How and Why to Switch Business Bank Accounts
High fees, restrictive limits and consistently poor customer service are signs to look for a new business account.
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As your company grows and your financial needs evolve, it’s often necessary to switch business bank accounts. If any of the following are happening, it may be time to find a new business checking account:
You’re getting hit with fees or bumping up against account limits.
You need better integrations or additional business features like invoicing or tax-planning tools.
You can’t get a business loan from your current bank.
Your business is changing ownership.
Here are the steps for moving business banks, plus details on knowing if it’s time to make a change.
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How to change business bank accounts
1. Research your options
Think about what you like and dislike about your existing business bank account. What fees annoy you most? How’s the customer service? Do you use online tools for tasks like invoicing or syncing with your accounting software?
Write down what’s most important to you to find a new account that your business can grow into. Then compare business accounts. Here are NerdWallet’s top picks for business checking accounts.
Thinking about business loans? Ask your potential banks about funding options, including whether they have an SBA loan program. Relationships matter for business financing. You may have more success if you don’t apply out of the blue.
2. Apply for and open your new business bank account
You can apply for an account online, in person or over the phone, depending on the bank. You’ll need to provide personal information, like your Social Security number, and business details and documents. Here’s what you need to open a business bank account.
Once you’re approved, explore your new bank’s online platform. Then, transfer a small amount of money from your old account to make sure everything works correctly.
3. Transfer business to your new account
Switching accounts can take several weeks. Start by moving a relatively small amount of cash to your new account so you can make payments from it.
Avoid transferring large chunks of money at once. Most business accounts place a longer hold on deposits for new accounts (up to 10 business days). And large deposits and transactions can be flagged as fraud.
Next, update recurring transactions. These typically include:
Payroll and direct deposit for employees.
Payments to suppliers, software providers, etc.
Payments to business advisors or consultants.
Automatic invoices or transfers for customers.
Pay close attention to timing, particularly when you’re switching over payroll. You’ll want to avoid delayed payments.
Several banks offer “switch kits” to migrate your business to your new account. These checklists include helpful reminders, like switching recurring payments and notifying your accountant.
Your new bank may provide you with an account transfer letter. You can use this to inform business partners that you’ve changed accounts and give them your new bank account information.
4. Monitor your transactions
Once you’ve switched your transactions to your new account, leave some money in your old one. That way, you’ll have time for any outstanding payments to clear.
Spend at least a month monitoring the old account before you close it in case you missed any recurring payments. If you did, you can switch them to your new account as soon as you notice.
5. Close your old business bank account
Once your new business bank account is set up and operating correctly, you can start the process of closing your old one.
First, find out how your bank handles any payments sent to your account after it’s closed in case vendors send payment to your old account by mistake.
Then, transfer any remaining funds out. Your balance will need to be $0 for the bank to close the account.
Lastly, formally close the account. Banks generally don’t make this easy, since they don’t want to lose your business. Processes vary. For example:
U.S. Bank: Customers can call, visit a branch or send a written request.
Bluevine: It requires customers to call to close accounts.
North One: Users must send a written request via their app or dashboard. Emails and phone calls aren't accepted.
After the bank closes your account, they should send a letter or email confirming it. That’s a useful document to save for your records.
How to switch business checking accounts within your current bank
Upgrading to a new account within your existing bank is more straightforward than switching to a new bank. Just contact your business banker to make the switch. If you use an online bank, you can probably upgrade from your dashboard.
You’ll keep the same account number, so you won’t need to notify all of your business partners of the change.
You can also easily add additional types of accounts with the same bank, such as a high-yield business savings or business money market account.
When to switch business bank accounts
Sticking with a business account that doesn’t suit your company can hurt your bottom line. Excessive fees, restrictive limits and insufficient business products can cut into profits and stall business growth. And all are cues that it’s time to shop around for a business bank account.
You’re exceeding your limits
Exceeding transaction and cash deposit limits is a good sign that your business has outgrown its business checking account. You could upgrade to the next tier your bank offers, but that probably means a higher monthly fee. Consider shopping around for an account with unlimited transactions instead.
You’re hit with surprisingly high fees
Charges for overdrafts, wire transfers and ATM usage vary from one bank to the next.
Some business accounts charge $35 or more for every overdraft, for example, while others charge $25 or less and limit the number of fees they charge per day. Some don’t allow overdrafts at all. Wire transfers have huge ranges, too, from free wires at Mercury to $95 or $135 for outgoing wires at PNC.
Compare fees at local banks, credit unions and online banks to find a better fit for your business.
You’re looking for financing
If your primary bank turns you down for a small-business loan, explore other options. Smaller banks, credit unions and community development financial institutions often have more flexible lending standards than large banks.
For example, 76% of applicants at small banks were approved for at least some funding in 2024, compared with 69% of those who sought funding with a large bank, according to the Federal Reserve’s most recent Small Business Credit Survey.
Applicants at small banks were also less likely to report challenges with the application process, funding time, interest rates and repayment terms.
You need additional business products
Many businesses need merchant services, payroll support or a business credit card as they grow. While your current bank may offer these products, it’s smart to research rates, fees and features at other banks and service providers as well.
You experience bad customer service
No bank is 100% free of issues and errors. The key is how your bank handles them. Does it take multiple calls, emails or visits to resolve an issue? Do you get conflicting answers to the same question? Do you struggle to even find someone to talk to? These are all red flags.
Your preferences matter, too. Some banks handle most customer service questions through email. But if you’d rather have in-person meetings, that’s a sign to switch.