You did it! You started your nonprofit and you're ready to start making real change. Only now you need to take an important step: choosing your bank. If you're wondering what the best banks for nonprofits are, you've come to the right place. We'll walk you through the top 10 best banks for nonprofits, including how to make your final decision and the top bank account types for nonprofits.
Starting a nonprofit involves several decisions, from what type of organization you should be to who can I ask to be a board member. One of these decisions involves choosing a bank. Most organizations will sign up with their local bank without a second thought, but there are several reasons you should do your research to find the best fit.
In this article, we’ll share the ten best banks for nonprofits, what you should look for, and the different account types you can open.
US Bank is one of the largest banks on this list, but the services they offer to nonprofits stand out for convenience and cost. Unlike many larger institutions, US Bank has a nonprofit business checking account. They also offer a credit card for nonprofits that do not require a personal guarantor.
US Bank’s interest-earning nonprofit checking account can be opened for only $100. Nonprofits must maintain the minimum balance needed for the account to earn interest each day and be credited to the account at the end of each month.
Nonprofits can open these accounts over the phone or in person and have access to online and mobile banking, tax fraud protection, remote check deposits, credit card payment processing, and overdraft protection.
US Bank business checking accounts allow nonprofits 1,800 fee-free transactions and 300 free cash deposits or $30,000 free cash deposits each year. Organizations that expect to receive cash deposits during fundraising events can feel assured they won’t collect massive fees with this bank.
US Bank does not have a monthly maintenance fee, but there is a $0.50 charge for each transaction after 1,800.
The primary reason nonprofits want to use a national bank is because of convenience. US Bank has over 2,000 branches across 26 states so most organizations can deposit cash and connect with customer service representatives whenever they need. US Bank’s remote deposit also lets nonprofits deposit checks by taking a photo and sending the image to the bank.
United Community Bank’s Business Freedom Checking account is ideal for nonprofits thanks to its limited fees and integration with the bookkeeping service Autobooks.
United Community Bank’s business accounts are automatically linked to Autobooks, a complete accounting and bookkeeping solution. Nonprofits can invoice and receive payments directly to their account and access detailed balance sheets and general ledgers.
The Business Freedom Checking account has no monthly fees and no minimum balance.
Nonprofits can open a Business Freedom Checking account for $100. They will have a monthly allowance of 250 combined items, which includes checks paid, deposits, online bill payments, and electronic debits and credits. Additional transactions are $0.40.
The Business Freedom Checking account lets nonprofits deposit $10,000 in cash before being charged $0.15 per $100.
United Community Bank has 200 locations in Georgia, North Carolina, Tennessee, South Carolina, Florida, and Alabama.
City First Bank is on this list because of its mission to use finances in the communities that need it the most. This bank is the only one on this list with a statement to depositors regarding current banking fears. This interest and focus on the health of depositors and communities can assure nonprofits that they match their financial and organizational values.
City First Bank has several nonprofit bank accounts. The Nonprofit Advantage Checking helps nonprofits of all sizes avoid monthly service charges. The First Premier Nonprofit Checking account is for organizations with higher balances.
As we mentioned earlier, City First Bank focuses on using its customers’ finances to strengthen the community. 70% of new loans consist of real estate and business loans for multifamily affordable housing, nonprofit community facilities, and small businesses located in low to moderate-income communities, primarily in Washington DC and Los Angeles.
In addition to matching nonprofits’ values, organizations can benefit from lower monthly services and cash management services like remote deposits, positive pay, and ACH services.
Organizations need $100 to start Nonprofit Advantage Checking and First Premier Nonprofit Checking accounts. The minimum monthly balance requirement for City First Bank’s Nonprofit Advantage Checking account is $1,000. Accounts that fall below this amount are charged a $10 monthly fee.
The first 100 transactions with your Nonprofit Advantage Checking account are free. There is a $0.25 per charge for any transactions after that. The First Premier Nonprofit Checking account has a $12.00 monthly service charge, but that fee may be offset with an earnings credit.
City First Bank has three branches, two in Los Angeles and another in Washington D.C. Nonprofits that sign up with this bank can also use over 20,000 Money Pass ATMs located across the United States.
TIAA Bank is ideal for nonprofits looking for the best interest-bearing account regardless of your balance. It offers business checking, money market, and CD accounts for nonprofits.
