December 23, 2024

Best Banks for Small Business in Texas

By Alyssa Supetran
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Running a small business in Texas? Here are the 10 best banks that can help your business thrive in the competitive Texas market.

What is the best bank for small business in Texas?
Here are the 10 best banks for small businesses based in Texas:
  1. Chase Bank for built-in credit card processing
  2. Wells Fargo for SBA loans
  3. Bank of America for flexibility
  4. PNC Bank for low requirements
  5. Capital One for unlimited fee-free transactions
  6. Frost Bank for customer service
  7. Amegy Bank for industry-specific solutions
  8. Happy State Bank for agricultural businesses
  9. Bluevine for high-interest checking accounts
  10. Relay for multiple checking accounts

Texas has the second-largest economy and often ranked as the best business climate in the US - making it a good location for existing and aspiring entrepreneurs.[1]

To help businesses maximize the state's distinct economic landscape, Texas offers a variety of banking options, from national names like Chase to well-established local favorites like Frost Bank.

Keep reading to find the best financial partner for your small business in the Lone Star State.

10 Best Banks for Business Accounts in Texas

Whether you're in Austin, Dallas, or rural areas, these banks offer tailored financial solutions, local expertise, and support to help your business find success in Texas' fast-paced market.

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

Chase Bank

Best for: Built-in credit card processing

Chase Bank has the biggest presence in Texas. With 540+ branches across the state, finding the nearest one for in-person banking is easy, especially if you're around Austin, Dallas, or Houston.

Chase is a great option if your small business accepts credit card payments from customers. It's good for small retail stores, restaurants, and service-based businesses.

The Chase Business Complete Banking account includes built-in credit card processing. No need for a separate merchant account.

And with the QuickAccept feature, all payments are deposited into your account on the same day. So you can keep your cash flow moving and prevent business interruptions.

Chase also has excellent customer service and a wide selection of business products. In particular, its popular business credit cards give generous cashback and travel rewards.

Chase Bank often offers new customers bonuses for opening business bank accounts. Check back regularly to see current promotions.

Pros:

  • Checking with built-in payment processing
  • Highly rated mobile app
  • Unlimited electronic transactions
  • Offers promotions for new customers

Cons:

  • Many banking fees
  • Low interest rates

Looking to expand your business? This next option can give you the extra capital it needs to grow.

Wells Fargo

Best for: SBA loans; extensive business services

Wells Fargo is another excellent choice if you want a well-established bank with a large footprint in Texas. It has 400+ branches in the Lone Star State, mostly in Austin and Houston.

Wells Fargo offers a comprehensive suite of business products, including banking, insurance, payroll services, and more—all under one roof.

Need capital to start or grow your business? Wells Fargo is one of the country's top SBA 7(a) lenders. It can help you secure small business loans quickly with more favorable terms, such as longer repayment times or lower interest rates.

For business checking, the Initiate Business Checking Account is a great starter account for new businesses with less activity. As your business grows, you can easily upgrade if you need more features.

Pros:

  • Top SBA lender
  • Comprehensive small business services
  • Several business checking options

Cons:

  • Many banking fees like wires and overdrafts
  • Low interest rates for savings accounts

Bank of America

Best for: Flexibility; cash management

As one of the largest banks in the US, Bank of America combines its national strength with local expertise to provide flexible solutions to small business owners in Texas. And with 300+ financial centers in Texas alone, it's easy to get in-person assistance.

Bank of America offers a unique flexible Business Advantage Banking account with two tiers you can switch between. The basic tier is an ideal starting point, thanks to its low requirements. You can seamlessly move up or down as your business needs change.

It also has better digital tools than other basic accounts. With their Cash Flow Monitor®, you can connect to apps like QuickBooks and Expensify to track your business metrics all in one place. Plus, get cash flow projections to help you plan for possible shortfalls.

If you need help with anything, Bank of America's team of Small Business Specialists is ready to provide valuable advice and hands-on support whenever you need.

Pros:

  • Flexible business checking
  • Built-in cash management tools
  • Access to Small Business Specialists

Cons:

  • Less access to SBA loans
  • Many banking fees like overdrafts and wires

PNC Bank

Best for: Low requirements; cash management tools

PNC Bank is a large regional bank with over 300 branches across Texas.

