Bank for self-employed entrepreneurs | Key criteria and comparison

How to choose a bank for self-employed entrepreneurs?

Need to choose a bank for your self-employed business? A bank account dedicated to your activity enhances your company’s credibility and makes daily management easier. However, choosing your freelance bank requires you to study several criteria in advance depending on your entrepreneur profile. In this article, we guide you in making the right choice for your freelancer bank account: from a traditional bank to an online bank, and even provide a comparison of the best banks for freelancers.

The usefulness of a dedicated freelance bank account

For companies, having a business account is mandatory for depositing share capital, which is necessary for registration. It is strongly recommended for freelancers, mainly for the following advantages:

• The separation of professional and personal transactions;
• Better tracking of your revenue;
• Easier management of your business;
• Access to banking services reserved for professionals.

💡Good to know: As a micro-entrepreneur, you are required to open a bank account dedicated to your business if your turnover exceeds €10,000 for two consecutive years.

Criteria for choosing a bank for freelancers

Before choosing your freelancer bank, take the time to review these criteria:

• Offered features: Does your bank provide invoicing tools, expense management and analysis, as well as a business bank card?
• Bank data security: Go for a bank that offers strong security measures.
• Fees: Depending on your type of business and needs, you may opt for an online bank for lower costs or a traditional bank for more services.
• Allowed activities: Check your eligibility to open an online business account. Some activities are prohibited, such as gambling, fortune telling, or astrology.
• Purchase of a payment terminal: If you are a physical retailer, a payment terminal (POS) can be an attractive option to accept card payments.

Traditional bank or online bank?

Traditional or classic banks

By choosing a traditional bank, you benefit from support by a dedicated banking advisor and additional features, such as depositing checks or cash. They now offer supplementary apps to monitor all your transactions.

On the other hand, physical banks are more expensive due to the personalized support they provide.

Online banks

Online banks are much cheaper than traditional banks and setting up your business account is very fast, in just a few clicks. Their offers often include tools to manage your business (invoices, quotations, etc.). Online banks give you more freedom in managing your account and financial activities.

However, they do not offer expert assistance or consulting. Also, they are not always independent and are often acquired by large groups.

Choose your bank based on your freelancer profile

Persona 1

If you are a freelancer who needs regular reassurance and wants to benefit from extensive features like depositing cash/checks, go for a traditional bank and be supported by a dedicated advisor every day.

Persona 2

If you are a more tech-loving, fully autonomous, cost-conscious freelancer and value freedom, choose a 100% online bank with attractive rates.

Comparison table of the 5 best banks for freelancers

Bonus: which bank should you choose for wage portage?

In wage portage, the consultant retains the status of waged employee. As such, there is no legal obligation to open a business bank account. Your activity is managed by the umbrella company, so the income received is a salary and not business revenue.

However, opening a bank account dedicated to your activity can be useful for better tracking your money flows: salary paid by the umbrella company, reimbursement of expenses, etc. Some banks offer very attractive deals such as free bank cards, no account maintenance fees, and referral programs.

To go further, read our guide to choosing the right umbrella company.

Main points of the article summarized in 4 key points

Now, you know how to choose a bank for self-employed entrepreneurs. Here are the main takeaways:

1. Choosing a dedicated business account for your activity helps simplify management and separate your business and personal transactions.
2. To choose the right bank, compare fees, the range of features, data security, and whether your activity is eligible.
3. You can choose between a traditional bank for more support or an online bank for lower fees and more freedom.
4. In wage portage, you aren't required to open a business account, though it may be useful for tracking your financial flows.

To get more insights, take a look at our guide: how to become a freelancer.