Choosing the right bank to handle your business finances is crucial for the success of any business. For small business owners, your bank can significantly influence the growth of your enterprise.
If you’re a small business owner in Alaska, whether new or established and need help to select the right bank, this article is designed to help you. We provide all the information you need to make a well-informed decision.
We have conducted thorough research and compiled a list of the best banks for small businesses in Alaska. Continue reading to discover the bank that best fits your business needs.
We conducted thorough research to identify the top banks for small businesses in Alaska. Our evaluation process included analyzing factors such as mobile banking availability, interest rates, fees for monthly transactions, online customer reviews, minimum balance requirements, and user-friendliness. The banks listed in this article were selected based on these criteria.
For a more detailed breakdown of our research methods, click here.
>> Open a Business Bank Account With Bluevine >>
Bluevine is tailored for small business owners who prefer managing their finances digitally and avoid the hassle of visiting a physical branch. It offers the highest interest rate among all the banks we’ve reviewed, with the ability to earn up to 2.0% APY on your account balance. Premier customers can now enjoy an impressive 4.25% APY rate.
Key advantages of opening a Bluevine checking account include unlimited transactions without fees, no monthly or overdraft fees, and no minimum opening deposit requirement. Bluevine operates exclusively online and supports a mobile app for Android and iPhone users. Its customer support is exemplary and always ready to address customer issues.
Why we chose it: It stands out due to its high-interest rates, minimal fees, and no maintenance requirements, making it an ideal business bank account for LLCs and other business types.
Pros
Cons
Bluevine offers a significant advantage with a 2.0% APY, which is 50 times the national average, applicable on balances up to $100,000. Balances above this amount don’t earn interest.
Bluevine has no monthly fees, allowing for cost-free banking. However, out-of-network ATM usage incurs fees, and the mobile app is crucial for locating free withdrawal options. Cash deposits come with a fee of $4.95 each.
There’s no minimum balance requirement at Bluevine, enabling small businesses to start with minimal funds and immediately benefit from the high-interest rate.
The Bluevine mobile app facilitates banking from anywhere and is designed to make account management straightforward. It also supports wire or check payments to vendors and the scheduling of future payments.
Lili Bank is ideal for small businesses without dedicated accountants. It offers a robust mobile banking system with integrated tools designed to manage your finances precisely. Lili helps track all business transactions and maintains financial records, making managing your accounts simpler and preparing for tax season with its business accounting software.
Additionally, a Lili bank account doesn’t require an opening deposit or maintaining any minimum balance, and it comes with no monthly fees and free overdraft protection.
Why we chose it: Lili stands out due to its minimal fees and tax optimization tools, which help businesses conserve their hard-earned money. Moreover, Lili offers an excellent solution for those seeking an online business checking account without credit checks.
Pros
Cons
Lili offers free tax software and eliminates several typical banking fees. There are no fees for account maintenance, overdrafts, foreign transactions, or using any 38,000 in-network ATMs across the United States. However, using an out-of-network ATM will incur a fee ranging from $2.50 to $5.
Lili’s Business Checking account doesn’t earn interest. For those interested in earning interest, a savings account option is available with a 1.5% APY, but it requires maintaining a minimum balance of $34,000 to negate the monthly fees.
Lili Bank doesn’t require a minimum balance for its checking accounts, which benefits new businesses or those with variable income, as it avoids the need to maintain a specific balance to dodge monthly fees.
Lili Bank’s mobile app is tailored for freelancers and small business owners. It enables effective financial management directly from your mobile device. The app provides tools for expense management, tax savings, and payment handling. Additional features include instant payment notifications, budgeting tools, and the capability to deposit checks via your mobile phone.
Capital One is well-known for its comprehensive range of credit cards, but it provides substantial benefits for small businesses. Using Capital One’s credit cards for purchases can help you earn additional money.
There are no monthly fees or minimum balance requirements to open an account with Capital One, and there are no restrictions on the number of transfers you can make. You can manage your account conveniently via mobile or visit one of their branches for in-person banking.
Why we chose it: Capital One offers unlimited digital transfers, providing you with the flexibility to manage your funds freely.
