Small business owners encounter numerous obstacles as they develop their enterprises, from registering their businesses and recruiting top talent to driving sales and selecting the best banking solutions for their daily transactions.
We’ve researched various banks across Minnesota, including traditional brick-and-mortar and online banks. This post presents our top ten picks for the best banks for small business owners in Minnesota. Let’s dive in.
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In our review of various banks in Minnesota, we evaluated them based on criteria essential to small business owners. This included the range of banking services, the simplicity of account setup, and key features such as transaction fees, monthly maintenance costs, and interest rates.
We assessed each bank for advantages like competitive interest rates, bonus rewards, and availability of business loans.
Bluevine is our top choice for small business banking due to its comprehensive service offerings. It provides many benefits, including no minimum balance requirements, no monthly maintenance fees, and exceptionally high-interest rates of up to 2.0% APY on business checking accounts, a rate unrivaled by other banks.
Bluevine offers a variety of transaction methods and fully online banking solutions. While Bluevine currently doesn’t offer bonus rewards, its high interest rate alone makes it a leader in the sector.
Why we chose it: The combination of high interest rates, minimal fees, and no maintenance requirements make Bluevine an excellent choice for business bank accounts, particularly for LLCs and other business entities.
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Bluevine offers a fee-free banking experience, allowing you to manage your finances without monthly charges. However, using out-of-network ATMs incurs fees, so the mobile app is handy for locating free withdrawal locations. Be mindful of the $4.95 fee per cash deposit, and consider using this service sparingly.
Bluevine stands out with a remarkable 2.0% APY on balances up to $100,000—50 times the national average. Note that balances exceeding this amount don’t earn interest, so plan your funds accordingly. With Bluevine, you can earn up to 4.25% APY.
No minimum balance is required to use Bluevine, making it accessible for small businesses starting with minimal funds. This setup allows you to benefit immediately from the high-interest rate.
The Bluevine mobile app enhances your banking flexibility, allowing you to manage finances effectively from anywhere. The app is well-designed and effortlessly handles transactions, pays vendors, and schedules future payments.
For small business owners keen on maximizing savings, Capital One provides numerous cost-effective banking options. Their offerings start with cash-back rewards on credit cards and extend to unlimited free digital transfers, no overdraft fees, and waivable monthly maintenance fees.
While there’s a standard fee for using out-of-network ATMs, Capital One compensates with a competitive high-yield APY of 0.2%. Their online banking service is highly regarded for its efficiency and user-friendliness.
Why we chose it: Capital One allows unrestricted digital transfers, offering small businesses the flexibility to manage funds efficiently without additional costs.
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Capital One’s business accounts typically have a $15 monthly fee, but you can avoid this by maintaining a $2,000 average balance over a 30 or 90-day period. Using any of Capital One’s 70,000 ATMs nationwide incurs no charges.
Capital One’s business savings accounts offer interest rates up to 0.20% for the first year on balances up to $5 million, providing significant flexibility for small businesses. However, their checking accounts don’t accrue interest, which enhances the value of free digital transfers.
There’s no minimum balance required to keep your Capital One account open, but maintaining at least $2,000 in your checking account will waive the $15 monthly fee. Holding surplus funds in a savings account can also yield some interest.
Capital One’s extensive mobile app compensates for the limited number of physical branches. It enables you to conduct transfers, make digital payments, and deposit checks using your device’s camera. The app also provides access to Capital One’s CreditWise service, offering credit monitoring and helpful financial tips.
Lili Bank provides a suite of built-in tools for both manual and automatic management and tracking of financial activities. Lili distinguishes itself with its lack of monthly maintenance fees, no minimum deposit requirements, and a high-interest APY of 1.5%.
Its financial management features include tools that assist business owners in creating, sending, and receiving invoices, tracking expenses, and automating tax savings. Lili is recommended for sole proprietors needing more time or resources to manage their financial paperwork.
Why we chose it: Lili’s minimal fees and effective tax optimization software are designed to help businesses preserve more of their income. Lili offers a compelling option for those seeking an online business checking account without credit checks.
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Lili stands out with its free tax software and the absence of account and overdraft fees. There are no foreign transactions or withdrawal charges at over 38,000 in-network ATMs across the U.S. However, using an out-of-network ATM incurs a fee ranging from $2.50 to $5.
Lili’s Business Checking account doesn’t earn interest. Lili offers a savings account with a 1.5% APY for those interested, but maintaining at least $34,000 in the account is necessary to offset monthly costs.
