Top 5 Best Bank Accounts for Small Business & Side Hustles 2023

Summary

In this video, the speaker reviews five top business bank accounts based on personal experience, emphasizing the importance of separating business finances from personal ones. The featured accounts include Novo, Lily, Mercury, Relay, and local credit unions, each offering unique features like no minimum balances, tax assistance, and customizable debit cards. The speaker highlights their suitability for different business types, noting who each account is best for and who might find them lacking. Overall, the video serves as a guide for entrepreneurs seeking effective banking solutions for their small businesses.

Takeaways

• 😀 Keeping your business finances separate from personal finances is crucial for small business success.
• 💳 Novo offers a balanced business banking solution with no minimum balance and worldwide ATM fee refunds.
• 📝 Novo includes features like reserve accounts for tax savings and invoicing tools for easy payment collection.
• 📊 Lily provides simple accounting features within its app, including automatic savings for taxes and expense categorization.
• 💵 Mercury is designed for startups, offering free checking/savings accounts and the ability to issue debit/credit cards with custom limits.
• 💼 Relay allows users to open up to 20 checking accounts for better financial organization and offers an accounts payable system.
• 🏦 Local credit unions can provide low-fee business accounts with personal service, ideal for businesses handling cash.
• 💡 Most accounts mentioned have no management fees or account minimums, making them accessible for small businesses.
• 🔄 Automation features in accounts like Novo and Lily help streamline savings and tax preparation for business owners.
• 🚫 Avoid traditional banks like Chase or Bank of America, which tend to charge higher fees and offer fewer features.

Q & A

What is the primary reason to keep business finances separate from personal finances?

It's crucial to maintain clear records for tax purposes and to understand the financial health of your business.

What are some common business bank accounts that the speaker advises against?

The speaker mentions Chase and Bank of America as not being ideal due to their lack of features and high fees.

What are the standout features of Novo?

Novo offers FDIC insurance, no minimum balance requirements, worldwide ATM fee refunds, extensive integrations, and a unique reserve feature for savings.

How does Novo help with tax savings?

Novo allows users to set up reserve accounts that automatically allocate a percentage of income for tax savings.

What features does Lily provide that assist with accounting?

Lily offers a mobile app for expense categorization, a receipt scanner, auto savings for tax preparation, and generates expense reports.

What is the cost associated with the Lily Pro account?

The Lily Pro account costs $9 per month and includes advanced tax and accounting features.

What makes Mercury a suitable option for startups?

Mercury provides free checking and savings accounts, allows issuing cards for employees, and includes features like a treasury option for earning interest.

How does Relay enhance cash management for businesses?

Relay allows users to open multiple checking accounts for better organization, issue numerous debit cards, and offers an accounts payable system for bill payments.

What is a key benefit of using a local credit union for business banking?

Local credit unions often provide personalized service, no fees, and competitive interest rates while being reliable for cash deposits.

Who might benefit from using a fintech solution like Novo or Mercury?

Small business owners or side hustlers looking for flexible, low-fee banking solutions with integrated financial tools would benefit from these fintech options.