Best Bank for Small Business in Minnesota | A Comprehensive Review

Steve Bennett
Business Formation Expert  |   Fact Checked by Editorial Team
Last updated: 
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The Best Bank For Minnesota Small Business

Best Bank for Small Business in Minnesota: If you would like to start an LLC in Minnesota, you must have a bank account for your business to be organized and maintainable. A small business owner must find the right bank with the support, services, and resources to help your business grow and thrive. But with so many banks in Minnesota, how can you determine the best fit for your small business?

To help you make that decision, Webinarcare Editorial Team has compiled a list of the Best Banks for Small Businesses in Minnesota. We’ll discuss the factors that make these banks stand out, including their fee structures, lending options, customer service, and additional resources they offer to support small businesses.

What is a Business Bank in Minnesota?

A business bank in Minnesota is a financial institution that provides banking services and products to small and large businesses. These banks cater to the specific needs of businesses by offering a range of financial products, including business checking and savings accounts, loans and lines of credit, credit cards, cash management services, online banking, and more.

Business banks in Minnesota offer different levels of support to businesses of all sizes, from startups to established corporations. They also provide customized solutions for the banking needs of each business, including financing options, investment strategies, and risk management services. Business banks in Minnesota are vital to the growth and prosperity of the state’s economy, as they help businesses access the capital they need to expand their operations and create jobs. Overall, business banks in Minnesota are crucial in providing businesses with the financial resources they need to succeed.

The Best Banks For Small Business in Minnesota

The best banks for small businesses in Minnesota can vary depending on location, specific financial needs, and preferences. If you are starting a business in Minnesota, having a business bank is beneficial. Here is a list of some top banks for small businesses in Minnesota indicating the pros and cons (in no particular order):

1. Wells Fargo

wells fargo

Wells Fargo is one of the largest banks in the United States and offers various financial services tailored to small businesses. They provide business checking and savings accounts, business credit cards, lines of credit, small business loans, and merchant services.

wells fargo home page
Pros 👍
  • Wells Fargo is one of the largest banks in the United States, with a vast network of branches and ATMs.
  • They offer a variety of financial products and services, including savings accounts, checking accounts, credit cards, loans, and investment options.
  • Their online banking platform is user-friendly and accessible.
  • They have a strong reputation for customer service, with multiple channels available for customer support.
  • Wells Fargo offers financial education and resources, such as financial planning tools and webinars.
Cons 👎
  • Wells Fargo has faced several scandals recently, including their unauthorized account scandal, which damaged its reputation and eroded customer trust.
  • Their products and services can be more expensive than those other banks offer.
  • Their attention to cybersecurity has been questioned, as they have experienced several data breaches.
  • There have been reports of Wells Fargo employees engaging in unethical behavior to meet sales targets, raising concerns about their corporate culture.
  • Their lack of transparency in their fee structure can lead to customer confusion and frustration.

2. Bank of America

bank of america

Bank of America offers various financial services specifically designed for small businesses. These services include small business checking and savings accounts, business credit cards, lines of credit, Minnesota Small Business Loans, payroll services, and merchant services.

bank of america home page
Pros 👍
  • Bank of America has the largest branch and ATM network in the United States.
  • They offer various financial products and services, including checking and savings accounts, credit cards, loans, and investment options.
  • Their mobile banking app is highly rated and easy to use, with features like mobile check deposit and bill pay.
  • Bank of America offers excellent educational resources for financial planning and investing.
  • They strongly focus on corporate social responsibility and are committed to sustainability and philanthropy.
Cons 👎
  • Bank of America has a reputation for high fees, including maintenance fees for their accounts and ATM fees.
  • Their customer service is inconsistent, with some customers reporting poor experiences with representatives.
  • Bank of America has experienced data breaches and security issues in the past.
  • They have faced criticism for their practices in mortgage lending, particularly during the 2008 financial crisis.
  • There have been reports of questionable sales tactics by Bank of America employees similar to those of Wells Fargo.

3. JPMorgan Chase

jp morgan

JPMorgan Chase Bank offers a comprehensive suite of Minnesota small business banking services, including business checking and savings accounts, credit cards, lines of credit, small business loans, and payment processing solutions.

