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For freelancers looking to scale their business, having a business bank account is one of the most important steps they can take.
This article will explore some of the best banking for freelancers, including pros and cons for different bank accounts for freelancers. You will also learn about Wise Business, which will is a great solution for freelancers seeking business account which will help them save.
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|Table of Contents|
When considering bank accounts for freelancers, it’s crucial to compare accounts to see which is the right fit for you. Some considerations when you’re looking for a freelancer bank account should include account fees, minimum balance requirements, and additional features such as integrations with other financial solutions, payroll, invoicing and more.
All of these features are important to consider because they position you in the best possible place to run your business efficiently as a freelancer, while also giving you the tools needed as you grow your freelance business to make financial management smooth and easy.
Some of the best banking solutions for freelancers and self-employed include:
Wise Business offers a variety of financial solutions for freelancers looking to manage their existing businesses and grow. With Wise, freelancers gain access to a range of features to make running a freelance business smooth and efficient.
Wise Business includes features such as cash flow management, bulk payments, invoice management, and more to make freelance finance easy. Plus, with Wise Business, there are no monthly fees or no minimum account balances to keep up.
|Fee Type||Wise Fees|
|Opening cost on US account||None (Price in other locales may vary)|
|Opening balance requirement||None|
|Sending money across currencies||From 0.41%|
|Receiving money |
Receive EUR, GBP, AUD, CAD, HUF, NZD, RON, SGD, TRY and USD (non-wire)
|None (To unlock this feature, you have to pay a one-time fee of 31 USD)|
Learn more about Wise Business 🚀
👆 Free account opening for US business accounts
👆No minimum balance required and no monthly fees
Mercury is an online banking solution designed with startups and freelancers in mind. Mercury offers free checking and savings accounts for freelancers, with a suite of features to help freelancers scale their businesses. With Mercury, freelancers can gain access to business debit and credit cards with custom limits. Freelancers can also use bank accounts for freelancers like Mercury to pay domestic and international vendors and employees with foreign exchange options. Additionally, Wise offers integration with Mercury for a streamlined banking solution.
Novo is one of the leading bank accounts for freelancers and has a lot of features that could prove helpful as their business grows. Novo is an online banking solution with simple yet effective features for freelancers, including free business checking accounts and integrations with other financial solutions such as Wise. Novo has no fees, and it has many different transfer options. Plus, with Novo, there are no minimum balance requirements for its business checking accounts.
BlueVine offers a business checking account that might be suitable for freelancers looking to manage their incoming payments. Some BlueVine freelance bank account features include fee-free checking accounts with high yield rates.
There are no minimum balance requirements with BlueVine bank accounts for freelancers and no limits on incoming or outgoing transactions. In addition, BlueVine has additional features like streamlined bill payments to make running a freelance business easier. The Bluevine checking account also has integrations with other banking solutions, such as Wise, to make managing freelance income as seamless as possible.
Another bank account for self-employed individuals, such as freelancers, is the Chase Business account. The Chase freelance bank account includes checking and savings accounts, credit cards, and more. The Chase Business bank account has several different variations depending on the size and scale of the freelance business.
The Chase Business Complete Banking℠ account comes with a $15 minimum monthly fee, but it can be waived if a minimum balance of $2,000 can be maintained in the account. In addition, the Chase business account has unlimited debit card transactions and $5,000 in fee-free cash deposits.
Bank of America also offers a bank account for freelancers that could be a good fit. The Business Advantage Fundamentals™ is an option for freelancers since the bank account includes features such as cash flow monitoring, mobile check deposits, and integrations such as Zelle and Quickbooks for easy financial management. The Business Advantage Fundamentals™ does have a monthly fee of $16, but Bank of America can waive it with a minimum balance of $5,000.
Wells Fargo might be a bank for freelancers that can be considered since they also offer a small business account. The Initiate Business Checking® features include fee-free transactions of up to 100 per fee period and no cash deposit processing fee of up to $5,000. In addition, the Wells Fargo Initiate Business Checking® has a $10 monthly service fee but can be waived with a minimum daily balance of $500 and up.
