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5 min read 16.02.2022 768
Ibrahim Busari
Ibrahim Busari
Ibrahim is a fintech writer at AskWallet
Best Online Banks For Small Business

Best Online Banks For Small Business

In today’s economy, small businesses are thriving and growing more than ever before. However, as your business starts to reach new heights, you may find that your small-business banking needs have also expanded beyond what your community bank can offer. Choosing the right bank for your business has never been more important than it is now, here are some of the best online banks for small businesses today.

Best Online Banking Solutions for Small Businesses in 2022

The term online banking has taken on new meaning over the past several years. Many banks now offer online portals that enable business owners to do everything from paying employees and receiving payments to tracking the flow of their cash and assets. Choosing which online bank to use can be a challenge, however, especially if you have never worked with an online institution before. The best online banks for small businesses will include all of the features you need in order to succeed as well as solid customer service, so it’s crucial to choose wisely when choosing an online bank to handle your finances.

How online banks work

Internet-only banks offer financial services similar to those of a traditional bank, like checking and savings accounts. However, these institutions are entirely online and don’t have any brick-and-mortar branches—or tellers, ATMs, or drive-through windows. And while most online banks lack physical locations, they typically offer extensive mobile banking options that allow you to do your banking on your phone or tablet anywhere you can access a Wi-Fi connection. These days, more and more businesses are choosing to bank with an online institution as well; according to Forbes, 30 percent of small businesses bank with online banks—and 71 percent use them for their personal finances.

Online banks tend to offer free or affordable checking accounts, and their low overhead costs mean they can pass those savings on to customers in different ways. For example, most online banks offer no-minimum-balance requirements, which means you don’t have to keep a minimum balance in your account to avoid fees. And while many traditional banks charge hefty fees—as much as $35 per month—to open additional checking accounts or maintain multiple accounts, most online banks charge no account maintenance fees or monthly service charges. Some even let you use a variety of noncash payment methods, like PayPal and Venmo.

The Best Online Business Banking

As you might have guessed, finding a business bank account can be a bit challenging. The industry is new, and there aren’t that many available options, but it’s not impossible to find one with great online tools and impressive customer service. We’ve done all the work for you; here is our list of the best online banks and other convenient financial tools that small business owners could use to accept customer payments, make payrolls, or other necessary payments.

TransferGo

TransferGo is a digital remittance platform headquartered in the United Kingdom that was founded in 2012. This business aims to revolutionize international money transfers by speeding up the process while lowering customer prices (exchange rate, commission). TransferGo allows users to deposit local monies into a local bank account, after which the service makes a local payment to the recipient's bank. This can be very useful for businesses and sole traders looking to pay suppliers in other countries. TransferGo is primarily focused on the European Union and currently operates in 63 countries.

Pros & Cons

Fees and balance requirements

The firm charges a fixed price for transfers, which are divided into four categories. The fee schedule for each form of transfer is broken down below:

  • Basic Transfer: For certain transfer corridors, the standard option is free, while for others, the charge is as low as £0.99 per transfer.
  • Now Transfer: Funds can be transferred in as short as 30 minutes for a maximum price of £2.99.
  • Today Transfer: For a fixed cost of £1.99, funds will be delivered by the end of the working day.Express Transfer: For a cost of £2.99, these transactions are sent the following working day.

Interest rates

In order to get information on interest rates, you will have to contact Transfergo at support.transfergo.com.

Custom solutions and support

Due to its extremely low fees, TransferGo is a great option for businesses and freelancers with small budgets. In addition to 0% international transfer fees and no hidden costs, these guys are available on multiple platforms – including web, mobile apps, and phone support – which makes it an easy choice for small business owners.

Wise 

This UK-based banking platform gives small businesses a slick way to send and receive payments across borders. It’s especially useful if you have operations in multiple countries. You can easily send payments in any currency using your smartphone, and there are no hidden fees. A flat fee of $1 or £1 will get transferred overseas (and it can be paid with a bank transfer, card, or cash). 

If you have more than $10 million in total transfers per month, Wise is not for you—otherwise, it’s well worth trying out. The signup process takes only five minutes online and you won’t need an accountant to figure out how much you pay; all of that information is included on your monthly statements.

