Online Banks: Which one is right for you?

By: Michelle L. Miele, CPA

Online banks have revolutionized the way businesses manage their finances, offering accessibility, low fees, and seamless digital experiences. As a HUGE supporter of online banking, I appreciate how these platforms remove many of the barriers that come with traditional banks—no long lines, fewer fees, and streamlined account management from anywhere.

To help you navigate the best options, I’ve personally signed up with Found, Mercury, Relay, Brex, and Bluevine to put them to the test. Below, I break down the features, pros, and cons of each, along with my recommendations for different business needs. Whether you’re a freelancer, startup, or growing business, this guide will help you find the right online bank for you.

Found

PROS: Found is design specifically for schedule C businesses and is great if you are worried about taxes.

Tax Tools for Estimates
User Friendly

CONS: No business savings account options.

Mercury

PROS: Mercury is only for LLCs or corporations and has more sophisticated reporting for small businesses.

free domestic and international wires

CONS: Can't accept Cash, no bank rep

These 2 banks above are my favorites because:

No fees to open
Can issue invoices
Make vendor payments & collect W9 info
Receipt Upload and Tracking
Year end reports for taxes

Relay

PROS: Relay is great if you want a lot of different accounts to track things

Easy to divide income into buckets
Dedicated Bank Rep
Write physical checks
Low interest rate

CONS: Can't accept cash

Brex

PROS: Built in expense management

Cash rewards on debit transactions

Can be used for international businesses

CONS: They target larger start ups and might not accept your account application

Bluevine

PROS: Offers high yield checking

CONS: Issues with login, security validation and freezing funds

Traditional Banks

American Express, Bank of America, Chase, Quickbooks

PROS: Traditional banks have physical branches

Deposit cash easily

CONS: Higher Fees, lower interest rates

Conclusion

When it comes to choosing the best online bank, it really depends on your business needs. After testing all five options, Mercury stands out as the best choice for a growing business, thanks to its robust features, seamless integrations, and user-friendly experience. If you’re running a side hustle or solo business, Found is an excellent choice with its simple, all-in-one banking solution designed for freelancers.

Relay and Brex also offer solid options, especially for businesses that need multi-account management (Relay) or a corporate card with rewards (Brex). However, based on my experience, I wouldn’t recommend Bluevine, as it falls short in key areas compared to the competition.

Ultimately, online banks offer a flexible, low-cost alternative to traditional banking, making business banking more accessible than ever. If you’re considering making the switch, think about your business’s specific needs and choose the platform that aligns best with your financial goals.

What’s your experience with online banking? Follow us on instagram @directorofpaperwork to let us know!

*Affiliate links may provide compensation for firm, client's are eligible to receive credits against services if rewards are received.

Disclaimer: This blog post provides general information updated 2.28.2025. It is not intended as tax advice. Consult with a qualified tax professional for personalized guidance.

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