Pros 👍
  • JP Morgan Chase Bank is one of the largest and most well-established banks in the United States.
  • They offer various financial products and services, including checking and savings accounts, credit cards, loans, and investment options.
  • Their online and mobile banking platform is highly rated and user-friendly, with advanced features like mobile check deposit and balance notifications.
  • JP Morgan Chase Bank strongly focuses on innovation, investing heavily in technology and digital transformation.
  • They have a reputation for excellent customer service, with multiple channels available for support.
Cons 👎
  • JP Morgan Chase Bank has faced regulatory fines and lawsuits for mismanagement and illegal practices, particularly in mortgage lending and consumer protection.
  • They have a reputation for high fees, including maintenance fees for their accounts and overdraft fees.
  • JP Morgan Chase Bank has experienced data breaches and security issues.
  • They are not focused on smaller businesses or individuals, which can make them less accessible to certain segments of the population.
  • JP Morgan Chase Bank has a wide range of financial products and services, which can be overwhelming and confusing for some customers.

4. U.S. Bank

us bank

U.S. Bank provides various financial services for Minnesota small businesses, including business checking and savings accounts, credit cards, lines of credit, small business loans, cash management services, and payment processing solutions.

us bank home page
Pros 👍
  • US Bank is one of the largest banks in the United States, with a significant branch and ATM network.
  • They offer a variety of financial products and services, including checking and savings accounts, credit cards, loans, and investment options.
  • Their online and mobile banking platforms are well-designed and user-friendly, with features like mobile check deposit and budgeting tools.
  • US Bank offers excellent customer service, with multiple channels available for support.
  • They strongly focus on corporate social responsibility, committed to sustainability and community development.
Cons 👎
  • US Bank has a reputation for high fees and charges, including maintenance fees for their accounts and ATM fees.
  • Their products and services may not be as accessible or affordable for low-income or underserved populations.
  • US Bank has experienced data breaches and security issues, which can raise concerns about customer privacy and protection.
  • They may not have a broad range of financial products and services like other large banks.
  • Some customers report difficulty resolving issues or disputes with US Bank.

5. PNC Bank

pnc

PNC Bank offers tailored financial services for Minnesota small businesses, including business checking and savings accounts, credit cards, lines of credit, term loans, and cash management services.

pnc bank home page
Pros 👍
  • PNC Bank has a significant branch and ATM network, particularly in the Mid-Atlantic and Northeast regions.
  • They offer a variety of financial products and services, including checking and savings accounts, credit cards, loans, and investment options.
  • PNC Bank’s online and mobile banking platforms are highly rated and user-friendly, with features like mobile check deposit and account alerts.
  • They offer excellent customer service, with multiple channels available for support.
  • PNC Bank strongly focuses on community development and philanthropy, demonstrating a commitment to social responsibility.
Cons 👎
  • PNC Bank has a reputation for high fees and charges, including maintenance fees for their accounts and ATM fees.
  • Their rates on savings accounts and other deposits may not be as competitive as some other banks.
  • PNC Bank has experienced data breaches and security issues in the past.
  • They may not have as broad a range of financial products and services as some of their larger competitors.
  • Some customers report difficulty resolving issues or disputes with PNC Bank, particularly around fees and charges.

Through thorough research and market study, Webinarcare Editorial Team selects these banks for small businesses. You must cross-check all the factors before choosing the right one for your business.

Importance of Choosing the Right Bank in Minnesota

Choosing the right bank for your small business in Minnesota is a critical decision that can significantly impact your business’s overall success and growth. Even if you need to form an LLC, the right bank can provide financial resources, support, and services that cater to your business’s unique needs. Here are several reasons why selecting the right bank is crucial for small businesses in Minnesota:

  • Financial Stability: A bank that understands and supports your business’s financial needs provides a solid foundation for growth. Access to reliable credit facilities, checking and savings accounts, and cash management services ensure your business can maintain financial stability during expansion and challenging times.
  • Lending Options: The right bank should offer various options for small businesses, such as Small Business Administration (SBA) loans, lines of credit, term loans, and commercial real estate loans. These options allow business owners to access funds for various purposes, including working capital, equipment purchases, or business expansion.
  • Customized Services: Each business has unique financial requirements, so it’s essential to choose a bank that offers customized services, fee structures, and account options. This flexibility allows you to select the products and services that best suit your business’s needs and budget.
  • Local Market Knowledge: Banks with a strong presence in Minnesota are more likely to understand the local market conditions and your business’s specific challenges. This knowledge can lead to better financial advice, faster loan approvals, and more relevant support.
  • Networking Opportunities: Many banks host events, workshops, and seminars that can provide valuable educational resources, networking opportunities, and a chance to connect with other local business owners. These connections can lead to potential partnerships, collaborations, or referrals, ultimately benefiting your business growth.
  • Customer Service and Support: Having a dedicated team of small business specialists available to assist with questions, concerns, or financial advice can significantly impact your business’s success. The right bank should prioritize customer service and support, ensuring your business’s needs are met promptly and efficiently.

Tips For Choosing The Right Bank in Minnesota

When choosing the right bank in Minnesota, consider the following tips to help you make an informed decision that meets your specific financial needs and preferences:

  • Assess Your Banking Needs: Evaluate your personal or business banking requirements. Consider the type of accounts you need (checking, savings, or both), loans or credit lines, credit cards, and any additional financial services like wealth management or payment processing. Also, be informed that you should file for an Employer Identification Number in Minnesota before opening a bank account because you will use this account for yourself, your clients, and your employees. You can look up the Internal Revenue Service on how to file for an EIN. Once you have your EIN, make sure that your Registered Agent has already filed for the Articles of Organization of your LLC in the Minnesota Secretary of State. You can get business permits and pay other taxes in Minnesota Department of Revenue.
  • Compare Fees and Interest Rates: Various banks in Minnesota compare their fees for monthly maintenance, ATM usage, wire transfers, and overdraft protection. Additionally, compare the interest rates offered on savings accounts, loans, and credit cards.
  • Evaluate Customer Service: Quality customer service is essential for a smooth banking experience. Read customer reviews, ask for recommendations from friends or colleagues, and visit local branches to assess each bank’s level of customer service.
  • Accessibility and Convenience: Choose a bank with convenient branch locations and ATMs. Additionally, consider their operating hours and whether they offer online or mobile banking options for easy access to your accounts anytime, anywhere.
  • Online and Mobile Banking Features: In today’s digital age, having a bank with robust online and mobile banking capabilities is crucial. Compare the digital features offered by different banks, such as bill pay, mobile check deposit, account alerts, and budgeting tools.
  • Financial Stability and Reputation: Research the financial stability and reputation of the banks you are considering. Opt for a well-established and reputable bank to ensure the security of your funds and a reliable banking experience.
  • Special Promotions or Incentives: Some banks in Minnesota may offer promotions or incentives for opening a new account, such as cash bonuses, waived fees, or higher interest rates. Consider these offers and weigh them against long-term fees and interest rates.
  • Local or National Presence: Determine whether you prefer a local community bank or credit union that may offer personalized service and a focus on the local market or a large national bank with a more extensive range of services and resources.
  • Business Banking Services (if applicable): If you are looking for a bank for your business, consider banks that offer specialized services tailored to small businesses, such as payroll services, merchant services, and business loans or lines of credit.

By researching and comparing banks in Minnesota based on these factors, you can choose the best bank that meets your financial needs and preferences.

Why Do You Need a Bank For Your Business?

Having a bank for your business is essential for several reasons, ranging from financial management to growth and expansion. A business bank account helps you separate your personal finances from your business finances, making it easier to manage cash flow, track expenses, and maintain accurate financial records. It also allows you to accept payments under your business name, which helps build trust with customers, suppliers, and other stakeholders.

Business bank accounts typically offer more robust fraud protection measures than personal accounts. They have features like two-factor authentication, transaction monitoring, and account alerts that help safeguard your business from unauthorized transactions and fraudulent activities.

Is It Necessary To Have a Bank For Your Business?

