4 Things to Consider When Choosing a Bank Account as a Freelancer or Entrepreneur
KEY POINTS
- Many freelance workers and entrepreneurs open business bank accounts to manage their professional matters.
- Choosing the right bank and bank account is essential because you want to ensure your bank account will meet the needs of your business.
- Before opening a bank account as a freelancer or small business owner, research account limits, fees, and interest rates, and see if any valuable business perks are offered.
Having a bank account is beneficial regardless of your job or the type of work you do. Keeping your cash in the bank can help you organize your finances and make paying bills more manageable. As a self-employed worker, your finances will likely look much different than a traditional employee's, so having a bank account that meets your business needs is a must.
Many self-employed people open specific accounts for their businesses. Having a separate bank account lets you separate your personal and professional finances. It can also make tax season less stressful, because you can easily reference your bank statements when organizing your tax documents.
Are you thinking of opening a small business bank account soon? Here are a few things to look for when choosing a bank account as a freelancer or entrepreneur.
1. Pay attention to account limits
As you research the best banks for small businesses and look at bank accounts, paying attention to account limits is a good idea. Many business checking accounts have cash deposit limits and transaction limits. If you exceed these limits, you'll be charged fees.
Our Picks for the Best High-Yield Savings Accounts of 2025
Product | APY | Min. to Earn | |
![]() American Express® High Yield Savings
Member FDIC.
APY
3.80%
Rate info
3.80% annual percentage yield as of December 17, 2024. Terms apply.
Min. to earn
$0
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
3.80%
Rate info
3.80% annual percentage yield as of December 17, 2024. Terms apply.
|
$0
|
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
![]() Capital One 360 Performance Savings
Member FDIC.
APY
3.70%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Feb. 6, 2025. Rates are subject to change at any time before or after account opening.
Min. to earn
$0
Open Account for Capital One 360 Performance Savings
On Capital One's Secure Website. |
3.70%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Feb. 6, 2025. Rates are subject to change at any time before or after account opening.
|
$0
|
Open Account for Capital One 360 Performance Savings
On Capital One's Secure Website. |
![]() Western Alliance Bank High-Yield Savings Premier
Member FDIC.
APY
4.30%
Rate info
The annual percentage yield (APY) is accurate as of Jan. 24, 2025, and subject to change at the Bank's discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
Min. to earn
$500 to open, $0.01 for max APY
Open Account for Western Alliance Bank High-Yield Savings Premier
On Western Alliance Bank's Secure Website. |
4.30%
Rate info
The annual percentage yield (APY) is accurate as of Jan. 24, 2025, and subject to change at the Bank's discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
|
$500 to open, $0.01 for max APY
|
Open Account for Western Alliance Bank High-Yield Savings Premier
On Western Alliance Bank's Secure Website. |
If you plan to make frequent cash deposits or transactions posted to your account, verifying account limits is essential before opening a new bank account. Although rare, you may be able to find a bank account with no cash deposit limits and unlimited transactions. The Capital One Spark Business Basic Checking is one account that offers unlimited free transactions.
2. Compare account fees
As noted previously, fees are worth knowing about ahead of time. Reviewing all fees before choosing a bank or opening a new bank account is the best strategy, as doing so can save you time and money. You may be able to avoid some fees if you meet specific conditions, like meeting account balance minimums. But if you don't do the research, you may waste money on fees. When you're a business owner, every fee adds up and impacts your professional and personal finances.
Here are a few fees or requirements to watch out for as you compare bank account options for your small business:
- Account maintenance fees
- ATM fees
- Transaction limit fees
- Cash deposit fees
- Wire transfer fees
3. Don't ignore interest rates
Before opening a savings account for your small business, check the annual percentage yield (APY). You could earn more interest by choosing a bank account with a higher APY. Setting aside money for quarterly self-employment estimated tax payments and future business expenses is an excellent way to stay on top of financial obligations, so having a savings account is a good idea.
By automating the savings process, you can have money automatically transferred from your checking account to your savings account so the money is there when you need it. Keeping this money in an interest-earning account (like a high-yield savings account) can be a win because you'll earn extra money as your cash sits in the bank. What's not to love about that?
4. Look for accounts with valuable benefits and tools
It's also worthwhile to research what perks are available. Some bank accounts may have additional benefits that make your life easier. For example, free business financial planning tools or free checks could prove valuable. Any perks that make it easier for you to run your business more effectively can be a win.
Before opening a new bank account for your small business, thoroughly research your options. While not all bank accounts are created equal, it's possible to find one that meets your needs. If you want to learn more about the benefits of small business accounts, check out our list of the best business checking accounts.
Our Research Expert
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.