The Ultimate Guide to Types of Business Bank Accounts

When it comes to opening a bank account for your business, there’s more than just one type of bank account to consider. The main options are business checking accounts, which handle day-to-day transactions like payments and bills, and business savings accounts, which help you stash away funds for future use while earning interest. Other specialized accounts include merchant accounts for processing credit card payments and money market accounts, which combine checking features with more favorable interest rates.

Each type serves a different financial purpose, so choosing the right mix depends on your business needs. It’s up to you to understand the differences and think about what types of bank accounts would serve your business best. Keep reading for more information.

Types of Bank Accounts for Businesses

Business Checking Accounts

This is the main workhorse of your business banking setup. Think of it as your business’s wallet. You’ll use this account for on-the-go transactions like paying bills, accepting payments from clients, and handling everyday expenses like office supplies or employee payroll. Most banks offer free checking accounts, but some may charge a small monthly fee based on how many transactions your account makes.

Why you need it: If you’re making regular transactions, a checking account keeps your business transactions flowing smoothly. Plus, separating personal and business expenses helps avoid a headache come tax-time. If your business uses QuickBooks for its accounting processes, consider checking out our guide on the best banks for QuickBooks integration.

Business Savings Accounts

Saving money is necessary for any business. It’s mostly important for common business purposes like future investments, emergency funds, or paying your taxes. A business savings account lets you put away extra funds while earning interest at the same time, boosting your account balance in the process. The interest rate won’t be mind-blowing, but every bit helps!

Why you need it: It’s a safe place to build a financial cushion. Plus, since it earns interest, your money grows passively over the life of your business.