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7 Types of Bank Accounts for Business in 2024

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Business Checking (or Current) Account


Business Savings Account


Business Money Market Account (MMA)


Business Certificates of Deposit (CD) Account


Merchant Account


Foreign Currency Account


Multi-Currency Account

Using a personal account for your business might seem convenient when you're starting out, especially if you're not operating on a large scale. 

However, there are several reasons why using a personal account for business isn't advisable, including potential tax complications and the risk of piercing the corporate veil. It's essential to set up a dedicated business bank account instead.

If you're currently navigating business bank accounts and are uncertain about the different types, you're not alone. 

In this article, we will explore 7 common business account types, outlining their primary functions, features, and the scenarios in which each type is most suitable.

Account Type Account Purpose Common Pros and Cons
Business Checking Daily transactions • Easy access to funds
• Low initial deposits
• Limited interest-earning potential compared to savings accounts
Business Savings Maintaining a fund for interests • Interest earning capability
• A limited number of transactions allowed per month
Business Money Market Account (MMA) An account that blends business checking and savings, balancing savings with better access to funds • Tiered interest rates, allowing higher returns for larger balances
• Higher minimum balance requirements
Business Certificates of Deposits (CD)  Account Locking funds for a fixed period for competitive interest rates • Higher and fixed interest rates
• Funds inaccessible until maturity; penalties for early withdrawal
Merchant Account Processing electronic payments from customers • Accepts various payment methods and can be integrated with online systems
• Multiple fees with miscellaneous charges
Foreign currency  Handling transactions in a specific foreign currency • Mitigates currency conversion fees and hedges against exchange rate fluctuations
• Potentially complex to manage
• The overall balance of funds fluctuates with changes in currency value
Multi-Currency Account Managing transactions in multiple currencies • Mitigate risks from exchange rate fluctuations
• Simplifies dealing with multiple currencies and avoids currency conversion fees
• Requires monitoring of multiple exchange rates
A dropdown of some supported currencies by the Statrys business account.

1. Business Checking Account or Business Current Account

A business checking account or a business current account is the most commonly used among business banking options. This type of account is used for daily transactions such as deposits, withdrawals, payments, and fund transfers. 

It's common for business checking accounts not to yield interest, although interest-bearing checking accounts exist. In instances where interest is offered, the rates generally fall below those of savings accounts.

Even though it might seem similar to a personal checking account, a business checking account usually offers extra features that aren’t commonly available with a personal checking account, such as advanced payment methods or higher transaction volume allowances. Some banks also prohibit the use of personal checking accounts for business purposes. 

🔍 Tip: Checking and current accounts are essentially the same, as they serve the same purpose. In the US, it's commonly referred to as a "checking account," while known as a "current account" in the UK. Another term includes "transaction account.”

Common Features of a Business Checking Account

  • Various options for depositing funds, including electronic transfers, mobile check deposits, wire transfers, and, in some cases, branch or ATM deposits.
  • Send and receive funds through electronic and wire transfers
  • Write and deposit checks
  • Debit card transactions 
  • Access to ATMs 
  • Online and mobile banking
  • Integration with business tools and accounting software 

🔍 Tip: Monthly transaction limits are a typical aspect of checking accounts. Surpassing these may incur fees. Alternatively, some online business checking accounts may offer higher or unlimited transactions but limit cash deposits due to a lack of physical branches or ATMs.

When to Use a Business Checking Account

Every business, from startups to established corporations, should use a business checking or current account as soon as they establish a business. It's essential for managing daily financial operations.

2. Business Savings Account

A business savings account is an account that helps businesses earn interest on savings. While the interest rates banks offer on these accounts are often minimal, they still provide a secure way for businesses to accumulate additional income over time.

A business savings account comes with limitations on access. Many do not permit check-writing. Additionally, they often restrict the number of monthly and cash deposits allowed. In the United States, federal law limits savings account holders to six fee-free withdrawals per month.

🔍 Tip: Interest earned on a savings account may be subject to taxation as income.

Common Features of a Business Savings Account 

  • Savings and interest accumulation 
  • Sub-accounts for specific goals or projects
  • Access to ATMs for fund withdrawal
  • Online and mobile portal 
  • Often linked to a business checking account

When to Use a Business Savings Account

  • When businesses have excess capital or profits, particularly during periods of seasonal cash flows, that they don't plan to use in the near future
  • When businesses want to gradually establish an emergency fund
  • When businesses want an account for setting aside cash to cover short-term, small, or specific expenses, such as estimated tax payments

🔍 Tip: Online banks are often able to provide higher rates than traditional ones due to lower overhead costs. It's best to shop around, starting with your current checking account bank.