While it may not be legally required to have a dedicated bank account for your business, it is highly recommended and considered a best practice for several reasons:

  1. Separation of personal and business finances
  2. Professionalism and credibility
  3. Access to credit and financial services
  4. Efficient cash management
  5. Enhanced fraud protection

FAQs

What is the best bank for small businesses in Minnesota?
There are several great banks for small businesses in Minnesota, including U.S. Bank, Wells Fargo, Bremer Bank, and TCF Bank.
Is Wells Fargo a good option for small businesses in Minnesota?
Yes, Wells Fargo is a popular choice for small businesses in Minnesota due to its wide range of financial services and local branches.
What types of services does Bremer Bank offer to small businesses in Minnesota?
Bremer Bank offers a variety of services for small businesses in Minnesota, including checking accounts, savings accounts, loans, and more.
Is TCF Bank a good bank for small businesses in Minnesota?
Yes, TCF Bank is a great option for small businesses in Minnesota due to its convenient locations and specialized services for businesses.
How many Wells Fargo locations are there in Minnesota?
There are over 170 Wells Fargo locations in Minnesota, making it one of the most accessible banks for small businesses.
What types of business loans does Bremer Bank offer in Minnesota?
Bremer Bank offers several types of business loans in Minnesota, including term loans, revolving lines of credit, and Small Business Administration Loans.
What special offers does TCF Bank have for small businesses in Minnesota?
TCF Bank offers specialized deposit accounts and lines of credit for small businesses in Minnesota.
Are there any grants or funding options available for small businesses in Minnesota?
Yes, there are several grant and funding programs available for small businesses in Minnesota, including loans from state and local organizations.
How can I find out more about these grant and funding options in Minnesota?
You can visit the Minnesota Department of Commerce or Small Business Administration website for more information on grant and funding options in Minnesota.
Can small businesses in Minnesota get help with bookkeeping and accounting services?
Yes, many banks in Minnesota offer bookkeeping and accounting services for small businesses.
What are some good accounting software options for small businesses in Minnesota?
QuickBooks, Xero, and FreshBooks are all popular accounting software options for small businesses in Minnesota.
Can small businesses in Minnesota access their bank accounts online?
Yes, most banks in Minnesota offer online banking services for small businesses, including account monitoring and transactions.
What security measures do Minnesota banks offer for online banking?
Minnesota banks offer various security measures, such as two-factor authentication and encryption, to protect against online banking fraud.
What types of fees should I be aware of when opening a business bank account in Minnesota?
Common fees for business bank accounts in Minnesota may include monthly maintenance fees, ATM fees, and transaction fees.
Are there any free business bank account options in Minnesota?
Some Minnesota banks offer free business bank accounts for small businesses that meet certain criteria, such as maintaining a minimum monthly balance.
Can small businesses in Minnesota access credit card processing services through their bank?
Yes, many banks in Minnesota offer credit card processing services for small businesses, which can help businesses accept payments from customers.
What are some important factors to consider when choosing a bank for my small business in Minnesota?
Some important factors to consider are location, reputation, services offered, fees, and accessibility.
Can I get a business line of credit from a bank in Minnesota?
Yes, many banks in Minnesota offer business lines of credit, which can help small businesses with cash flow needs.
What is the typical interest rate for a business line of credit in Minnesota?
The interest rate for a business line of credit in Minnesota may vary depending on the bank and the amount of credit needed.
What is the process for opening a business bank account in Minnesota?
The process may vary depending on the bank, but typically involves providing personal and business information and agreeing to the bank’s terms and conditions.
Can non-residents open a business bank account in Minnesota?
Yes, non-residents can open a business bank account in Minnesota as long as they meet the bank’s requirements.
Do I need a business license to open a business bank account in Minnesota?
Generally, you do not need a business license to open a bank account in Minnesota, but requirements may vary depending on the bank.
Can I get assistance with payroll processing through my bank in Minnesota?
Yes, many banks in Minnesota offer payroll processing services for small businesses.
What are some benefits of using a Minnesota-based bank for my small business?
Using a Minnesota-based bank can offer advantages such as greater local support, community involvement, and additional financial resources.
Where can I find reviews or feedback from other small businesses about Minnesota banks?
You can search online for reviews or visit websites such as Yelp or the Better Business Bureau for feedback from other small businesses in Minnesota.
How can I compare the different options for small business banking in Minnesota?
You can compare Minnesota banks based on factors such as fees, services, reputation, and customer reviews to find the best fit for your business’s needs.
Once I choose a bank for my small business in Minnesota, how do I switch from my current bank?
Switching banks can be a relatively simple process that involves opening a new account at the chosen bank and transferring funds and services from the old bank account.
What is the best bank for small business in Minnesota?
