October 14, 2024

Best Banks for Small Business in Michigan

By Alyssa Supetran
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Running a small business in Michigan? From freelancers to growing companies, discover the top 10 banks for Michigan entrepreneurs below.

What is the best bank for small business in Michigan?
Here are the top 10 banks for Michigan-based small businesses:

  1. Chase Bank for built-in credit card processing
  2. Huntington Bank for best regional bank
  3. PNC Bank for low requirements
  4. U.S. Bank for national bank with free checking
  5. Capital One for unlimited fee-free transactions
  6. The State Bank for small business loans
  7. United Bank of Michigan for community support
  8. Relay for multiple checking accounts
  9. Bluevine for high-interest checking options
  10. Lili for sole proprietors & freelancers

Michigan is well-known for its business-friendly climate. It's home to more than 900,000 small businesses, which is about 99.6% of all businesses in the state.[1]

To support this thriving sector, Michigan offers a variety of banking options, from national names like Chase to local banks like The State Bank.

Keep reading to see which of these will be perfect for your small business in the Wolverine State.

10 Best Banks for Business Accounts in Michigan

Whether you're trying to make it big in Detroit's bustling metropolis or expanding to Grand Rapids, these banks can give your business the support it needs to succeed.

Which banking service do you need for your small business in Michigan?

Chase Bank

Best for: Built-in credit card processing

With 200+ branches in Michigan, Chase is a great option if you prefer doing your banking in-person. It's also an excellent choice if you run a small retail store or restaurant and accept credit card payments from customers.

The Chase Business Complete Banking account already comes with built-in credit card processing. So, you don't need to open a separate merchant account.

Plus, all of your sales revenue is deposited into your account the same day at no additional cost, thanks to QuickAccept. This keeps your cash flow and your business running smoothly since you don't have to wait for funds.

Chase also has many other banking products, like savings accounts, certificates of deposit (CDs), and a popular lineup of business credit cards. You can get everything your business needs from one bank.

Having issues with your Chase account? Don't worry!
Chase is known for its excellent customer support. You can reach them by phone or chat anytime. Or you can visit the nearest branch for in-person support.

Pros:

  • Strong presence in Michigan (200+ branches)
  • Checking option with built-in credit card processing
  • Unlimited electronic transactions
  • Highly rated mobile app

Cons:

  • Many banking fees like overdrafts and wires
  • Low interest rates

Huntington Bank

Best for: Best regional bank; healthcare financing

Huntington Bank is great if you want comprehensive services and a strong local presence. It has 260+ branches in Michigan. You won't have trouble finding a nearby branch, especially if you're around Detroit or Grand Rapids.

The Business Checking 100 account is a free checking option with no monthly fees or minimum balance requirements. It's a great starter account, especially if you have fewer than 100 monthly transactions. If that's too limiting, there are also two other business checking accounts, so you can choose which best meets your needs.

Huntington doesn't charge overdraft fees unless your account is overdrawn by more than $50. However, you still get a 24-hour grace period. It'll waive the charges as long as you cover the overdrawn amount within 24 hours.[2]

It also offers other business banking products, like merchant accounts, business credit cards, and more.

If you need a loan, it has a variety of options, from SBA loans, real estate loans, to even healthcare practice financing. Whether you run a dental clinic or a vet practice, you can get business loans to keep your medical practice running smoothly,

Pros

  • 260+ branches in Michigan
  • Free business checking option
  • Active SBA lender
  • 24-hour-grace period for overdraft fees

Cons:

  • Limited free transactions (basic account)

PNC Bank

Best for: Low requirements; cash management tools

PNC Bank is another bank with a strong presence in Michigan with over 120 branches spread across the state.

PNC Bank is a great option if you're looking for a business checking account with low opening requirements. You only need $100 as the minimum opening deposit for any of its business accounts.

And while it doesn't have a free checking option, the requirements to waive the monthly fees are reasonable enough.

Each account includes Cash Flow Insight®, a powerful money management tool that gives you insights to make smarter business decisions. It helps you see what you're spending on, forecast future expenses, pay bills, and so much more.

Business owners who open a PNC Bank Business Checking Plus account can even get a personal Virtual Wallet with Performance Spend checking account with no monthly service fee. This is great if you want your personal and business checking accounts from a single bank.

