Are you a startup founder looking for the best banks for startups to fuel your business growth? Choosing the right banking partner is a critical step in your entrepreneurial journey. The right bank can significantly impact your startup’s financial health, operational efficiency, and growth trajectory.
To guide you through this crucial decision-making process, we have compiled a comprehensive overview of the best banks for startups, highlighting key criteria to consider when selecting a banking partner.
From industry specialization to flexible financing solutions, online banking capabilities, account fees, and exceptional customer service, this guide will help you make an informed decision that aligns with your startup’s unique needs and goals.
Criteria to Consider When Choosing Banks for Startups
Going into the entrepreneurial journey requires detailed planning, and selecting the right banking partner is a critical step for any startup. Consider the following key criteria when searching for the best banks for startups:
- Industry Specialization
Selecting a bank that specializes in serving your industry can be pivotal for your startup’s success. Industry-specific banks often possess a deep understanding of the unique financial challenges and opportunities within your sector. This specialization translates into tailored financial solutions, expert advice, and a proactive approach to addressing the specific needs of businesses in your field.
- Account Fees and Charges
Carefully scrutinize the fee structure associated with business accounts. For startups operating on limited budgets, minimizing costs is paramount.
Look for banks that offer transparent fee policies, preferably with low or no monthly charges, reasonable transaction fees, and clear terms. This ensures that your startup can manage its finances without being burdened by excessive and unpredictable charges.
- Loan and Credit Options
Access to flexible financing solutions is critical for a startup’s growth. Evaluate the loan and credit options offered by prospective banks, looking for institutions that understand the funding needs of startups.
A bank that provides tailored financial products, such as startup-friendly loans and credit lines, can play a pivotal role in supporting your business’s expansion plans and providing necessary capital during crucial phases.
- Online Banking Capabilities
The efficiency and reliability of a bank’s online platform are crucial considerations for startups. A well-developed online banking system empowers your business to handle transactions, monitor balances, and initiate transfers seamlessly.
An intuitive and user-friendly interface increases operational efficiency, allowing your team to focus on core business activities rather than navigating complex banking procedures.
- Customer Service
Exceptional customer service is a cornerstone of a positive banking relationship. Startups face unique challenges, and having access to a responsive and knowledgeable support team can make a significant difference. Choose a bank that prioritizes customer satisfaction, offering timely assistance and guidance.
Top 10 Banks for Startups, Revealed
Wise
Overview: Wise is a foreign exchange financial technology company based in the UK. It offers its services in over 160 countries, with 40 currencies. Free from hidden fees and exchange rate markups, this company may be considered as one of the best banks for startups.
By opening your international business account, you can become one of 300.000 companies that have already joined Wise and now pay their employees, get paid, and manage the cash flow.
Receiving payments with this bank is easy as 50% of the transfers are instant and reach the customer within an hour. It also sets a smarter way to collaborate within your team preventing unnecessary hassle. Your employees can have access to the business account. Meanwhile, you can add some restrictions so that the account’s full access is only in your hands.
It’s essential to mention that this company’s services are used by individuals as well. You can join 16 million people who have already chosen Wise.
Wise pays much attention to your security.
Services: Wise suggests opening 2 kinds of accounts: either business or personal. Using a Wise personal account enables you to oversee your global finances, while Wise Business empowers your company’s international expansion. This bank offers different products such as Money transfers abroad, international debit cards, travel money cards (one currency card for all your travels), etc.
Special Feature: Using Wise, you can open a free account, pay €7 only once for your physical card, and have 2 withdrawals per month for free if the amount isn’t more than €200.
Benefits:
- Can be used both for business and personal needs
- Is available in 160 countries and 40 currencies
- 2 free withdrawals for up to €200
- High level of security
- Fast money transfer
- Low fees
Online Platform: Wise Platform is specifically designed for banks, large businesses, and other major enterprises. It provides a financial infrastructure for over 70 partners all over the world. The list includes Ank Mandiri, IndusInd, Monzo, N26, Google Pay, and Brex.
