Business bank accounts: A simple guide for startups

What is a business bank account?

As the name suggests, a business bank account is a dedicated account to support your business operations. It goes beyond a place to deposit incoming money; it’s an account that you’ll use to track your business cash flow, separate your business and personal spending, and stay audit-ready for tax purposes.

Having a business account is essential when operating in the U.S. It protects your personal assets from business risks such as debts or lawsuits, and offers tools for business operations, including merchant services and payroll processing — features not typically available with personal accounts. For non-U.S. founders setting up in the country, it also simplifies currency conversions, cross-border payments, and compliance.

In most cases, businesses benefit from using more than one account type. Each serves a different purpose, helping you stay organised and avoid accounting issues. For instance, a checking account manages daily transactions, a merchant account handles customer payments, and a multi-currency account supports global clients or suppliers by reducing conversion costs and streamlining international payments.

Understanding these account types helps you build a financial setup that scales with your business — not one that holds you back with hidden fees or limitations. Before diving into the details, here’s an overview of each business account type.

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Business checking account

A business checking account is a type of business account designed to manage your business' daily and frequent transactions, including paying vendors, receiving client payments, disbursing payroll, and paying utility bills. Unlike personal checking accounts, business checking accounts often have higher transaction limits, multiple user access and integrations with accounting software.

Why it matters

• Keeps your business and personal finances separate, protecting your liability structure
  
• Simplifies bookkeeping and cash flow tracking
  
• Makes it easier to record deductible expenses for tax purposes and provide documentation during audits
  

What you’ll get

• Unlimited or high volume deposits, withdrawals and transfers
  
• Debit cards and check writing
  
• Online and mobile banking with real-time balances
  
• Integration with tools like QuickBooks, Xero or expense platforms
  

What to watch for

• Minimum balance requirements
  
• Monthly maintenance fees (often waived if you maintain a certain balance or meet transaction thresholds)
  
• Transaction fees, such as wire transfer or ACH charges
  
• Other costs, including overdraft or insufficient funds penalties
  
• Features essential to your operations, such as overdraft protection, bill payment, and ATM access
  

If you’re a non-U.S. founder opening a business checking account in the U.S., you’ll typically need an Employer Identification Number (EIN), proof of entity formation, and valid identification. While traditional banks may require in-person visits or a U.S. address, some fintech platforms now support remote onboarding and accept international founders.

Business savings account

A business savings account is a dedicated deposit account for storing surplus capital and earning interest over time.

Unlike checking accounts, which prioritize access and activity, savings accounts come with limited monthly transactions. In addition, many banks limit savings account withdrawals to around 6 per month, a rule that originated from past federal regulations but may vary today.

Despite the limitation, savings accounts work well for capital you don’t need immediately but want to keep liquid, such as reserves for taxes, seasonal downturns, or planned equipment purchases. These accounts are also FDIC-insured up to USD $250,000 per depositor per bank. In conclusion, these accounts help you grow your company’s reserves while keeping them safe and accessible.

Many startups pair a checking account with a savings account to separate operating cash from reserves. For instance, if you receive a large client payment in Q1 but plan to reinvest in Q3, parking that capital in a savings account helps you earn passive income while keeping funds liquid when you need them.

Why it matters

• Builds an emergency fund to protect your runway
  
• Sets aside tax payments in advance
  
• Stores project-specific capital or seasonal revenue
  
• Helps you earn modest returns on funds, which you can later use for business operations or reinvest in new business initiatives
  
• Keeps operational and reserve cash separate for better control
  

What you’ll get

• Competitive interest rates to grow your idle funds
  
• FDIC insurance of up to USD $250,000 per depositor per bank
  
• Easy transfers between linked checking and savings accounts
  
• Optional features like automatic transfers or tiered interest rates for larger balances
  

What to watch for

• Minimum balance requirements
  
• Fees, such as low-balance fees or withdrawal charges
  
• Annual Percentage Yield (APY). Online banks often offer higher APYs than traditional banks because they have lower overhead. Some accounts also use tiered rates — larger balances earn better returns.
  

Business money market account (MMA)

A business money market account (MMA) combines the best features of checking and savings. It offers higher interest rates than standard checking while providing more flexibility than a traditional savings account.

MMAs often use tiered interest rates, meaning you’ll earn higher returns as your balance grows. Unlike savings accounts, most MMAs include check-writing privileges and debit card access, making them a good option if you want to earn competitive interest on your reserves while keeping funds accessible for occasional use.

Most banks still limit MMAs to around 6 withdrawals per month, although this can vary. The added flexibility of check and debit access can be valuable if you manage larger balances and want to avoid frequent transfers between accounts.

However, MMAs typically require higher minimum balances than savings or checking accounts, and falling below this threshold can trigger monthly maintenance fees. That’s why MMAs are best suited for businesses maintaining reserves of USD $10,000 or more.