Huntington is a bank for freelancers and small businesses with a wide variety of account types depending on the scale of the business. Huntington bank accounts for freelancers include the Business Checking 100, with no monthly fees, features for lower monthly transactions, cash flow monitoring, and access to fraud tools for added protection.
Capital One business account can be a potential option for freelancers bank account. The Capital One business account offers features for cash flow management with their primary checking account, including unlimited transactions. In addition, a $15 monthly service fee can be waived by maintaining a minimum balance of $2,000. Capital One Business Checking also has fee-free cash deposits of up to $5,000 per statement cycle.
Other banks for freelancers also include options such as PNC Bank. PNC Bank has a range of convenient options for freelancers as part of their banking solutions.
The basic account for freelancers includes 150 fee-free transactions and easy cash depositing options. PNC Bank also has financial management tools for freelancers, including cash flow insight, spend analysis, and more.
Digital solutions such as PayPal now offer business bank accounts for freelancers, with features such as accepting both international and domestic payments and invoice management. Using PayPal for Business, freelancers can easily manage their cash flow and receive payments. PayPal has set fees for sending and receiving business via a PayPal business account, and also has its own payment solutions, Zettle that comes with a card machine for ease.
If you’re interested in looking at credit unions offering bank accounts for freelancers, Navy Federal could be an option.
With a Navy Federal business checking account, freelancers can have up to 30 free monthly transactions with no monthly fees. The business account for freelancers from Navy Federal also comes with a debit card. There are no minimum account balance considerations with Navy Federal freelancer bank account options.
To open a Navy Federal Business Checking account, freelancers must join Navy Federal and become part of the credit union.
The TD Business Checking Account could be the right bank for freelancers depending on the generated cash flow activity. TD Business Checking Account includes options such as TD Business Simple Checking, which has many features to enable freelancers to make financial management as smooth as possible.
The Business Simple Checking from TD features invoicing capabilities and options for customers to pay invoices. With the TD Business Simple Checking Account, this freelancer bank account also includes low per-transaction fees for online credit card and ACH payments. The TD Business Simple Checking has a $10 monthly fee with no minimum balance requirements, making it a flexible bank account for freelancers.
US Bank has options for bank accounts for freelancers, including business checking accounts. US Bank offers simple basic business banking that is tailor-made for new and small businesses.
The Silver Business Checking Account Package has no monthly maintenance fee, with up to 125 transactions for free. The Silver Business Checking Account also offers online banking options for freelancers looking for convenient financial management. The Silver Business Checking Account Package also comes with additional features such as card payment processing so freelancers can be paid via credit or debit cards.
US Bank also provides access to financial management tools such as cash flow management so that freelancers can have more oversight into where their money is going to.
Axos Bank is one of the best banks for freelancers since they have many options for business checking accounts. Axos is an online-only bank with features such as unlimited transactions for debits and credits, no monthly maintenance fees, and integrations with other financial management tools such as QuickBooks.
Axos Bank also has reimbursement features, such as fe reimbursement for using a non-network ATM and domestic wire fees. Axos also has additional business services such as payroll management and cash flow moment, which could prove useful as freelancers expand their business and grow.
When choosing a freelancer bank account, it’s vital to consider the different factors, such as fees, convenience, and features, to ensure you’re making the best decision possible.
While there are no hard and fast requirements for self-employed bank accounts, it is advisable to have separate business and personal accounts. Having a separate business account ensures that you can keep your personal and professional expenses separate and keep better track of incomes and invoicing. Mixing business and personal expenses can also make tax time easier since all of your expenses will be separate.
Think about what kind of transactions you normally undertake daily (e.g., is it primarily domestic, or do you send and receive international payments?) and their overall frequency. This could include looking at how many transactions you generally have in a month, the average amounts received into the account, and your typical cash flow. These factors can help you make the best decision for your freelance business and pick the best bank for freelancers based on your individual needs.
Keep these factors in mind:
|Things to consider when choosing a business account|
|Minimum balance requirements|
|Additional Business Services|
Here are some tips to guide the selection process for a freelancer bank account.
Think about the location of the freelancer bank account and how important that is for you. There are now options for digital and physical banking, and it’s up to you to decide how important that is. Some freelancers prefer an online-only freelancer bank account so that it can meet their needs while traveling and be flexible. Digital banks can be set up quickly and can be accessed from anywhere, which is a major plus point. However, others may prefer to have a physical bank presence.