Instant payments are guaranteed: 57% of cross-border payments are delivered instantly and 94% in under 1 day.
Brex
Overview: Like many other best banks for startups, Brex offers integrated cards, expenses, travel, and payments. Specifically designed for startups, mid-size companies, and enterprises, people from around 100 countries have already been using it.
With Brex, you can set badgers to control your employee’s spendings, pay vendors faster and easier with AI-powered automation, get accounting rule suggestions, and so on.
Enabled in 20+ currencies, their corporate credit cards have worldwide acceptance, the opportunity to earn 7X back, security, and 24/7 customer support. Real-time expense tracking helps monitor card limits and expenses whenever you want.
Services: Brex suggests having corporate cards such as T&E, Vendor, and Purchase cards. With this bank, you can upgrade your expense management and have automated AP workflows and invoices. By getting a Brex business account, you can earn a 4.94% yield with same-day liquidity.
Special Feature: With a high level of AI integration, lots of processes such as AP workflows, control, payment, and accounting are done automatically.
Benefits:
- Opportunity to earn 7X back
- 24/7 Support
- Business account
- High level of AI integration
- Real-time expense tracking
Online Platform: Within its platform, Brex AI auto-fills expense reports, instantly answers your questions, and automates manual tasks. Available both for iOS and Android, it has several integrations such as ERP, HRIS, Accounting, and Procurement.
US Bank
Overview: U.S. Bancorp is the parent company of the U.S. Bank National Association. Many businessmen think of it as the best bank for startup businesses as it is committed to serving its millions of retail, business, wealth management, payment, commercial, corporate, and investment clients.
With top-rated digital tools and fraud protection, this one is a good option for those who wanna pick a traditional bank. It suggests several types of saving accounts, checking accounts, money market accounts, and a safe debit account.
U.S. Bank offers a wide variety of credit cards starting from cash-back credit cards and ending with low-interest credit cards. It’s suggested to have a separate business bank account in order to check your business leads and not mix them up with your personal ones.
Like many other banks for startups, this one also has interesting digital solutions such as a business checking account, savings account, money market account, and much more.
Services: U.S. Bank is created to suggest services for personal, and business needs, wealth management, corporate & commercial, and institutional goals. You can acquire Visa gift cards, open different kinds of accounts (already mentioned above), and have an insurance and business owner advisory.
Business services such as cash management, payroll, and business shared access are combined with fraud protection and online banking features, making your work much easier.
Special Feature: Each of 5 different aspects (personal, wealth management, business, corporate & commercial, institutional) have their own separate services.
Benefits:
- A large variety of accounts and cards
- Online investing
- Business owner advisory
- Business loans
- Online Banking
Online Platform: The online platform for U.S. Bank’s Global Fund Services offers a comprehensive range of financial services, including fund management, investment solutions, and asset servicing. It provides a seamless experience for clients to access information, resources, and support, catering to various needs within the financial industry. Additionally, it offers access to articles, financial education, market news, and investment services.
Mercury
Overview: Mercury is a financial technology company that provides banking services tailored for startups of all sizes. While not a bank itself, it partners with Choice Financial Group and Evolve Bank & Trust to deliver FDIC-insured checking and savings accounts, along with additional financial services.
It allows users to manage, store, and move funds efficiently, issue employee debit and credit cards, and make payments through various channels, including ACH, wires, checks, and foreign exchange.
Mercury is often recognized as one of the best banks for startups thanks to its tailored services and comprehensive financial solutions. The company offers automated processes, seamless integrations, and granular employee permissions.
Additionally, Mercury fosters a supportive community and provides resources to help startups succeed, including access to an investor database and networking opportunities through Mercury Raise. Mercury stands out as the best bank for startup businesses with a strong focus on different industries and business types.
Services: Mercury offers startups a range of financial services, including FDIC-insured checking and savings accounts with no hidden fees, the IO Mastercard credit card with 1.5% cash back, venture debt options, and treasury solutions with competitive APY.
