for Business
Fees
Carrying a monthly fee of $29.95, account holders can waive this fee if they have combined account balances of $15,000 or become a member of the bank’s Preferred Rewards for Business program. As a result, this account is better suited to those sole proprietors in a stronger financial position.
This account allows free ATM withdrawals at Bank of America ATMs as well as free cash deposits for the first $20,000, after which a fee of $0.30 per $100 deposited will apply. Regular ACH transactions are free, while next-day transfers cost $10 and same-day transfers cost $25.
Interest
While interest rates on this checking account as well as the Bank of America Advantage Savings account start at 0.01%, they can be boosted significantly if you sign up for the Prefered Rewards program.
With Prefered Rewards, you can receive an interest rate boost for your savings account ranging from 5% to 20% of your existing APY depending on your tier. It’s important to remember that, as a Business Advantage Relationship Banking customer, a savings account will be free to open.
Digital Banking Features
Bank of America’s cash flow monitor enables you to not only track your ongoing transactions but also receive cash flow projections, thereby allowing you to determine if your business is on the right track. Erica, BoA’s digital financial assistant, can be instructed to perform transactions on your behalf so that you don’t have to.
This checking account comes with Zelle, a fast and secure money transfer platform, and can be integrated with Quikcbooks to make your accounting easier. Bank of America also has a team of dedicated small business specialists to provide account holders with any guidance they may need in managing their business.
Rewards
Bank of America’s Preferred Rewards for Business provides a range of rewards for those who are eligible to join, such as waiving fees including monthly maintenance fees and inbound wire transfers. Beneficiaries also enjoy between 25%-75% rewards bonuses on participating credit cards, a 5% to 20% interest rate boost on Business Advantage Savings accounts, complimentary financial analysis with Merril, and discounts on loan interest rates.
One drawback, however, is that in order to qualify for this program, you’ll need to have a three-month combined average daily balance of $20,000 in your BoA accounts.
Methodology for the Best Business Bank Account for Sole Proprietors
- Fees: as a sole proprietor, cutting your expenses is crucial to maximizing your profit margin. For this reason, we looked for checking accounts with the lowest banking fees including monthly fees, ATM fees, and other transactions.
- Interest: Although your business may earn you the bulk of your income if not all, generating a passive income through interest means that you earn more without having to put in extra work.
- Digital Banking Features: In order to help you focus on running your business, we looked at banks that provide digital tools to help make administrative, financial, and tax tasks as easy as possible.
- Rewards: Benefits such as rewards programs can provide you with cash savings, complimentary products, and special offers aimed at saving you money, allowing your profit margin to grow as a result.
Sole Proprietor Business Checking Account Frequently Asked Questions (FAQs)
Are you still unsure about which bank account is best for a sole proprietor like yourself? Perhaps these answers to common questions can make your decision clearer!
Bottom Line
Whether your priority is to open a bank account with rewards such as Novo and Lili, financial management services such as Bank of America or LendingClub, or a high interest rate such as Bluevine, it’s crucial to open a bank account that separates your business from your personal affairs.
Not only does this make the financial management of your business easier, but it also enables you to receive benefits that will help you maximize your profit margins.
Best Business Bank Accounts by State
Below you will find an interactive U.S map that can help you locate and compare different banks and financial institutions that offer business accounts in your area.
