Having a reliable business account is essential for entrepreneurs and small businesses. It’s the backbone of financial management, helping you keep track of income, expenses and everything in between. With their reputation for competitive interest rates, fees and customer service, many small business owners may be interested in using a credit union for their business banking needs.

Unlike traditional banks, credit unions are not-for-profit organizations owned by their members. This means they operate with a unique focus on community, service and returning profits to their members rather than shareholders. By prioritizing member needs, credit unions often offer better rates, lower fees and a more personalized banking experience.

But the big question remains: Do credit unions offer business accounts, and what is the best credit union for your business? 

Which Business Accounts Do Credit Unions Offer?

Credit unions are increasingly recognizing the importance of supporting local businesses. As a result, more credit unions are offering business accounts to help entrepreneurs manage their finances. These accounts are tailored to meet the diverse needs of businesses, from sole proprietors to larger enterprises. While not all credit unions offer business accounts, those that do often provide a range of account options designed to help your business thrive.

Credit unions offer several types of business accounts to cater to different financial needs and goals. Here’s a closer look at the most common ones:

  • Business checking accounts: Business checking accounts are essential for day-to-day operations. They allow you to manage your business expenses, pay vendors and deposit customer payments. Credit unions typically offer business checking accounts with lower fees and better terms than traditional banks, making them an attractive option for small businesses looking to maximize their savings.
  • Business savings accounts: Business savings accounts are ideal for setting aside funds for future use. Whether you’re saving for a big purchase, an unexpected expense or just want to build a financial cushion, a business savings account can help. Credit unions often offer competitive interest rates on these accounts, helping your money grow faster.
  • Business money market accounts: These accounts are a great choice for businesses looking to earn higher interest while maintaining liquidity. Money market accounts combine the benefits of a savings account with the flexibility of a checking account. They typically offer higher interest rates on deposits plus check-writing capabilities, so business owners can access their funds while they grow.

Advantages of Credit Union Business Accounts

Credit unions offer several distinct advantages that can make them an excellent choice for your business banking needs. Here’s why credit union business accounts stand out:

Lower Fees

One of the biggest perks of using a credit union for your business accounts is their competitive fees. Because credit unions are not-for-profit organizations, they prioritize their members over profits. This often translates to reduced fees for account maintenance, transactions and other banking services. Lower fees mean more savings for your business, which can be reinvested into growing and improving your operations.

Better Interest Rates

Credit unions typically offer better interest rates on both savings and loan products compared to traditional banks. When you open a business savings or money market account with a credit union, you can typically expect higher interest rates, helping your funds grow more quickly. Additionally, if you need a business loan, credit unions often provide more favorable loan terms, including lower interest rates and more flexible repayment options.

Personalized Service

Credit unions excel in providing member-focused service. Unlike larger banks where you might feel like just another account number, credit unions prioritize building relationships with their members. This means you’ll often have access to dedicated representatives who understand your business’s unique needs and can offer tailored advice and solutions. Personalized service can make a significant difference in your banking experience when you need timely support or customized financial products.

Community Focus

Credit unions have a strong community focus, which can be a major advantage for local businesses. By banking with a credit union, you’re supporting an organization that reinvests in your community through loans, sponsorships and other initiatives. Plus, credit unions are often more responsive to the specific needs and challenges faced by businesses in their community.

Potential Limitations of Credit Union Business Accounts

While credit union business accounts come with a host of benefits, it’s also important to consider some potential limitations. Understanding these factors can help you make a more informed decision about whether a credit union is the right choice for your business banking needs.

Membership Requirements

One key difference between credit unions and traditional banks is the membership requirement. To open a business account at a credit union, you must become a member, which usually involves meeting specific eligibility criteria. These criteria can vary widely and may include factors like where you live, where you work or your affiliation with certain organizations. While some credit unions have broad membership criteria, others may be more restrictive. 

Limited Branch and ATM Networks

Credit unions typically have fewer branches and ATMs compared to large national banks. This can be a drawback if your business requires frequent access to physical banking services or if you travel often and need to access ATMs. Although many credit unions are part of shared branching networks and offer access to a wider network of ATMs, the overall availability may still be less convenient than that of a big bank.

Fewer Business-Specific Products and Services

While credit unions offer a variety of business accounts, they may have a more limited range of business-specific products and services compared to large banks. For instance, you might find fewer options for specialized business loans, merchant services or advanced cash management tools. If your business has complex financial needs or requires a wide array of financial products, a credit union might not be able to fully meet those demands. However, many credit unions are expanding their offerings, so it’s worth checking with individual institutions to see what they provide.

North One: A Modern Alternative for Business Accounts

North One is a modern solution designed specifically for small businesses. Its comprehensive suite of financial tools and services simplifies banking, and its online-only model means you can manage your business finances from anywhere, at any time, without the hassle of visiting a branch.

North One’s business accounts come packed with benefits that cater to small business owners. Here are some of the standout features:

  • No minimum balance requirements: North One understands the financial fluctuations that small businesses often experience. That’s why they offer business accounts with no minimum balance requirements, providing you with flexibility and peace of mind regardless of your account balance.
  • Free ACH transfers and bill pay: Managing payments and transfers is effortless with North One. They offer free ACH transfers and bill pay services, allowing you to handle your business expenses efficiently and without additional costs. This can be a significant advantage for small businesses looking to minimize fees and streamline financial operations.
  • Built-in budgeting and accounting tools: North One goes beyond basic banking by providing built-in budgeting and accounting tools. These tools help you keep track of your finances, create budgets and monitor your spending, making it easier to manage your business’s financial health. With these features, you can gain valuable insights into your cash flow and make informed financial decisions.

North One vs. Credit Unions

Opting for North One offers several unique advantages compared to traditional credit unions. As an online bank designed specifically for the needs of small business owners, North One is able to provide a heightened level of service. Here are some noteworthy benefits:

  • Digital-first approach: North One’s digital-first approach means you can handle all your banking needs online or via their mobile app. This convenience is perfect for busy entrepreneurs who need to manage their finances on the go. Plus, the user-friendly interface and robust security measures ensure a smooth and secure banking experience.
  • Specialized focus on small businesses: North One is designed specifically for small businesses, with features and services that address their unique challenges. From easy account setup to specialized tools that simplify financial management, their offerings are tailored to support small business growth and success.
  • Nationwide accessibility: With access to over 90,000 GreenDot ATMs nationwide, North One ensures you can withdraw cash or make deposits conveniently, no matter where your business takes you. 

Credit Unions Aren’t the Only Option for Small Businesses

When it comes to choosing the right business account, credit unions offer appealing options for small business needs. With lower fees, better interest rates, personalized service and a community-focused approach, they’re an excellent choice for many entrepreneurs. 

However, it’s important to evaluate all your options before making a decision. While credit unions have many advantages, alternatives like North One provide a modern, digital-first approach that can be equally advantageous. North One’s online-only model—combined with features like no minimum balance requirements, free ACH transfers and bill pay and built-in budgeting and accounting tools—offers a robust solution for small businesses seeking flexibility and convenience.

Before committing to a business account, take the time to research and compare different financial institutions. Consider your specific needs, the services offered and how each option aligns with your business goals. By evaluating both traditional credit unions and alternatives like North One, you can make an informed decision that best supports your business’s financial health and growth.