How To Choose a Bank for Your Small Business

Opening a business bank account isn’t just menial paperwork. It’s an important decision that can help you streamline your business finances and avoid excessive fees. A misstep in this crucial area can cost you time, money, and business opportunities.

In this guide, we’ll explore the most important features of business checking and savings accounts and how you can hone in on the best business bank for your unique needs. Here’s a look at how to choose a bank account and why Square Checking and Square Savings¹ may be perfect for your business.

Choosing the right bank can be a challenge

Starting a new business means making hundreds of decisions, big and small. Choosing a bank account is often rushed or overlooked, and many well-intentioned business owners simply select the most convenient local bank near their home or workplace. But that can be a big mistake.

Often times traditional banks offer robust business banking options, but they also tend to charge high fees and offer low interest rates on savings accounts. Many business owners who accept cash shy away from digital banks, but with the right partner, this doesn’t have to be a limitation. Select digital banks have ATMS or partnerships with retail locations that will give you the same access to cash deposits. If your business doesn’t accept cash payments, such as most online and service-based businesses, you likely can go with most online-only banking options.

Making a list of your top priorities can help you find the right bank quickly, so you can get back to work growing your new business.

What to look for when choosing a business bank

When you’re shopping around for a business checking account and savings account, consider these features:

Whether you’re running a salon, food truck, cafe, or spa, Square’s connected ecosystem supports scheduling, tipping, inventory, and faster access to your funds, all in one place. 

How to pick your ideal small business bank account 

Now that you know what banks typically offer, it’s time to compare your business needs to your favorite banks so you can confidently pick the best long-term partner for your business banking.

1. Start with your business needs

Start by considering how your business gets paid and how you prefer to make payments. Do you accept cash, credit cards, or online payments? If you send invoices or run payroll, look for a bank that integrates seamlessly with those services.

Also, consider how you can access your accounts and customer support. An intuitive mobile banking app, combined with online and phone support, can make managing your banking much easier.

2. Understand the types of banks available

Traditional banks with physical branches often provide in-person support, but they typically charge higher fees and maintain stricter minimum balance requirements. Online banks typically pass on the savings from lower overhead to customers, but they often lack in-person locations and customer service.

Some banks focus solely on checking and savings accounts, while others offer a range of integrated products and services, including business credit cards.

3. Compare key features

Ensure the bank offers both a checking account and a savings account, and review its fee structure to find out if overdraft charges, minimum balance requirements, or transaction limits apply. Take time to test the mobile app to ensure it is intuitive and easy to navigate.

Check if you can connect your account directly to your POS, invoicing, payroll, or accounting software, and verify if it supports the tools you already use. Finally, look up customer support hours and channels to make sure help is available when needed.

Bring together your checking, savings, and loans

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The solution: A unified financial ecosystem

Business checking and savings accounts work best when they’re designed to work together. By separating your day-to-day cash flow (checking) from longer-term goals (savings), you can keep spending in check and avoid scrambling for funds when the bills come due.

Your all-in-one business management platform

Square brings together hardware, software, and financial services in one seamless ecosystem, enabling new businesses to hit the ground running. Whether you’re opening your doors for the first time or scaling to multiple locations, Square has solutions for every step of your journey.

• Integrated payments & POS: Accept cards, digital wallets, ACH transfers, and buy-now-pay-later options at one flat rate using our POS app or hardware.

• Online & omnichannel sales: Launch a free online store that syncs with your inventory and share payment links across all channels.

• Invoicing & billing: Create professional invoices in seconds, accept cards, ACH, and digital wallets, and get paid faster with Instant Transfers.

• Appointments & services: Let customers book online, collect deposits, and send automated reminders with Square Appointments.

• Inventory, team & payroll: Track stock in real time, manage schedules, and run payroll with automated tax filing.

• Customer engagement & marketing: Store payment methods securely, send targeted email or SMS campaigns, and launch a loyalty program.

• Banking & finance: Access your sales instantly in Square Checking, smart budgeting with Square Savings, easy loan application and automated repayment, and view cash flow in one dashboard.

• Developer tools & integrations: Use Square’s APIs and partner apps to build custom workflows and embed payments into your applications.

The impact: A stronger financial foundation from day one

Selecting the right financial partner sets the tone for your business’s financial health. With connected checking and savings, you can automate transfers and handle other financial tasks with ease.

This streamlined setup gives you the peace of mind to focus on growth instead of chasing down missing payments or scrambling for cash. By choosing a modern, integrated solution like Square’s business banking, you’re not just opening checking and savings accounts. You’re building a scalable financial backbone that can grow and evolve with your business needs.

Square’s bank accounts give you unique and valuable features, such as instant access to cash after making a sale, automatic transfers to dedicated savings folders, and much more. 

Click here to learn more and get started with Square Checking and Square Savings.