Pros & Cons

Fees and balance requirements

When it comes to fees, Wises provides very reasonable fees for its services. The pricing for its service includes:

  • No monthly fee 
  • A Free business debit card 
  • No ATM withdrawal fee ( up to £200, after that a 2% fee will be incurred)
  • An FX rate of 0.33%-3.56%

Interest rates

In order to get information on interest rates, you will have to contact Wise.

Custom solutions and support

Unlike many banks, TransferWise caters specifically to small businesses. After your first transfer, a TransferWise team member will call you to make sure everything is going smoothly and answer any questions you may have. You can also chat with their support 24/7 via phone or email. What’s more, every other month they offer a free consultation session with a TransferWise advisor where you can learn how to optimize your business account. All of these features come at no extra cost to small businesses like yours!

 

Mercury FX 

Established in 1999, Mercury FX is a global currency specialist. It provides services to international companies and private individuals, including forex foreign exchange services, international money transfers, and currency bureau de change services. Customers benefit from real-time rates, zero fees on deposits, and access to a live 24/7 customer service team via telephone or email at any time of day or night. The company is based in Oxfordshire with offices in London and Dubai.

Fees and balance requirements

MercuryFX offers two free services that businesses can choose from. Namely, the standard and tearoom. You get a lot of features with both options. However, the difference between them is that the tearoom offering has a minimum of $250,000.

Interest rates

For information about interest rates contact MercuryFX at contact@mercury-fx.com.

Custom solutions and support

If you run a small business and you're looking to process international payments, MercuryFX is one of your best bets. Not only does it offer competitive exchange rates and free global transfers, but it also provides access to its own foreign-exchange trading desk.

Caxton

If you’re a small business owner, there are times when your financial decisions may impact more than just your bottom line. That’s why Caxton is proud to be an online bank that helps small businesses by providing state-of-the-art technology and award-winning customer service. It is everything that your bank isn’t. If you are looking to start a new business or would like to learn more about banking for small businesses, check out Caxton today!

Pleo 

Pleo, a Danish FinTech firm with headquarters in the UK, was founded in 2015 with the goal of resolving the troubles of corporate costs. In a word, the firm accomplishes this through its cutting-edge app-based expenditure software. The program allows you to simplify your company spending with the press of a button, with everything reconciled as soon as the employee snaps a photo of the receipt.

Pros & Cons

Fees and balance requirements

Pleo has 3 pricing editions, from $0 to $1,999. A free trial of Pleo is also available. Pleo Plus has a few more features, such as the option to create personalized limits for your employees' cards, sophisticated expenditure reports, and notifications when expenses exceed a specific threshold.

Interest rates

For information about interest rates contact Pleo at support@pleo.io.

Custom solutions and support

Pleo supports businesses from day one. They help new businesses get up and running, and experienced ones grow, with tools like easy-to-use invoicing, a free payment gateway to accept credit cards on your website or in your store, and employee payments. Pleo can integrate with apps like Paychex and ADP.

N26 

N26 is a sophisticated service that offers some of the features of a traditional bank in a completely digital version. They have a lot to offer, ranging from ATM cash withdrawals to low-cost international money transfers. N26 allows customers to open a variety of bank accounts, as well as business accounts for their activities.

From your smartphone, you may join up for an N26 business account and manage your company's funds. Start utilizing n26 business accounts in minutes after registering. What is the purpose of the N26 business account? Small and medium company entrepreneurs, as well as freelancers. Business owners who must travel regularly, on the other hand, will love the features.

Pros & Cons

Intergiro

Intergiro is an electronic money institution (EMI) that offers a wide range of commercial services. Its products and services include business accounts, merchant services, payment cards, as well as mobile and web banking. Intergiro also allows its customers to incorporate financial services within their own products, generating additional income and increasing customer loyalty.

Pros & Cons

Fees and balance requirements

Intergiro has 4 different packages for its customers. Choose between: 

  • Starter Package for € 9/month 
  • Growth Package for € 29/month 
  • Professional Package for € 49/month
  • Enterprise Package: You will have to contact support to get the pricing on this package. 

Interest rates

For information about interest rates contact intergiro at support@intergiro.com.

