gabrielA bank account is essential for managing your small business’s finances effectively and keeping your customers satisfied. The top banks for small businesses in New York offer more than just basic banking; they provide additional features to enhance the smooth operation of your company.
After thorough research, we’ve compiled a list of our seven favorite banks for 2024, each selected for their exceptional services tailored to the needs of small businesses.
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It’s no surprise that fees are a primary consideration when evaluating banks in New York. We also assessed the minimum balance requirements necessary to maintain accounts and the Annual Percentage Yields (APYs) offered for earning some passive income.
We checked for the availability of mobile banking solutions and evaluated how user-friendly these banks are for small businesses.
Bluevine sets a high standard with no monthly maintenance fees and an impressive 4.25% APY for business customers. It offers the flexibility of no minimum deposit requirement, making it accessible for any small business to get started.
While there isn’t a traditional savings account, Bluevine features virtual buckets to help you organize your funds effectively. However, be mindful of the $4.95 fee for each cash deposit you make.
Why we chose it: Bluevine clinches the top spot due to its minimal fees, user-friendly interface, and exceptional interest rate.
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In New York, you can use any MoneyPass ATM without incurring fees, with hundreds available statewide. However, using an ATM outside this network incurs a charge of $2.50. The most significant fee to note is for cash deposits; Bluevine charges $4.95 for each cash deposit made into your account.
Bluevine’s business checking account offers a standout 2.0% APY on balances up to $100,000. It’s important to note that this rate only applies to the first $100,000 in your account, and any amount beyond that does not earn interest.
There is no minimum balance required to open or maintain an account with Bluevine. You won’t face any monthly fees, even if your balance drops significantly. Interestingly, the interest rate is also consistent for any amount up to $100,000, regardless of your account balance.
The Bluevine mobile app brings comprehensive banking capabilities to your fingertips. Whether on a mobile device or a computer, you can perform unlimited transfers, pay bills, and deposit checks. The app also allows you to create and manage subaccounts instantly, which is ideal for budgeting and tracking different financial goals.
Your small business thrives on digital transactions, and Capital One caters to this need by allowing you to send and receive funds digitally without incurring any penalties. If one of your accounts runs low, you won’t be hit with an overdraft fee.
While several Capital One branches are conveniently located in New York City, those in other parts of the state will still find access to a broad network of ATMs.
Why we chose it: Capital One enables you to manage your payments efficiently with unlimited digital transactions, ensuring your vendors are always paid and content.
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Capital One allows free digital transfers to any other bank account at any time. However, all of Capital One’s business accounts come with a monthly service fee, which can be waived by maintaining specific balance requirements. Be mindful of the costs associated with wire transfers: incoming domestic wires are $15, and outgoing are $25, so it’s best to limit this service when possible.
New members at Capital One can take advantage of a promotional interest rate of 0.20% APY for the first 12 months on business savings accounts. This rate has been consistent since 2020. After the initial year, the APY will revert to the standard rate applicable at that time.
To avoid the $15 monthly service fee on checking accounts, you need to maintain an average balance of $2,000 over 30 or 90 days. For business savings accounts, maintaining a minimum balance of $300 at all times is necessary to waive service fees.
Capital One provides a comprehensive mobile app available for both Android and iOS devices. The app is free to download and facilitates a range of financial activities including digital transactions, mobile check deposits, and payments via Zelle, enhancing convenience for managing your business finances on the go.
Axos Bank’s online banking system allows you to manage your finances seamlessly from anywhere, even if your business activities take you beyond New York. While it may lack certain integrations, you can access your funds at any MoneyPass or AllPoint ATM across the country.
Its basic checking account comes without a monthly fee, and you won’t have to worry about incurring overdraft charges.
Why we chose it: Although Axos Bank doesn’t have physical branches, its online services provide significant convenience, making it a top choice for New Yorkers who need flexible banking solutions.
