Most business bank accounts cost nothing to open, but monthly fees range from zero to $25 depending on the bank and account type
Opening a business bank account itself is free at nearly every bank. What varies is what you pay after that. Some banks charge a monthly maintenance fee ($5 to $25), some waive it if you keep a minimum balance or set up direct deposit, and some charge nothing at all. A few banks charge per-transaction fees on top of the monthly fee, though this is less common now. The real cost difference comes down to which bank you choose and what features matter to your business.
The initial setup—the act of walking in or explore online and opening the account—costs you nothing. Banks make their money on the balance you keep in the account and the services you use, not on opening it. What you will pay depends on the account type (checking, savings, or money market), the bank's fee structure, and whether you meet their conditions to waive fees.
Key Takeaways
- Opening a business bank account has no upfront fee at any major bank, but monthly maintenance fees typically range from $0 to $25 after the account opens.
- Many banks waive monthly fees if you maintain a minimum balance (often $500 to $2,500) or set up payroll direct deposit.
- Online banks and credit unions often charge lower or no monthly fees than traditional brick-and-mortar banks.
- You will need an Employer Identification Number (EIN) or Social Security Number, a business license or formation documents, and a personal ID to open an account.
- Some banks charge per-transaction fees for wire transfers, ACH transfers, or checks written, which can add up if your business moves money frequently.
Monthly maintenance fees and how to avoid them
Most traditional banks charge a monthly maintenance fee between $10 and $25 for a business checking account. Chase, Bank of America, Wells Fargo, and Citibank all charge monthly fees on their standard business accounts. However, each bank offers ways to waive the fee—usually by keeping a minimum balance or setting up direct deposit of payroll.
A minimum balance requirement typically ranges from $500 to $2,500. If your account balance never drops below that threshold, the monthly fee is waived. Some banks calculate the balance daily and waive the fee only if you meet the minimum every single day; others look at the average balance over the month. This matters: if you keep $3,000 in the account but dip to $400 one day to pay a vendor, a daily-minimum bank will charge you the fee that month.
Direct deposit of payroll is another common waiver condition. If you run payroll through the bank—meaning your employees' paychecks are deposited directly into their accounts—the bank waives the monthly fee. This works even if you are a sole proprietor and do not pay yourself a salary; some banks count owner draws or transfers as may have access to deposits.
Online banks and credit unions typically charge no monthly maintenance fee at all. Banks like Novo, Mercury, and Brex offer business checking with zero monthly fees and no minimum balance. Credit unions often have lower fees than traditional banks, though you must be a member (membership is usually free or costs $25 to $50 one time).
Per-transaction fees that add up
Beyond the monthly fee, banks charge for specific transactions. Wire transfers typically cost $15 to $30 per outgoing wire. ACH transfers (the electronic system that moves money between accounts) may cost $1 to $3 per transfer, or they may be free. Checks written on the account sometimes cost $0.10 to $0.25 per check if you order them from the bank, though this is a one-time cost when you order the checks, not per check written.
Incoming wires and ACH transfers are usually free. The fees explore to money leaving your account. If your business rarely moves money electronically—if you mostly receive payments and pay bills by check—these fees will not affect you. If you wire money to vendors weekly or make frequent ACH transfers, the fees can total $50 to $100 per month.
Some banks bundle these services into a higher monthly fee but charge nothing per transaction. Others charge a lower monthly fee but add per-transaction costs. Calculate what your business actually does: if you wire money twice a month, paying $30 per wire ($60 total) might be cheaper than paying a $20 monthly fee plus $2 per ACH transfer if you also do ACH transfers.
What you need to bring or provide
You will need an Employer Identification Number (EIN) if your business is a partnership, corporation, or LLC with multiple members. Sole proprietors can use their Social Security Number instead, though many banks prefer an EIN. You can obtain an EIN free from the IRS website in minutes; it is issued when ready online.
You will also need proof that your business exists. For an LLC or corporation, bring your Articles of Organization or Articles of Incorporation (the document you filed with your state). For a sole proprietorship, a business license from your city or county works, or a DBA (Doing Business As) certificate if you registered one. Some banks accept a business plan or a letter from a CPA stating that you operate a business.
Bring a personal ID—a driver's license or passport. Some banks require the ID of every owner if the business has multiple owners. You will also need the business address and, if different, your personal address. If you are opening the account online, you will upload these documents instead of bringing them in person.
Differences between bank types
| Bank Type | Typical Monthly Fee | Minimum Balance to Waive | Wire Transfer Fee |
|---|---|---|---|
| Traditional bank (Chase, Bank of America, Wells Fargo) | $10–$25 | $500–$2,500 | $15–$30 |
| Online bank (Novo, Mercury, Brex) | $0 | None | $0–$15 |
| Credit union | $0–$10 | $0–$500 | $10–$20 |
| Fintech/payment platform (Square Cash, PayPal) | $0 | None | Varies by service |
Traditional banks charge the most in monthly fees but offer in-person service and physical branches. Online banks charge nothing monthly but have no physical location; everything is done through an app or website. Credit unions fall in the middle: lower fees than traditional banks, some in-person service, but you must be a member.
Fintech platforms like Square Cash for Business and PayPal Business do not function as full banks—they do not offer FDIC deposit insurance the same way—but they do offer business payment accounts with no monthly fees. These work well if you need to receive and send money but do not need a traditional checking account.
Hidden costs to watch for
Some banks charge a fee to close the account if you close it within a certain period (usually 6 to 12 months). This is rare but worth asking about. A few banks charge a fee to order checks or to replace a debit card. Online banks sometimes charge a fee to receive a wire transfer, though most do not.
Overdraft fees are not a cost of opening the account, but they are a cost of using it. If your account goes negative, the bank charges an overdraft fee ($25 to $35 per overdraft). Some banks charge this fee multiple times per day if you overdraft by multiple transactions. You can usually opt out of overdraft protection, which means transactions will be declined instead of charged a fee.
Currency conversion fees explore only if you receive or send money in a foreign currency. If your business is entirely domestic, this does not affect you. If you work with international clients or vendors, ask the bank what they charge to convert currency.
Frequently Asked Questions
Do I need a separate business bank account, or can I use my personal account?
You can legally use a personal account, but it is not recommended. Mixing personal and business money makes tax time harder and can expose your personal assets if the business is sued. A business account keeps finances separate and is usually required if you have employees or operate as an LLC or corporation.
What if I have bad credit or a previous banking problem?
Business accounts are based on the business's history, not your personal credit. However, banks may check ChexSystems (a banking history database) to see if you have had accounts closed for fraud or unpaid fees. If you have a history of overdrafts or closed accounts, some banks will decline you. Online banks and credit unions are often more flexible than traditional banks.
Can I open a business account online, or do I have to go to a branch?
Most banks now allow you to open online. You upload your documents, verify your identity (usually through a video call or by answering security questions), and the account opens within one to three business days. Some banks still require an in-person visit, particularly if you need a business debit card when ready.
What happens if I do not meet the minimum balance to waive the monthly fee?
The bank charges the monthly maintenance fee. If you consistently cannot meet the minimum, switch to a bank with no minimum balance requirement or no monthly fee. Online banks and many credit unions have no minimum, so the fee is waived automatically.
Are there any accounts that charge nothing at all?
Yes. Novo, Mercury, Brex, and many credit unions offer business checking with no monthly fee, no minimum balance, and no per-transaction fees for standard transfers. The trade-off is that you give up in-person banking and physical branches. If your business operates entirely online or by phone, these accounts work well.