Best Banks in New York for Startups in 2025 — 2025 Update

Best Banks in New York for Startups in 2025 — 2025 Update

Starting a business in New York can be an exhilarating but challenging endeavor. One of the first steps in establishing your startup is selecting the right bank. This article provides a comparative review of some of the best banks in New York for startups in 2025, focusing on account types, eligibility, fees, and more.

Quick Summary

When choosing a bank for your startup, consider the following options, each with unique offerings:

- Chase Bank: Offers a variety of business accounts with extensive branch access.
- Bank of America: Known for its comprehensive online tools and resources.
- Wells Fargo: Provides a range of business accounts with flexibility in options.
- TD Bank: Offers favorable hours and a variety of small business accounts.
- Capital One: Known for its digital banking options and competitive fees.

Eligibility & Requirements

Each bank has specific eligibility criteria and requirements for opening a business account. Generally, you will need to provide:

- Business License: Proof of your business registration.
- Employer Identification Number (EIN): Required for tax purposes.
- Personal Identification: Government-issued ID for all signers.
- Operating Agreement: If applicable, especially for LLCs.

While most banks have similar requirements, some may have additional stipulations based on the type of business entity or industry.

Step-by-Step Opening Process

Opening a business bank account typically involves the following steps:

1. Choose the Right Account: Research different account types based on your startup’s needs.
2. Gather Documentation: Compile the required documents mentioned above.
3. Visit the Bank or Apply Online: Some banks allow online applications, while others may require an in-person visit.
4. Complete the Application: Fill out the application form, providing accurate information.
5. Initial Deposit: Most banks require an initial deposit, which varies by institution.
6. Account Approval: Wait for the bank to process your application, which can take a few minutes to a few days.
7. Receive Account Details: Once approved, you will receive your account number and debit cards.

Typical Fees & Timelines

Bank fees can vary significantly based on the type of account and the services you choose. Here are some typical fee ranges for business accounts in New York:

- Monthly Maintenance Fees: $10 - $30, depending on the account type.
- Transaction Fees: $0.15 - $0.50 per transaction after a certain limit.
- Wire Transfer Fees: $15 - $50 for outgoing wires; incoming wires may be free.
- ATM Fees: $2 - $5 for out-of-network ATM withdrawals.

Timelines for account opening generally range from immediate to a few business days, depending on the bank's processing speed and the completeness of your documentation.

Always verify these fees and timelines with official sources, as they can change frequently.

Alternatives & Digital Banks

In addition to traditional banks, several digital banks are emerging as viable alternatives for startups:

- Novo: Offers a seamless digital banking experience with no monthly fees and free ACH transfers.
- Lili: Designed specifically for freelancers and small businesses, featuring tax tools and no monthly fees.
- Axos Bank: Provides a range of business accounts with competitive interest rates and low fees.

Digital banks often have fewer fees and more flexible account management options, making them attractive for startups with limited cash flow.

FAQs

1. What type of business accounts are available for startups?
Most banks offer checking and savings accounts tailored for businesses. Some also provide specialized accounts for specific industries.

2. Can I open a business account without an EIN?
While some banks allow you to open an account with your Social Security Number, having an EIN is recommended for tax purposes and establishing business credit.

3. What is the minimum deposit required to open a business account?
This varies by bank and account type, but it typically ranges from $25 to $100.

4. Are there any monthly fees associated with business accounts?
Yes, most banks charge monthly maintenance fees, which can vary widely. Some accounts may waive these fees if you maintain a minimum balance.

5. How long does it take to open a business bank account?
The process can take anywhere from a few minutes to several days, depending on the bank's procedures and the completeness of your application.

6. Can I manage my business account online?
Most banks offer online banking services, allowing you to manage your account, pay bills, and transfer funds electronically.

7. What should I do if I exceed my transaction limit?
You may incur transaction fees if you exceed the limit. It's advisable to review your account's terms and consider upgrading to a different account type if needed.

8. Is it necessary to visit a bank branch to open an account?
Many banks allow online applications, but some may require an in-person visit for identity verification or specific account types.

Conclusion

Selecting the right bank for your startup in New York involves careful consideration of your business needs, fees, and available services. By comparing traditional and digital banking options, you can find the best fit for your startup’s financial management.

Disclaimer: For informational purposes only; not financial/tax/legal advice.

About the Author

Marks Toms – Editor-in-Chief
Marks oversees editorial policy, compliance, and fact-checking at bankaccountsopen. Read more articles