Banking

What Is Job Outsourcing

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 11 minute read

Millions of Americans are self-employed or have to juggle many jobs to make ends meet. The people in this category are small business owners whether they use a legal entity to do business or not and regardless of their own perception of themselves in this role.

On the contrary, they may not have nearly as much access to the commercial banking system. Similar to how there is a limited selection of freelancer credit cards compared to small business credit cards, many banks that would otherwise be willing to work with a business opt out of doing business with freelancers and those who have side hustles.

Thankfully, a lot of people are. Get to know the names on this list if you need a checking or savings account to handle the money from your freelance or side gig.

The Top Bank Accounts for Independent Contractors and Side Businesses

These are currently the top bank accounts for independent contractors and individuals with side jobs. Each performs at least one task really well, but we think our top pick provides the best value for the majority of potential customers.

Lili is best overall (Lili Account)

The Lili Account is one of the few types of checking accounts geared toward self-employed people. This includes those who operate as freelancers, side hustlers, microbusinesses, sole proprietors, or under any other name.

It centers on a suite of powerful applications that streamline and simplify corporate processes:

  • Software to help those with a wide variety of income and expenditures manage their taxes
  • Able to bill internally
  • Instantly assign appropriate categories to eligible expenditures
  • You can make a cash deposit at any of the 90,000 teller machines in the United States (fees may apply)
  • Automated savings system permitting daily deposits of as little as $1 to an “emergency bucket” yielding up to 1.00% APY
  • If you use direct deposit to get paid, you can obtain your money up to two days early.

And Lili also does work in the area of personal financial management. As a sole proprietor, you may not require any other type of bank account save this one.

Included bonuses:

  • Your company debit card is good at any Visa-accepting locations.
  • Withdraw cash from approximately 40,000 ATMs without incurring fees.
  • Make purchases that qualify for cash incentives.
  • No service charges or minimum amount required

The Chase Business Complete Checking account offers the best bank bonus.

If you’re looking for a new freelancer-friendly bank, go no further than Chase and their Business Complete Checking account, which offers the best new account bonus potential. You can get a $300 bonus by opening a new account in person or online.

Features beyond the basic:

  • Chase Ink Business credit card holders can avoid the $15 monthly maintenance fee by keeping a certain minimum daily balance or making certain purchases each month.
  • Chase QuickDeposit Access ATMs and branches in the following states allow for limitless electronic deposits, ACH transfers, and mobile check deposits. Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Kentucky, Louisiana, Massachusetts, Michigan, Nevada, New Jersey, New York, Ohio, Oklahoma, Oregon, Texas, Utah, Washington, West Virginia, and Wisconsin

BlueVine is the Best Option for Checking Balance Interest.

Bluevine Business Checking is one of the few businesses checking Currently, customers who maintain a minimum level of monthly activity can earn an annual percentage yield (APY) of 1.50% on balances up to and including $100,000 in these accounts. 

Simply choose one of the following options:

  • A minimum of $500 in monthly purchases must be made using your Bluevine Business Debit Mastercard® OR $2,500 must be deposited into your Bluevine Business Checking Account monthly from your customers via ACH, wire transfer, mobile check deposit, or directly from your merchant payment processing provider.

Bluevine is one of the few businesses checking accounts that offer this perk to independent contractors, making it an attractive option for anyone who wants to supplement their income.

Numerous other benefits of Bluevine are also noteworthy:

  • No minimum balance requirements or monthly fees
  • Unlimited transaction allowance
  • Connect your account to QuickBooks Online, Wave, and Freshbooks — some of the top online accounting platforms around
  • Link with external revenue and expense management tools, including Expensify, PayPal, and Stripe
  • Add up to 2 subaccounts to your existing BlueVine Business Checking account
  • Enjoy mobile features like mobile check deposit and biometric security
  • Pay no fees at nearly 40,000 ATMs in the U.S.
  • Deposit cash at more than 90,000 Green Dot locations in the U.S.

The NBKC Business Checking Account is the Best for ATM Fee Reimbursements.

The NBKC Business Checking Account offers nearly no fees, making it an attractive option for freelancers. There are zero minimum-balance requirements, no account-keeping charges, and no costs for making withdrawals or making deposits.

One important aspect is the monthly maximum of $12 that can be refunded in exchange for any ATM fees incurred anywhere in the world, not only in the United States. This is in addition to the no-fee cash withdrawals from more than 30,000 ATMs nationwide that NBKC commercial customers already enjoy.

If you’re self-employed or running a side business that needs a regular cash flow to stay afloat, NBKC is your best bet. 