It offers a variety of business checking accounts for different needs. The Business Checking Plus account, in particular, offers great value because of the higher transaction limits and additional tools.

Aside from that, PNC Bank is a good option if you're looking for a business account with low opening requirements. You only need $100 to open any of its business checking accounts. They have monthly fees, but the requirements to waive them are reasonable.

PNC also has a built-in Cash Flow Insight® tool to help you make confident business decisions. You can keep track of business expenses, pay bills, forecast future costs, and 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 convenient if you want your personal and business checking with one bank.

Pros:

  • Opening deposit is only $100
  • Built-in cash flow tools
  • Earn cash rewards at participating merchants
  • QuickBooks, Xero, Intacct, and NetSuite integration

Cons:

  • No free business checking option
  • Low interest rates

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

Capital One

Best for: Unlimited fee-free transactions

Capital One doesn't have as many physical locations in Texas, with only 30+ branches and mainly in the Houston area. Still, it's worth checking out if you're running a small business in the state.

Capital One can be a great option for highly active businesses. It gives you unlimited free transactions for deposits, withdrawals, and money transfers. Process all business transactions without worrying about it becoming too costly.

Plus, enjoy free withdrawals at any of the over 70,000 no-fee Capital One, MoneyPass, and Allpoint ATMs nationwide.

In addition, Capital One has a wide selection of other banking products designed specifically with small businesses in mind. You can get business credit cards, savings accounts, and credit card processing services all from one bank.

Pros:

  • Unlimited free transactions
  • Extensive ATM network
  • Wide selection of small business banking products

Cons:

  • High waiver requirements for monthly fees

Starting a local business? While national banks offer convenience, sometimes a smaller community bank provides that local touch you need.

Frost Bank

Best for: Customer service; community-centered banking

Frost Bank is a great choice if you prefer working with a local bank instead. It's a well-established bank with a long history (150+ years) and over 190 financial centers in Texas.

Frost Bank demonstrates the distinct Southern hospitality the state is known for through its top-notch customer service. Its 24/7 phone support and live chat are manned by real people. No need to deal with frustrating automated systems just to get simple answers.

Aside from that, Frost Bank offers several business checking options designed to accommodate different needs. And you just need $50 as the minimum opening deposit.

They also have a good selection of banking products for small businesses, like SBA loans, merchant services, and business savings. You can get your business needs from all one bank.

For 15 consecutive years, Frost Bank received the highest ranking for customer satisfaction in Texas in J.D. Power's annual retail banking satisfaction study.[2]
This shows its commitment to building long-term relationships with its customers.

Pros:

  • Excellent customer service
  • Low opening requirements
  • Good selection of business banking products
  • Over 1,700 ATMs across Texas.

Cons:

  • No interest-bearing business checking accounts

Amegy Bank

Best for: Industry-specific solutions

After Zions Bancorporation acquired it in 2005, Amegy Bank now offers a wider selection of services but maintains its strong focus on the local community. It has over 70 locations across Texas, mostly in the Houston area.[3]

It offers several types of business checking accounts, including specialty accounts for nonprofits and legal firms. And you only need $50 as the minimum opening deposit.

Additionally, they all have good online and mobile banking features, so you can bank anywhere and at any time. You can even connect your checking account directly to apps like Quicken or QuickBooks for seamless accounting and bookkeeping.

Amegy Bank also has specialized banking solutions for businesses in the real estate, energy, and marine industries. These include tailored financing options and treasury management services. It's a good choice if your business has specific requirements that regular banking solutions can't accommodate.

Amegy Bank shows its commitment to giving back to the local community through annual donations. It donates more than $1 million to support local initiatives, especially those focusing on education.[4]

Pros:

  • Tailored financing options
  • Specialty accounts available
  • Strong community support
  • Low opening requirements

Cons:

  • Low interest rates
  • In-person applications only

Happy State Bank

Best for: Agricultural businesses

Happy State Bank is another local bank in Texas with a long history and a large presence. It has over 60 branches across the state, mostly in the Amarillo area.