Why it matters

• Lets you maintain liquidity for occasional business expenses
  
• Helps you build a disciplined reserve strategy with flexibility when needed
  
• Works well if you’re managing large cash balances or preparing for future investments
  

What you’ll get

• Better returns than checking accounts without fully locking funds
  
• Direct access to funds via check or debit card
  
• FDIC insurance up to USD $250,000 per depositor per bank
  
• Limited monthly transactions (usually up to 6)
  
• Easy transfers between linked checking or savings accounts
  

What to watch for

• The tiered-rate structure and how much balance you need to earn higher returns
  
• Minimum balance requirements and associated maintenance fees
  
• Transaction limits and potential excess-withdrawal penalty
  
• APY
  

The higher interest and added access make MMAs a practical middle ground between checking and savings.

Business certificates of deposit (CD) account

A business Certificate of Deposit (CD) account is a savings product that allows you to lock funds for a fixed term — typically from 3 months to 5 years — in exchange for a guaranteed interest rate.

Because the funds are locked, you generally can’t withdraw them until the CD matures. If you do, you’ll likely pay an early withdrawal penalty, often equal to several months of earned interest.

Despite the lock-in, CDs remain a popular option for founders who want predictable growth without market volatility. You know exactly how much you’ll earn by the end of the term, and the rate won’t fluctuate.

In addition, CD rates are often higher than standard savings accounts, especially if you commit to longer terms. This makes them ideal for planning future expenses or setting aside capital you won’t need in the short term.

Why it matters

• Helps you store and grow excess cash for known future expenses, such as tax payments or equipment upgrades
  
• Earns guaranteed returns without exposure to market risks
  
• Diversifies your savings across different time frames
  
• Makes financial planning easier with predictable returns
  

What you’ll get

• Guaranteed returns at fixed rates
  
• Higher yields for longer terms
  
• Low-risk investments backed by FDIC insurance (up to USD $250,000 per depositor, per bank)
  

What to watch for

• The lock-in period. Choose a term that aligns with your future business needs
  
• The interest rate offered and how it compares to current market rates
  
• Early withdrawal penalties that may apply before maturity
  

If your business needs flexibility, a savings or money market account is a better fit. But if you have funds you won’t touch for six months or more, a CD offers competitive, guaranteed returns.

However, if you’re an early-stage founder who’s still working toward product–market fit, you may want to skip this option as you’ll need higher liquidity to reinvest and drive profitability.

Pro tip for founders:

To maximise returns, consider a CD laddering strategy. This involves dividing your funds across multiple CDs with different maturity dates. As each CD matures, you can either reinvest or use the funds, maintaining liquidity while earning higher average returns over time.

Merchant account

A merchant account is a dedicated bank account that enables your business to accept credit and debit card payments from customers. When a customer pays with a card, the funds are first deposited into your merchant account, processed through a payment gateway, and then transferred to your business checking account — usually within 1 to 2  business days.

Having a merchant account is essential if you want to process card payments directly. Without one, you’d need to rely on third-party payment processors, which may charge higher fees or offer less favorable terms.

One of the biggest advantages of merchant accounts is their integration with other business tools. For instance, retail and brick-and-mortar stores can connect their merchant accounts to point-of-sale (POS) systems for seamless in-person payments, while online businesses can integrate them with e-commerce platforms to process digital transactions efficiently.

Why it matters

• Enables you to accept credit and debit card payments directly
  
• Supports both in-person and online payment processing
  
• Gives you greater control over fees and payment flow
  
• Builds trust with customers by offering more payment options
  

What you’ll get

• Tools for chargeback management, fraud detection and transaction reporting.
  
• Seamless integration with POS or e-commerce platforms
  
• Fast fund transfers to your business checking account
  

What to watch for

• Fees. Some providers charge setup or application fees, or early termination fees if you close the account before your contract ends.
  
• Fee structure. Some providers offer a monthly service fee or a per-transaction fee, which typically includes both a percentage and a flat rate (for example, 2.9% + USD $0.30)
  
• Integration with your existing tools
  
• Processing speed and customer service
  

It’s important to note that the total costs depend on transaction volume, average sale amount and the risk level of your industry. High-risk businesses, such as travel or subscriptions, may face higher processing rates.

Foreign currency or multi-currency business account

A foreign currency or multi-currency account lets you hold, send and receive funds in multiple currencies, without converting every transaction into U.S. dollars. For founders, this means smoother operations when working with international clients, paying overseas contractors, or managing teams across markets. Instead of opening separate bank accounts for each region, you can manage multiple currencies under one account.