Pros:

  • Low opening requirements
  • Large footprint in Michigan
  • Built-in cash management tools
  • QuickBooks, Xero, Intacct, and NetSuite integration

Cons:

  • No free checking option
  • Low interest rates

U.S. Bank

Best for: National bank with free checking

U.S. Bank is one of the largest banks with more than 2,000 branches across the country. It doesn't have one in Michigan, but it could still be a great option because it's one of the few national banks with a free business checking account.

The Silver Business Checking Account has no monthly fees or minimum balance requirements. It has no-fee transactions at more than 4,500 U.S. Bank ATMs across the country and no surcharge fees at MoneyPass® Network ATMs. So even if you don't live near a branch, ATMs are still convenient.

And if the Silver account doesn't have what you're looking for, U.S. Bank has four other business checking accounts, including a non-profit account.

Each comes with online and mobile banking features that let you monitor your cash flow, transfer money, deposit checks, and more. You can easily manage your money and make transactions, even without having a physical branch.

Pros:

  • Free business checking account
  • Specialty checking accounts available
  • Huge ATM network
  • Handy online and mobile banking

Cons

  • Limited free monthly transactions
  • Fewer features than others

Capital One

Best for: Unlimited fee-free transactions

If your business regularly handles high transaction volumes, Capital One is an excellent choice.

It allows unlimited free transactions for withdrawals, deposits, and money transfers. So, you can process all the transactions your business needs without worrying about them becoming too costly.

You can also withdraw money at no additional cost through over 70,000 no-fee Capital One, MoneyPass, and Allpoint ATMs.[3]

Aside from that, Capital One offers a wide selection of other small business banking products. You can get tailored checking accounts, business credit cards, credit card processing services, and more.

Pros:

  • Unlimited fee-free transactions
  • Great lineup of business credit cards
  • No-fee withdrawals (Capital One, MoneyPass, & Allpoint ATMs)

Cons:

  • No physical branch in Michigan
  • No free checking option

What kind of bank do you want to use for your small business?

The State Bank

Best for: Small business loans; local support

The State Bank is a local community bank with over 20 locations in Michigan. It's a good choice if you want a local bank with a long history and a strong focus on the community.

It has three business checking options you can choose from. But the basic account is already enough if you're just starting and need a simple and inexpensive option. It has no monthly fees to worry about, so you can just focus on running and growing your business.

The State Bank is also a preferred SBA lender, so they can make the process of getting a business loan easier for you. It's a great choice if you need additional capital but are worried about not qualifying for a loan or credit line.

Additionally, it partners with other institutions in Michigan, like schools and charities, to create valuable programs for the local community. These include sponsoring meals at food banks and donating to local schools.

Pros:

  • Preferred SBA lender
  • Free business checking option
  • Strong local community support

Cons:

  • Limited branches and ATM network

United Bank of Michigan

Best for: Strong community support

The United Bank of Michigan only has 10+ branches in Michigan, but it's a well-established institution in the state. Its focus is on providing efficient banking services to the local community in Michigan, including small businesses.

It has five business checking accounts, so you have more options for your business, whether it's higher transaction limits or earning interest on your balances.

There's no free checking account, but the waiver requirements are low. For example, the Business Checking I account only requires a minimum balance of $250 to waive the monthly fee.[4]

The United Bank also partners with other organizations to create programs that help the local community. These include financial literacy and other educational programs to help entrepreneurs manage their finances more effectively and boost their growth.

You can also get instant-issue debit cards from selected United Bank branches that you can use immediately for transactions. They're also compatible with most mobile payment channels, like Apple Pay, Google Pay, and Samsung Pay.

Pros:

  • Strong community support
  • Multiple checking options
  • Low waiver requirements for monthly fees
  • Instant-issue debit cards (selected branches only)

Cons:

  • Limited branches
  • No free checking option

Relay

Best for: Multiple checking accounts; digital tools

If you don't mind an online-only option, Relay can be a great choice for your small business. Especially if you want to open multiple checking accounts without worrying about the monthly fees.

You can open as many as 20 free checking accounts that you can assign for specific purposes.[5] You can use one for your usual expenses, and then another for payroll or taxes. This makes managing your company's cash flow more efficient.