Furthermore, a plethora of optional extras are available for your use:

  • Seamless mobile and desktop check deposit
  • Use mobile bill pay to cover expenses on the go
  • Take advantage of NBKC’s courtesy overdraft sweep (see its account disclosures for details)
  • Enjoy unlimited free transactions
  • Pay no monthly maintenance fee
  • No minimum balance or deposit requirements

Integrating P2P Money Transfer Apps and Payments Best: Novo

Novo is a Middlesex Federal Savings, F.A.-sponsored checking account designed with independent contractors in mind. There are no service charges or minimum balances to worry about. However, its greatest strength is the extensive number of other apps it can sync with, which is great for small businesses.

  • Zelle for peer-to-peer (P2P) transfers and payments
  • Freshbooks, Zoho, and QuickBooks for easy accounting
  • An internal invoicing tool that integrates with Stripe and PayPal, allowing clients to pay you with a few clicks or taps on your invoice 

There are some other noteworthy elements of Novo:

  • The easy application process takes just 10 minutes to complete
  • Thousands of dollars in exclusive perks (see Novo’s website for details)
  • $50 minimum opening deposit
  • Virtually no fees other than an overdraft and returned item fee

Financial technology company Novo is not a traditional financial institution. Middlesex Federal Savings F.A., Member FDIC, is an institution that offers banking services.

LendingClub Bank Tailored Checking is the best option for earning checking account rewards.

When you hold a monthly average amount of $5,000 or more in your LendingClub Bank Tailored Checking account, you’ll receive 1% cash back on qualified purchases made with your signature-based debit card.

For the first 30 days after opening an account, you will not be eligible to receive rewards. Nonetheless, from here on out, your earning potential is boundless.

Features beyond the basic:

  • Earn interest on balances over $5,000
  • No transaction limits or fees
  • Make check deposits and lock your debit card on the go using the LendingClub Bank app
  • Maintain a minimum daily balance of $5,000 or more to waive the $10 monthly maintenance fee
  • Enjoy unlimited ATM fee rebates

High-Yield Savings at Its Best and High-Yield Savings Accounts for Small Businesses

The bank that specializes in helping sole proprietors, microbusinesses, and expanding small businesses succeed is called Small Business Bank. Its Business High Yield Savings account lives up to its name by providing a competitive return on deposits of any size. 

That’s why it’s a terrific option for established contractors and part-timers who want to take their businesses to the next level. Dividends on a Business High Yield Savings account start at 0.20% APY on balances under $25,000 and rise to 1.00% APY on balances of $500,000 and more.

Features beyond the basic:

  • Free mobile check deposit
  • No monthly maintenance fees
  • Rapid online approval
  • Link to a free checking account with a Mastercard debit card and other great features

NorthOne Business Banking is the best for savings subaccounts.

To the best of my knowledge, NorthOne Business Banking is one of the only banks that provides separate savings accounts, making it especially attractive to freelancers. Money set aside for things like estimated taxes, payroll, and new pieces of equipment may be easily tracked thanks to these accounts within accounts.

Open a new NorthOne account and we’ll credit you $20. Offer valid while supplies last. A monthly fee of $10 is charged for NorthOne Business Banking. 

However, the price is justified by the extensive extra features:

  • Unlimited payments, transfers, deposits, and debit card transactions
  • More than 300,000 in-network ATMs
  • Mobile check deposit and bill pay
  • For a limited time, NorthOne is offering an exclusive deal for Money Crashers readers who sign up for a new account: one month of free business banking when you sign up using the link below.

Axos Bank Basic Business Checking is the best for free checks.

Many other business checking accounts let you write checks, but only Axos Bank’s Basic Business Checking gives you free shipping on your first order of company checks. You can make up to fifty payments the old-fashioned way, which is great if you have suppliers or contractors who would rather be paid in cash.

Further information is available. Some of the significant extras that come with Axos Bank’s Basic Business Checking are:

  • Unlimited free transactions
  • No monthly maintenance fee
  • Get a free debit card when you open your account
  • Make mobile check deposits and bill payments with the mobile app
  • No minimum balance requirements 
  • New account bonus offer worth up to $200 if you’re a new business incorporated after June 1, 2020, or $100 if you’re an established business new to Axos Bank

How We Choose the Best Bank Accounts for Side Hustlers and Freelancers Using Our Methodology

We evaluate the top checking accounts for freelancers and part-timers based on a number of criteria. All have something to do with how much an account costs in total, how simple it is to operate, how adaptable it is, or how much value it may provide for its owner.

Maintenance Fee each month

The monthly maintenance charge may not be the most significant or expensive expense associated with your bank account. It doesn’t take long for overdraft charges, for instance, to become a significant expense.