It emphasizes customizable controls for spending management, and international usability without foreign exchange fees, and provides startup-friendly support and discounts, catering to the diverse financial needs of growing businesses.
Special Feature: FDIC-insured bank accounts with no hidden fees.
Benefits:
- FDIC-insured checking and savings accounts
- Payments through various channels
- No hidden fees
- Startup-friendly support
Online Platform: With Mercury’s user-friendly online platform you can open a bank account, join the community, and read more about financial events. Access to support and discounts is also possible with this platform. It aims to ensure that startups have the financial tools they need to thrive and grow.
Silicon Valley Bank
Overview: Silicon Valley Bank (SVB) is a division of First Citizens Bank. Being one of the best banks for startups, it offers a wide range of banking services tailored to support the needs of businesses at different stages, from startup to mature companies.
Their services include business banking, global business solutions, lending, and expertise across various industries such as cleantech, healthcare, and fintech. They also provide insights, reports, and webinars to help businesses make informed decisions.
Additionally, SVB offers specialized support for investors, including private equity funds, venture capital, emerging managers, and corporate ventures. They are known for their deep experience and specialized solutions for technology, life science, and healthcare companies.
SVB emphasizes its commitment to being a partner throughout the financial journey of businesses, offering purpose-built solutions for every stage of their growth.
Services: SVB includes a large variety of services such as Business Banking (Business Checking, Payments and Business Credit Cards, Online Tools and Integration, Fraud Prevention, Lending), global business solutions (global banking, global payments, foreign exchange risk services), liquidity solutions (SVB Asset Management, Deposits & Investments), and global fund banking (PE Fund Banking, VC Fund Banking).
Special Feature: The main thing that differentiates this bank from the other ones is its wide range of services.
Benefits:
- Synchronizing with other business apps
- User-friendly platform
- A large variety of services
- Low fees
Online Platform: Silicon Valley Bank’s online platform is designed for seamless, user-friendly functionality, allowing easy access to essential banking features such as reports, transfers, deposits, and wires, providing convenient management options for businesses on the go.
First Republic
Overview: We should surely include First Republic in the list of best banks for startups for its multifunctional role in the financial aspect. First Republic Bank offers private banking, business banking, real estate lending, and wealth management, including trust and custody services.
Its operations are divided into the Commercial Banking and Wealth Management segments. The Commercial Banking segment focuses on real estate secured lending, retail deposit gathering, private banking activities, mortgage sales and servicing, and managing capital, liquidity, and interest rate risk.
The Wealth Management segment includes investment management activities, trust services, mutual fund activities, brokerage activities, and foreign exchange activities conducted on behalf of clients. Founded in 1985, the bank is headquartered in San Francisco, CA, and serves individuals, corporate clients, and high-net-worth entities across various states.
Services: Their personal banking services encompass online and mobile banking, checking, savings, money market accounts, and lending solutions. For entrepreneurs, the bank provides specialized business banking services, including checking, money market, treasury services, and innovative solutions tailored for innovators and businesses.
Their wealth management division focuses on customizing solutions with a commitment to exceptional service, covering investment management, brokerage services, trust services, financial planning, and more.
Special Features: Their website suggests a large variety of topics that will influence the growth of your financial education.
Benefits:
- Client-centric approach
- Tailored services
- Both personal and business banking
- Provides insights and education
Online Platform: Through their website, you can navigate to “Banking Built for Innovators” and after filling in the questions about your company’s stage, and your role there, download the related articles and research papers.
You can also find a separate heading “Insights & Education” and find topics such as money management, wealth strategies, legacy planning, and business growth.
Chase Bank
Overview: Chase Bank, a part of JPMorgan Chase & Co., is a leading U.S. consumer and commercial banking business that offers a broad range of financial services. From personal banking, credit cards, mortgages, and auto financing to investment advice, small business loans, and payment processing, Chase is one of the best banks for startups as it is committed to helping customers succeed.
With over 4,700 branches, 15,000 ATMs, and a user-friendly online platform, Chase provides convenient banking options tailored to individual needs. The bank also offers a diverse range of products including checking accounts, savings accounts, credit cards, mortgages, auto financing, and business banking services.
