You can call them self-employed, gig workers, independent contractors or both. Regardless of what you call them, they are an important part of the economy.
The life of a freelancer isn’t easy, no matter what term you use. It’s nice to be able to work from home, but managing your finances gets more complicated. Making a budget and sticking to it can help you stay on track with your finances.
A good business bank account is important if you are going full-time or on the side. If you have a good business bank account, you will be able to keep track of your finances and manage your business better. An account for your business helps you stay organized and prepared for tax season, along with keeping your personal and business finances separate.
I will help you find the right bank for your business. No matter what size your business is, there’s a bank perfect for it. Let’s quickly run through the most popular accounts. It is important to remember that the type of account you choose should be tailored to your specific goals and financial situation.
What Kind of Bank Accounts Do Freelancers Need?
There is no requirement that you have a specific type of bank account. It is important to research the various bank account options available to you in order to find the one that best meets your financial needs. If you prefer, you can work, earn money, and pay your bills with a personal checking account. You can earn rewards from some checking accounts.
There are several advantages to opening a business account. It can help to give your business a professional and credible image, which can be beneficial when trying to attract investors or customers. Business accounts come with features to help small business owners and self-employed people keep things in check. Tools to process payments, track expenses, or analyze cash flow are some of the features that may be included.
Business expense reporting, tax assistance, and integrations with invoice or accounting software are some of the tools you will see. It is easier for small business owners to run their businesses with the help of these tools. The needs of the self-employed aren’t typically addressed by these things in traditional bank accounts. They offer a secure and convenient way to store money.
Now that you know what to expect, let’s take a look at the best banks for freelancer and see what they have to offer. Whether you have been working for yourself for years or are just starting out, these banks can help.
9 Best Banks for Freelancers
To give you the full scope of what is out there, I have compiled this list in a way that covers several different types of banks. A comprehensive overview of the banking options available to you should be provided by this list.
Whether you are looking for a modern online-only account or a big, traditional bank, you should see an option that fits your particular taste. Make sure you compare different banks to find the best deal for you.
- BlueVine : Best APY
- Axos Bank : Best Online Bank
- Chase Bank : Best Traditional Bank
- NorthOne : Best for Budgeting
- Lili : Best for Tax Planning
- LendingClub Bank : Best for Cash Back
- Novo : Best Software Integrations
- Bank of America : Best Customer Support
- QuickBooks : Best for Bookkeeping
1. BlueVine: Best APY
BlueVine is an online-only business bank. Small businesses can get checking, savings, lines of credit, and invoice factoring from BlueVine. The platform has a bank account, lines of credit and business loans. Accounting and payroll tools are available to help small businesses manage their finances.
The Business Checking account is only offered by BlueVine. Free transfers and no monthly fees are some of the features of the BlueVine Business Checking account. The account has no minimum balance requirements or monthly service fees, and you can earn up to 2% on balances up to $100,000. It is a great choice for anyone looking for an easy and convenient way to manage their finances.
BlueVine Business Checking has the ability to schedule one-off or recurring payments. You can manage your account on the go with a mobile app. The account comes with a MoneyPass ATMs have fee-free withdrawals and two free checkbooks. Fees-free withdrawals from MoneyPass ATMs are a great way to save on transaction fees, while the business debit card and checkbooks can be used to conveniently pay for business expenses.
All of BlueVine’s accounts are insured by the Federal Deposit Insurance Corporation. All of BlueVine’s banking services are backed by Coastal Community Bank.
Learn More: Read our full Bluevine Review.
2. Axos Bank: Best Online Bank
A full suite of business bank accounts is offered by Axos, which is one of the biggest names in online banking.
Savings accounts, money market accounts, and a business CD are also offered by Axos. A variety of loan options, including term loans and lines of credit, are available to help your business grow.
Best Axos Account for Freelancers
If you’re looking for an everyday account with a high annual percentage yield, the Business Interest Checking account is a great choice. The account has no monthly maintenance fee and is an ideal money management solution for small business owners. You can open an account with as little as $100 and earn up to 1.01% on your balance with Business Interest Checking.
You can avoid the $10 monthly maintenance fee by keeping a balance of $5,000 or more in the account. You need a balance of $2,500 or more to start earning dividends. All domestic ATM fees are reimbursed by Axos.
If you recently incorporated your business, you can get a $200 bonus when you sign up for a new account. You will be able to access helpful business resources, like advice on managing finances and growing your business.
Learn More: Read our full Axos Bank Review.
3. Chase Bank: Best Traditional Bank
Chase has more than 4,700 locations and 16,000 ATMs in the United States. Chase has a wide range of services, including banking, lending, and investing. Some of the best business credit cards are available, as well as a stellar mobile app and online banking platform. It is one of the most user-friendly banks for businesses.
