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8 Best Banks for Small Businesses in Tennessee for 2024

8 Best Banks for Small Businesses in Tennessee for 2024

Securing funding can be one of the biggest challenges when launching a small business. Therefore, choosing the right banking partner is crucial for your success. 

Our selections for the best banks for small businesses in Tennessee come with outstanding features and services to help manage your financial needs effectively. Continue reading this guide for more detailed information on our top recommendations.

>> Open a Business Bank Account With Bluevine >>

Our Methodology

In determining the top banks for small businesses in Tennessee, we considered multiple factors. These included the costs associated with opening and maintaining an account and the minimum balance required to waive these fees. 

Additionally, we looked at the fees for using the bank’s services and the interest rates provided to account holders. We also evaluated the effectiveness and reliability of their mobile banking platforms.

Bluevine

Overall Best Bank for Businesses in Tennessee

Bluevine offers a banking solution ideally tailored for small businesses in Tennessee. Their online platform is exceptionally user-friendly and accessible from anywhere, providing convenience for users on the go. With its rapid service, Bluevine allows small business owners to connect to their accounts and receive real-time updates easily.

Bluevine ensures secure and flexible financing options to meet the diverse needs of various businesses. They feature unlimited transactions, no requirements for a minimum deposit balance, and no monthly fees, making their services accessible to all businesses. Moreover, Bluevine is known for its outstanding customer service and reliable client support.

Why we chose it: Bluevine stands out with high-interest rates, minimal fees, and no maintenance requirements, making it the optimal business bank account for LLCs and other business entities.

Pros

  • Competitive high-interest rates
  • Minimal fees
  • No required minimum deposit

Cons

  • Lack of a business savings account option
  • No ATM fee reimbursements
  • Fees for cash deposits

Fees

Bluevine doesn’t impose any monthly fees, offering cost-effective banking. However, charges apply for using out-of-network ATMs, and the mobile app is handy for locating no-fee withdrawal options. Be mindful that each cash deposit incurs a $4.95 fee, so use this service judiciously.

Interest Rates

Bluevine offers a substantial 2.0% APY, significantly above the current national average, applicable on balances up to $100,000. Balances beyond this amount don’t accrue additional interest. It also offers 4.25% APY, priority support, and reduced payment fees.

Minimum Balance

There are no minimum balance requirements with Bluevine, enabling small businesses to start banking immediately and benefit from the high interest rates regardless of their account balance.

Access to Mobile Banking

The Bluevine mobile app enhances the banking experience by allowing you to manage your accounts seamlessly from anywhere. This well-designed tool supports wire transfers, check payments, and the scheduling of payments, making financial management straightforward and efficient.

>> Check Out Bluevine >>

Capital One

Best Bank for Saving Rates & Low Fees

Capital One excels in serving the banking needs of small businesses, offering competitive savings rates and no interest fees, positioning themselves as a compelling option for small businesses aiming to maximize their profits.

Among the key advantages of banking with Capital One is their outstanding rewards program for new customers, alongside a suite of comprehensive banking services and essential features that support business growth and prosperity.

Why we chose it: Capital One offers unlimited digital transfers, providing you the flexibility to manage funds effortlessly.

Pros

  • Unlimited digital transfers
  • No overdraft fees
  • Extensive ATM network

Cons

  • Few physical locations
  • Monthly account fee
  • Charges for using out-of-network ATMs

Fees

Capital One’s business accounts include a $15 monthly fee, which can be a significant expense for small businesses. However, this fee can be waived by maintaining a $2,000 average balance over a 30 or 90-day period. There are no fees for using any of Capital One’s 70,000 ATMs nationwide.

Interest Rates

Capital One’s business savings accounts offer interest rates up to 0.20% for the first year, applicable to balances up to $5 million, providing substantial flexibility for small businesses. The bank’s checking accounts don’t offer interest, which underscores the value of free digital transfers.

Minimum Balance

There’s no minimum balance requirement to keep your Capital One account active. However, maintaining at least $2,000 in your checking account is advisable to avoid the monthly service fee. Placing extra funds in your savings account can also help accrue some interest.

Access to Mobile Banking

With limited physical branches, Capital One’s highly-rated mobile app is particularly valuable. It enables you to conduct all your banking transactions, make digital payments, and deposit checks using your mobile device’s camera. The app also provides access to Capital One’s CreditWise service, which helps you monitor your credit score and offers helpful financial tips.

>> Check Out Capital One >>

U.S. Bank

Best Bank for Its Customised Financial Products

For small businesses, it’s essential to find a bank that offers customized financial products and services tailored to their specific needs. U.S. Bank exemplifies such a provider, delivering a wide range of valuable financial services, including loans designed to help businesses expand.