Additionally, through J.P. Morgan, Chase provides investment education, expertise, and tools to help customers reach their financial goals. With a focus on security and customer service, Chase aims to empower individuals to manage their money effectively while offering unique experiences through partnerships in sports, entertainment, and culinary events.
Chase’s suite of security features ensures protection against financial abuse and fraud, providing customers with peace of mind.
Services: Chase can be included in the list of best banks for tech startups as it offers a wide array of financial services designed to meet diverse customer needs. These services include personal banking options such as checking accounts, savings accounts, and credit cards, along with tools for managing mortgages, auto financing, and investing through J.P. Morgan.
Chase also provides specialized guidance for businesses through its Chase for Business program, offering services like business checking, small business loans, business credit cards, and merchant services.
Special Feature: Many customers consider Chase as the best business bank for startups because it provides specialized guidance for businesses.
Benefits:
- Diverse personal banking options
- Tools for managing mortgages, auto financing, and investing through J.P. Morgan
- Specialized guidance for businesses
- Chase Private Client program offering personalized relationship with dedicated perks and benefits
- Access to unique sports, entertainment, and culinary events through Chase Experiences and exclusive partnerships
Online Platform: Chase Bank’s online platform offers comprehensive digital banking features, including online banking, mobile banking through the Chase Mobile® app, account management, bill pay, fund transfers, and access to various digital payment options.
Novo
Overview: Looking for the best banks for startups? Thinking about taking your business to the next level? Then you should probably look into Novo. It’s an FDIC-insured bank with powerful security, and instant card controls. 200K+ customers are mostly satisfied with the fact that Novo has no hidden fees or monthly fees, makes payments fast, allows free ACH transfers, mailed checks and incoming wires.
Additionally, it’s possible to make international transactions with your Wise card right through your Novo account. Once you open a checking account, you get both physical and virtual cards for free.
Services: Like many other banks for startups, Novo too has a large variety of services and products. By opening a checking account, you can deposit and send checks right through the Novo app, use automatic categorization and unlimited transactions, make fast & easy transfers, and acquire both a virtual card and physical card.
This bank also offers free-funding, built-in free invoicing software, internationally known integrations starting from Stripe to Shopify. As a customer, you can also save money with Novo’s partner perks. The service helps businesses grow by offering more than $3000 in savings on best-in-class tools for payments, payroll, marketing, and more.
Special Feature: With Novo’s partner perks you can use the newest tools and save lots of money.
Benefits:
- No hidden or monthly fees
- Free invoices
- Fast and easy transfers
- Unlimited transactions
- Integrations
- Partner perks
Online Platform: Novo’s online banking platform is specifically designed for small businesses and freelancers. It offers a range of features and services tailored to the needs of entrepreneurs, including business checking accounts, expense management tools, and integrations with popular business software.
Novo’s platform provides a seamless and user-friendly experience, allowing users to manage their finances, track expenses, and make payments efficiently.
Arc
Overview: Arc is one of the best banks for startups seeking comprehensive financial solutions tailored to their unique needs. It offers an array of essential cash management tools and founder-friendly funding options to help startups grow.
At the core of Arc’s offerings is its suite of cash management essentials, comprising Treasury, Operating, and Reserve accounts. These accounts not only facilitate seamless day-to-day financial operations but also provide avenues for high-yield investments, such as Money Market Funds and Treasury Bills, enabling startups to earn up to 5.37% APY on idle cash reserves.
What sets Arc apart is its commitment to startup growth without the drawbacks of traditional financing. Arc’s emphasis on security, offering bank-level protection and granular employee permissions, coupled with a frictionless user experience and white-glove support, ensures startups can focus on scaling their businesses without financial constraints.
Services: Arc offers a comprehensive suite of financial services tailored for startups, emphasizing cash management and innovative funding solutions. Its Cash Management suite includes Operating, Reserve, and Treasury accounts with features like free ACH transactions, no minimum deposit requirements, and impressive APY rates (up to 5.37% in Treasury accounts).
