Startup Friendly Banks: 6 Best Banks for Startups (2026)

Best banks for startups

Not all banks that help startup businesses are built for the same moment or model. The list below highlights reliable options, followed by deeper context on where each bank works best and where it doesn’t.

The sections below go deeper into each platform so you can understand why a bank fits a specific stage as your startup grows.

Mercury

Mercury is a fintech-first business banking platform designed primarily for startups and technology-led companies operating in the United States. It’s frequently considered among the best banks for tech startups, offering online checking and savings accounts, cards, payments, invoicing, and treasury tools through partner FDIC-insured banks. 

The product is built around speed, software-native workflows, and giving founders a single place to manage cash, spend, and basic financial operations without needing a traditional branch relationship.

Pros

Mercury is widely used by early-stage and venture-backed startups because it supports higher transaction volume and multi-user workflows without adding friction. The advantages include:

• Free domestic wire transfers for faster movement of funds.
• FDIC coverage up to $5 million through partner bank sweep networks.
• Multiple checking and savings accounts created directly from the dashboard.
• Granular employee controls and approval workflows for spend management.
• Virtual debit cards issued instantly for employees and contractors.
• Strong integrations with accounting tools like QuickBooks, Xero, and NetSuite.

Cons

Mercury’s digital-first model works well for software-native companies, but it comes with clear tradeoffs.

• No physical branches or in-person banking services.
• Cash deposits are not supported.
• No free ATM network for fee-free cash withdrawals.

Brex

Brex is a fintech financial platform built around corporate cards, spend management, and global financial operations. It supports startups through enterprise-scale companies, with services spanning cards, expense management, bill pay, travel, and business accounts across more than one hundred countries.

The platform emphasizes centralized control, real-time visibility, and automation for teams managing spend at scale, with banking services provided through FDIC-insured partner institutions.

Pros

Brex is often chosen by fast-growing startups that need strong financial controls as spend volume and team size increase. Benefit from:

• No monthly fees, ACH fees, or wire transfer fees.
• Unlimited transactions with no monthly caps.
• High-yield cash management options through money market funds.
• FDIC insurance up to six million dollars for non-invested funds via partner banks.
• Advanced expense management with automated bill pay and receipt matching.
• Instant virtual cards and high-limit physical cards for qualified businesses.
• Broad ERP and accounting integrations for finance teams.

Cons

Brex’s structure is optimized for well-capitalized, fast-scaling companies, which creates clear limitations for others.

• No support for cash deposits or ATM-based cash access.
• Strict eligibility requirements that exclude many early-stage or non-VC-backed businesses.
• Limited availability for sole proprietors or unincorporated companies.
• No traditional banking products such as loans or full-service checking accounts.

Rho

Rho is a fintech financial platform focused on banking, spend management, and treasury for high-growth companies. It serves startups from early incorporation through later-stage growth, combining checking and savings accounts, cards, expenses, bill pay, and accounting automation in a single system.

Rho positions itself as a long-term finance platform for companies that want hands-on support alongside modern banking infrastructure, with services provided through FDIC-insured partner banks.

Pros

Rho is often selected by startups that want a more hands-on banking relationship as financial operations become more coordinated and demanding. Standout features include:

• Dedicated onboarding and highly responsive customer support.
• No monthly platform fees or charges for domestic wires and ACH transfers.
• A unified platform combining banking, cards, expenses, and treasury.
• High FDIC insurance coverage through partner bank networks.
• Strong integrations with accounting tools like QuickBooks and NetSuite.

Cons

Rho’s digital-first, startup-focused model comes with clear operational tradeoffs.

• No support for cash deposits or ATM-based cash access.
• Availability limited to incorporated businesses, excluding sole proprietors.
• Check deposits can take several business days to clear.
• No physical branches for in-person banking needs.

Relay Financial

Relay is a fintech banking platform focused on cash flow visibility and control for small businesses and early-stage startups. It offers checking and savings accounts, debit and credit cards, bill pay, and basic expense management, with an emphasis on helping teams clearly allocate and track funds.

Relay is commonly used by founders who want a more structured approach to managing operating cash. It’s particularly useful for those following profit-first or envelope-style budgeting methods, with banking services provided through FDIC-insured partner institutions.

Pros

Relay is often chosen by founders who want clearer visibility into cash flow and tighter control over how money is allocated day to day. Notable advantages include:

• Multiple checking accounts for separating expenses and earmarking funds.
• Competitive interest rates on balances, even at lower account levels.
• FDIC insurance coverage up to three million dollars through partner banks.
• Access to the Allpoint ATM network with fee-free withdrawals.
• Free banking services with no minimum balance requirements.

Cons

Relay focuses on simplicity and control, which comes with some practical limitations. 

• No physical branch locations for in-person banking.
• Customer support is primarily limited to email-based assistance.
• No personal banking services alongside business accounts.
• Limited support for complex or international financial operations.

Novo

Novo is an online business banking platform built primarily for freelancers, solo founders, and small service-based businesses. Commonly referenced as the best online bank for startups, it offers a free checking account, invoicing, basic budgeting tools, and integrations with common business software, all delivered through a simple, digital-first experience.

Novo is positioned as an accessible starting point for businesses that want straightforward banking without branch visits, with deposits held through an FDIC-insured partner bank.

Pros

Novo tends to appeal to founders who want to get up and running quickly without unnecessary complexity. Core strengths include:

• Free business checking with no monthly fees or minimum balance requirements.
• Unlimited transactions and free ACH transfers for everyday payments.
• ATM fee refunds that reduce out-of-pocket banking costs.
• Simple invoicing tools built directly into the platform.
• Clean integrations with tools used by freelancers and small teams.
• Fully online setup with no in-person verification required.

Cons

Novo is intentionally lightweight, which can limit its usefulness as businesses mature.

