If you have an Etsy shop, you’re most likely searching for the best bank accounts for Etsy business because it is necessary to have a verified bank account if you want to sell on Etsy.
You might prefer using your own personal bank account because you’re not sure how your new Etsy business will go, and it might be cumbersome to set up a new bank account.
The fact is there are many different bank accounts that you can choose from as a small business owner on Etsy. It’s easy to get lost in the sea of many bank accounts but I’ve curated the best seven picks on why they’re great for Etsy sellers like you.
At a glance, the top 7 best bank accounts for Etsy business are:
1. Novo Bank
These banks also provide some of the best business accounts for small businesses so even if you are still contemplating starting an Etsy business, you’d do well to read on regardless of where you’re hosting your business.
Affiliate Link Disclosure
Some of the links here are affiliate links, and I may earn if you click on them, AT NO EXTRA cost to you. I hope you find the information here useful! Thanks!
Note – If you are super busy and you want to start making money selling digital products on Etsy ASAP, you can check out this and this Etsy course, which will step up your Etsy game and start earning within 3 months!
Alternatively, you can also check out this free Etsy Ebook that will share a list of best-selling products by month and teach you how to capitalize on seasonal trends to skyrocket your Etsy sales.
- 27 Ideas for Cute Things to Sell on Etsy for Some Extra Income 2022
- Do Etsy Ads Work – Common Questions + Tips to Increase Sales
- The Best Etsy Course In 2022 – Outandbeyond
- 9 Essential Tips For Naming An Etsy Shop In 2022
Best Bank Account For Etsy Business
1. Novo Bank
Novo Bank is your best bank account for Etsy business as it’s popular among entrepreneurs and small business owners. Its mobile app comes with a plethora of functions.
Novo Bank also has many features tailormade for the busy business owner including integration with email and marketing functions.
Having a Chase business account is ideal as they are well-equipped with a good online and in-person presence.
Should you require support, their customer service is also available round-the-clock, which is great if you’re running your Etsy business from different countries if you’re working as a digital nomad.
Axos is an amazing platform if you’re looking for one that has many services and also is collaborative.
The bank doesn’t have any minimum deposit if you’re using their Basic Business Checking account, which also doesn’t have any minimum balance requirements or maintenance fees.
Now if you’re on the lookout for the best account for Etsy business, Bluevine has to be one of your top choices because it has no monthly fees, nor minimum deposits.
That makes it great for business owners who are just starting out and may not have many funds, to begin with.
NorthOne is great for small businesses because it’s available 24/7, as you may be running your small business from anywhere. Opening an account is also fuss-free, taking less than five minutes to open one online or via the mobile app.
Found is a great business bank account if you’re a freelance or self-employed person. You can have access to all banking functions within one app and there are no exorbitant monthly fees that you have to worry about.
As a solo business owner, you’ll also be pleased to know that Found’s app allows you to track your expenses and categorize them – a dream come true for the busy entrepreneur.
Lili is a business bank account that is an excellent choice for anyone who’s running a business solo. It is extremely value-for-money as a bank account for a solo ranger, considering there are no account fees, minimum balance, or hidden fees.
Should you wish to process your invoices separately outside of Etsy, it also allows you to create, send and store invoices via its app.
Why Your Etsy Shop Needs A Bank Account
Wondering why your Etsy shop needs a bank account? Your Etsy shop needs its own bank account as it’ll make it easier once tax season rolls around and you’ll have all of your financial information in one bank account.
Keeping your Etsy shop’s bank account separate and giving it its own bank account keeps things simple right from the get-go.
Etsy requires sellers to use a bank account and to self-verify them or to do it through a third-party service like Plaid so that it can be compliant with money laundering and related regulations.
How To Choose A Business Bank Account?
So, how to choose a business bank account? When choosing a business bank account, there are many considerations. As a small business owner, often you might be the sole decision maker, and it can be a confusing situation for you when trying to narrow down the best banks for small businesses.
Here are some things to look out for when choosing the best bank account for Etsy business or any small business:
- Transaction And Maintenance Fees
- Is There A Minimum Deposit Required?
- Are There Any Introductory Offers You Can Utilize As A Small Business Owner?
- What Other Services Can They Offer To You As A Small Business Owner?
- What Do You Need For Your Business?
How Much Does It Cost To Open A Bank or A Business Account?
Wondering how much does it cost to open a bank or a business account? It can vary across banks. Some banks require an opening deposit which can go from $5 up to $1000 for a business account, while some can simply allow you to open an account with just a $0 deposit.
What Do I Need To Open A Business Bank Account?
