Are you a freelancer or a side hustler? If so, you might be wondering how to manage your money and banking needs. After all, you’re not just an employee, but also a small-business owner.

You might think that you need a separate business bank account to handle your freelance or side hustle finances. But that’s not always the case. Depending on your situation, you might be able to use your personal bank account or find a freelancer-friendly bank account that suits your needs.

In this blog post, we’ll explore the best bank accounts for freelancers and side hustlers in 2024. We’ll also answer some common questions about banking as a self-employed person.

What Are the Benefits of Having a Separate Bank Account for Your Freelance or Side Hustle Business?

Having a separate bank account for your freelance or side hustle business can have several benefits, such as:

• Keeping your business and personal finances organized and separate
• Making it easier to track your income and expenses for tax purposes
• Avoiding commingling of funds, which could cause legal or tax issues
• Taking advantage of business banking features and perks, such as rewards, interest, budgeting tools, accounting integrations, and more
• Building your business credit and reputation

However, having a separate bank account for your freelance or side hustle business also comes with some drawbacks, such as:

• Paying additional fees, such as monthly maintenance fees, transaction fees, overdraft fees, and more
• Meeting minimum balance or deposit requirements, which could be challenging for part-time or irregular income
• Dealing with more paperwork and hassle, such as opening and managing multiple accounts, transferring funds, and reconciling statements

Ultimately, whether you need a separate bank account for your freelance or side hustle business depends on your personal preference, your business structure, your income and expenses, and your banking needs.

What Are the Best Bank Accounts for Freelancers and Side Hustlers in 2024?

If you decide to open a separate bank account for your freelance or side hustle business, you’ll want to find one that meets your needs and preferences. Here are some of the best bank accounts for freelancers and side hustlers in 2024, based on factors such as fees, transaction limits, minimum balance requirements, account yield, mobile app, budgeting tools, accounting features, and more.

• Lili Account. Lili is a mobile banking app designed specifically for freelancers and self-employed people. It offers tools for tax management, invoicing, expense categorization, and more. It has no fees, no minimum balance, and no transaction limits. It also pays interest on your balance and gives you access to cashback rewards and early direct deposits.
• Chase Business Complete Checking. Chase is a well-known and trusted bank that offers a variety of products and services for small businesses. Its Business Complete Checking account is ideal for freelancers and side hustlers, as it has a low monthly fee that can be waived with a minimum balance, direct deposit, or other qualifying activities. It also offers a $300 bonus when you open an account and complete qualifying activities. Plus, you get access to Chase’s network of branches, ATMs, and online and mobile banking features.
• Found. Found is a comprehensive, freelancer-friendly financial suite that combines banking, bookkeeping, and taxes. It has no hidden fees, no minimum balance, and no transaction limits. It also helps you track your income and expenses, create and send invoices, pay quarterly taxes, and file your annual tax return. It’s a great choice for fast-growing businesses too.
• Bluevine Business Checking. Bluevine is an online bank that specializes in small-business financing. Its Business Checking account pays 2.00% APY on your balance when you meet monthly goals, while charging no fees, period. It also offers unlimited transactions, free ATM access, mobile check deposits, and invoice factoring.
• NBKC Business Checking. NBKC is an online bank that offers a simple and straightforward Business Checking account with no fees, no minimum balance, and unlimited free transactions. It also refunds up to $12 per month in ATM fees and provides free online banking, bill pay, mobile deposits, and eStatements. It’s a good option for freelancers at all scales.

• Novo. Novo is an online bank that offers a fee-free Business Checking account with easy integrations with third-party productivity tools, such as Stripe, Shopify, QuickBooks, and more. It also offers exclusive perks for freelancers, such as discounts on software, services, and subscriptions. It’s a good option for freelancers who use online platforms and tools to run their businesses.
• LendingClub Bank Tailored Checking. LendingClub Bank is an online bank that offers a Tailored Checking account that pays 1% cash back on eligible purchases and interest on balances over $5,000. It also has no monthly fee with a qualifying account balance and provides free online banking, mobile deposits, bill pay, and eStatements. It’s a good option for freelancers who want to earn rewards and interest on their spending and saving.
• Small Business Bank Business High Yield Savings. Small Business Bank is an online bank that offers a Business High Yield Savings account that pays 1.76% to 4.70% APY on eligible balances with no monthly fees. It also offers free online banking, mobile deposits, and eStatements. It’s a good option for freelancers who want to save and grow their money.
• Axos Bank Basic Business Checking. Axos Bank is an online bank that offers a Basic Business Checking account with no monthly fee, no minimum balance, and unlimited transactions. It also offers a free first order of checks, a free debit card, mobile check deposits, and a $400 new account bonus. It’s a good option for freelancers who want a low-cost and hassle-free business checking account.

How to Choose the Best Bank Account for Your Freelance or Side Hustle Business?

Choosing the best bank account for your freelance or side hustle business depends on your personal and business needs and preferences. Here are some questions to ask yourself before you open a bank account:

• How much do you earn and spend from your freelance or side hustle business?
• How often do you make transactions from your freelance or side hustle business?
• Do you have a formal business entity or not?
• Do you need a separate bank account for your freelance or side hustle business or not?
• What features and perks do you want from your bank account, such as rewards, interest, budgeting tools, accounting integrations, and more?
• How much are you willing to pay in fees for your bank account?
• How much do you need to maintain in your bank account to avoid fees or earn interest?
• How do you prefer to access and manage your bank account, such as online, mobile, branch, or ATM?

Based on your answers, you can compare and contrast the different bank accounts for freelancers and side hustlers and choose the one that best suits your needs and preferences.

Conclusion

Freelancers and side hustlers have unique banking needs and preferences. Whether you need a separate bank account for your freelance or side hustle business or not, you can find a bank account that meets your needs and preferences.

We’ve listed some of the best bank accounts for freelancers and side hustlers in 2024, based on factors such as fees, transaction limits, minimum balance requirements, account yield, mobile app, budgeting tools, accounting features, and more.

But ultimately, the best bank account for you depends on your personal and business situation. So, before you open a bank account, make sure to do your research and compare your options.

We hope this blog post has helped you find the best bank account for your freelance or side hustle business. If you have any questions or comments, feel free to leave them below. And don’t forget to share this post with your fellow freelancers and side hustlers. Happy banking!