Relay also lets you issue up to 50 physical and virtual Visa® debit cards. Set custom spending limits for each card to avoid overspending.[6]

Plus, you can connect your accounts to apps like QuickBooks or Gusto and streamline your bookkeeping and accounting. You can import your info automatically, making tax season less time-consuming and stressful.

Relay also has its own set of digital tools that let you automate certain processes, like automatically transferring money from one account to another. This way, you won't worry about forgetting.

Pros:

  • Up to 20 free checking accounts
  • Up to 50 physical & virtual debit cards
  • Built-in digital tools
  • Integrates with other business apps

Cons:

  • No physical branches
  • Long processing times for check deposits[7]

Relay is a financial technology company, not an FDIC-insured bank. Banking services and FDIC insurance are provided by Thread Bank; Member FDIC.

Bluevine

Best for: High-interest checking accounts

Bluevine is another great online alternative for Michigan business owners, especially if you're looking to earn interest on your checking balance.

With the standard account alone, you can earn up to 1.5% APY on balances up to $250,000 with monthly eligibility requirements; 0% APY on balances over $250,000. And it has no monthly fees or minimum balance requirements.

You can even create up to 5 free sub-accounts, each with its own account numbers and individual spending limits.[8] These allow you to organize your funds for things like payroll, taxes, vendor payments, etc., so your day-to-day operations keep running smoothly and efficiently.

Need some extra funds to ride out a slow season or grow your business? Bluevine also offers a flexible business line of credit up to $250,000.[9] Decisions take as little as 5 minutes, so you can keep moving forward.

Pros:

  • High interest rates
  • Up to 5 free sub-accounts
  • No monthly fees
  • No-fee withdrawals at approximately 40,000 MoneyPass ATMs

Cons:

  • No physical branches
  • Fees for cash deposits

Bluevine is not a bank. It partners with Coastal Community Bank, Member FDIC, and a trusted network of program banks to provide FDIC insurance up to $3 million.

Lili

Best for: Sole proprietors & freelancers; early payments

Lili is another online-only option worth considering for small business owners. It was initially meant for freelancers but now accommodates other types of small businesses. It offers several types of business checking accounts for different needs.

The basic checking option is a great starter account for freelancers or startups because it has everything you need for your business's day-to-day operations. Plus, it has no monthly service fees or minimum balance to worry about.

But if you want more features, like an automatic tax savings account or expense tracking, you can always upgrade one of its three paid plans. The Smart checking option even comes with accounting software to keep your records well-organized and ready for the next tax season.

Additionally, you can get several Visa® debit cards and set individual limits for each. You also earn cashback rewards when you use your Lili debit card with partner merchants.[10]

With Lili's Early Access feature, you can receive customer payments up to two days earlier than expected because wire transfers are posted the same day they're deposited into your account.[11]

Pros:

  • Free checking option
  • Single login for multiple accounts
  • Debit cards with cashback rewards
  • Early access for direct deposits

Cons:

  • Limited features for Lili Basic
  • Fees for cash deposits

Lili is a financial technology company, not a bank. Banking services are provided by Choice Financial Group, Member FDIC, or Sunrise Banks, N.A., Member FDIC.

How to Choose the Right Bank for Your Business?

Choosing a bank can be a make-or-break decision for your business. Consider these factors before committing to one:

  • Accessibility
    If you prefer in-person transactions, it's better to go for banks like Chase or Huntington Bank. They have many branches and ATM locations in Michigan, so it's easier to find one nearby.

    But if you don't need a physical branch, you can also opt for online-only choices like Relay or Bluevine. They usually have fewer fees and unique benefits, like high interest rates.

  • Monthly fees & minimum balances
    Some banks charge a monthly fee to keep your account active. You can usually waive this if you meet the minimum balance requirements. See if they make sense for your business.

    Online accounts like Bluevine and Lili are great because they have no monthly fees. U.S. Bank is a good option if you want a free checking account from a national bank.

  • Monthly transaction limits
    Some banks also impose a cap on the fee-free transactions you can make per month. Choose a bank that can accommodate your monthly transaction volume. Capital One is good for this because it allows unlimited free transactions.