Multi-currency accounts maintain separate balances for each currency within a single account structure. If a European client pays you in Euros, the funds stay in Euros until you decide to convert them. You can also send payments in Euros to suppliers without first converting to USD. This reduces conversion fees, which at traditional banks can range from 1% to 3% per transaction.

For non-U.S. founders setting up in the U.S., a multi-currency account simplifies operations by letting you manage U.S. business in USD while maintaining balances in your home currency. This is useful when repatriating profits, paying international vendors or hedging against currency fluctuations.

Why it matters

• Reduces conversion fees and foreign exchange losses
  
• Simplifies global cash management in one platform
  
• Improves visibility and control across markets
  
• Helps protect margins when operating in multiple currencies
  
• Supports your global expansion without unnecessary complexity
  

What you’ll get

• The ability to hold, send, and receive in major currencies (USD, EUR, GBP, SGD, and more)
  
• Competitive exchange rates and real-time currency conversions
  
• Seamless integration with the SWIFT network, local payment rails, and digital wallets
  
• Better cash flow visibility and faster cross-border payments
  
• Optional features like forward contracts or FX hedging tools (available with select providers)
  

What to watch for

• Supported currencies
  
• International transfer fees, including currency conversion fees and transfer costs
  
• Exchange rates
  
• Integration with accounting software or expense management tools
  

In the U.S., multi-currency accounts are typically offered by global banks or fintech platforms rather than traditional banks, giving you an easier way to manage funds across markets.

Cash management or investment account

A cash management or investment account is a modern alternative to a traditional savings account, typically offered by brokerage firms or fintech platforms. These accounts help you earn higher returns on idle capital through money market funds, government securities or other low-risk instruments.

For founders, these accounts offer a smart way to put excess capital to work. For example,  if your startup has raised a funding round and plans to deploy capital gradually over the next 12 to 24 months, parking a portion in a cash management account can generate returns while keeping funds relatively liquid.

Unlike traditional savings accounts, these accounts often invest your funds in diversified portfolios or short-term instruments offering better growth potential. However, these accounts aren’t FDIC-insured, as your funds are typically invested in diversified portfolios. This means there’s some level of market risk, and access to funds may take longer than with a traditional bank

These accounts are best for businesses with significant cash reserves, those looking to diversify beyond savings or companies managing long-term capital strategies. You can consider this option to extend runway only if your business has raised external funding or achieved consistent profitability

Why it matters

• Helps you make your idle funds work harder
  
• Diversifies your treasury strategy beyond savings accounts
  
• Balances liquidity with yield for better capital efficiency
  
• Supports long-term planning after funding rounds
  

What you’ll get

• Higher returns than standard savings accounts
  
• Access to stocks, bonds, ETFs or mutual funds
  
• Sweep features that automatically move excess funds into investments and professional account management options
  

What to watch for

• The risk level of investment instruments offered
  
• Liquidity terms
  
• Management or advisory fees
  
• Minimum balance or investment requirements
  

Pro tip for founders:

Many startups use cash management as part of a broader treasury strategy — maintaining enough liquidity for short-term needs while allocating excess capital into low-risk investments for medium-term growth.

To maximize this strategy, you need to review cash flow regularly and ensure your allocation aligns with your risk tolerance and runway. This helps keep your capital working efficiently without compromising flexibility.

How to choose the right business bank account

With so many business account options available, you may be wondering how to choose the one that best fits your operations. Below is a checklist to help you find the right account for your business needs.

1. Transaction patterns

Start by assessing your transaction volume. High-volume businesses may need checking accounts with high limits or unlimited activity. Meanwhile, low-volume startups can benefit from accounts with lower monthly fees but stricter transaction caps.

2. Growth plans

Consider your growth plans when choosing an account. For example, if you plan to expand operations outside the U.S. in the next 3 to 4 years, a multi-currency business account can save you from having to open separate local accounts in each target market.

3. Features and Integration

Prioritize features that match your operations. If you only do business in the U.S., focus on checking, savings and merchant accounts. However, if you work internationally, prioritize multi-currency capabilities and low-cost cross-border transfers.

When evaluating features, think about how they support your day-to-day operations. For example, if you run a service-based business, invoicing tools and client payment links can be particularly useful.

You should also look at how these features integrate with your existing systems. For instance, if you run an e-commerce business, a strong integration with payment gateways is essential since you rely on accepting digital payments.

Other key integrations include:

• Accounting software (QuickBooks, Xero, NetSuite)
  
• Payment processors (Stripe, PayPal)
  
• Expense management and corporate card platforms
  
• Payroll and contractor payment systems
  

Seamless integration reduces manual data entry, a pain point that often frustrates founders and finance teams. Without it, your finance team can spend up to 50% of their time on manual processes, according to recent research.

In addition, integration can also minimize errors, speed up the month-end close and improve visibility into cash flow and spending.