It’s essential to take note of the type of fees being charged and their occurrence, as that can become a major expense for freelancers.
When evaluating freelancer bank accounts, look at the fees associated, and whether the fee is worth the features or services you’re getting. For example, many banks charge high fees for currency conversion and international transactions, which can drain freelance cash flow.
Other banks may charge a fee after certain transactions have occurred, or have other hidden fees. But many freelancer bank accounts do not have any fees at all for the account itself – including service and maintenance fees. No fees can be beneficial since freelance can save money in the long run and reduce their overall business-related expenses.
Many banks charge a service or maintenance fee for the freelancer bank account and only waive the fee when there is a minimum balance present. However, minimum balance requirements are often tough for freelancers to meet since income is not consistent and can be very high or very low month to month.
Because of the nature of freelance work and its demands, it is vital to think about whether you can meet the minimum balance requirements before committing to a freelance business account.
Many banks have introductory offers for freelance bank accounts, which can be enticing and may be of good value. When looking at different bank accounts, doing extra research on introductory offers and comparing them can help you find a great deal. Introductory offers may include a cash bonus based on transactions or offer free tools and integrations.
There are many crucial account features that should be considered when looking at bank accounts for freelancers. Of course, some account features are more useful than others, so it’s important to distinguish what is most valuable for your freelance business when it comes to bank account features for freelancers. Some account features to look out for could include integrations with other financial tools, invoice management, international conversions and low fees, but account features will vary from bank to bank.
Many business checking accounts now offer competitive interest rates, including high-yield checking accounts. A business bank account with a good interest rate in place can help build your freelance business. Many freelance bank accounts now come with high-yield interest rates in order to attract more freelancers, so comparing the interest rates across different banks and accounts is key.
Interest rates are an essential factor to consider when choosing a bank account for freelancers. Interest rates determine how much money the account will earn over time based on the account balance and the interest rate offered by the bank. A higher interest rate means the account will earn more money over time, while a lower interest rate means the account will earn less. As a freelancer, maximizing earnings is crucial, and choosing a bank account with a competitive interest rate can help with this.
Many financial solutions now have a wide range of integrations available with popular financial tools and services. For example, having a bank account that integrates with accounting tools like QuickBooks could make managing incoming and outgoing cash flow more streamlined.
Integrations can make the business banking experience smooth and easy, so it’s better to prioritize banks with a wide range of integrations with tools that you are using or hoping to learn to ensure you can connect your financial tools all in one place.
With so many banks for freelancers, it’s not always easy to ensure that you’re choosing the safest options. Both online-only banks and physical banks are heavily regulated, and you can find information about their regulations. If opting for an online-only bank, it is vital to check whether online-only banks are FDIC-insured, as it protects your money in case the bank ever goes bankrupt.
Many banks are now adding value-add services to their business banking to attract more customers. Additional business services can be incredibly valuable overall and significantly benefit your organization, which is a crucial consideration. For example, some banks may offer access to business loans, business credit cards, and other deals and packages to help freelancers grow their businesses.
No matter which platform you decide to use for your freelance work, Wise Business can help you save on outgoing and incoming payments.
A recent study has shown that Wise Business can help users save 19x when sending payments compared to PayPal. And with our local account details feature, you can get paid in 10 currencies, such as USD, GBP, EUR, CAD, AUD, and more for free after paying a one-time payment of 31 USD. You’ll see your savings adding up in no time!
With our business accounts and debit cards, you can get the real mid-market rate when transferring between different currencies. This means that more of your hard-earned money stays in your pocket.
|Some other features Wise Business users love 🚀|
|Account Software Integration: QuickBooks, Xero, Sage, and Wave|
|Batch Payment Tools: Pay up to 1,000 invoice in one instance|
|The Most International Account: Hold 40+ currencies at once|
|Transparency: Wise Business is trying to get rid of all your business account fees|
Open a Wise Business account 🚀
👆Free for US business accounts
👆No minimum balance required and no monthly fees
This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from Wise Payments Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.
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