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Axos Bank’s online system is remarkably free of numerous fees, making it a favorable option for many. Its basic checking account comes with no maintenance fees, and higher-tier accounts offer waivable fees under certain conditions. The bank reimburses fees for domestic ATM usage and covers two wire transfer fees each billing cycle, adding further value.
An Axos business savings account yields a modest 0.20% APY, and this rate remains the same across premium plans. Certificates of Deposit (CDs) also peak at a 0.20% APY, which may not meet the needs of those looking for higher returns. For a more lucrative option, the Interest Plus checking account offers up to 1.01% APY on balances up to $50,000.
For new small businesses, Axos’s basic business checking account is particularly appealing due to its lack of minimum balance requirements. However, to avoid fees in a business savings account, a minimum balance of $2,500 is necessary, and the Interest Plus checking account requires at least $5,000.
As a primarily online bank, Axos excels in its mobile banking services. The mobile app is efficient, facilitating quick transfers and handling mobile deposits smoothly. It allows you to link all your accounts, monitor balances, and analyze your spending patterns directly from your smartphone, ensuring you have full control over your financial activities wherever you go.
Bank of America enhances its traditional banking offerings with the Preferred Rewards program, adding value through various perks that can increase your interest rates or waive fees on certain banking services.
With nearly 300 of its 4,300 branches located within the state, you have ample opportunity for face-to-face interactions. While navigating some fees is necessary, leveraging the benefits effectively makes this manageable.
Why we chose it: Bank of America’s Preferred Rewards system provides significant business advantages, helping to give your company a competitive edge.
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Bank of America provides three options to avoid the $16 monthly maintenance fee. If maintaining a $5,000 minimum balance isn’t feasible, you can either make $250 in qualified debit card purchases or join the Preferred Rewards program. For savings accounts, avoiding the $10 monthly fee requires either a $2,500 minimum balance or a Preferred Rewards membership.
Bank of America’s checking accounts do not offer any inherent interest rates. However, savings accounts begin with a base rate of 0.01% APY, which can increase based on your Preferred Rewards status. For those able to commit funds, CDs offer rates up to 3.51% APY for balances of at least $10,000.
Adhering to minimum balance requirements helps eliminate service fees. The balance in your accounts is crucial in determining your eligibility and benefits level within the Preferred Rewards program.
Bank of America’s mobile app allows you to set custom alerts to keep track of account activities. It includes enhanced security features to ensure safe bill payments and other transactions directly from your phone. The app also features a spending and budgeting tool to assist in planning for future expenses, enhancing your overall financial management.
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With a staggering 600 branches across New York, Chase leads in accessibility, surpassing all other banks in the state. Whether you prefer online banking or face-to-face service, Chase provides comprehensive business services to meet your needs. New members can enjoy a $300 sign-up bonus, and there’s an opportunity to earn up to $900 in cash back from credit card purchases.
Why we chose it: Chase stands out not only for its extensive network of branches across New York but also for its generous $300 bonus for new sign-ups.
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Chase Business Complete Banking imposes a $15 monthly service fee, which can be waived by maintaining a daily balance of $2,000. The fee can also be waived through deposits made via Chase QuickAccept or through purchases using a Chase Ink Business Card. Linking a savings account to your checking account can remove any monthly fees typically associated with the savings account.
Chase does not offer interest-bearing options for its checking accounts. For those looking to earn interest, savings accounts provide a small yield of 0.01% to 0.02% APY. Certificates of deposit may offer higher rates, although these rates can vary depending on your location within New York.
Avoiding the monthly fee is simple if you maintain at least $2,000 in your Complete checking account. For larger business banking plans, minimum balance requirements can soar to $35,000 and even $100,000, which might be steep for smaller businesses.
The Chase mobile app provides comprehensive banking capabilities, allowing you to view statements, transfer funds, and manage payments conveniently from your mobile device. Using Chase QuickAccept for deposits can further aid in avoiding monthly fees. With numerous branches across New York, the app also helps you locate the nearest branch or ATM effortlessly.
KeyBank stands out by allowing you to deposit up to $25,000 in cash each month without incurring any fees, making it a prime choice for businesses with high cash flow. With a strong presence in New York and 38 other states, accessibility is one of its strong suits.