4. Fees

Compare fee structures carefully. Look beyond introductory offers and calculate long-term costs such as monthly maintenance fees, transaction charges, wire and ACH fees and minimum balance requirements. Some accounts waive fees if you maintain a certain balance or complete a set number of transactions each month.

If you frequently work with overseas suppliers or vendors, consider using a multi-currency account to save on international transfer costs. For example, instead of relying on SWIFT transfers that cost around USD $25–50 per transaction, you can send and receive funds directly in local currencies. Over a year, if you make 10 USD $10,000 payments to Europe, you could save between USD $250 and $500 in transfer fees alone, without factoring in additional savings from better exchange rates.

5. Scalability

As your business grows, your financial needs evolve. Higher transaction limits, multiple accounts for different functions (such as operating, payroll, and reserves), access to credit lines and international payment support become increasingly important.

Therefore, you should also consider scalability when choosing a business account. Starting with a platform that offers a full suite of financial services makes it easier to add features as you scale, rather than juggling multiple providers or switching banks mid-growth.

Conclusion

Choosing the right business bank account isn’t just about where you deposit revenue; it’s about building a financial foundation that supports growth, simplifies operations and keeps you compliant.

When selecting an account, consider your transaction patterns, growth plans, core features, and how well it integrates with your existing systems. Your business stage should also guide your decision.

For U.S. startups and international founders, combining checking, savings, merchant, and multi-currency accounts provides the flexibility needed to scale. If you’ve raised external capital or reached profitability, adding CD or cash management accounts can help extend your runway and strengthen your cash strategy.

As a starting point, you can consider the Aspire Business Account. Aspire helps startups and global founders manage U.S. business finance operations, corporate cards and expense management in one connected, compliant platform.

Frequently asked questions

What is the most common type of business bank account?

A checking account is the most common and essential type. It handles daily transactions, payments and deposits and is required to separate personal and business finances. Most businesses open a checking account first and then add a savings or merchant account as needed.

Do I need multiple business bank accounts?

Many businesses benefit from multiple accounts — one for operating expenses, one for savings or taxes and potentially a merchant account for payment processing. Multiple accounts improve cash flow management and financial organization by keeping different types of funds separate.

What's the difference between a business savings account and a money market account?

Both earn interest, but money market accounts typically offer higher rates and limited check-writing or debit card access. Savings accounts have stricter withdrawal limits but may require lower minimum balances. MMAs are ideal for businesses that want better returns while maintaining some liquidity.

Can I open a U.S. business bank account as a non-U.S. founder?

Yes, but requirements vary by institution. Most banks require an EIN, proof of business formation and a valid ID. Some traditional banks require in-person visits or U.S. addresses, but fintech platforms increasingly support remote onboarding for international founders.

What is a multi-currency business account?

A multi-currency account lets you hold, send and receive funds in multiple currencies without converting to U.S. dollars for every transaction. It's ideal for companies with international customers, suppliers or employees as it reduces conversion fees and simplifies cross-border payments.

Are business bank accounts FDIC-insured?

Most traditional business checking and savings accounts are FDIC-insured up to USD $250,000 per depositor, per bank. Merchant accounts and multi-currency accounts may have different protection structures depending on the provider, so verify coverage before opening an account.

How do merchant accounts work?

Merchant accounts let businesses accept credit and debit card payments. When a customer pays, funds are deposited into the merchant account, processed through a payment gateway and transferred to your business checking account — usually within one to two business days. The merchant account provider charges per-transaction fees.

What fees will I pay with a business bank account?

Monthly maintenance, per-transaction fees, wire transfers, ACH payments and overdraft or insufficient funds penalties are common. Many banks waive monthly fees if you maintain a minimum balance or meet transaction volume requirements. Check the fee schedule before opening an account.

Can I use my personal bank account for my business?

No. Using a personal account for business transactions complicates taxes, reduces liability protection and makes bookkeeping harder. Most banks prohibit business use of personal accounts and mixing finances can expose personal assets to business liabilities.

How long does it take to open a business bank account in the U.S.?

Traditional banks take one to two weeks. Digital banking platforms and fintech providers often take one to three business days for startups and international founders. The time frame depends on the institution’s requirements and how quickly you can provide documentation.

Disclosure: AFT US LLC, d/b/a Aspire, is a financial technology company, not a bank. The Deposit Account and banking services are provided by Column N.A., Member FDIC. FDIC deposit insurance covers the failure of an insured depository institution. Deposits in the Deposit Account are FDIC-insured through Column N.A., Member FDIC and Column's Sweep Program Network Banks. Certain conditions must be satisfied for pass-through FDIC insurance to apply.

The Aspire Secured Commercial Charge Card is issued by Column, N.A., Member FDIC, pursuant to a license from Mastercard. Approval is subject to eligibility. Payment of the account balance is due in full daily.