9 Best Banks for Small Businesses in Iowa Ranked for 2024

Bluevine Bank offers just one account tailored for small businesses: the Bluevine Business Checking Account. Founded by Eyal Lifshitz to boost small business growth, this bank offers a notable benefit—2% interest on all available balances in the account. 

To earn this, customers must spend at least $500 using their Bluevine business debit Mastercard and receive a minimum of $2,500 monthly either through wire transfers or from merchant providers.

Why we recommend it: Bluevine stands out as the top choice for business banking due to its high interest rates, low fees, and no maintenance requirements, making it ideal for LLCs and various other business types.

Fees

At Bluevine, you won’t encounter any monthly fees, allowing you to manage your finances without extra costs. However, using ATMs outside the network incurs charges, making the mobile app a handy resource for locating free withdrawal options. Be aware that each cash deposit costs $4.95, so it’s best to use this feature judiciously.

Interest Rates

Bluevine significantly boosts your earnings with a 4.25% APY. This rate applies to balances up to $100,000. However, any amount exceeding this will not earn interest, something for growing businesses to consider.

Minimum Balance

There’s no minimum balance required to use Bluevine, making it accessible for small businesses to start banking immediately and benefit from the high-interest rate, regardless of their initial deposit size.

Access to Mobile Banking

The Bluevine mobile app provides a seamless banking experience from anywhere. This well-designed tool helps you effortlessly manage your finances, track transactions, and handle payments, whether you’re paying vendors via wire or scheduling checks for later dates.

>> Check Out Bluevine >>

Capital One Bank stands out as one of Iowa’s leading financial institutions, renowned for its appealing rewards program and straightforward financial policies. 

It’s attractive to small businesses because of the ease with which you can open checking accounts and obtain credit cards. Capital One allows the opening of up to two business checking accounts and the addition of seven business credit cards.

Capital One cards offer a range of loyalty rewards without any access fees, making them highly favorable for small businesses that frequently manage multiple transactions across different accounts.

Why we chose it: Capital One offers unlimited digital transfers, providing you the flexibility to manage your funds fluidly without constraints.

Fees

Capital One charges a $15 monthly fee for its business accounts, which might be steep for some small businesses. However, this fee can be waived by maintaining an average balance of $2,000 over a 30 or 90-day period. Using any of Capital One’s 70,000 ATMs across the country is free, so you don’t have to worry about withdrawal fees.

Interest Rates

When you open a business savings account with Capital One, you can earn interest rates up to 0.20% during your first year, applicable to balances up to $5 million. This provides substantial flexibility for small businesses looking to grow their funds. However, Capital One’s checking accounts don’t offer interest, making the benefit of free digital transfers even more valuable.

Minimum Balance

There’s no required minimum balance to keep your Capital One account active. But to dodge the $15 monthly service fee, it’s wise to keep at least $2,000 in your checking account. Storing additional funds in your savings can also yield some interest, making your money work for you even when it’s not being actively used.

Access to Mobile Banking

With fewer physical branches, Capital One’s highly-rated mobile app is a critical tool for managing your finances. It allows you to perform transfers, make digital payments, and deposit checks using your device’s camera. The app also provides access to Capital One’s CreditWise service, which helps monitor your credit score and offers helpful financial tips.

>> Check Out Capital One >>

Lili is a leading financial institution in Iowa, renowned for its robust credit offerings and user-friendly online banking. It’s an ideal choice for small business owners thanks to its numerous branches and ATM locations throughout the city, facilitating easy withdrawals and deposits.

Customer service at Lili is top-notch, ranked among the best in the state, ensuring all your queries are addressed swiftly. Lili provides a comprehensive suite of services for businesses, including the ability to open savings and checking accounts, acquire business credit cards, and secure loans to foster business growth. Notably, their business checking account is free to open and doesn’t require a minimum balance.

Why we choose it: Lili excels in providing small businesses with outstanding electronic services, rapid issuance of debit and credit cards, and flexible loan repayment options. If you’re in search of the best online business checking account with excellent mobile apps and online services, Lili is the top choice.

Fees

Lili stands out for its complimentary tax software and absence of fees on accounts and overdrafts. You won’t face any fees for foreign transactions or for using any of the 38,000 in-network ATMs across the U.S. However, using an out-of-network ATM could cause charges ranging from $2.50 to $5.

Interest Rates

Lili’s Business Checking account doesn’t accrue interest. If you opt for a savings account, you can earn an interest rate of 1.5% APY, but maintaining a balance of at least $34,000 is necessary to counterbalance the monthly fees.

Minimum Balance

No minimum balance is required for Lili’s checking account, which is beneficial if you’re starting a new business or your income varies. This flexibility ensures that maintaining your account is hassle-free, regardless of your business’s financial state.