The Revenue Financing option provides founder-friendly funding, allowing businesses to access capital swiftly without sacrificing equity. Additionally, Arc partners with reputable financial institutions like Stripe, Goldman Sachs, and Evolve Bank & Trust to provide secure and FDIC-insured account services.
Special Feature: Arc stands out from traditional banks by offering startups a unique blend of cash management tools, transparent financing options, and personalized services, all designed to foster growth without compromising equity or imposing restrictive fees.
Benefits:
- Transparent pricing
- Non-dilutive funding
- High APY rates
- Seamless underwriting
- No hidden fees
- Tailored eligibility
- Tech-driven solutions
Online Platform: With intuitive navigation, Arc’s online platform provides easy access to a suite of financial services, including transparent pricing, revenue financing, and high-yield accounts.
The platform’s robust features facilitate effortless account management, automated fund access, and transparent insights into funding options. Arc’s tech-driven approach empowers entrepreneurs to efficiently manage cash flow, make informed financial decisions, and access innovative funding solutions with just a few clicks.
Revolut
Overview: Revolut is an all-in-one finance app offering a wide range of features to manage your money. With over 35 million customers, it provides services like spending, savings, and investments.
While not actually a bank, it can be included in the list of best banks for startups as it offers 360° security with 24/7 monitoring and securing of your money. One of its notable features is the ability to earn up to 4.75% AER/Gross (variable) interest on savings, paid daily.
In addition to traditional banking services, Revolut allows for easy money transfers globally, stock trading with a selection of over 2,000 stocks, and exploring different commodities such as gold and silver. It also provides a user-friendly interface for everyday finances, including budgeting tools, joint accounts, and various card options.
Revolut offers different subscription plans, each with its own set of benefits, from free accounts to premium options with lifestyle perks and higher limits.
Services: Revolut offers a wide range of services to its users. It provides traditional banking services alongside innovative features. The customers can make use of its multi-currency card to spend abroad at the interbank exchange rate, track spending, and set monthly budgets.
Additionally, Revolut allows users to save money through savings vaults with the added benefit of earning daily interest on their savings. It also offers commission-free stock trading, allowing users to invest in stocks and explore exchange-traded funds (ETFs).
Furthermore, Revolut facilitates low-cost international money transfers in over 30 currencies, making it convenient for global transactions.
Security is a priority, with features such as 24/7 monitoring and the ability to freeze and unfreeze cards instantly.
Special Feature: Revolut’s special feature lies in its ability to seamlessly combine traditional banking services with modern features like cryptocurrency trading and commission-free stock investing.
Benefits:
- Multi-currency card
- Commission-free stock trading
- Cryptocurrency support
Online Platform: Revolut’s online platform provides users with a user-friendly interface, allowing them to effortlessly manage various financial activities such as spending, budgeting, international money transfers, savings with interest, stock trading, cryptocurrency transactions, and subscription management.
The platform offers 24/7 monitoring and security features, ensuring a safe and convenient experience for users’ financial needs.
Conclusion
Opening a business bank account with the best banks for startups entails a nuanced evaluation of various factors crucial to entrepreneurial success. The top banks recognized for startup-friendly services prioritize transparency, agility, and tailored solutions to meet the specific needs of different sizes of businesses.
The mentioned banks offer cash management tools, non-dilutive funding, high-yield accounts, and more. By prioritizing transparent pricing structures and seamless underwriting processes, these financial institutions minimize the burden of excessive fees and offer accessible funding options.
Moreover, their online platforms boast user-friendly interfaces, empowering entrepreneurs to manage finances efficiently while accessing innovative funding solutions effortlessly.
Overall, the best banks for startups are those that offer industry-specific expertise, transparent and cost-effective fee structures, tailored financial products, efficient online banking capabilities, and exceptional customer service. By carefully considering these criteria, startups can make informed decisions when choosing a banking partner that will support their financial needs and contribute to their long-term success.