Best Chase Account for Freelancers
- See the full details of the Chase Business Complete Banking account bonus
- Read our full Chase Bank review
4. NorthOne: Best for Budgeting
One of the best business bank accounts is provided by NorthOne, an online-only banking option. Small businesses can get more control over their finances with the help of NorthOne’s business bank account. It serves businesses of all sizes. They can use the tools to manage their projects and business operations more efficiently.
NorthOne has a single deposit account that should cover all of your bases.
NorthOne accounts are insured by The Bancorp Bank. NorthOne customers can rest assured that their money is safe and secure. Its accounts are built around the envelope system, which lets you automatically set aside a percentage of each incoming payment to plan for taxes and other expenses.
Many popular business tools are included in the software integrations of NorthOne. NorthOne’s innovative software enables businesses to manage their finances in one place, making it the perfect solution for small business owners.
NorthOne charges a $10 monthly fee. If you have a minimum balance of $2,500 in your account, this fee will not be charged. Most of its banking services are covered by this, and you won’t have to pay other fees along the way. The only other fee you will find is a fee for outgoing wire transfers, which is likely to be avoided. There are no fees for incoming wire transfers.
Learn More:
5. Lili: Best for Tax Planning
Lili is a digital bank that deals with all kinds of work. Lili has exclusive tools and resources that make managing finances easier than ever. Lili is a legit option for people who tend to do their banking on the go in real time. Lili is an ideal choice for people who need to access their finances quickly because it has features like direct deposit and digital transfers.
Lili was founded in New York City. Lili is a technology platform that helps people manage their finances. Lili serves as a learning center and has a lot of helpful guides on how to find jobs and keep your business moving.
Lili has two versions of its account: Lili and Lili Pro. Lili can help you find a basic checking account or a more sophisticated financial management solution.
The Lili account has no fees, which makes it an attractive option. Lili Pro is my pick for your best bet. Lili Pro can help you take your project to the next level.
Lili Pro’s monthly fee is $4.99, and it comes with some impressive upgrades. You have access to exclusive features, like priority customer service and unlimited storage space. With either account, you get a A Visa card, early direct deposit, tax planning, and access to thousands of fee-free ATMs are included.
Here are the additional benefits that come with a Lili Pro account:
- Cash-back rewards on debit purchases
- Fee-free overdrafts (up to $200)
- Advanced expense tracking
- 1% APY on savings
- Unlimited custom invoicing
The monthly fee should be covered by the APY alone. You’ll be able to take advantage of the high APY and enjoy peace of mind knowing that your monthly fee has been taken care of. If you decide to go with Lili, the Pro version of the account is a great option. An intuitive dashboard can be found in the Pro version of the account.
Learn More : Read our full Lili Review.
6. LendingClub Bank: Best for Cash Back
One of the largest peer-to-peer lending platforms is LendingClub. It has made peer-to-peer lending more accessible. The company made a move into consumer and business banking after its acquisition of Radius Bank. The company can provide a wider range of financial services to its customers.
LendingClub Bank’s Tailored Checking is a business checking account that gives you 1% back on online and signature-based purchases. It has over 30,000 fee-free ATMs and offers free online banking. It comes with a 0.10% APY on balances over $5,000. A low-cost, high-yield savings account is an ideal choice for those who are looking to save and grow their money.
Tailored Checking can be used to sync with other programs. Automatic transfers, bill pay reminders, and text alert are some of the features it offers. You can open an account online in about 10 minutes, but you need an initial deposit of $100 to get started.
There is a $10 monthly fee for the account. It can be nixed if the account is linked to a deposit account. If you have an account balance of $5,000 or more, you won’t have to worry about it. You will be eligible for exclusive benefits and rewards if you keep your account balance above $5,000.
7. Novo: Best Software Integrations
The online business banking platform has been around for a while. With features like budgeting tools and automated invoicing, Novo is dedicated to helping small business owners manage their finances. It provides simple, modern solutions for small businesses. It is designed to make it easier for small business owners to manage their finances.
A free business checking account that comes with a virtual debit card, instant mobile check deposits, and a ton of available software integrations is called Novo. If you can focus on running your business, it will be easier to manage your business finances.
The minimum opening deposit is $50. You will need valid identification to open an account. From a pricing standpoint, it’s tough to beat. If you’re looking for the best value for your money, Novo is the place to go. There is a fee for overdrawing your account. It is important to keep track of your spending because you will be charged this fee each time you overdraw your account. This is a completely free account with no hidden fees.
Since Novo reimburses any fees that pop up, there is no need to worry about finding an in-network ATM. All of your ATM needs will be taken care of by Novo. You can’t earn any interest there, that’s the only real downside. If you keep your money in a Novo account, it won’t grow over time. Huge discounts and cash-back opportunities are available with its partner brands.