With a $1,500 opening fee, nonprofits can earn a competitive rate on all balances. TIAA Bank uses a tiered variable rate based on account balance to give organizations Annual Percentage Yields (APYs) ranging from 1.35% to over 2%.
There is no monthly maintenance fee if your nonprofit maintains a $5,000 minimum balance. Those that fall below this amount receive a $14.95 monthly fee.
Cash deposits are not accepted. While there is no transaction limit overall, organizations are only allowed ten free online bill payments before being charged $0.50 for additional transactions.
TIAA Bank only has nine branches in Florida, but customers can use ATMs nationwide for no out-of-network charges from the bank.
Axos Bank’s best account for nonprofits is the Nonprofit Money Market account.
The money market account offers a 0.20% Annual Percentage Yield based on the account balance. Nonprofits also receive free image statements, online and mobile banking with remote deposit anywhere, and a dedicated relationship manager to get the most out of your account.
There is a $1,000 deposit required to open an account with Axos and a $5 monthly charge for all accounts that fall below $2,500.
This account also has a $0.30 per-item processing fee for over 25 items processed per month.
Axos has three branches in San Diego, California, Las Vegas, Nevada, and Columbus, Ohio. Customers can also use ATMs based around the country.
Citizens Bank doesn’t have a specific nonprofit account, but their Clearly Better Business Checking account caters to small businesses and nonprofits.
The Clearly Better Bank account comes with a business debit card and offers in-person, online, and mobile banking. Nonprofits can deposit checks via their smartphone and participate in online bill pay.
There is no monthly maintenance fee, and the first 200 check deposits, payments, or cashed checks per month are free. All additional transactions will be charged an additional $0.50.
Nonprofits can open an account with any deposit amount, and there is no minimum balance.
With over 1,000 branches and 3,000 ATMs across the US, nonprofits once again have access to Citizen Bank’s customer service and deposit features they can’t find with online banks.
Truist’s Community Checking account helps nonprofits save money on deposits and other transaction fees.
Nonprofits that sign up for Truist’s Community Checking account receive business debit cards for all employees, easy digital account management, and free online bill pay.
Nonprofits also get a $25 discount for their first order of business checks or intro packs. This bank also provides online and mobile banking and integrations with Quicken, QuickBooks, Truist Merchant Services, and Zelle.
Nonprofits can start their account with a $100 deposit. There is no monthly maintenance fee with Community Checking.
The first 225 combined transactions with Truist are free. After that, there is a $0.35 fee per transaction. All monthly coin and currency deposits are also free.
Truist currently operates in 18 states, with most branches located in Florida, North Carolina, Virginia, Georgia, and Maryland.
PNC Bank has a Small Business Checking Account with features that benefit nonprofit organizations.
PNC Small Business Checking includes a competitive Annual Percentage Yield, thousands of branches, and significant online banking features. Nonprofits also receive a free business debit card.
Organizations can start an account with PNC for $100. There is no monthly account maintenance fee when you maintain an average monthly balance of $500. If you fall below that amount, the monthly fee is $5. There is no fee for the first 3 months.
PNC allows up to 150 monthly transactions at no charge. Each transaction over 150 will be charged $0.50. There is a $5,000 monthly cash deposit volume limit. PNC charges $0.30 per $100 deposited over $5,000.
PNC has over 2,600 branches and 60,000 ATMs in the US.
Nonprofits and small businesses have any time access to online and mobile banking with Wells Fargo’s Initiate Business Checking Account.
Wells Fargo’s online and mobile banking accounts let nonprofits easily transfer money, send wires, and pay business expenses. Organizations also receive text and email account alerts, 24/7 fraud monitoring, and branded checks and business debit cards.
Nonprofits can open an account with $25, but Wells Fargo requires organizations to keep a $500 minimum daily balance and a $1,000 average ledger balance. Accounts that fall below these amounts will be charged $10 a month.
There are no fees for the first 100 transactions and $5,000 is deposited per fee period. After reaching $5,000, Wells Fargo charges $0.30 per $100.
Once again, nonprofits can benefit from access to 4900 branches and 12000 ATMs of Wells Fargo across the country.