Lili Bank doesn’t require a minimum balance for its checking account, making it an excellent choice for new businesses or those with variable income. There are no monthly fees based on balance.
Lili Bank’s mobile app is tailored for freelancers and small business owners. It enables comprehensive financial management from mobile devices, including expense tracking, tax savings, and payment management. The app also features instant payment notifications, budgeting tools, and the capability to deposit checks mobily.
U.S. Bank has secured its place as a favorite among small business owners due to its comprehensive banking services, which are tailored to growth and management over time.
They provide a convenient way to open various accounts, including Savings, Checking, Money Markets, and CDs. Additionally, U.S. Bank offers various credit cards, such as Business, Secured, Low-interest, Cashback, and General Travel options.
Importantly, U.S. Bank provides several financing solutions for small businesses, offering quick loans up to $250,000 and long-term loans up to $1 million.
Why we chose it: U.S. Bank stands out for small businesses seeking flexible financing. It offers a wide array of loan options to support various business needs.
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With U.S. Bank’s Silver Checking package for small businesses, you won’t face any monthly fees. However, as your business grows and you upgrade to higher-tier accounts, be aware that these do have waivable monthly fees. Just monitor your monthly transactions to avoid charges for exceeding limits.
U.S. Bank’s checking accounts don’t offer interest-earning opportunities. Their savings accounts do come with perks, though the maximum interest rate is only 0.01%, a minimal amount, but with no cap on the balance you can earn interest on.
The Silver account package, tailored for small businesses, has no minimum balance requirement. For other checking accounts, keeping a certain balance can waive monthly fees. Savings accounts require a minimum balance of $500 to avoid service fees.
Their mobile app makes banking straightforward if you’re away from a U.S. Bank branch. You can easily transfer funds, manage your accounts, and receive updates on your financial status. U.S. Bank also provides customized alerts to keep you informed.
Oxygen is an entirely digital banking platform designed specifically for sole proprietors and freelancers who don’t require physical cash handling. It enables business owners to set up an LLC directly through its app, making it convenient for those looking to formalize their business operations quickly.
In addition to its LLC formation feature, Oxygen offers a suite of digital banking services, including online bill payment, peer-to-peer transfers, early direct deposit, and cash-back rewards. Furthermore, users can generate unlimited virtual cards, providing an extra layer of security for online transactions.
Why we chose it: Oxygen’s innovative banking features appeal to modern business owners. It’s particularly well-suited for sole proprietors seeking a top-notch checking account that aligns with a digital-first approach.
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Oxygen boasts a fee-free structure across most services, but charges may apply for out-of-network and international ATM withdrawals. You won’t face fees for ACH transfers or simply for maintaining your account.
Oxygen’s business checking accounts don’t earn interest, but they address this by offering a business savings account where funds up to $20,000 earn a 1.0% interest rate. Balances above this earn at a lower rate, providing some opportunity for growth.
There are no minimum balance requirements for Oxygen’s checking or savings accounts, ensuring you’re free from monthly fees, even if your account balance is zero. This makes it a stress-free banking option for businesses with fluctuating income.
Oxygen’s mobile app is tailored for small business owners on the move. It lets you deposit checks, pay bills, and access detailed account statements directly from your phone. Additionally, the app provides spending insights, aiding you in tracking and managing your finances effectively.
Rated A+ by the Better Business Bureau (BBB), Axos is recognized for its exceptional offerings to business account holders. It provides a $200 sign-up bonus for new business checking accounts, no monthly maintenance fees, unlimited free transactions, and unlimited domestic ATM fee reimbursements.
Axos Business Checking accounts feature a high-interest rate of 1.01% APY, while other business accounts benefit from a 0.20% high-yield APY. Axos offers treasury management services, which are ideal for business owners who need to manage high-volume transactions efficiently.
Why we chose it: Axos Basic Business Checking offers free cash deposits and a competitive fee structure, positioning it as one of the top business bank accounts available.
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Axos Bank Basic Business Checking offers a fee-free experience, with no monthly maintenance charges and no minimum balance requirements. Any ATM fees you incur are reimbursed monthly, making the account free to use. However, if you frequently send wire transfers, be aware of a $35 fee for each transfer.
This account doesn’t offer an annual percentage yield (APY) as it focuses on business perks. For those looking to earn interest, Axos provides interest-bearing business savings accounts that can accrue interest.
Axos Bank doesn’t require a minimum balance for its checking or savings accounts, making it an excellent option for small business owners who might not have large amounts of cash on hand.
