Millions of Americans work as freelancers or juggle side hustles alongside their 9-to-5 jobs. Whether they use a formal business entity or not, and regardless of how they think of themselves, these people are small-business owners. 

That doesn’t mean they have the same degree of access to the business banking system, however. Just as the universe of credit cards for freelancers is smaller than the universe of small-business credit cards, many business-friendly banks choose not to deal with freelancers and people with side gigs.

Fortunately, many do. If you’re looking for a bank account to manage your freelance or side hustle finances, it’s time to get familiar with the names on this list. 

Methodology: How We Select the Best Bank Accounts for Freelancers and Side Hustlers

We use several important factors to assess the best bank accounts for people with side gigs and freelance jobs. Each relates in some way to the overall cost of the account, its ease of use, its flexibility, or its ability to create value for the account holder.

Monthly Maintenance Fee

The monthly maintenance fee isn’t necessarily the most important or costly bank account fee. Overdraft fees can add up quickly if you’re not careful, for example. 

But the monthly maintenance charge is the fee that first comes to mind for most would-be account holders, and it’s often the most difficult to avoid. So, all else being equal, we prefer freelancer-friendly banks with no monthly maintenance fees or low maintenance fees that can be waived with a minimum balance or other qualifying activities.

Other Account Fees

Other common bank account fees include overdraft and nonsufficient funds (NSF) fees, paper statement fees, ATM withdrawal fees, and wire transfer fees. Few bank accounts are truly fee-free, but we give preference to those that are, then look to accounts with fewer and lower fees than average.

Transaction Limits

It’s rare for consumer checking accounts to limit transaction volumes, but many business bank accounts do just that. These limits can be quite low for businesses with lots of expenses — sometimes just 50 or 100 transactions per month.

Freelancers usually aren’t as prolific as small or midsize businesses when it comes to payments. But side hustlers with complex gigs, like successful dropshipping businesses, can quickly run over their monthly transaction allotments. That’s why we prefer banks and accounts that waive transaction limits or set them so high that they don’t trouble most freelancers and side hustlers.

Minimum Balance and Deposit Requirements

Many business bank accounts impose high minimum balance or initial deposit requirements that price out sole proprietors. In some cases, these minimums don’t prevent you from opening an account but you’ll need to meet them to avoid maintenance fees or other charges.

We prefer banks that dispense with minimum balance and deposit requirements entirely. Failing that, we look to banks with reasonable minimums or alternative options for avoiding fees tied to those minimums, such as recurring direct deposits.

Account Yield (Interest Rate)

Most business checking accounts pay minimal interest, if any. Business savings accounts are more likely to pay interest, but you shouldn’t expect your return to keep pace with inflation. Still, any yield is better than no yield at all, and we evaluate banks and accounts accordingly. 

Mobile Features and Functionality

Many freelancers and side hustlers do business primarily on their mobile phones. If you have a successful dogwalking or handyman business, for example, you’re likely to be out of the office more than you’re in it. You no doubt use your phone to interact with clients, make purchases, keep notes, and so on.

So why should you have to bank on the laptop or desktop computer you rarely use? You shouldn’t — which is why we prefer banks with comprehensive, fully functional mobile apps or account dashboards.

Budgeting and Savings Features

You don’t have to commingle your business and personal finances to appreciate the importance of keeping a budget and spending within your means. In fact, if you’re serious about growing your side hustle, you have a powerful incentive to track every expense and spend less than you earn. 

That’s where internal budgeting tools and automated savings capabilities come in. More and more freelancer-friendly banks offer these tools at no additional cost, including many of the selections on this list.

Accounting and Tax Features

Some freelancer-friendly bank accounts have built-in or external accounting and tax management features as well. When external, these features typically take the form of seamless integrations with well-known third-party products like Xero or QuickBooks. All else being equal, we’re fans of banks that go the extra mile to simplify things at tax time. 

Source: Moneycrashers