U.S. Bank offers a diverse selection of deposit accounts and financial products, ensuring that small businesses have the necessary tools and resources to effectively manage their finances. Known for its reliable customer service, competitive rates, and low fees, U.S. Bank stands out as a top choice for small businesses aiming to optimize their financial performance.

The extensive network of U.S. Bank branches and ATMs provides additional convenience, allowing small business owners easy access to their accounts and banking services across Tennessee.

Why we chose it: U.S. Bank offers a comprehensive range of lending options, catering to the unique financial needs of small businesses.

Pros

  • Customized lending solutions
  • Specialized merchant services tailored for various industries, including restaurants, retailers, and service providers
  • Broad network with 2,400 branch locations

Cons

  • Fees on overdrafts
  • Relatively low Annual Percentage Yield (APY)
  • Presence limited to 28 states

Fees

With U.S. Bank’s silver checking package for small businesses, monthly fees are non-existent. For higher-tier accounts, monthly fees can be waived as your business grows. It’s important to monitor your transactions to avoid fees associated with exceeding transaction limits.

Interest Rates

U.S. Bank’s checking accounts don’t offer interest. However, their savings accounts include various benefits, with interest rates starting as low as 0.01%. Despite being minimal, these accounts don’t have a balance cap.

Minimum Balance

The silver account package at U.S. Bank, specifically designed for small businesses, doesn’t require a minimum balance. For other checking accounts, maintaining a certain balance can waive associated fees. Savings accounts require a minimum balance of $500 to avoid service fees.

Access to Mobile Banking

U.S. Bank’s mobile app allows you to manage your banking needs remotely. Whether you’re far from a branch or on the move, the app facilitates seamless fund transfers, up-to-date account monitoring, and provides customized alerts to keep you informed of your financial status.

>> Check Out U.S. Bank >>

Bank of America

Best Bank for Banking Convenience

Bank of America is a standout banking choice for small businesses that prioritize reliability and convenience. Their merchant services allow small businesses to seamlessly accept credit and debit card payments, enhancing the customer experience and potentially increasing sales.

These services integrate smoothly with various payment systems, including point-of-sale (POS) terminals, mobile payment platforms, and online payment gateways. This integration offers small businesses the flexibility to select a payment system that best suits their operational needs.

Bank of America also offers competitive business rates that can help small businesses enhance their revenue over time. Their mobile app isn’t only user-friendly but also includes features such as bill payment and mobile check deposit, along with advanced security measures like fingerprint scanning and fraud protection to safeguard the interests of businesses and their customers.

Why we chose it: Bank of America’s rewards program offers multiple benefits, making it a mutually beneficial choice for all involved.

Pros

  • Enhances interest rates through Preferred Rewards
  • Extensive network of over 17,000 ATMs and 4,300 branches
  • Opportunity to waive the monthly fee

Cons

  • No 24/7 customer service
  • Monthly fees apply
  • Transaction fees for using non-Bank of America ATMs

Fees

Bank of America’s basic checking account incurs a $16 monthly fee, which can be waived by maintaining a $5,000 monthly balance, spending $250 on your debit card, or by joining the Preferred Rewards program. Be mindful of additional fees for using out-of-network ATMs and for making excessive deposits.

Interest Rates

While most small business savings accounts start with an interest rate of 0.01%, active participation in Bank of America’s rewards system can increase this to 0.04%. Checking accounts, however, don’t earn interest.

Minimum Balance

A $5,000 average monthly balance in your checking account will eliminate the $16 service fee. Maintaining at least $2,500 in your savings account is necessary to avoid a $10 monthly charge.

Access to Mobile Banking

Bank of America’s mobile app is highly regarded for its functionality, allowing you to manage accounts, pay bills, and transfer funds from anywhere. It also features a budgeting tool to help monitor and manage expenses effectively.

>> Check Out Bank of America >>

Axos

Best Online Standard Checking Account

Axos Bank has built a solid reputation in Tennessee for its comprehensive range of financial services, exceptional customer service, robust security measures, and innovative technology. In 2022, Axos enhanced its offerings by adding cash deposit capabilities to all accounts and removing transaction limits. They also introduced specific opening deposit requirements for their business accounts.

Axos Bank offers two main business checking accounts: Basic Business Checking (free) and Basic Business Checking (up to 1.01% APY with a $10 monthly fee). Both accounts are FDIC-insured and provide numerous benefits tailored to small businesses.

Why we chose it: Axos Basic Business Checking stands out due to its free cash deposits and low fee structure, making it one of the premier business bank accounts available.

