Most business bank accounts cost nothing to open, but monthly fees vary widely

You do not pay an opening fee at most banks. What you pay depends on the account type, the bank, and how you use the account. Some banks charge a monthly maintenance fee (typically $10 to $25), while others waive it if you keep a minimum balance or set up direct deposit. A few banks offer no monthly fee at all. The real cost difference comes from overdraft fees, wire transfer fees, and other services you might use later.

Before you choose a bank, decide what matters most to you: low monthly fees, no minimum balance requirement, free wire transfers, or good customer service for small business owners. Different banks prioritize different things, so the cheapest account at one bank might not be the cheapest at another.

Key Takeaways

  • Opening a business bank account itself is free at most banks; you only pay ongoing fees once the account is open.
  • Monthly maintenance fees range from $0 to $25 depending on the bank and account type, and many banks waive them if you maintain a minimum balance.
  • The documents you need to open an account (business license, EIN, ID) do not cost money, though getting an EIN from the IRS takes a few minutes online and is free.
  • Hidden costs come from overdraft fees, wire transfer charges, and ATM fees outside the bank's network, so compare these before opening.
  • Online banks and credit unions often have lower or no monthly fees than traditional brick-and-mortar banks.

Monthly maintenance fees and when banks waive them

A monthly maintenance fee is what the bank charges you to keep the account open. At traditional banks, this typically runs $10 to $25 per month. However, most banks will waive this fee if you meet one of these conditions: you keep a minimum balance (often $500 to $2,500), you receive direct deposits of a certain amount each month, or you maintain a linked savings account.

Online banks and credit unions tend to charge lower monthly fees or none at all. If you do not want to worry about minimum balances, an online bank account might save you money. The trade-off is that you cannot walk into a branch to deposit cash or speak to someone in person, though many online banks partner with ATM networks or allow mobile check deposits.

Some banks offer tiered accounts: a basic account with no fee but limited features, and a premium account with more services (like higher transaction limits or priority customer service) that costs more. Read the fee schedule carefully, because the cheapest account is not always the best fit for how you actually run your business.

What you need to bring (and what it costs)

To open a business bank account, you will need to show the bank who you are and what your business is. The documents vary slightly by bank and by business structure, but the standard list includes a government-issued photo ID (your driver's license or passport), proof of your business (a business license or articles of incorporation), and your Employer Identification Number (EIN).

An EIN is a nine-digit number the IRS assigns to your business. You can get one free from the IRS website in a few minutes — there is no cost and no process fee. If you are a sole proprietor and do not have an EIN yet, some banks will let you use your Social Security number instead, though having an EIN keeps your personal and business finances separate.

A business license costs money, but that is a cost of starting a business, not a cost of opening a bank account. The license fee varies by city and industry — it might be $50 to $500 depending on where you are. You will need this document anyway to operate legally, so it is not an extra expense just for banking.

Overdraft fees and other hidden costs

The monthly fee is only part of what you might pay. Overdraft fees are the biggest surprise for new business owners. If you spend more money than you have in your account, the bank covers the difference and charges you a fee — usually $25 to $35 per overdraft. Some banks charge this fee every time you overdraw; others charge it once per day no matter how many transactions overdraw the account.

Other fees to watch for include wire transfer fees (typically $15 to $30 to send money), incoming wire fees (some banks charge $10 to $15 to receive money), ATM fees if you use machines outside the bank's network ($2 to $3 per transaction), and stop-payment fees if you need to cancel a check ($25 to $35). These add up quickly if you use them often.

The best way to avoid overdraft fees is to keep a small cushion in your account and set up alerts so you know when your balance is low. Many banks let you link a savings account so overdrafts pull from savings instead of triggering a fee — ask about this when you open the account.

Comparing banks by total cost, not just monthly fees

To find the cheapest account for your situation, add up the monthly fee, the overdraft fee, the wire transfer fee, and any other fees you expect to use. A bank with a $20 monthly fee but free wire transfers might be cheaper than a bank with no monthly fee but $30 wire transfer charges, depending on how often you send money.

Create a straightforward comparison: list three banks you are considering, write down their monthly fee, overdraft fee, wire transfer fee, and minimum balance requirement. Then imagine a typical month for your business — how many times would you overdraw, send a wire, or use an out-of-network ATM? Multiply those numbers by the fees and add the monthly charge. The total is what that bank would actually cost you.

Do not choose based on the lowest monthly fee alone. A bank that charges $0 per month but $35 per overdraft will cost you more than a bank that charges $15 per month with a $25 overdraft fee, if you overdraw even once.

Online banks versus traditional banks

Online banks (like Novo, Mercury, or Brex) typically charge $0 monthly fees and have lower overdraft fees than traditional banks. They are designed for small business owners and often include features like unlimited transactions and free wire transfers. The downside is you cannot deposit cash in person — you have to mail checks or use a mobile app to photograph them.

Traditional banks (like Chase, Bank of America, or Wells Fargo) charge higher monthly fees but let you walk in with cash and speak to a person. If you handle a lot of cash or need in-person service, a traditional bank might be worth the extra cost. If you mostly receive payments electronically and rarely need to deposit cash, an online bank will save you money.

Credit unions are a middle ground. They often charge lower fees than traditional banks, let you deposit cash at their branches, and sometimes offer better customer service for small business owners. You have to be a member to open an account, but membership is usually free or costs a small one-time fee ($5 to $25).

Minimum balance requirements and what happens if you fall short

Many banks waive their monthly fee if you keep a minimum balance — often $500, $1,000, or $2,500. If your balance drops below that amount, the monthly fee kicks in. Some banks charge the fee once and then waive it the next month if you bring the balance back up; others charge it every month you stay below the minimum.

Before you open an account, ask the bank exactly how the minimum balance works. Does it have to stay in the account all month, or just on the last day? Can you count money in a linked savings account, or does it have to be in the checking account? If you fall short one month, do you pay the fee when ready, or do you have a grace period to bring it back up?

If you cannot reliably keep a minimum balance, choose a bank with no minimum requirement and no monthly fee. It is better to have a free account than to pay $15 a month because you sometimes dip below $1,000.

Frequently Asked Questions

Do I have to pay to get an EIN for my business bank account?

No. The IRS issues EINs free of charge through their website. The process takes a few minutes and you get your number when ready. Some third-party websites charge a fee to help you explore, but you do not need them — go directly to irs.gov.

What if I cannot keep a minimum balance?

Choose a bank with no minimum balance requirement and no monthly maintenance fee. Online banks and some credit unions offer these accounts. You will still pay fees for overdrafts and wire transfers if you use those services, but you will not be charged just for having the account open.

Can I avoid overdraft fees?

Yes. Keep a small cushion of extra money in your account, set up balance alerts so you know when you are running low, and ask the bank if they offer overdraft protection (linking to a savings account so overdrafts pull from savings instead). Some banks also let you opt out of overdraft coverage, which means transactions will be declined instead of charging a fee.

Is an online bank safe for my business money?

Yes, as long as the bank is FDIC-insured. FDIC insurance protects your money up to $250,000 per account if the bank fails. Check the bank's website or call to confirm they are FDIC-insured. Most legitimate online banks are, but a few are not.

Should I open accounts at multiple banks to compare?

You can, but you do not have to. Research the fees and features online first, then open an account at the bank that fits your needs best. If you find later that it is not working out, you can open a second account elsewhere and move your money. There is no penalty for closing an account.