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Large enterprises and small and medium-sized businesses (SMBs) rely on banks, whether they need to open a business line of credit or secure a loan from the United States Small Business Administration (SBA). However, not every financial institution is created equal. Strategic selection is vital since variations in size, location and offerings can impact a bank’s capabilities.
At first glance, the largest international banks might seem the most capable. However, their fees, minimum balance requirements and customer service style might not align with your budget, preferences or objectives. That said, local alternatives may be unable to meet your needs. An entity that offers the best of both is ideal.
Why You Need to Open a Business Bank Account
Whether you own a small business or a large, growth-focused firm, you need a business bank account. Applying for a business loan can help you make large purchases in the early days when you lack liquidity. You also establish a company credit history, helping you secure your financial future.
This approach also enables you to demonstrate professionalism to potential customers. You build credibility when you allow consumers to pay with credit cards or make checks out to your company instead of to you personally.
Most importantly, an account will provide some personal liability protection because it separates your commercial and personal funds. You can also safely authorize employees to manage day-to-day cash flow without risking the security of your personal finances. Choosing the right bank for your business can ensure proper recordkeeping, simplifying tax season.
While you could choose the branch closest to you, you could end up with a high minimum balance requirement or non-competitive rates. Being selective when choosing a financial institution for your company ensures you maximize your potential gains and minimize risk.
Tips for Picking the Right Bank for Your Business
Selecting a financial institution is a major decision. You want an institution that offers competitive rates, has comprehensive services and employs knowledgeable professionals. When searching, follow these five essential tips to ensure you choose wisely.
Consider Size
Large, national banks offer extensive financial services and products suitable for large enterprises. However, smaller entities often have similar offerings. Moreover, they are more equipped to provide personalized attention due to their one-on-one relationships with customers.
Local financial institutions are often particularly receptive to startups and SMBs. Since their impact is community-focused, they see the person behind the account and are more invested in customer success.
Assess Location
Online banking’s popularity has surged, rendering location less important than it once was. You no longer have to be close to a physical branch to transfer funds, deposit checks or review your balance. However, location plays a substantial role in selection because it is still tied to some services. Moreover, it affects which ATMs are in-network.
Seek Security
The Federal Deposit Insurance Corporation (FDIC) protects you against financial losses. While it is rare for a bank not to have this insurance, not all do. Business owners should carefully vet their local options since small branches may be more likely to lack this protection.
Aside from financial security, individuals should consider data and fraud protections. Advanced encryption, multifactor authentication, transaction monitoring and real-time alerts are the basic building blocks of a robust security posture. These measures can save you time and money in the event of fraudulent activity or a breach.
Review Services
Most financial institutions offer the same basic features, such as lending, bill payment, merchant services, check deposits and wire transfers. For this reason, individuals should base their selection on unique additional solutions like mobile wallets, cash flow management, payment scheduling or trend reporting.
Prioritize Digital
Although digital features are not fundamental, they streamline operations. Nearly 95% of banks have invested in modern payment technologies as of 2024. Banking apps, online portals and mobile alerts are convenient and can help you coordinate with vendors and customers.
Native integrations are almost as important because they determine your technology stack’s complexity. Integrating your third-party time tracking, project management or accounting software enables seamless data exchanges and synchronization, minimizing miscommunications and data loss.
The Best Banks for Businesses as of 2025
There are thousands of banks in the U.S. alone, each with differing services, fees and online capabilities. Consider these five industry-leading options to ensure you choose the right one for your company.
Machias Savings Bank
For over 150 years, Machias Savings Bank has helped SMBs and large companies. Its commercial banking services include payment scheduling, high-dollar Automated Clearing House transfers, synchronized software integrations, wire transfers, merchant services and fraud protection.
Machias Savings Bank (MSB) is also an FDIC-insured bank, which is insured to a maximum of $250,000 per eligible account, giving you peace of mind. MSB has over one dozen locations in Maine. However, its services are available anywhere, anytime through MSB Business Online. Users can access electronic statements 24/7 to view recent activity across all accounts, while administrators can create custom reports and control employee access.
U.S. Bank
U.S. Bank has thousands of branches and ATMs in dozens of states nationwide. It covers all basic services, including cash management, merchant and payroll. The mobile app lets business owners pay bills, transfer money between accounts and deposit checks. Integrations with partner apps like QuickBooks centralize and streamline critical operations.
CFG Bank
In addition to basic lending and payment services, Maryland-based CFG Bank offers cash management, lines of credit and real estate financing. Account holders can schedule payments, transfer funds, and generate cash flow reports when online. With built-in integrations, they can streamline critical operations like payroll.
Although CFG Bank is headquartered in Maryland and has just a handful of local branches, its online functionality significantly extends its reach. Moreover — since it is part of the nationwide Allpoint Network — customers can use one of the more than 55,000 in-network ATMs to withdraw or deposit money.
Bank of America
Although Bank of America can’t offer the same level of personalization as a smaller institution, its global presence is convenient for large companies. Also, its size allows it to offer advanced treasury, credit and investment solutions. It has even integrated with popular platforms like Zelle to improve digital functionality.
Frost Bank
As an SBA-preferred lender, Frost Bank is authorized to approve SBA-guaranteed loans. This is a major selling point for small business owners. This institution’s other commercial banking services include treasury management, insurance and fraud prevention. The customer service team is available 24/7 via phone or live chat.
Optimize Your Business Transactions With Expert Support
Choosing a smaller entity can provide a blend of personalized and enterprise-level services. However, you should only trust an FDIC-insured financial institution with a mobile-friendly platform to support business-critical functions like payment processing and recordkeeping.
At MSB, personalized support meets modern technology. Even if you are not near one of its conveniently located branches, you can still transfer funds or check your account balance with MSB Business Online. You can get both genuine human connection and digital convenience.
You can organize, synchronize and optimize your finances with MSB. It is small enough to provide personalized attention and large enough to support extensive business growth. Account setup takes minutes, making sign-up easy so you can get to the parts of your business that matter most.