Access to Mobile Banking

Lili Bank provides a mobile banking app for freelancers and small business owners. This app facilitates comprehensive financial management from your device, allowing you to track expenses, set aside money for taxes, and handle payments efficiently. 

Key features include instant payment notifications, budgeting tools, and the capability to deposit checks via your mobile phone.

>> Check Out Lili Bank >>

U.S. Bank is a prime choice for small business owners in Iowa, boasting a wide network of offices and ATM locations across the country. It’s particularly well-suited for entrepreneurs and small businesses, especially if your monthly transactions number fewer than 200, as U.S. Bank doesn’t charge maintenance fees for such accounts. 

For businesses involved in real estate or property, U.S. Bank offers attractive short and mid-term loan options.

Why we chose it: For small businesses seeking additional funding, U.S. Bank provides a variety of lending options, making it an excellent resource for financial growth and support.

Fees

With U.S. Bank’s silver checking package tailored for small businesses, you can forget about monthly fees. As your business expands, you may opt for higher-tier accounts which come with monthly fees that can be waived under certain conditions. Just monitor your transaction count to avoid extra charges if you exceed the monthly transaction limit.

Interest Rates

Checking accounts at U.S. Bank don’t offer interest-earning potential. However, their savings plans come with some benefits, albeit the maximum interest rate is currently only 0.01%. While this rate is minimal, it’s important to note there’s no cap on the balance that can earn this interest.

Minimum Balance

There’s no minimum balance required to open U.S. Bank’s silver account package, which is designed specifically for small businesses. For other checking accounts, you can avoid fees by maintaining the necessary balance. Savings accounts require a minimum balance of $500 to avoid service fees.

Access to Mobile Banking

If you’re not near a U.S. Bank branch, their mobile app makes it easy to manage your banking from anywhere. You can transfer funds, keep track of your finances, and receive customized alerts to stay informed about your accounts. The app ensures you have full banking capabilities right at your fingertips.

>> Check Out U.S. Bank >>

Oxygen presents an outstanding business checking account that’s ideal for sole proprietors, remote workers, and freelancers seeking a fee-free banking experience. It stands out as a top choice for those who require a secure online banking environment, offering one-time-use credit cards to enhance security and prevent identity theft or account breaches.

This bank also supports small business owners in Iowa who are looking to elevate their ventures by providing assistance in setting up LLCs.

Why we chose it: Oxygen appeals directly to the modern business owner, providing innovative banking features that enhance both security and convenience. It’s especially beneficial for sole proprietors, making it one of the top checking account options for those running their own businesses.

Fees

Oxygen promotes a fee-free banking experience, although it notes that withdrawals made of network or internationally might incur charges. You can rest easy knowing there are no fees for ACH transfers or for simply keeping your account active.

Interest Rates

Oxygen’s business checking account doesn’t offer interest on its own. To compensate, they provide a business savings account option where funds can earn 1.0% interest on balances up to $20,000. Higher amounts still accrue interest, albeit at a reduced rate.

Minimum Balance

There are no minimum balance requirements for checking or savings accounts at Oxygen Bank. This means you won’t face monthly fees, regardless of your account balance, ensuring financial flexibility without the stress of meeting specific thresholds.

Mobile Banking Features

Oxygen Bank’s mobile app is tailored for small business owners who need to manage their finances remotely. The app allows you to deposit checks, pay bills, and access your account statements on the move. It provides spending insights, helping you keep track of your financial health and budget more effectively. 

>> Check Out Oxygen >>

Axos stands out as an excellent banking choice for small businesses, especially those in need of accessible credit lines and straightforward loan options. This bank caters to both passive income earners and daily business operators with its variety of checking and savings accounts. 

Additionally, Axos offers investment services, allowing clients to invest in annuities, mutual funds, and IRAs. Entrepreneurs, solopreneurs, and remote workers will find Axos’s banking solutions particularly beneficial for securing financing for projects like fix-and-flip investments. 

Axos distinguishes itself as a financial institution that keeps its demands minimal, simplifying opening business accounts. Their loan offerings are comprehensive, including vehicle loans, student loans, business loans, and home improvement loans.

Axos is noted for offering some of the most competitive interest rates among top banks in Iowa, although maintaining a decent monthly balance is necessary to reap these benefits.

Why we chose it: Axos’s Basic Business Checking account is appealing due to its free cash deposits and low fee structure, making it one of the best business bank accounts available.

Fees

Axos Bank’s Basic Business Checking comes without a monthly maintenance fee, offering a cost-effective solution for keeping your account operational. You’ll also be reimbursed for any ATM fees you incur, essentially making this account free to use. However, if you frequently send wire transfers, keep in mind that Axos charges $35 for each transaction.