Happy State Bank is best for small businesses in the agricultural sector. It has specialty lending options for agricultural businesses, including loans for real estate and equipment. You can even get loans for purchasing livestock, crops, and cattle.

It also has several other checking options for businesses, including specialty accounts for nonprofits, government agencies, and sole proprietors. The regular checking option, in particular, is great if you want a basic checking account with high transaction limits.

Agriculture is still a huge part of Texas's local economy, with around 86% of its land dedicated to some type of agricultural production. In addition, approximately 97% of all farms in Texas are small and family-owned.[5][6]

Pros:

  • Multiple business checking accounts
  • Specialty lending for agricultural businesses
  • High transaction limits

Cons:

  • Many banking fees

Bluevine

Best for: High-interest checking accounts

If you don't mind an online-only option, Bluevine is a great alternative to traditional brick-and-mortar banks. It stands out with its high-yield business checking and flexible lines of credit.

Even at the basic tier, you earn up to 1.5% APY on balances up to $250,000 with monthly eligibility requirements; 0% APY on balances over $250,000. And there's no monthly fees, minimum balance requirements, or overdraft fees.

Plus, you can open up to 5 free sub-accounts with their own account numbers. This allows you to better organize your funds and set budgets for things like payroll, taxes, and vendor payments.

You can even set custom rules and permissions for better security and account management. All sub-accounts also earn interest up to the combined maximum.[7]

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.[8] Decisions take as little as 5 minutes, so you can keep moving forward.

Pros:

  • High APYs on checking balances
  • Up to 5 sub-accounts
  • No monthly fees
  • Free 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.

Relay

Best for: Multiple checking accounts; digital tools

Running a growing online business in Texas? Relay is a powerful digital banking option to streamline your financial management, particularly for teams with greater checking needs.

You can create up to 20 checking accounts for free and get up to 50 debit cards.[9] This allows you to allocate accounts for specific purposes and make managing your business's cash flow easier.

If you have a team, you can assign user permissions for each account. Free up your time by having your team help pay bills, make purchases, deposit checks, and more.

Relay integrates with your favorite business apps, like QuickBooks or Gusto - making accounting and tax season less time-consuming and stressful.

In addition, Relay has built-in tools that let you automate banking processes. For example, you can set up auto-transfer rules. And the Pro account even offers accounts payable automation.

Pros:

  • Up to 20 free checking accounts
  • Up to 50 physical and virtual debit cards
  • Built-in digital banking tools
  • Native integration with popular business apps

Cons:

  • No physical branches
  • Long processing times for check deposits[10]

Relay is a financial technology company, not an FDIC-insured bank. Banking services and FDIC insurance are provided by Thread Bank; Member FDIC. Your deposits qualify for up to $3,000,000 in FDIC insurance coverage.

How to Choose the Right Bank for Your Business?

Before committing to a bank, be sure they have the features you're looking for. Consider these:

  • Monthly fee & minimum balance
    Some banks require that you maintain a minimum balance in your account. If you don't, you'll have to pay a monthly fee. See if the requirement makes sense for your business. Some of our listed banks have no minimums and no monthly fees.

  • Monthly transaction limits
    Most business checking accounts cap the number of free transactions your account can do monthly. Then a fee is charged for each one after that. Pick an account that can accommodate your transaction volume.

  • Cash deposits
    Does your business deal with a lot of cash? Most accounts offer fee-free cash deposits up to a certain amount per month.

  • Accessibility
    Most of the banks on our list have a good number of branches and ATMs in Texas. However, it's still best to check the availability of your chosen bank in your area, and how convenient it would be for you on a day-to-day basis.

    You can also try online-only options like Bluevine or Axos if you don't need a physical branch. They usually offer better fees and higher rates compared to brick-and-mortar banks.

  • Small business loan options
    Sometimes, it's easier to get a loan from the same bank you use for checking since you have an established relationship. See what loan options the bank has and their terms.

  • Customer support
    You should be able to get help as soon as you need it. Get a sense of the bank's customer service for small business owners. Some banks have small business specialists who can give you more tailored guidance.