Pros

  • No monthly fee with unlimited transactions
  • Unlimited domestic ATM fee reimbursements
  • Cash deposits available via MoneyPass and Allpoint ATMs
  • Welcome bonus for new customers (terms apply)
  • Continuous 24/7 customer support

Cons

  • No support for third-party app integrations
  • The interest checking APY is satisfactory but not exceptional

Fees

Axos Bank Basic Business Checking is free of monthly maintenance fees and doesn’t have specific requirements to keep the account open. You will be reimbursed for any ATM fees incurred monthly, effectively making this account free to use. Note that there’s a $35 charge for each wire transfer.

Interest Rates

This account doesn’t offer an annual percentage yield but instead provides business-centric perks. Those with surplus funds may opt for one of Axos’s interest-bearing business savings accounts to accrue interest.

Minimum Balance

There are no minimum balance requirements for Axos Bank’s checking and savings accounts, which is particularly beneficial for small business owners who may not have significant funds to maintain in their accounts.

Access to Mobile Banking 

Axos Bank’s mobile app is comprehensive, enabling customers to manage their accounts, deposit checks, transfer funds, pay bills, and conduct wire transfers from their mobile devices. Additionally, the app includes features like account alerts and budgeting tools to help you effectively monitor and manage your financial health.

>> Check Out Axos >>

Lili

Best for Its Affordable Banking Solutions

For small businesses in Tennessee seeking a reliable online checking account, Lili presents an outstanding option. Committed to providing cost-effective and user-friendly banking solutions, Lili offers a suite of tools designed to help businesses file accurate tax reports.

Lili’s digital tools support various financial transactions under a single account, making it an ideal choice for businesses looking for an online checking account with low fees.

We chose it: Lili’s minimal fees and user-friendly digital tools make it a compelling choice for businesses aiming to streamline their finances.

Pros

  • No fees, no minimum balance requirements, or initial deposit required
  • Unlimited transactions without any fees
  • Fee-free ATM access via the MoneyPass network; options for cash deposits through the Green Dot network
  • Comprehensive tools for expense management and tax planning
  • Early payment feature with direct deposit, allowing funds to be received up to two days earlier than with traditional banks

Cons

  • Fees up to $4.95 for cash deposits at Green Dot locations
  • No availability of checkbooks; lacks the capability to send or receive wire transfers
  • Limited in business-specific features such as joint accounts, multiple business debit cards, or third-party integrations

Fees

Lili stands out with its free tax software and absence of account and overdraft fees. There are no charges for foreign transactions or for using over 38,000 in-network ATMs across the U.S. However, using an out-of-network ATM incurs a charge ranging from $2.50 to $5.

Interest Rates

Lili’s Business Checking account doesn’t offer interest. Those interested in earning may opt for a savings account which provides a 1.5% APY, though a balance of at least $34,000 must be maintained to offset monthly costs.

Minimum Balance

Lili Bank doesn’t require a minimum balance for its checking accounts, making it an appealing option for those starting new businesses or dealing with variable income levels.

Access to Mobile Banking

Lili’s mobile banking app is tailored specifically for freelancers and small business owners. It enables comprehensive financial management including expense tracking, tax saving, and payment handling directly from your mobile device. The app also features instant payment notifications, budgeting tools, and the ability to deposit checks via mobile.

>> Check Out Lili >>

Oxygen

Best Business Checking Account for Startups

Oxygen is a well-respected online banking solution tailored for small businesses and startups. This modern and fee-free online bank offers numerous advantages for financial management. Oxygen’s business accounts come with no monthly fees and no minimum balance requirements, making them accessible and cost-effective. Each account includes free online banking, mobile banking, and a debit Mastercard.

Why we chose it: Oxygen caters to the needs of the modern business owner with innovative banking features and is particularly suitable for sole proprietors.

Pros

  • Targeted at contemporary business owners
  • 5% Cashback rewards
  • Ability to create virtual, single-use debit cards

Cons

  • Limited mobile friendliness
  • Doesn’t allow multiple users
  • Higher pricing in some aspects

Fees

Oxygen promotes a fee-free structure, although out-of-network and international withdrawals may incur charges. You won’t have to worry about fees for ACH transfers or account maintenance.

Interest Rates

Oxygen’s business checking accounts don’t generate interest. However, they offer a business savings account option where funds can earn 1.0% interest on balances up to $20,000, with lower rates for higher balances.

Minimum Balance

There are no minimum balance requirements for Oxygen’s checking and savings accounts, ensuring no monthly fees even if the account balance is zero.

Mobile Banking Features

Oxygen’s mobile app is designed to support small business owners in managing their finances efficiently on the go. The app allows you to deposit checks, pay bills, and access detailed account statements. Additionally, it provides valuable spending insights to aid in financial tracking and management.