However, the monthly maintenance cost is the one that prospective account holders remember the most and the one that is usually the hardest to avoid. Banks that do not charge monthly maintenance costs or have modest maintenance fees that can be waived with a minimum balance or other qualifying activity are preferred.

Fees for Other Accounts

Overdraft and NSF fees, printed statement fees, ATM withdrawal fees, and wire transfer fees are some of the other prevalent types of charges associated with checking accounts. Though we give priority to fee-free accounts, we also consider those with fewer fees and lower average fees.

Limits on Transactions

While most personal checking accounts don’t have limits on the number of transactions you may make each month, many commercial checking accounts do. For organizations with a high volume of monthly expenditures, these caps may be relatively low, often capped at just 50 or 100 transactions.

When compared to small and medium-sized firms, freelancers are typically less prolific in their payment practices. A successful dropshipping business, for example, can easily cause a side hustler to exceed its monthly transaction limits.

For this reason, we give our preference to financial institutions and accounts that either doesn’t impose any limits on transactions or impose limits that are so high that they won’t affect the vast majority of independent contractors.

Requirements for Deposit and Minimum Balance

The initial deposit and minimum balance requirements of many business checking accounts are too high for solo entrepreneurs to justify the cost. While failure to complete these requirements may not prevent you from opening an account, doing so may subject you to monthly or annual costs.

When it comes to banking, we strongly choose institutions that don’t have any sort of minimum deposit or balance requirements. If we can’t find a bank with low minimums, we seek other ways to minimize the fees associated with not meeting the minimum, such as setting up automatic payments into a bank account.

Account Yield (Interest Rate)

The interest rate on business checking accounts is typically very low. Although interest is more common on business savings accounts, it won’t keep up with inflation. Still, we judge financial institutions and accounts based on the premise that any yield is preferable to none.

Functionality and Features of Mobile

It’s not uncommon for entrepreneurs to conduct the bulk of their activities through mobile devices. For example, if you run a profitable dog-walking or handyman service, you probably won’t be spending much time at the office. Using your phone, you probably talk to customers, shop, take notes, and do a lot of other things.

For what reason, then, should you place your faith in a machine you rarely use? You shouldn’t, and that’s why our go-to financial institutions are those with sleek, user-friendly smartphone applications or dashboards for monitoring all your accounts in one place.

Features for Saving and Budgeting

Budgeting and living within your means are valuable life skills regardless of whether or not your business and personal funds are together. In fact, if you’re serious about expanding your side business, you have a compelling reason to monitor every dollar you spend and spend less than you bring in.

That’s why it’s helpful to have resources like automated savings and internal budgeting tools at your disposal. Many of the options on this list are available at no extra cost from a growing number of banks that are accommodating to freelancers.

Features of Accounting and Taxes

Some business checking accounts tailored toward freelancers also come with extras like tax and accounting management software. When these functions are provided by an external source, they frequently take the shape of simple connections with widely used third-party apps like Xero and QuickBooks. 

For the most part, Americans appreciate financial institutions that go the additional mile to make filing taxes less complicated.

How to Pick the Right Bank Account for Your Side Business or Freelance Work

Picking a bank account to manage your money for a side gig or freelance work is not too dissimilar from picking a personal account. Some things to think about while you weigh your choices are:

  • Billing Charges. Account maintenance fees are a nuisance for anyone. You should look for an account that doesn’t impose a monthly maintenance fee or allows you to easily avoid paying one by maintaining a certain amount or making regular deposits unless there’s a good reason to do otherwise. Don’t forget the “small” expenses, such as overdraft and ATM charges.
  • The Upper Bound on Financial Transactions. There is typically a monthly or statement-period cap on the number of transactions that can be made from a business bank account. The issue becomes more serious if you make numerous little withdrawals or payments.
  • A Required Minimal Balance. If you’re a freelancer or have a side business, you probably won’t be rolling in the dough right away. And depending on your income, your balance could change from week to week and month to month. That’s why you’re on the lookout for checking and savings accounts that don’t need a sizable opening deposit.
  • Earnings Percentage of a Bank Account. Investment returns from business bank accounts have a poor reputation. If you’re self-employed or run a side business and have funds that you don’t need right away, it can be helpful to open rewards checking account or high-yield savings account that caters to people in your position.
  • Extra Options and Functions. Do you wish you could handle your finances on the go with a banking app optimized for your mobile device? Do you rely heavily on services like Venmo and PayPal to bring in cash? Do you need an established system of budgeting and accounting to manage the money flow of your business and keep it distinct from your personal finances? These and similar inquiries might help you hone in on the most suitable checking account for your side gig or freelancing endeavor.
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