There isn’t necessarily one “best” bank for small business in Minnesota as every business has different banking needs. However, some of the top banks in Minnesota for small business include US Bank, Bremer Bank, and Wells Fargo.
What is the minimum balance requirement for a small business account at Minnesota-based banks?
Minimum balance requirements vary by bank and account type, but many small business accounts in Minnesota have a minimum balance requirement of around $1,000.
Can I get a small business loan from a Minnesota bank?
Yes, many Minnesota banks offer small business loans to qualified business owners. Contact your local branch to find out more information.
Does US Bank have small business services in Minnesota?
Yes, US Bank offers a range of small business services in Minnesota including loans, deposit accounts, and credit cards.
Can Bremer Bank help me with my small business banking needs in Minnesota?
Bremer Bank offers a variety of small business banking services in Minnesota including deposit accounts, loans, and credit cards.
What is the best bank in Minnesota for a startup business?
There isn’t one “best” bank for startup businesses in Minnesota, but some good options include US Bank, Bremer Bank, and Wells Fargo.
Can I open a business account online with a Minnesota-based bank?
Yes, many Minnesota banks offer online account opening for small business owners. Check with your desired bank to see if this service is available.
What is the interest rate for business savings accounts at Minnesota banks?
Business savings account interest rates vary by bank, but many offer rates between 0.10% and 0.50%.
Are there any credit unions in Minnesota that offer small business banking services?
Yes, some of the credit unions in Minnesota that offer small business banking services include Wings Financial Credit Union and Affinity Plus Federal Credit Union.
Can I get a small business credit card from Minnesota banks?
Yes, many Minnesota banks offer small business credit cards to qualified customers.
Is there a PNC Bank location in Minnesota?
No, PNC Bank does not have any locations in Minnesota.
Does Wells Fargo offer small business loans in Minnesota?
Yes, Wells Fargo offers small business loans to qualified owners in Minnesota.
Which Minnesota banks offer free business checking accounts?
Several banks in Minnesota offer free business checking accounts, including Bremer Bank and US Bank.
Can I get a merchant services account through a Minnesota bank?
Yes, many Minnesota banks offer merchant services accounts to small business owners.
What types of loans does Bremer Bank offer to small businesses in Minnesota?
Bremer Bank offers several types of loans for small businesses in Minnesota including commercial real estate loans, equipment loans, and SBA loans.
Can I get a business line of credit from a Minnesota credit union?
Yes, some credit unions in Minnesota offer business lines of credit. Contact your desired credit union for more information.
Can I get a business credit card with US Bank in Minnesota?
Yes, US Bank offers business credit cards to qualified customers in Minnesota.
Does Wells Fargo have small business specialists in Minnesota?
Yes, Wells Fargo has small business specialists located throughout Minnesota to help business owners with their banking needs.
How many business checking accounts can I have with Bremer Bank in Minnesota?
Bremer Bank allows business owners to have up to five checking accounts per business entity in Minnesota.
Does Affinity Plus Federal Credit Union offer business loans in Minnesota?
Yes, Affinity Plus Federal Credit Union offers business loans to qualified business owners in Minnesota.
Can I open a business account as a sole proprietor in Minnesota?
Yes, sole proprietors can open business accounts in Minnesota at any bank that offers small business banking services.
Can I use my personal credit score to qualify for a small business loan in Minnesota?
It depends on the lender. Some lenders in Minnesota may allow you to use your personal credit score to qualify for a small business loan, while others may require a business credit score.
Does TCF Bank have business checking accounts in Minnesota?
Yes, TCF Bank offers business checking accounts to small business owners in Minnesota.
Can I get a small business loan from a Minnesota credit union?
Yes, some credit unions in Minnesota offer small business loans to qualified business owners.
What fees are associated with business checking accounts at Minnesota banks?
Fees associated with business checking accounts at Minnesota banks varyby bank and account type. Some common fees include monthly maintenance fees and transaction fees for exceeding transaction limits.
Can I deposit checks remotely with a mobile banking app at Minnesota banks?
Yes, many Minnesota banks offer mobile banking apps that allow customers to deposit checks remotely.
Can non-residents open small business accounts at Minnesota banks?
Yes, non-residents can open small business accounts at Minnesota banks, but they may need to provide additional documentation.
How quickly can I get approved for a small business loan in Minnesota?
The amount of time it takes to get approved for a small business loan in Minnesota can vary widely based on several factors including creditworthiness and the lender’s approval process. Contact your desired lender to see what their typical turnaround time is.
What types of business savings accounts are available at Minnesota banks?
Business savings account types available at Minnesota banks vary by bank, but some common account types include basic savings accounts, money market accounts, and CD accounts.
Can I use my personal checking account as a small business account in Minnesota?
While it is possible to use a personal checking account for business purposes, it is not recommended. Most banks in Minnesota offer separate small business accounts with features designed to help manage and track business finances.

