Quick answer
Most freelancers can open a business checking account with no monthly fee at an online provider. Pick based on how you get paid and whether you handle cash.
- Best for sole proprietors who want tax tools: Found (free plan; tax estimates built in).
- Best for budgeting with sub-accounts: Relay (up to 20 checking accounts on the free plan).
- Best for LLCs and startups: Mercury (free domestic and international USD wires, large sweep coverage).
- Best if you deposit cash: a traditional bank such as Chase Business Complete Banking ($15/month, waivable).
Key fact: fintech apps are not banks. Your deposits sit at a partner bank, and FDIC insurance comes from that bank. Fees and features below are approximate as of September 2026. Check each provider before you apply.
Fintechs and partner banks: what FDIC coverage really means
Found, Relay, Novo, Mercury and Bluevine are technology companies. Each holds your money at one or more FDIC-member banks.
| Provider | Partner bank(s) | FDIC coverage (approx.) |
|---|---|---|
| Mercury | Choice Financial Group, Column N.A. | Up to about $5 million through a sweep network |
| Relay | Thread Bank | Up to about $3 million through a sweep network |
| Bluevine | Coastal Community Bank | Up to about $3 million through a sweep network |
| Found | Piermont Bank | $250,000 |
| Novo | Middlesex Federal Savings | $250,000 |
| Chase | Chase is the bank | $250,000 per ownership category |
Pass-through FDIC insurance protects you if the partner bank fails. It does not protect you if the fintech company itself fails or keeps poor records. In 2024, the bankruptcy of Synapse, a middleman between fintech apps and banks, left some customers unable to reach their money for months.
Practical steps: keep your balance within the coverage limit, download statements monthly and consider a backup account at a traditional bank or credit union.
Comparison table
| Account | Monthly fee (approx.) | Cash deposits | Best for |
|---|---|---|---|
| Found | $0; Plus about $19.99 | Limited | Sole proprietors who want tax set-asides |
| Relay | $0; paid tiers from about $30 | Limited, via retail networks | Profit First style budgeting |
| Novo | $0 | Not directly | Online sellers using Stripe, Shopify, Etsy |
| Mercury | $0 for the core account | No | LLCs and corporations, international payments |
| Bluevine | $0; paid tiers from about $30 | Limited | Earning interest on a checking balance |
| Chase Business Complete | $15, waivable | Yes, in branch | Cash businesses, in-person service |
Interest rates on fintech accounts change often and usually come with conditions. Compare the current rate and requirements before choosing one for yield.
Short reviews
Found
Found is designed for sole proprietors and single-member LLCs. It sorts expenses, estimates taxes and lets you set money aside automatically. The free plan covers most needs. Watch the daily transfer and ATM limits.
Relay
Relay lets you open up to 20 checking accounts on its free plan, each with its own account number. That makes it easy to split income into taxes, operating costs and owner pay. It connects well with QuickBooks and Xero.
Novo
Novo has no monthly fee and refunds ATM fees. It integrates with Stripe, Shopify, Etsy and other platforms. It has no direct cash deposits, so it suits online businesses.
Mercury
Mercury offers free domestic and international USD wires and a large sweep network. It is built for registered companies such as LLCs and corporations. Sole proprietors should check Mercury’s eligibility rules before applying.
Bluevine
Bluevine pays interest on checking balances on qualifying plans and offers a line of credit. Paid tiers raise the rate.
Chase Business Complete Banking
A traditional bank account costs more but gives you branches, cash deposits and a single regulated bank. The $15 monthly fee is waived with a $2,000 minimum daily ending balance or other qualifying activity. Sole proprietors and single-member LLCs can apply online.
What you need to open an account
- Sole proprietor: usually your SSN or an EIN, plus a DBA certificate if you use a business name. See Do I Need an EIN as a Sole Proprietor? and How to Choose a DBA Name and Register It.
- LLC: your EIN, articles of organization and often an operating agreement.
A dedicated account is the foundation of good records. See How to Separate Business and Personal Finances.
Worked example: fees and coverage
Dana runs a design LLC. Her balance usually sits around $1,500, and she keeps $60,000 set aside for taxes and emergencies.
| Setup | Annual fees | Uninsured risk |
|---|---|---|
| Chase Business Complete, $1,500 balance, no waiver | $15 × 12 = $180 | None under $250,000 |
| Relay free plan with sub-accounts | $0 | None under the sweep limit |
| Single fintech account at $250,000 coverage holding $300,000 | $0 | $50,000 above the limit |
For Dana, a free online account with sub-accounts avoids $180 a year in fees. If her balance ever rose above $250,000, a sweep account or a second bank would keep it within coverage.
Frequently asked questions
Do I need a business bank account as a sole proprietor?
It is not legally required, but it keeps records clean and makes deductions easier to prove. For an LLC, separate accounts help preserve your liability protection.
Are online business accounts safe?
Deposits at the partner bank are FDIC insured up to the stated limits. The risk lies with the fintech’s own operations, so keep records and consider a backup account.
Can I deposit cash into an online account?
Some allow cash at retail locations for a fee, and some do not allow it at all. If you handle cash often, a traditional bank is easier.
Are bank fees deductible?
Yes. Fees on a business account are a deductible business expense.
This article is general information, not financial advice. Prices and rates change often.
Related guides
- Best Accounting Software for Freelancers and Self-Employed (2026)
- Best Tax Software for Self-Employed (2026)
- Best Accounting Software for Freelancers and Self-Employed (2026)
About this guide
Written by the Freelancer Tax HQ editorial team, based on our professional experience, official US government sources (IRS, SSA and other agencies) and reputable informational articles listed in the sources below. Last reviewed on . Tax rules change often, and we update this guide when they do. Read our editorial policy or report an error.
Sources
Chase Business Complete Banking; Mercury: Eligibility and requirements; Beancount: Mercury vs Relay vs Novo 2026; WalletGrower: Best business bank accounts 2026. Example figures are FreelancerTaxHQ illustrations.
Official resources linked in this guide: IRS: Get an EIN.