The maintenance fees are low and easily waived by maintaining a modest balance. Using the mobile app is highly recommended to track funds effectively and avoid significant overdraft fees.
Why we chose it: KeyBank is ideal for businesses that handle a lot of cash transactions, offering up to $25,000 in cash deposits each month without fees.
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KeyBank offers reasonable fee structures but is strict with overdrafts; each occurrence could cost you $33 if you overdraw from your account. The monthly fees for basic checking and savings accounts are $5 and $4, respectively, but these can be waived by maintaining a specific balance.
Interest rates at KeyBank are modest, with savings and interest-plus checking accounts typically offering rates as low as 0.01% APY, the highest found after checking various zip codes. These rates are variable and can depend on a number of factors.
To avoid monthly fees, KeyBank requires a minimum balance of $1,000 in checking accounts and $300 in savings accounts. The bank notes that interest rates are variable and may adjust depending on the balances maintained, with higher balances potentially leading to better interest accrual.
KeyBank’s mobile app provides extensive banking functionality. You can lock and unlock your cards directly through the app, set up alerts to monitor account activity and pay bills conveniently. The app also stores up to seven years of statement history and two years of tax records, making it easy to retrieve past financial data.
Citizens Bank ensures that assistance is always within reach, offering a wealth of online resources and a dedicated customer support team. With over 1,200 locations across New England and the availability of phone support seven days a week, you’re well-covered. The bank caters to various business models through multiple account options, including a fee-free account ideal for small businesses.
Why we chose it: Citizens Bank is favored for its exceptional customer service and extensive presence in New England, making it a highly accessible option for New Yorkers.
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Citizens Bank offers a range of business checking accounts, including an introductory package that comes with no monthly fee. For the small business savings account, a monthly fee of $4.99 can be waived by maintaining a sufficient balance. However, be mindful of the steep $39 overdraft fees that apply if you overdraw your account.
Citizens Bank provides accessible savings and money market accounts for small businesses. The business savings account offers a modest 0.01% APY, while the money market account provides a slightly better rate of 0.02% APY. Their CDs offer a maximum of 0.03% APY on an 18-month term, which may need to be more competitive.
To avoid monthly service charges on a Citizens Bank business savings account, you need to maintain a minimum daily balance of $500. Be aware that the minimum balance requirements for other accounts can be significantly higher.
Citizens Bank has recently updated its mobile app, enhancing it with a user-friendly interface and additional features. The app facilitates banking operations 24/7 from any location, allowing you to transfer funds effortlessly. The bank also provides online banking demos to help customers maximize the benefits of their accounts, offering valuable tips and tricks for effective financial management.
Researching the best banks for small businesses in New York involves examining a variety of factors. Here’s a breakdown of the key considerations we used to determine our top picks:
These factors combined help identify banks that not only meet the basic banking needs of small businesses but also provide additional value that can contribute to their growth and operational efficiency.
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Still wondering about the top banks for small businesses in New York? Check out this FAQ for potentially helpful answers to your questions.
Any banks on our list are excellent choices for businesses based in New York. Whether you operate a sole proprietorship or an LLC, these banks are well-equipped to meet your banking needs.
Chase boasts the most branches in New York, attracting numerous members due to its widespread presence. The bank has multiple locations in New York City, but businesses located upstate or in western New York also have convenient access to Chase branches.
Banks can provide loans to startups, provided these new businesses can show they have the means to repay the borrowed funds. However, some banks may offer only small loans or impose higher interest rates on startups, aiming to recover their money more quickly.
You don’t necessarily need a good credit score to open a business bank account, as some banks don’t check your credit during sign-up. However, financial institutions will monitor how effectively you manage your funds and may choose to sever ties if financial mismanagement issues arise.
In New York, there are many banks available, but they’re not all created equal. The best choices offer minimal fees and interest rates that can offset any costs you might encounter. Any of the banks on our list would be a reliable choice for meeting your business banking needs.
