Small Business

Why You Should Have Multiple Small Business Bank Accounts

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If you’re a small business owner who struggles to organize your company’s finances, you’re not alone. Roughly 27% of small business owners still use their personal bank accounts for business transactions. Perhaps you’ve already made the first step to separate your personal and business finances — but do you know about the advantages of having multiple business accounts?

Depending on your financial goals as a business owner, opening more than one account can help you stay on top of your business’s finances. In this article, we’ll explore recommended types of business bank accounts and provide tips on how to get started opening yours.

The Benefits of Having Multiple Accounts

A business account lends more credibility to your company, offers extra incentives, and can also protect your finances. Multiple accounts mean that you’ll stay more organized — with more perks like higher interest rates and ATM fee reimbursements available to you — all while offering more protection for your money.

Stay Organized

Inbound and outbound transactions are an unavoidable part of business, from routine costs to emergency expenses and taxes. Designating different accounts for these transactions can give you a clear picture of your financial status and simplify bookkeeping. Keeping separate accounts will make it easier to budget, plus it can streamline tracking long-term financial goals and trends.

Try designating one account for payroll, another for invoice payments received, and one for routine office expenses — then watch how your efficiency and financial management improve over time. Take it a step further by matching account features with the purpose for which funds will be used. For instance, you may want a high-interest savings account to grow your business’s emergency fund and a low minimum balance account for your overhead expenses so you can avoid fees when balances get low.

Utilize Various Account Perks

Different accounts offer different perks, so look for features that would directly benefit your business. For instance, if you need instant access to cash, look for accounts with ATM fee reimbursements. If you’re looking to maximize your earnings to stay ahead of inflation, try accounts with high interest rates.

Keep in mind that if you need to make a lot of withdrawals, some accounts have limits. Luckily, you can work around this roadblock when you have multiple accounts. Not to mention, you’ll be able to easily transfer funds between accounts — especially if you open them at the same bank.

Protect Your Money

You can never be too cautious when it comes to financial security. Spreading your money across multiple accounts will protect you against fraud if one account is compromised. Furthermore, large sums of money distributed across accounts will be more secure, because FDIC insurance only covers up to $250K per eligible business account. Be sure to choose an FDIC-insured bank like Axos Bank, and split your money for full monetary protection.

The Drawbacks of Having Multiple Accounts

Maintaining multiple accounts may have a few downsides, including extra fees and management responsibilities. The good news is that if you pick the right bank, you can work around these drawbacks.

Fees and Requirements

Many bank accounts impose fees, which means the more accounts you open, the more potential fees you will be charged. Typically, traditional brick-and-mortar banks charge high fees to cover the high overhead costs of maintaining a branch network. Thus, many accounts require minimum deposit and daily balance amounts, with heavy penalties if you don’t meet those requirements. With a brick-and-mortar bank, not only do you have to maintain a high enough balance to cover your expenses, but you also pay steep bank fees. Plus, there are the usual ATM fees, check fees, and other pesky expenses.

Luckily, there’s a way to avoid those fees. Online banks such as Axos have no physical branches, so overhead costs are significantly lower, and this is often reflected in the lower fees they charge. Plus, certain accounts at Axos waive ATM fees and offer a fixed number of free checks each month.


Some business owners might find the thought of managing more than one account overwhelming, perhaps because of a lack of time or inexperience. When you run a business, you’re juggling a lot at once, especially when it comes to finances.

Axos Bank offers a unique solution to that issue: Relationship Managers. They are available with every Axos small business bank account at no cost to customers. There to answer questions or concerns you have about your accounts, Relationship Managers can also help you assess your needs and identify growth areas for your business. This saves you time — and let’s be honest, time is money — and allows for smoother, more efficient banking.

Where Do I Start?

We recommend opening three accounts to help you stay on top of your small business finances: checking, money market, and high-yield savings.

Checking Account

A checking account allows business owners to quickly and easily withdraw and deposit money without paying heavy fees. As perhaps the most essential account for a business owner, it’s top of our recommendations.

Consider the needs of your business and align your goals and restrictions with the bank account. To get the most bang for your buck, research banks that charge little to no monthly maintenance fees with high interest rates. Not sure where to start? The Basic Business Checking and Business Interest Checking accounts from Axos are low-to-no fees, with low minimum deposit requirements and free items each month.

Money Market Account

The best money market accounts are designed to help business owners grow and save capital. Use it as a place to store cash for short-term goals or upcoming expenses. They offer more flexibility than savings accounts when it comes to accessing your cash, with some offering perks like check writing privileges or debit cards. Look for an account with competitive interest rates to maximize your savings. Some money market accounts like those at Axos also offer remote deposit and free bill pay, a huge plus for any business owner.

High-Yield Savings Account

Not your typical savings account, a high-yield savings account is ideal for many business owners — especially those who need to build up an emergency stash of cash — with its high interest rates. As you research, keep in mind that the highest rates offered are typically found at online banks. Consider factors such as maintenance fees, balance requirements, and other sneaky fees. Pro tip: open your high-yield savings and checking accounts at the same bank to keep transfers simple.

The Bottom Line

Having multiple bank accounts for your small business will help keep you organized, streamline goal and trend tracking, enhance financial security, and improve your bookkeeping. Start with checking, money market, and high-yield savings and your financial management will improve over time.

To maximize your benefits, we recommended that you open all or most of your accounts at one bank. It will make your life easier — from easy fund transfers between accounts to streamlined account management. Let Axos be your one-stop digital bank — there’s a reason we were named a best bank for small businesses. Take advantage of our valuable benefits and effective solutions including banking, treasury management, and merchant services for today’s small business owner.

Why You Should Have Multiple Small Business Bank Accounts

This blog post was published by Axos Bank on May 19, 2021 and last updated on May 19, 2021.

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