As a freelancer, you have the freedom to choose your projects, set your working hours, and work from anywhere in the world. However, you might find it difficult to manage and maintain your finances properly. It is for this reason that you will need to open a business bank account which will help you manage your finances and keep them organized. Different banks offer different banking solutions and your choice will depend with the solution that best suits your freelancing needs. The following are the best banks for freelancers.
Do freelancers need a business bank account? In most jurisdictions, you are not required by law to have a business account as a freelancer. However, business bank account for freelancer helps you to better manage your finances and other related matters such as taxes, retirement, and investments. As opposed to personal account, business accounts come with with extra benefits such as integration with accounting and invoicing software, etc.
Wise for Freelancers
Wise Business Account. formerly TransferWise, is a multicurrency account for freelancers that allows them to invoice clients like a local in their currency and receive money with no fees, hold multiple currencies for free, and spend on global business Mastercard debit card. Wise allows freelancers to open non resident bank accounts and get their own US, Eurozone, Australian, New Zealand, and UK bank details for free without a local address. In addition, freelancers can withdraw money from freelancing platforms such as UpWork and Freelancer.com.
Other notable features of the business bank account for freelancers include cheap money transfers, batch payments, integration with QuickBooks and Xero and the ability to receive and hold more than 55 currencies.
Expect some of the following fees with a Wise Business account:
- Account set up fee: Free
- First Wise Debit MasterCard: Free
- Holding more than €70, 000 in EUR balance: 0.40% annually
- Getting bank details to receive currencies: A one-time fee of £16
- Card replacement fee: £3
Axos Bank for Freelancers
Axos bank is an ideal bank for freelancers in the U.S who want to expand their businesses. It offers checking and savings accounts various types of loans, Money Market accounts, investment portfolios, and mortgages. You can send digital invoices directly from the Axos app or website. The bank integrates with several platforms including Stripe and Square. Axos bank does not have its own ATM networks and therefore, customers get unlimited domestic ATM fee reimbursements.
Axos Bank Fees
You should expect the following fees:
- Monthly maintenance fee: $0
- Domestic ACH transfers: Free
- Minimum opening deposit requirement: $1, 000
- Transactions: Axos gives up to 60 fee-free remote deposits per month and 30 cents per deposit after
Revolut for Freelancers
Revolut is a UK-based crypto friendy bank that offers bank account for freelancers with a wide range of financial solutions to freelancers through a mobile app and a Revolut card. Revolut business accounts for freelancers are available to clients with businesses in the European Economic Area (EEA). best bank for freelancers
Revolut business account for freelancers offers three account options: the Free, Professional, and the Ultimate accounts. You can order up to two physical Revolut prepaid debit cards that will allow you to withdraw cash in 150 currencies and transfer money abroad in 30 currencies. The Revolut Application Programming Interface (API) allows you to connect your business account with different software and apps. It is a feature that automates cross-border payments and payouts. Other Revolut freelancer account features include Revolut Connect, virtual cards, local accounts, bulk payments, Revolut API, User permissions, and PayDay. You can manage every aspect of your account through the Revolut business app.
Revolut Freelancer Account Fees
Revolut for freelancers account charges the following fees:
- Monthly Fee: Free (£0). Pro (£7), and Ultimate (£25)
- SEPA transfers beyond the free quota: 20p per transfer
- Transfers to or from another Revolut account: Free
- Currency conversion beyond the free quota: 0.4% markup on FX rate
- Cash withdrawal rate: 2%
- SWIFT transfers beyond the free quota: £3 per transfer
Monese Business Account for Freelancers
Monese is a mobile app-based banking service that provides freelancer banking services. Clients in the UK can open bank accounts without having a UK address, credit history, or fixed income. The Monese business account for freelancers helps you manage and track your business finances from the Monese app. When you sign up for the Monese business account, you get a contactless Monese business card. Additionally, you can add funds to your business using cash, from another bank, or another Monese account.