LendingClub is an online bank with a business checking account that nonprofits can tailor to their needs. It also offers credit cards, SBA loans, commercial real estate loans, and financing.
Their tailored checking account works with your needs and helps nonprofits gain a 1.50% interest on balances up to $100,000 and 0.10% on balances over that amount. Customers also get 1% cash back on qualified purchases.
Nonprofits can also sync their accounts to Mint, QuickBooks, or Quicken to make bookkeeping easier. Organizations can send digital invoices and receive online payments with Autobooks.
Nonprofits with a checking account must maintain a $500 balance or receive a charge of $10 a month.
Nonprofits benefit from unlimited fee-free transactions and cash deposits through LendingClub ATMs.
Since it is an online bank, there are no branches, but there are no fees to use any bank’s ATM if you have a LendingClub account!
When looking for the best bank for your nonprofit, there are five things you should look for.
Service fees are the easiest way to lose money with a bank account. If you’re not careful, you may sign up for an account that charges you monthly fees based on your balance or activity.
When researching banks, you must look for accounts with no monthly maintenance fees. Be sure to check the fine print, as most banks will hide details on fees there.
While a bank’s Annual Percentage Yield (APY) may not be a primary concern for nonprofits, it can help your organization raise funds without spending money or time.
Traditional banks generally have higher APYs, but some online banks provide high-interest rates based on account balances. Check around for banks with the highest yield before signing up for a checking account.
Most smaller community nonprofits should still expect cash and check donations. In these cases, you’ll want to find a bank with branches in your area instead of an online institution.
Luckily, online and traditional banks offer digital banking. The benefit of this feature is the convenience of 24/7 access to your accounts and balances. In some cases, banks also offer seamless integration with QuickBooks and other bookkeeping tools.
The final area your nonprofit should contemplate when researching banks is how it fits within your organization’s value system.
Financial institutions have a history of unethical practices. As a nonprofit, you are held to a higher standard. When choosing a banking institution to hold your organization’s funds or one that you’ll receive funds from, you must make sure their activities meet your organization’s and donors’ values, specifically in areas like the environment or politics.
Nonprofits have a few options when opening a bank account. Here are a few things you should consider and why.
Small Business Checking Accounts with traditional and online banks can be the best choice for most nonprofits. Most institutions have limited fees for these accounts and will provide support to help you address any concerns.
These accounts can also link to any other bank account type and, in some cases, integrate with online bookkeeping tools. Nonprofits can start different checking accounts to separate funds for each program or event.
Money Market Accounts allow for more transactions and fluid liquidity. They offer competitive APY rates, and your organization will have access to your money whenever you need it.
These bank accounts often require minimum balances ranging from $100 to $10,000. Money Markets are FDIC (Federal Deposit Insurance Corporation) insured and are as safe and secure as a traditional checking account.
When you choose a bank for your checking or Money Market account, you may want to see what types of loans and lines of credit they have available.
Opening an account with banks starts a relationship that can help nonprofits find needed funding through lines of credit. Your bank may allow “revolving” credit lines that allow you to get additional funds when previous credit loans are repaid.
Like a Money Market, Certificates of Deposit (CDs) give nonprofits higher APY rates. The difference between the two is that organizations have access to their money market funds. CDs hold your funds until the CD matures.
CDs can range from 28 days to 10 years or more. The goal is to save and make more money on the interest. The longer it takes for the CD to mature, the more money you’ll make.
Another benefit to these accounts is that there are no monthly maintenance fees. If your organization is looking for a safe way to store excess funds, a CD is an excellent choice.
Nonprofits and small businesses have many of the same expectations and needs for their banks. When deciding on a new financial institution, be sure to do your due diligence and read the fine print to find the best bank for your organization.
Remember to research their involvement in the community and past financial practices to determine if the bank matches your organization’s and donors’ values.
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Disclaimer: By sharing this information we do not intend to endorse specific banks or organizations, provide legal, tax, financial, or accounting advice, or to address specific situations. The above list is curated to educate a broad segment of the public. Please consult with your legal or financial advisor to supplement and verify what you learn here.
Kristine Ensor is a freelance writer with over a decade of experience working with local and international nonprofits. As a nonprofit professional she has specialized in fundraising, marketing, event planning, volunteer management, and board development.
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Kristine Ensor