>> Check Out Oxygen for Business >>

Chase

Best Bank for Its Merchant Services

Small business owners often choose Chase due to its superior merchant services and robust financial loan offerings. New customers are greeted with enticing bonuses and rewards that enhance their banking experience. 

With its extensive network of branches and ATMs across Tennessee, Chase ensures convenient access to funds. This full-service bank also provides a comprehensive suite of products including checking accounts, credit cards, loans, and investment options tailored to the varied needs of small businesses.

Why we chose it: Chase integrates a broad array of merchant services with traditional banking to support your business’s success.

Pros

  • Extensive merchant services
  • Multiple options to waive the monthly maintenance fee
  • $300 sign-on bonus

Cons

  • Monthly maintenance fees
  • Limit of 20 free transactions per month
  • Minimal Annual Percentage Yield (APY)

Fees

Chase Business Complete Banking starts with a monthly fee of $15, which can be waived by maintaining a $2,000 daily balance, making deposits through Chase QuickAccept, or using a Chase Ink Business Card for purchases. Be mindful of additional charges after the first 20 transactions and try to avoid costly wire transfers.

Interest Rates

Unlike many banks, Chase doesn’t offer interest on business checking accounts. However, starting a business savings account could accrue an interest rate of up to 0.02%.

Minimum Balance

To dodge the monthly service fee at Chase, it’s advisable to maintain a minimum of $2,000 in your checking account consistently. Falling below this balance can result in fees, although savings accounts are fee-free as long as there’s an active checking account.

Access to Mobile Banking

Chase’s mobile app extends beyond basic banking tasks, allowing users to lock or unlock their credit cards if lost. The app also includes features for budget planning to help earmark funds for significant purchases and credit monitoring tools to safeguard your financial health.

>> Check Out Chase >>

Methodology for the Best Banks for Businesses in Tennessee

Before finalizing our roundup, we considered several critical factors related to opening and managing a business bank account:

  • Fees: Recognizing that small businesses must carefully manage every dollar, we prioritized banks that avoid nickel-and-diming with unnecessary charges. We sought banks with no maintenance fees or those that offer easy options to waive such fees. It was also essential to find institutions that minimize transaction and transfer costs, which are crucial for daily business operations.
  • Interest Rates: While business bank accounts are primarily for organizational and payment purposes, earning interest is a plus. We highlighted banks that provide accessible interest rates on checking and savings accounts, offering a potential boost to your cash reserves. Some banks even offer rates significantly above the national average.
  • Minimum Balance: Recognizing that many small businesses start with limited funds, we focused on banks with low minimum balance requirements to help avoid fees. Additionally, some banks set account minimums to unlock higher interest rates or other rewards.
  • Access to Mobile Banking: In today’s fast-paced environment, having instant access to banking services is invaluable. We looked for banks that offer robust mobile banking capabilities, including those that have developed strong apps for managing finances on the go. This includes both online-only banks and traditional institutions enhancing their digital tools.
  • Ease of Use: Our top picks for small business banking needed to offer straightforward and easy-to-use features. This includes simple processes for transfers, payments, and opening accounts using just an EIN. We believe managing a bank account should not add complexity to running a business.

>> Open a Business Bank Account With the Bluevine >>

Frequently asked questions

When applying for a small business loan in Tennessee, the necessary documentation can vary by lender and loan type. Typically, you’ll need to provide personal and business financial statements, tax returns, bank statements, and legal documents such as your business license, articles of incorporation, or partnership agreements. Some lenders might also require a detailed business plan and collateral to secure the loan.

Yes, opening a bank account with an Employer Identification Number (EIN) is advisable for any business with at least one employee, as it’s needed for tax purposes. Banks will use this number for account registration. If you’re the sole employee, you might consider using your Social Security Number (SSN), though this could complicate separating personal and business finances.

To open a business checking account in Tennessee, select a bank that aligns with your business needs. You will typically need to provide essential business documentation, such as your business license, tax identification number, and articles of incorporation.

It’s prudent to have at least six months’ worth of operating expenses saved to cover any unforeseen business disruptions. Additionally, it’s beneficial to contribute at least 10% of your monthly profits to these savings to help them grow.

>> Consider Bluevine >>

Bottom Line

Opening a business bank account as a small business owner in Tennessee offers numerous benefits, including simplified financial record-keeping, access to loans, credit cards, and merchant services. The banks recommended here provide robust security, user-friendly online banking platforms, attractive offers, and exceptional customer service, making them excellent options to meet the financial needs of your small business in Tennessee.

>> Open a Business Bank Account With the Bluevine >>

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gabriel

gabriel

Reviewd By

Judith

Judith

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.