Pros
Cons
Capital One charges a $15 monthly fee for its business accounts, which can be a considerable expense for a small business. However, this fee can be waived if you maintain an average balance of $2,000 over 30- or 90-day days. Additionally, no fees exist for using any of Capital One’s 70,000 ATMs nationwide.
Capital One offers interest rates of up to 0.20% in the first year for business savings accounts, applicable to balances up to $5 million. This provides ample flexibility for small businesses. However, none of the bank’s checking accounts accrue interest, making the benefit of free digital transfers even more attractive.
There’s no minimum balance requirement to keep your Capital One account active. However, it’s advisable to maintain at least $2,000 in your checking account to avoid the monthly service fee. Holding extra funds in your savings account allows you to earn some interest on idle money.
Given the limited number of physical Capital One locations, the bank’s highly-rated mobile app is handy. The app lets you manage all your transfers, make digital payments, and deposit checks using your device’s camera. It also provides access to Capital One’s CreditWise service, which helps you monitor your credit score and offers helpful financial tips.
U.S. Bank is worth considering if you need quick financing for your business. It offers some of the best loan options for small businesses in Alaska, featuring flexible terms and competitive rates that facilitate easier repayment.
In addition to financing, U.S. Bank provides merchant services enabling customers to pay through various methods, including point-of-sale systems. There’s also a chance to earn up to a $500 sign-up bonus.
With over 2,000 physical branches, you can find U.S. Bank facilities even when traveling out of state, plus you can manage your banking needs online via your mobile device.
Why we chose it: U.S. Bank stands out for small businesses seeking diverse lending solutions, making it an excellent resource for additional financing.
Pros
Cons
With U.S. Bank’s Silver Checking Package for small businesses, you won’t have to pay monthly fees. However, as your business expands, higher-tier accounts may have monthly fees that can be waived under certain conditions. It’s important to monitor your monthly transactions closely to avoid charges arising from exceeding transaction limits.
None of U.S. Bank’s checking accounts offer the ability to earn interest. While the savings options have benefits, the highest available interest rate currently stands at only 0.01%. This rate, albeit minimal, doesn’t have a cap on the earnings you can accumulate.
U.S. Bank’s Silver Account Package for small businesses requires no minimum balance. For other checking accounts, maintaining the required balance can waive monthly fees. Savings accounts require a minimum balance of $500 to avoid service fees.
Away from a physical U.S. Bank location? No problem. The mobile app allows you to conduct all necessary banking transactions efficiently. You can transfer funds between accounts, monitor your financial status, and receive customized alerts to keep you informed, all through the app.
If you appreciate the convenience of extensive branch coverage and a large ATM network, Bank of America might be the right fit. It also excels in online functionality and offers numerous rewards. Bank of America provides various tools that can benefit your business and your customers.
You’ll have access to merchant services, payroll solutions, remote deposit capabilities, and a vast network of ATMs. Bank of America’s business checking accounts don’t require a minimum deposit to get started, and the monthly fees can be waived if you meet certain criteria.
Why we chose it: Bank of America’s rewarding banking experience includes several benefits that enhance both customer satisfaction and business efficiency.
Pros
Cons
Bank of America’s basic checking account carries a $16 monthly fee. This fee can be waived by maintaining a $5,000 monthly balance, spending a minimum of $250 on your debit card, or enrolling in the Preferred Rewards program. The primary additional fees you may encounter are for out-of-network ATM withdrawals and excessive deposit charges in any given month.
For small business savings accounts, the starting interest rate is 0.01%. This rate can be increased to 0.04% by participating actively in Bank of America’s rewards program. It’s important to note that the Bank of America’s checking accounts don’t offer any interest accrual.
A monthly average balance of $5,000 in your checking account will eliminate the $16 service fee. For savings accounts, maintaining a balance of at least $2,500 will help you avoid a $10 monthly fee.
Bank of America’s mobile app is highly rated for its user-friendly features. Through the app, you can manage your accounts, pay bills, and transfer funds from anywhere. The app includes a budgeting tool that helps you track expenses and manage spending effectively.
>> Check Out Bank of America >>
Similar to Lili Bank, Oxygen is tailored for solo entrepreneurs. It caters to sole proprietors and independent business owners with a suite of accounting services and features. Its services include in-app accounting software designed to help accurately track finances.