  • Customer support
    A fast response from your bank's customer support is crucial to avoid disrupted business operations. Choose a bank you can easily reach through multiple channels or has extended support hours.

  • Online and mobile banking
    You may not always have the time to go to a branch or ATM for transactions. That's why a good mobile app or website is a must. Bluevine, Relay, and Lili have convenient and easy-to-use online platforms and mobile apps.

  • Software integrations & other tools
    Integrations with your favorite business apps can make your life as an entrepreneur so much easier. No need to manually import your data every time.

What's most important to you when choosing a small business bank?

Why Have a Business Bank Account

A business bank account will keep your business' finances well-organized, so you can easily keep track of its expenses and overall performance.

Not to mention, it's a must-have for Michigan LLCs and corporations. A separate business bank account reinforces its liability protection by clearly separating your business and personal assets.

Here are other reasons why a business bank account is important:

  • Simplifies filing business taxes
  • Lets you accept different types of payments
  • Makes getting more capital easier
  • Strengthens your credibility and professionalism

Our Methodology

To determine the best banks for small businesses in Michigan, we first looked into banks with a strong physical presence in the state. We picked banks with multiple branches and/or an extensive ATM network in Michigan.

We also checked out banks that either had free checking accounts or had reasonable waiver requirements. Aside from that, we also looked into banks with good monthly transaction limits and a wide selection of other banking products.

Lastly, we looked for other useful features for businesses, like built-in credit card processing, high interest rates, or money management tools.

FAQs

Which bank account is best for a small business in Michigan?
Chase is our best overall pick for small businesses in Michigan. It has 200+ branches in the state and a wide selection of other business banking products.

The State Bank is a great alternative if you prefer local banks. Online-only options like Bluevine and Relay are also excellent if you want fewer fees and additional perks, like high interest rates or multiple free checking accounts.

Should a Michigan LLC have a separate bank account?
Yes, it should. A separate bank account is a requirement for Michigan LLCs. It will reinforce your LLC's liability protection since you're not commingling funds.

Should I use a local bank for a small business?
Choosing a local bank is a good option if you want lower fees or hands-on support from local experts. But it may have fewer services compared to bigger banks.

How much should a small business have in a bank account?
Ideally, a small business should have around 3 to 6 months' worth of expenses in its bank account. This ensures you have enough to cover business costs, like employee wages, rental fees, utility costs, and vendor fees.

Does it matter what bank you open a business account with?
Yes, it matters because the right bank can accommodate your company's specific needs and help it grow.

Working with the right bank also makes it easier to get additional services, like business credit cards and small business loans.

Bottom Line

Chase tops the list of the best banks for small businesses in Michigan. In particular, it's great if you want built-in credit card processing, easy access, and extensive business banking products.

You can also try local banks like Huntington or the State Bank if you're looking for strong community support. Online-only choices like Bluevine or Lili are great alternatives if you want fewer fees and extra features and don't mind not having a physical branch to go to.

Just remember that the right banking partner can make all the difference in your small business's success in Michigan. Weigh the pros and cons of the available options so that you can make a sound and informed decision for your business.

References

  1. ^ US Small Business Administration. 2023 Small Business Profile, Retrieved 07/04/2024
  2. ^ Huntington. 24 Hour Grace for Business, Retrieved 07/04/2024
  3. ^ Capital One. Business Checking Accounts | Small Business Banking, Retrieved 07/06/2024
  4. ^ United Bank of Michigan. Business Checking I, Retrieved 07/05/2024
  5. ^ Relay. Business Checking Built For Business Owners | Relay, Retrieved 07/05/2024
  6. ^ Relay. Editing your Relay Card, Retrieved 07/04/2024
  7. ^ Relay. Depositing a Check, Retrieved 07/05/2024
  8. ^ Bluevine. Use Sub-Accounts Effectively | Business Checking | Bluevine, Retrieved 07/04/2024
  9. ^ Bluevine. Line of Credit, Retrieved 9/15/2024
  10. ^ Lili. Business Banking Designed to Help You Succeed | Lili, Retrieved 07/05/2024
  11. ^ Lili. What is Early Access for ACH Transfers? - Help Center | Lili, Retrieved 07/05/2024

Write to Alyssa Supetran at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

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