• No physical branches or in-person service. Banking is entirely online.
• Cash deposits require extra steps. You don’t have a straightforward way to deposit cash directly.
• No domestic outgoing wires. You can’t send standard wire transfers from the account.
• Only business checking is offered. There’s no built-in savings, treasury, or multi-product suite.

Dboral

D. Boral Capital is a relationship-driven investment bank focused on emerging growth and middle-market companies, particularly those preparing for public markets. Rather than day-to-day banking, it specializes in capital raising, IPOs, SPACs, follow-on offerings, and strategic advisory services. The firm works most closely with later-stage startups and growth companies navigating complex transactions, investor relations, and public-market readiness.

Pros

D. Boral Capital is typically engaged by companies preparing for significant liquidity or capital events. Key benefits include:

• Deep experience leading IPOs, SPACs, and follow-on offerings.
• Strong track record raising large amounts of capital for growth companies.
• Specialized focus on emerging growth and middle-market businesses.
• End-to-end advisory services spanning capital markets, research, and strategy.

Cons

D. Boral Capital’s strengths are concentrated around high-stakes transactions, which limits its relevance for many startups.

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• Not suitable for early-stage startups seeking day-to-day banking services.
• Heavy exposure to IPO and SPAC activity, which carries higher market risk.
• Shorter operating history compared to long-established investment banks.
• Past regulatory scrutiny related to supervisory and capital requirements.

How to open a bank account as a startup

Opening a business bank account is straightforward if the basics are in place first. For founders trying to choose the best bank account for startups, most delays happen because the bank step is rushed before the company is fully set up.

1. Form your business entity. Before any bank account can be opened, your company needs to legally exist. This typically means incorporating or forming an LLC and receiving official formation documents. If you’re still at this stage, see how to incorporate a startup for a step-by-step breakdown.
2. Secure a valid business address. Banks require a real, physical business address for compliance and verification purposes. Using a home address can create privacy issues, while coworking or temporary addresses often cause problems later. Many startups use a permanent virtual business address through a provider like Postal, which is accepted by banks and doesn’t need to change as the company grows.
3. Appoint a registered agent (if required). Most incorporated startups are required to designate a registered agent to receive legal and government correspondence. This is often checked during bank onboarding, especially for incorporated entities. Using a registered agent service alongside your business address helps keep everything consistent and reduces follow-up requests from the bank.
4. Gather your core company documents. Nearly all banks will ask for the same foundational paperwork. This typically includes formation documents, your Employer Identification Number, ownership details, and basic information about directors or officers.
5. Complete identity verification for founders or officers. Founders or authorized signers will need to verify their identity as part of standard “know your customer” checks. This usually happens online for modern startup banks and doesn’t require an in-person visit.
6. Open the account and configure access. Once approved, you’ll set up users, permissions, cards, and notifications. This is also the right time to align your mailing address, registered agent details, and compliance contacts so important correspondence doesn’t get missed later.

Treating your address, registered agent, and compliance setup as part of banking, not an afterthought, tends to save founders time down the line. Services like Postal are useful for not only opening an account, but for keeping banking, mail, and compliance aligned as the company scales.

Best bank for pre-seed or seed stage startups

For most pre-seed and seed-stage startups, the best bank is the one that removes friction early without pushing unnecessary complexity. At this stage, founders care about getting an account open quickly, keeping costs predictable, and avoiding administrative overhead while the business is still taking shape.

Novo is the strongest overall fit for this stage. It’s easy to open, inexpensive to run, and covers the fundamentals without locking founders into tools they won’t need yet. For solo founders, freelancers, and small teams testing an idea or building initial traction, Novo does exactly what’s required, and little more.

Some founders prefer a more structured approach to cash management early on. In those cases, Relay Financial can also work well, particularly for teams that want clearer cash allocation from day one. That said, Novo remains the more straightforward default for most pre-seed and seed-stage startups.

Best bank for series A to pre-IPO

By the time a startup reaches Series A, banking stops being a background task. Spend controls, approvals, and visibility become just as important as access to capital. At this stage, the best bank is the one that can scale with operational complexity without slowing teams down.

Brex is the strongest fit for most Series A to pre-IPO startups, and is frequently evaluated among the best banks for venture capital–backed companies. It’s built for teams with meaningful spend, multiple departments, and formal finance processes, and it handles growth without requiring constant workarounds

Some companies prefer a more relationship-driven experience as they scale. In those cases, Rho can be a solid alternative, particularly for teams that value hands-on support. Still, for most startups in this stage, Brex is the more practical default.

Best bank for IPO stage startups

At the IPO stage, startups aren’t choosing a “bank” in the traditional operating sense. The priority shifts to capital markets expertise, transaction execution, and guidance through public-market complexity. This is where operating banks take a back seat to investment banking partners.

D. Boral Capital is a strong fit for IPO-stage startups, particularly those preparing for public listings, SPAC transactions, or follow-on offerings. The firm works closely with emerging growth companies navigating late-stage financing, underwriting, and investor readiness, and has been actively involved in a high volume of IPO and SPAC activity in recent years.

It’s worth being explicit here. D. Boral Capital doesn’t replace your day-to-day banking stack. Instead, it complements it at the moment when execution, market access, and transaction experience matter more than operating features.

Give your startup an address to be proud of with Postal

A solid banking setup starts with the right foundation, and that includes your address and compliance. Postal gives new businesses a permanent business address, secure mail handling, and registered agent services that remove friction when working with startup-friendly banks. More importantly, it doesn’t stop at setup. 

Postal supports ongoing compliance, keeps critical documents organized, and provides hands-on guidance as requirements change. For founders who want fewer loose ends and fewer surprises, Postal helps keep banking, mail, and compliance aligned as the company grows.