  • Mobile app
    Many business owners bank on the go. Having a reliable mobile banking app is a must.

  • Software integration
    Does the bank integrate with any accounting software, like QuickBooks, Freshbooks, or Xero? This helps save time and hassle when it comes to bookkeeping and tax reporting.

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

Why Have a Business Bank Account

It's important to separate your business finances if you have an LLC or corporation in Texas. Doing so helps protect your personal assets if your business gets sued or has unpaid debt.

While this isn't a requirement for sole proprietors, having a separate business bank account will make your life easier.

Here's why you should have a business bank account:

  • Easier to calculate business expenses during tax time.
  • Makes the business look more professional to your customers and vendors.
  • Be able to apply for business loans.
  • Pay bills and make purchases from your business funds.
  • Allows you to accept credit card payments from customers.

What kind of bank account should I open for my small business?
Your business should have at least a checking account. It's what you need for day-to-day operations like paying bills, receiving deposits, and making purchases. If your business has extra funds, you can open a business savings account to save for emergencies and future plans.

Our Methodology

To come up with the best banks for small businesses in Texas, we first pinned down banks with a strong presence in the state. So, you'll be able to find branches or ATMs easily wherever you are.

Then we looked into the banks' fees, account features, and other business services. We chose banks that either have a free business checking option or reasonable terms to waive the monthly fees.

We also looked for unique banking features, like built-in payment processing, cash flow tools, or specialty lending options. That way, no matter what kind of business you have, you'll find a bank that fits your needs.

FAQs

Do I need a Texas ID to open a business bank account in Texas?
Yes, most banks in Texas will require proof of residency to open a business bank account. Some examples include a Texas driver's license, business license, or business registration.

What is the minimum to open a business account?
The minimum amount needed to open a business account can range anywhere from $0 to $1,000. It differs from bank to bank, so it's best to check with your preferred bank to be sure.

Can I open a business bank account with bad credit?
Banks generally don't do a credit check when you open a checking or savings account. So it's possible to open a business bank account, even if you have low personal credit.

Keep in mind that banks may check your ChexSystems report. So if you've had problems with your personal banking account, that may still impact your ability to open a business banking account.

Can I use a regular bank account for my small business?
It's best to have a dedicated business bank account for your small business. Aside from personal liability protection, it also helps keep your finances organized.

Bottom Line

Chase and Wells Fargo are great if you want national banks with a strong presence in Texas and a wide selection of services. But if you prefer excellent customer support, try local banks like Frost Bank.

That said, the right bank can help you maximize the resources and incentives the Lone Star State offers to its small businesses. But to find it, you need to know what your business needs.

Take the time to identify your business's unique requirements before committing. This ensures you're working with a bank that can cater to them and help boost your business's growth.

References

  1. ^ Texas Office of the Governor. Top Texas Touts: Economy, Retrieved 08/09/2024
  2. ^ J.D. Power. 2024 U.S. Retail Banking Satisfaction Study, Retrieved 08/13/2024
  3. ^ Zions Bancorporation. Zions Bancorporation Completes Acquisition of Amegy, Retrieved 08/09/2024
  4. ^ Amegy Bank. 2023 Annual Community Impact Report, Retrieved 08/10/2024
  5. ^ Texas Department of Agriculture. Texas Agriculture Facts, Retrieved 08/13/2024
  6. ^ U.S. Department of Agriculture. 2023 Farms and Ranches at a Glance Report, Retrieved 08/13/2024
  7. ^ Bluevine. Use Sub-Accounts Effectively, Retrieved 07/04/2024
  8. ^ Bluevine. Line of Credit, Retrieved 09/15/2024
  9. ^ Relay. Business Checking Built For Business Owners | Relay, Retrieved 07/05/2024
  10. ^ Relay. Depositing a Check, Retrieved 07/05/2024

Alyssa Supetran is a research analyst at CreditDonkey, a credit card comparison and reviews website. Write to Alyssa Supetran at alyssa@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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Best Bank for Small Business

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32% National bank
29% Local bank
38% Online bank
Source: CreditDonkey. Totals may not add to 100% due to rounding.
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