Monese offers favorable fees for its services. You can expect the following:
The Monese business account costs £9.95 per month and you get a free contactless debit card. The first 6 ATM withdrawals every month are free but exceeding 6 costs £1 per withdrawal. Oversees ATM fees are £4. Currency conversion between Monese accounts is free while conversion between non-Monese accounts; 0.5%, £2 minimum fee.
Fyrst bank is one of the best bank accounts for self employed and freelancers in Germany. You can access Fyrst through its mobile app or through its desktop version. The bank offers a range of business solutions such as accounting, payroll, inventory, invoices, and tax advisory. Fyrst bank is a division of Postbank and customers can visit Postbank for cash deposits and withdrawals. This bank offers two business account types: Fyrst BASE and Fyrst COMPLETE accounts.
The Fyrst Base account has no monthly fees while the Fyrst Complete account charges €10.00 per month. You will receive a free debit card when you sign up for a Fyrst account. Cash withdrawals cost €1.90 for Base account and €0.90 for Complete account.
N26 for Freelancers
N26 is an online bank for freelancers and small businesses. It operates in the European Union, Liechtenstein, Iceland, Switzerland, and Norway. N26 offers several business account options including the N26 Business Standard, N26 Business Smart, N26 Business You, and N26 Business Metal. Freelancers can manage and track their business finances through the N26 app.
The N26 business accounts come with several benefits including a notification feature where customers are notified through the app every time they receive a transaction. All N26 account types have 3D Secure from Mastercard Secure Code to prevent fraud when making payments. You can also send and receive payments instantly through SEPA Instant Credit or MoneyBeam, enjoy a 0.1% cashback on all card purchases, and make free ATM withdrawals in Euros.
N26 will no longer be available to customers in the US after January 18, 2022. The bank has decided to mainly focus on its European business. All US accounts will be closed.
The N26 business account options for freelancers offer the following fees:
- Account setup fee: Free
- Monthly account fees: N26 Business Standard (Free), N26 Business Smart (€4.90), N26 Business You (€9.90), and N26 Business Metal (€16.90)
- Debit MasterCard fee: Free but you will pay a €10 shipment fee.
- Card payments abroad: Free
- Foreign transaction fees for ATM cash withdrawals: N26 Business Standard account holders pay a fixed fee of 1.7% while it is free for N26 You and N26 Metal accounts.
- Mastercard cashless payments: Free for all accounts
- Cashback on card purchases: Clients receive a 0.1% cashback on all card purchases
NorthOne for Freelancers
NorthOne is a digital bank offering banking services for freelancers, small businesses, and startups in the US. It offers a wide range of features such as sub-accounts, free cash deposits and withdrawals, and invoice-sending. You can access NorthOne through their app and website. You can use the NorthOne app to view transactions, deposit checks, transfer money, and send invoices. Additionally, NorthOne integrates with several digital business tools such as QuickBooks, Square, Shopify, PayPal, Stripe, etc.
Some of the NorthOne fees you should expect include the following;
- Account Opening fee: $50
- Monthly maintenance fee: $10
- Monthly balance requirements: None
- Transactions: Unlimited fee-free transactions
PayPal for Freelancers
PayPal is among the most preferred payment platform for freelancers in over 200 countries including the Euro Zone, Asia Pacific, and Africa. When you sign up for a PayPal account, you get a Business Debit Mastercard that gives you access to the funds in your PayPal account. It is free to use the PayPal card but currency conversion fees apply. PayPal also integrates with a number of business tools, accounting software, shopping carts, and shipping applications. You do not nee to have a merchant account to use PayPal.
PayPal fees for freelancers vary by country. International transactions have an added expense because PayPal charges international processing fees and various rates for different countries. Freelancers who carry out small but frequent transactions will probably pay more due to the per transaction fee. However, PayPal does not charge any account opening fees.
Other Freelancers’ Bank Accounts
The list of best banks for freelancers is endless. The following are other banks that serve freelancers:
Final Thoughts on Best Bank Account for Freelancers
Several banks offer business banking for freelancers. However, the bank you choose should meet your business and banking needs. Things to consider when choosing a bank include fees, security, available banking features, supported currencies and interest rates.