Custom solutions and support

Intergiro believes that online banks should offer dedicated support and flexibility to meet small business owners’ needs. That’s why we focus on providing services and a level of personal care that far exceeds typical bank offerings. Once you’re ready to start banking with us, one of our team members will help you determine which of our services is best suited to your needs.

Monese 

Founded in 2014 by ex-Googlers, Monese is an online-only bank aimed at international customers. The company's main service is a regular current account which enables you to pay bills abroad and has no fees for using other banks' ATMs. It's simple to create a business account with Monese if you own a UK-registered company and want to keep your personal and business money separate. In a single app, you can easily manage and track your spending for both accounts.

Pros & Cons

Fees and balance requirements

The monthly fee for a Monese Business account is £9.95. This package includes a Business account as well as a Plus Personal account. You must deposit funds into the account as soon as it is established so that Monese can deduct the initial membership fee.

Interest rates

For information about interest rates contact Monese at support@monese.com.

Custom solutions and support

As a specialist in financial services, Monese knows how important it is to be fully aware of your needs and preferences. They are very helpful when it comes to setting up accounts with other companies, meaning you can use them as an online portal. All you need to do is show them your contracts and provide some information regarding your company. 

PaySera 

PaySera provides an easy and secure payment solution to help you take payments from your customers online. Unlike traditional merchant accounts, it allows businesses to keep their funds in a business bank account of their choice and receive payments faster than with traditional merchant accounts. PaySera is ideal for new or small businesses because it provides many useful services at no charge or extremely low cost compared to other providers.

Payoneer

Payoneer's target audience includes businesses, professionals, digital marketers, product/service marketplaces, and freelancers. They offer currency conversion, direct payment solutions, interfaces, and payment methods for businesses to pay contractors, workers, and others. They serve over 4 million consumers and help companies and professionals in over 20 countries.

Are online banks safe?

While online banks have become quite popular and have a huge number of advantages, there are still those who worry about safety. The truth is that online banks are probably safer than any other bank you’ve ever used—or would even consider using. This is especially true if you go with one of our top ten picks above. These banking institutions are secure and fully insured, just like their brick-and-mortar counterparts. 

They’re generally FDIC insured or offer insurance from reputable international insurers, as well. Plus, since they don’t rely on physical branches or bank tellers, these companies can save money and pass on cost savings to customers in the form of higher interest rates or lower fees.


 

How to choose the best online bank for your business

The best bank for your business is the one that can meet most, if not all, of your business’s banking needs. There are many factors to consider when choosing a bank. Is it FDIC insured? How much can you deposit? Does it have low fees and free services? Our comprehensive guide will help you find a bank that meets your business' needs. Here are some things you should keep in mind when shopping for an online bank for your business: 

Evaluate Your Business Needs

Consider factors such as your revenue and transaction volume when choosing a bank. Is it best to go with a large, national bank or a smaller regional bank? If you handle lots of cash or larger sums of money, you may want to consider an institution that has higher security standards and better auditing services.

Look for FDIC-Insured Online Banks

You want to choose a bank that is insured by the Federal Deposit Insurance Corporation (FDIC). This way, if your bank ever fails, you’ll be covered up to $250,000 per account (including both business and personal accounts). Keep in mind that most banks are insured.

Compare Fees

Look at all fees associated with opening an account, such as monthly maintenance and closing fees. Find out if you’ll be charged to use ATMs outside of your bank’s network. 

Consider Technology

It’s helpful to look at online banks that offer web applications, mobile apps, and services via text message (text banking). Online banks typically make it easy to keep tabs on your finances from wherever you are. With mobile apps, you can check your balances, make deposits and even pay bills right from your phone. 

Look for Free Services

Aside from basic checking accounts and savings accounts, look for other free or low-cost services that may be beneficial to your business such as business debit cards or money market accounts.

Conclusion

Before opening an account, it’s a good idea to do some research into each bank on your list. There are a few factors that you need to consider when choosing a small business bank. Some of these factors include but are not limited to, features such as low fees, interest rates, overdraft protection, and ATM access.

If you are finding it hard to compare online banks, AskWallet’s service makes comparing fees and other features easy with reviews from real customers. For the latest news in the fintech space, make sure to check out the AskWallet blog.