Interest Rates

The Basic Business Checking account doesn’t earn interest but maximizes business perks instead. If you’re looking to grow your savings, you can open one of Axos’s interest-bearing business savings accounts to start accumulating interest on your surplus funds.

Minimum Balance

There are no minimum balance requirements for either checking or savings accounts at Axos Bank. This feature makes Axos an appealing choice if you’re a small business owner with limited funds, as you won’t need to maintain a specific balance to avoid monthly fees.

Access to Mobile Banking

Axos Bank’s mobile app is comprehensive, allowing you to manage your finances effectively from your device. Through the app, you can deposit checks, transfer funds, pay bills, and initiate wire transfers. The app includes features like account alerts and budgeting tools to help you monitor and control your financial activities efficiently.

>> Check Out Axos >>

Bank of America stands out as a top choice for small businesses in Iowa. It boasts an extensive network of branches statewide and nationally and offers round-the-clock services. Bank of America features a program called “Preferred Rewards for Business,” which is beneficial for real estate investors and startups. 

This bank provides numerous conveniently situated ATM locations and offers various incentives, making it a highly practical option. It allows for easy integration with many business applications.

Why we chose it: Bank of America’s rewards program comes packed with many benefits that make banking beneficial for all parties involved.

Fees

Bank of America’s basic checking account has a $16 monthly fee. However, you can avoid this fee by maintaining a $5,000 monthly balance, spending a minimum of $250 with your debit card, or joining the Preferred Rewards program. Be mindful of additional fees for using non-Bank of America ATMs and for making excessive deposits within a month.

Interest Rates

Small businesses starting a savings account at Bank of America will typically earn an interest rate of 0.01%. This rate can be increased to 0.04% by engaging more actively in Bank of America’s rewards system. It’s important to note that Bank of America’s checking accounts don’t offer any interest accumulation.

Minimum Balance

To waive the $16 monthly service fee on your checking account, you need to maintain an average monthly balance of $5,000. For savings accounts, maintaining at least $2,500 will help you avoid the $10 monthly service charge.

Access to Mobile Banking

Bank of America’s mobile app is valued for its functionality. It allows you to manage your accounts, pay bills, and transfer funds from anywhere. The app also includes a budgeting tool to help you track expenses and manage your spending efficiently.

>> Check Out Bank of America >>

Chase Business stands out with its array of business services, including payment collection and fraud protection, and even offers a $300 bonus simply for opening an account. You can process credit card payments directly through the Chase app. While there’s a monthly service fee, Chase provides several options to waive it, making it flexible for business owners.

Why we chose it: Chase goes beyond basic banking needs by offering a comprehensive suite of additional services tailored to enhance and protect your business operations.

Fees

While the monthly service fee might initially seem discouraging, especially with many fee-free options available, Chase offers several ways to have this fee waived. 

Maintain a daily minimum balance of $2,000, make $2,000 in net purchases with your business card, or receive $2,000 in deposits through the Chase QuickAccept app. These options provide flexibility and make it easier to avoid extra charges.

>> Check Out Chase for Business >>

Chase is a major banking player in Iowa, boasting approximately 300 branches and over 1,000 ATMs nationwide. Chase offers a no-fee business account option for small business owners, provided a minimum monthly balance of $3,000 is maintained. However, any balance exceeding this amount incurs a monthly fee of about $10.

Chase is well-equipped to manage various business services, making it an excellent choice for those involved in multiple business activities. Freelancers and startups looking to open a business credit card will find Chase particularly appealing due to the high-value incentives offered.

Why we chose it: Chase enhances traditional banking with a comprehensive array of merchant services, providing robust support to help your business thrive.

Fees

Chase Business Complete Banking starts with a monthly fee of $15, but you can eliminate this charge by maintaining a $2,000 daily balance, making deposits through Chase QuickAccept, or purchasing with a Chase Ink Business Card. Be mindful that additional costs apply after the first 20 transactions, and wire transfers can be expensive.

Interest Rates

Chase doesn’t offer interest on business checking accounts, a common practice among banks. However, you can open a business savings account to earn interest, with rates up to 0.02%.

Minimum Balance

To dodge Chase’s monthly service fee, ensure your checking account balance is at least $2,000. Falling below this threshold even once a month triggers the fee. If you have an active checking account with Chase, there are no fees for savings accounts.

Access to Mobile Banking

Chase’s mobile app extends beyond basic banking functions, offering features like locking or unlocking your credit card if it’s lost. It also includes budgeting tools to help set aside funds for significant purchases and credit monitoring services to safeguard your financial health.

>> Check Out Chase >>