3. Business Money Market Account (MMA)

A Business Money Market Account (MMA) is an interest-bearing account that combines features from both business checking and savings accounts. 

An MMA offers comparable or higher interest rates than standard business savings accounts. It is also typical for MMA to feature tiered rates, where higher balances result in a higher annual percentage yield (APY).

What sets a business MMA apart from a savings account is its broader range of accessibility options. Most MMAs provide check-writing capabilities and debit card access similar to those available with business checking accounts.

However, withdrawal frequency is still limited. In the United States, federal law restricts MMAs to six penalty-free withdrawals per month. MMAs may also have higher minimum deposit requirements than business savings accounts.

🔍 Tip: A Money Market Account (MMA) is distinct from and should not be confused with Money Market Funds. Money Market Funds are a mutual fund, not a business account. 

Common Features of a Business Money Market Account

  • Savings with a tiered interest rate
  • Check-writing capabilities
  • Debit cards access
  • ATM withdrawals 

When to Use a Business Money Market Account

  • When you feel your excess capital isn't earning sufficient returns in a business savings account.
  • Ideal for businesses with higher balances seeking a secure savings option with convenient access to funds.

4. Business Certificates of Deposits (CD) Account

A Business Certificate of Deposit (CD) account provides an alternative for business savings, offering higher interest rates but with restrictions on access. 

With a CD, funds are locked in for a specific period, known as the CD term. The terms are usually three months, six months, nine months, and one to five years. Generally, the longer the term, the higher the interest rate. 

The interest rate remains fixed throughout the CD term, which can be either advantageous or disadvantageous depending on how the general interest rates in the economy fluctuate.

Early withdrawal from a CD results in a significant penalty charge. The exact penalty amount depends on how early you withdraw funds, often involving forfeiting several months' worth of interest.

🔍 Tip: Many use a "CD laddering" strategy for maximizing CD accounts. It involves opening multiple CDs with varying terms and reinvesting into a longer-term CD when a shorter one matures.

This strategy allows you to earn competitive rates while retaining access to portions of your funds at regular intervals.

Common Features of a Business Certificates of Deposits (CD) Account

  • Fixed-term deposit
  • Fixed Interest rates
  • Automatic rollover renewal options
  • Online account management

When to Use a Business Certificates of Deposits (CD) Account

Choose a CD when you need higher interest rates than savings or money market accounts and are confident you won't need your funds before maturity.

For flexibility, explore savings or money market account options instead.

5. Merchant Account

A merchant or business merchant services account is a specialized bank account designed for businesses to securely accept electronic payments, such as debit cards, credit cards, and other digital transactions from customers. 

A checking account usually lacks the infrastructure required for directly handling card transactions. Therefore, businesses seeking to accept card payments must establish a merchant account.

When a customer makes a payment, the funds are deposited into the merchant account. Following processing, which typically takes a day or two, the merchant account provider transfers the funds to another designated business checking account, deducting applicable fees. 

Businesses pay various fees for merchant account service, typically monthly or annually, and a small fee for each transaction.

🔍 Tip: Merchant accounts have contracts with specified terms that may automatically renew. It's essential to carefully review all associated costs before signing up. Otherwise, you could end up spending more money than expected.

Common Features of a Merchant Account

  • Support credit card transactions and other digital payment methods
  • Ecommerce payment solutions
  • Payment gateway integration 
  • Online reporting and analytics
  • Chargeback management 

When to Use a Merchant Account

  • When you want to accept debit cards, credit cards, and other digital transactions
  • Merchant accounts are particularly valuable for online or digital businesses.

6. Foreign Currency Account

A foreign currency account is a specialized account denominated in a specific foreign currency, allowing you to hold, send, and receive funds. 

These accounts can be held with either an onshore or offshore bank. 

For example, if you live in the United States and open a foreign currency account in Japanese Yen (JPY), you can hold JPY in that account. This allows for convenient international transactions, potentially reducing costs related to currency conversion fees, and helps mitigate the effects of exchange rate fluctuations since you have the option to hold and convert when rates are favorable.

Depending on the account type and bank policy, your funds may also accrue interest.

🔍 Tip: Explore foreign currency accounts and their advantages and disadvantages.

Common Features of a Foreign Currency Account

  • Hold, send, and receive in a specific foreign currency
  • International transaction service
  • FX services
  • Online banking

When to Use a Foreign Currency Account 

  • When businesses engage in regular transactions in specific foreign currencies
  • When businesses are importers and exporters who frequently make or receive payments in a particular foreign currency

7. Multi-Currency Accounts for Business

A multi-currency account is an account that enables you to send, hold, and receive multiple currencies in one place, including both domestic and foreign currencies, all under a single account number. Essentially, a multicurrency account eliminates the need to open several foreign accounts to manage different currencies. Depending on the provider’s benefits, you may also have the opportunity to earn interest.