Also Read

How to Choose Best Bank for Your Minnesota Small Businesses

First and foremost, small business owners must examine the bank’s commitment to customer service. A bank that genuinely values its clients will understand the importance of establishing strong relationships and providing personalized support. Whether it is for opening an account, obtaining a loan, or seeking financial advice, a bank that values responsive customer service can truly assist businesses in navigating their day-to-day financial operations. Therefore, it is imperative to thoroughly research a bank’s reputation regarding customer satisfaction and seek referrals from other local business owners who have experience with the institution in question.

Secondly, cost considerations play a pivotal role when selecting a bank. Small businesses must be financially prudent when it comes to managing expenses. Bank fees, account maintenance charges, and transaction costs can quickly eat into a company’s profitability. Hence, entrepreneurs must investigate various fee structures and compare them between different banks to identify the most affordable and transparent banking options. By doing so, small business owners can ensure that they are not burdened with excessive costs that could hinder their financial growth.

Furthermore, small businesses must scrutinize the available banking services. The chosen bank’s range of services should align explicitly with the specific needs and goals of the business. For instance, if a small business owner intends to expand operations and require a loan in the near future, it is essential to choose a bank with a history of providing favorable loans to small businesses. Similarly, online banking capabilities, streamlined payroll services, and mobile banking applications are all aspects that entrepreneurs must review before committing to a financial institution. By ensuring that the chosen bank can meet both the immediate and future needs of the business, owners can operate efficiently and optimize their operations.

The bank’s accessibility is also an important factor that must not be overlooked. Conveniently located branches, extended business hours, and the availability of ATMs in close proximity to the business are vital considerations. Accessibility is particularly crucial for small businesses that require frequent cash deposits or face-to-face interactions with bankers. By ability to easily access banking services, small business owners can save valuable time and streamline the financial management process.

Lastly, it is key to evaluate a bank’s reputation and stability in the market. A long-established bank with a solid track record and positive financial performance demonstrates stability and reliability. Reviewing a bank’s financial statements, its history of profitability, and any regulatory actions taken against it can provide insight into the institution’s trustworthiness. All these aspects provide an indication of the level of risk the small business assumes when entrusting its financial affairs with a particular bank.

In conclusion, choosing the best bank for a Minnesota small business is a task that should be approached with great care and consideration. By assessing factors such as customer service, cost, available services, accessibility, reputation, and stability, small business owners can make informed decisions that will benefit their enterprises in the long run. Remember, a strong relationship with a reliable bank can be instrumental in supporting growth and ensuring financial success for the small businesses that are the backbone of Minnesota’s economy.

Conclusion

When choosing the best bank for your small business in Minnesota, it’s essential to consider factors such as fee structures, lending options, customer service, and each bank’s additional resources. The banks listed above each offer unique advantages and services tailored to the needs of small businesses, making them strong contenders for the title of the best bank for small business in Minnesota.

Ultimately, the best bank for your small business will depend on your specific needs and preferences. By carefully evaluating these banks and considering how their services align with your business requirements, you can choose the bank that best supports your small business’s growth and success.

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