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8. Bank of America: Best Customer Support
Chase is one of the Big Four American banks and has a wide network of branches and ATMs.
A range of deposit accounts, credit cards, loans, business services, and investments can be found on its small business banking platform. The platform gives access to online banking and other resources that make managing business finances simple and straightforward.
Best Bank of America Account for Freelancers
BoA Advantage Banking has two tiers: Advantage Fundamentals and Advantage Relationship. Customers can choose the option that best suits their needs from the two tiers. At any time, you can switch between the two. If you change your mind, you can always make a different decision. Unless you have employees, you should be fine with the Fundamentals account. Double-checking with a tax professional is the best way to make sure you are choosing the right plan for your business.
You can get around the $16 monthly fee if you maintain a $5,000 combined balance, spend $250 or more with your debit card each month, or enroll in BoA preferred rewards. You can still avoid the fee if you set up direct deposits of $250 or more a month.
Advantage Fundamentals has a cash flow monitor, virtual assistant, and Zelle for when you need to quickly move money. Advantage Fundamentals has innovative features that make it easy to manage your finances.
If you need a hand with your account, Bank of America gives you access to small business specialists. Bank of America offers a wide range of banking services, from personal accounts to commercial accounts, so you can find the perfect fit for your financial needs. With top-of-the-line security features, you can rest assured that your money is in good hands. Customers of Citibank can access a wide range of financial services, from checking and savings accounts to credit cards and investment options.
9. QuickBooks: Best for Bookkeeping
Millions of small businesses use the popular accounting software, QuickBooks. The program helps small business owners track their finances and make better decisions. If you’re a The partnership with Green Dot Bank made it possible for you to have an online cash account. You can keep track of your finances with a variety of features.
There are no minimum account requirements or monthly fees for opening a QuickBooks Checking account. It’s a great choice for small business owners who need to track their finances. The account comes with a high-yield 1% APY, fee-free instant deposits, and real-time sync with accounting software. It’s a great solution for small businesses who want to maximize their savings.
With savings envelopes and custom cash-flow forecasting, you can stay on top of your budget. You can get detailed reports to help you understand your spending and income. You can get fee-free cash with your Visa card at Allpoint ATMs. You also have the option to access cash from Allpoint ATMs with a credit card, although there may be associated fees.
The only downside of QuickBooks Checking is that you can only open an account if you’re already a It starts at $25 per month. Small businesses and entrepreneurs who want to manage their finances quickly and easily can use QuickBooks Online.
Frequently Asked Questions
There are answers to some of the most frequently asked questions. Feel free to contact your bank if you have more questions.
Do I need a business bank account as a freelancer?
There is no requirement to open a business bank account. You can get by with a personal account. If your needs are more complex, a business account can offer more benefits. A business account is likely to make your life easier. You can easily manage and track your finances with a business account.
Which type of bank account is best for freelancers?
A low-to-no fee bank that offers both a business checking and business savings account would be ideal. The bank you choose should be willing to work with your business to provide the best customer service and banking experience.
Make sure that the bank you choose meets your needs as a freelancer. It is important to look for any additional fees or charges associated with your account, as these can add up quickly and may end up costing you more than you think. If you are looking for low cost, invoicing features, or anything else, go with the one that best fits your situation. Make sure you research the product before buying it.
Do I need an LLC to freelance?
No. Depending on your situation, it might help. It is important to think about all your options before making a decision. Your personal finances are separate from the business side of things and you are protected against legal risks. It can provide you with a layer of security when it comes to your personal assets. It could make it easier to get a business line of credit. It can help to establish a business’s credit history.
You are considered a sole proprietor in the eyes of the government, which may be limiting for some. If you want to maximize your legal and tax benefits, you might want to register as a limited liability company. Discuss your options with a financial advisor or a lawyer if you are interested in incorporating. It is important to consider the pros and cons of incorporating before making a decision.
LegalZoom also has a ton of helpful info and is a great place to start the process.
The Bottom Line
I recommend that you focus on the key areas of low fees, customer support, and which features will make your life easier, as you consider your banking options.
Maybe you need help with tax planning or need advanced invoicing tools. We can help with your financial needs. Whatever it is, you should be working with a bank that can handle it, and one that doesn’t chip away at your earnings. It is advisable to research the fees and services offered by different banks before committing to a particular one.
Signing up for a bank account that feels right is the next step after knowing more about the best accounts. It’s a good idea to assess your needs regularly and switch accounts if necessary, so you can make sure you are getting the best deal for your specific banking needs. Don’t sweat it if you’re still unsure. Make sure you research your options before making a decision. For the time being, you can use your personal account. You may need to switch to a different account in the future.
Whatever you decide, here’s to finding a bank that helps you eventually grow your side hustle into a full-time passive income stream.
If I was able to do it, so can you. Good luck!