Multi-currency accounts make international transactions quicker and easier.  The ability to hold various currencies and convert them as needed allows you to capitalize on exchange rate fluctuations while avoiding the fees typically charged by regular bank accounts for currency exchanges.

These accounts usually offer a dashboard feature, allowing users to view and manage all currencies within the account. This simplifies planning and bookkeeping processes.

🔍 Tip:  The terms 'foreign currency account' and 'multi-currency account' are sometimes used interchangeably despite their subtle difference. Some institutions may offer both under the same label.

Common Features of a Multi-Currency Account

  • Hold, send, and receive in multiple currencies
  • Currency conversion services
  • International transfer capabilities
  • FX risk management tools
  • Online banking 
  • Provision of debit cards

When to Use a Multi-Currency Account

  • When businesses need to conduct frequent international transactions
  • When businesses need to deal with multiple currencies
  • When seeking to avoid currency conversion losses and reduce fees
  • When needing quick international transfers
A dropdown of some supported currencies by the Statrys business account.

How to Choose the Right Business Account 

When starting or growing a business, choosing the right banking account is an important decision. A business may need multiple business accounts to handle different financial needs. 

The right business bank account should fit your business transaction volume and features needed while keeping fees affordable. 

Let’s see what to consider when choosing a business account. 

Account Features

The most important step in choosing the right account is to consider your functional requirements. Consider how often you'll need to access your money and what services you require, like wire transfers, card processing, cash deposits, etc.

Assess these needs to ensure the account can effectively support your workflows.

For businesses, the capability to integrate your bank account with accounting software (such as QuickBooks or Xero) can significantly enhance financial management.

We also recommend looking for financial institutions that offer specialized accounts for specific industries or use cases. For instance, some may offer accounts tailored for ecommerce sellers, a dedicated checking account for payroll, and more.

Business Transaction Volume

Matching your transaction volume with the right account can lower your expenses.

Smaller-sized businesses with moderate transaction volume likely won't benefit from some extensive features and higher fees associated with higher-tiered accounts that accommodate high-volume transactions.

One helpful method is to look at your average monthly transactions if you have one. Keeping track of transactions will also help you quantify the typical volume.

Account Fees

Upfront fees are just a small part of the equation. It's essential to factor in ongoing maintenance charges, activity fees, per transaction fees, and how balances impact pricing.

Some banks offer dynamic fee structures where fees decrease as your balance or transaction volume increases.

When selecting an account, it's essential to look beyond the first year's expenses. Projecting costs several years into the future as your transaction volume and balance levels change will help predict and minimize costs over time.

Speaking with a representative to model "what-if" scenarios accounting for growth projections is a wise step. Additionally, negotiating perks such as reduced overdraft fees by maintaining minimums can contribute to long-term affordability.

Get a Hong Kong Multi-Currency Business Account with Statrys 

If your business is registered in Hong Kong, Singapore, or the BVI, and you require a multi-currency account, Statrys offers a viable solution.

Statrys is not a bank but a licensed financial service provider designed for SMEs to efficiently conduct business, facilitate money transfers, and manage finances overseas.

Here's an overview of our services

Statrys Key Services

Information Details
Multi-Currency Business Account Hold, receive, and send money in 11 currencies: USD, HKD, CNY, AUD, EUR, GBP, SGF, JPY, CHF, NZD, and CAD.
Local Payments Send local payments in 14 currencies: HKD, AUD, EUR, GBP, IDR, INR, KRW, PHP, SGD, THB, TRY, USD, and VND
SWIFT Payments & Real-time Tracking yes
Business Account Opening Requirements Must be business registered in Hong Kong, Singapore, or the BVI.
Xero Integration yes
Monthly Fee Free (if 5 or more outgoing transfers made in the month)
Payment Cards Physical and virtual cards
FX Rate and Fee Competitive exchange rates based on real-time mid-market rate with fees as low as 0.15%
Customer Support Channels Website, Live Chat, Email, Phone, WhatsApp, and WeChat
Free Invoicing Software Create, manage, and send invoices efficiently
Company Registration Service 100% online Hong Kong and Singapore company registration.
Trustpilot Score 4.7/5, based on 264 reviews.
A dropdown of some supported currencies by the Statrys business account.


What is a business account?

A business account is a bank account designed for business transactions. It helps separate personal finances from business operations, making it easier to manage cash flow and expenses and prepare for tax obligations.

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Which bank account type suits small businesses best?


Can you have more than 1 business bank account?


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