Axos Bank’s comprehensive mobile app enables customers to manage their finances seamlessly from anywhere. You can deposit checks, transfer funds, pay bills, and initiate wire transfers right from your device. The app also includes features for setting account alerts and using budgeting tools to help you manage your financial health effectively.
In addition to its excellent traditional banking services, Bank of America provides a comprehensive online banking system equipped with advanced digital tools tailored for expanding businesses.
For merchants dealing with numerous business transactions, Bank of America offers integrated features such as Cash Flow Monitor, Mobile Check Deposit, and Zelle, allowing for streamlined tracking and management of finances on a single platform.
Furthermore, their dedicated customer support system, known as the Small Business Specialist, assists business owners in navigating specific transaction challenges effectively.
Why we chose it: Bank of America enhances banking experiences with various perks, ensuring a beneficial relationship for all involved.
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Bank of America’s introductory checking account carries a $16 monthly fee, which can be waived by maintaining a $5,000 balance, spending at least $250 with your debit card, or joining the Preferred Rewards program. Be mindful of additional fees for using out-of-network ATMs and making excessive deposits in a single month.
For savings accounts, most small businesses start with a 0.01% interest rate, which can be increased to 0.04% through active participation in Bank of America’s rewards system. Note that their checking accounts don’t offer interest.
To avoid the $16 monthly service fee, maintain an average monthly balance of $5,000 in your checking account. A minimum of $2,500 in your savings account will also help you avoid a $10 monthly fee.
Bank of America’s mobile app is highly regarded for its functionality. It allows you to manage accounts, pay bills, and transfer funds remotely. The app also includes a budgeting tool to help track expenses and manage spending effectively.
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In addition to its robust banking services, Chase Bank provides numerous incentives to support small business owners in growth and development.
Chase’s initial offering includes a $300 bonus for new sign-ups. Additionally, with the Chase Ink Business Unlimited® card, business owners can receive $750 or earn 1.5% cash back on every purchase.
Moreover, Chase offers extensive complementary resources, including guides, articles, and tutorials covering marketing, financial management, and business strategy.
Why we chose it: Chase integrates a comprehensive suite of merchant services with its traditional banking offerings, enhancing support for businesses to thrive.
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Chase Business Complete Banking starts with a $15 monthly fee, which you can waive by maintaining a $2,000 daily balance using Chase QuickAccept for deposits or making purchases with the Chase Ink Business Card. Additional fees apply after the first 20 transactions, and it’s advisable to avoid costly wire transfers if possible.
Chase doesn’t offer interest on business checking accounts. To earn interest, you need to open a business savings account, which offers a modest rate of up to 0.02%.
To avoid the monthly service fee, maintain at least $2,000 in your checking account. Dropping below this amount even once a month triggers the fee. However, there are no fees for savings accounts as long as you maintain an active checking account with Chase.
Chase’s mobile app extends beyond typical banking functionalities. You can lock or unlock your credit card if it’s lost, utilize budget planning tools to allocate funds for significant purchases, and access credit monitoring tools to maintain your financial health.
Here’s a detailed overview of the criteria we used to select the top banks for our list, focusing on the needs of small businesses:
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If you have more questions about opening a bank account for your business in Minnesota, this FAQ is here to help.
To open a business account in Minnesota, you must supply several key documents, including your business entity papers, an Employer Identification Number (EIN), a business address, personal ID documents, previous banking records, financial statements, and potentially a business plan.
Yes, opening a bank account with an EIN is advisable. Any business with employees needs an EIN for tax purposes, and banks typically require it to register your account. If you’re running the show solo, use your Social Security Number (SSN) instead. However, using your SSN might mix your personal and business finances, which is generally best avoided.
You can open a bank account in Minnesota without a Social Security Number (SSN), although the possibility depends on the specific bank’s policies and the alternative identification you can provide. Banks may accept an Individual Taxpayer Identification Number (ITIN), a passport, or another form of government-issued ID as substitutes.
Setting aside at least six months of operating expenses as a financial safety net for your business is smart. This reserve can support you during unexpected downturns or operational challenges. Aim to gradually save 10% of your monthly profits to increase this emergency fund if feasible.
Selecting the right bank is vital for your business’s growth and preventing future transaction errors. In this article, we’ve outlined the top banks for small business owners in Minnesota, focusing on each offer’s unique features.
Now, it’s your turn to decide which bank fits your business needs best and take advantage of its exceptional offerings alongside other Minnesota entrepreneurs.
Judith Harvey is a seasoned finance editor with over two decades of experience in the financial journalism industry. Her analytical skills and keen insight into market trends quickly made her a sought-after expert in financial reporting.