So, what do I need to open a business bank account? While the requirements may vary across different business banks, you’ll typically require the following documents to open a business bank account:
- Your employer identification number or your own identification number if you are a sole proprietorship
- Documents showing your business’ formation
- Any ownership agreements or business licenses
Of course, these would differ from business to business, and across different banks. To know best what documents you need to open a business bank account, check with the bank you choose before you create your account.
Is It Possible To Use PayPal To Get Paid On Etsy?
Wondering is it possible to use PayPal to get paid on Etsy? Etsy sellers can get payment from all buyers through various payment methods, including credit and debit cards, and also sometimes PayPal.
If you opened your shop before April 2021, you should still be able to use PayPal to get paid if your country is eligible for Etsy payments.
As an Etsy seller, you can accept most modes of payment from buyers – credit card, debit card, Esty credits and coupons, bank transfer, PayPal (if available in your country), Google Pay, Apple Pay, and installment payment methods that might be available in your country.
How To Open An Etsy Shop Without A Bank Account
How to open an Etsy shop without a bank account? You can open an Etsy shop without a bank account but you will need to connect your bank account to your Etsy shop in order to get paid.
You will also need to verify your bank account or use a third party to verify your bank account if you want to continue to sell on Etsy.
Do You Need A Bank Account To Sell On Etsy
Do you need a bank account to sell on Etsy? You’ll need a credit card and a bank account to set up a seller account on Etsy and to start selling on Etsy. You’ll also need to have a product to sell.
You cannot sell on Etsy without a bank account as Etsy would not be able to pay you.
Etsy has also made it mandatory for your bank accounts to be self-verified or to be verified with a third-party service as they work towards anti-money laundering regulations.
Should I Make A Separate Bank Account For Etsy?
So, should I make a separate bank account for Etsy? Yes, you should definitely have a separate bank account for your Etsy business!
Having a separate business bank account is ideal so that you keep your business finances separate from your personal money, and can see at a glance how much money you’re spending and making.
When you have a separate business bank account, also helps your Etsy business seem more legitimate with customers, suppliers, and business partners.
You might think that you’d prefer creating a business bank account when your sales volume goes up and when you get customers, but it’s always good to start on the right footing and to have your finances clear from the get-go.
Is It Safe To Put My Bank Account On Etsy?
Is it safe to put my bank account on Etsy? Yes, it is very safe to put your bank account details on Etsy as Etsy maintains all records of your bank account and transactions.
They do not go through any third-party sites nor do they pass any secure data, including bank account information, to sellers.
Etsy, like many other e-commerce sites, also uses a secure connection or SSL, meaning your personal information on the site is protected. Etsy also uses a feature known as encryption to keep your data safe in case it falls into the wrong hands like hackers.
Do I Need A Business Bank Account For Etsy UK?
So, do I need a business banka account for Etsy UK? While you do not need a business bank account when operating as a seller with Etsy UK, and could just use a regular bank account, it is recommended to use a separate, dedicated business account regardless.
Which Is The Best Business Bank Account For E-Commerce?
Wondering which is the best business bank account for E-Commerce? Novo Bank, Chase, Axos, Bluevine, NorthOne, Found and Lili are some of the best small business banks providing accounts for e-commerce or if you’re looking for an account for your Etsy business.
When choosing a bank, it’s always good to be cognizant of your business needs, your sales volume, and the number of people your business could potentially have.
These factors would ultimately affect what type of bank account you choose. It isn’t always just about securing the one with the lowest deposit and transaction fees, and the highest interest rate.
Do I Need A Separate Account To Sell On Etsy?
So, do I need a separate account to sell on Etsy? If you’d like to create a second shop on Etsy, you most certainly need to create a new separate account with another email address. One email address only allows for one Etsy shop at a time.
If you’d like to learn more about opening a second shop on Etsy (Yes, it’s fine to have more than one!), I’ve got you right here with this handy-dandy guide!
Choosing the best bank account for your Etsy business can seem intimidating from the get-go. There are so many options out there and it’s easy to get lost in the sea of choices.
If you’re thinking seriously about opening a business bank account, then the good news is you’re already on the right track.
As a budding business owner, you’ll want to keep your finances separate right from the beginning so that you don’t confuse yourself unnecessarily with your cash input and outflows.
It also simplifies things once tax season rolls around as you just need to look at one account for all the financial details.
If you find yourself overwhelmed by the choices of banks for your Etsy business or small business, always consider what’s most important for you, and then make your decision from there.
If your priority is to find somewhere quick and fuss-free to bank your money in, and you are merely looking for somewhere with zero minimum deposit, then look for the bank that can do this the fastest.
If you’ve got time, look more into functions, facilities, features, and interest rates.
It’s really not as complicated as you think to secure the best bank account for Etsy business. Just give it a go, girl boss!