Oxygen also provides cash-back rewards on debit card purchases. Other benefits include no monthly fees, minimum balance or deposit requirements, or overdraft fees.
Why we chose it: Oxygen appeals to the modern business owner, delivering stylish banking features. It’s also considered one of the top checking accounts for sole proprietors.
Pros
Cons
Oxygen promotes itself as a bank without top-to-bottom fees but notes that charges may apply for out-of-network and international ATM withdrawals. There are no fees for ACH transfers or for maintaining your account.
Oxygen doesn’t offer interest on funds in business checking accounts, but it compensates by providing a business savings account option. Funds in the savings account earn 1.0% interest on balances up to $20,000. Higher balances earn interest as well, albeit at a reduced rate.
Oxygen Bank requires no minimum balance for either its checking or savings accounts, ensuring you won’t face monthly fees, regardless of your account balance. You can rest easy knowing there are no penalties for low balances.
Oxygen Bank’s mobile app is crafted to assist small business owners in managing their finances seamlessly while on the move. The app lets you deposit checks, pay bills, and view account statements. Additionally, it provides spending insights to help you monitor and manage your financial activity effectively.
One notable feature of Chase Bank is its commitment to securing your business account against fraudulent activities. It offers complimentary fraud monitoring services to shield your business accounts from any suspicious activities.
In addition to robust security measures, Chase provides exceptional banking services to help your money grow. Its merchant services enable customers to pay using various methods, which can significantly boost your business growth. Chase also offers a mobile app that facilitates quick and easy transactions.
Why we chose it: Chase combines various merchant services with traditional banking solutions to support your business’s success.
Pros
Cons
Chase Business Complete Banking starts with a monthly fee of $15, which can be waived by maintaining a daily balance of $2,000, making deposits via Chase QuickAccept, or purchasing with a Chase Ink Business Card. Additional transactions incur a fee after the initial 20 free transactions, and wire transfers can be particularly expensive.
Chase doesn’t offer interest on business checking accounts. To earn interest, you must open a business savings account with rates up to 0.02%.
To avoid the monthly service fee with Chase, ensure you maintain at least $2,000 in your checking account. Dropping below this threshold even once a month can trigger the fee. There are no fees for savings accounts as long as you maintain an active checking account with Chase.
The Chase mobile app extends beyond typical banking functions. It allows you to lock or unlock your credit card if lost, includes a budget planning tool for setting aside funds for significant purchases, and features credit monitoring tools to safeguard your credit health.
Here are the criteria we considered when evaluating banks for inclusion in this article:
>> Open a Business Bank Account With the Bluevine >>
Are you an Alaska business owner planning to open a business bank account? This FAQ section will address any questions you might have.
The top banks for opening a business bank account include Axos, Capital One, Lili, Chase, Bank of America, Oxygen, and U.S. Bank. Each of these banks offers a variety of services and policies designed to support business owners in expanding their enterprises.
When selecting a bank for your small business, consider key factors like service fees, interest rates, scalability, and the services and offers available. It’s crucial to ensure that the bank’s services and policies match your business objectives.
In Alaska, popular banks such as Axos, Chase, Capital One, Lili, Oxygen, Bank of America, and U.S. Bank are widely available. These banks offer a broad array of services to meet diverse banking needs.
Yes, opening a bank account with an EIN (Employer Identification Number) is advisable. If your business has at least one employee, you’ll need an EIN for tax purposes, and banks will require it when setting up your account. If you’re the sole employee, you could use your Social Security number (SSN) instead, but this might mix your personal and business finances, which is best avoided.
It’s smart to set aside at least six months’ worth of operating expenses as a safety net for any unforeseen challenges in your business operations. This reserve can support you while you navigate through any temporary setbacks. If feasible, consider adding at least 10% of your monthly profits to this savings pool to help it grow.
When opening a business bank account, consider the interest rates, the range of services offered, the fees involved, and the bank’s availability and security. These factors will help you determine the most suitable bank for your business. Review the banks mentioned in this article and select one whose services align with your business objectives and can help elevate your business to greater heights.
