For freelancers, managing money isn’t just about getting paid — it’s about keeping finances organized amid fluctuating income and complex taxes.
The best bank accounts for freelancers go beyond basic checking and savings features, offering tools that simplify expense tracking and maximize profits.
If you’re a freelancer, there are a few key bank account features you’ll want to look for to get the most out of your banking experience.
Some bank accounts charge monthly maintenance fees, which can often be waived by maintaining a minimum balance in your account. But when your income is unpredictable, it can be difficult to keep a consistent, large buffer of money in your account.
That’s why it’s important to steer clear of accounts with monthly fees, which can eat into your interest earnings. Instead, look for free accounts with no minimum balance requirements. For example, SoFi offers a combination checking and savings account with no monthly fees or minimums.
Freelancers can maximize their earnings by parking their funds in an interest-bearing checking or savings account.
For example, say you set aside $500 in a savings account each month to pay your quarterly estimated taxes. If your savings account is held with a national bank, you would earn just 0.01% on the balance — practically nothing. But if you opted for a high-yield savings account instead, your money could earn 3% to 4% APY. That’s extra money you earn simply for letting your cash sit in the bank.
3. Easy transfers to and from your account
As a freelancer, some clients may pay you by check, PayPal, or another method other than traditional direct deposit. That might mean you need to make several transfers in and out of your accounts each month. So, it’s crucial to choose a bank account that makes sending and receiving money efficient and fee-free.
Read more: 5 ways to transfer money from one bank to another
4. Expense tracking and built-in bookkeeping
Some bank accounts offer tools to help account holders track their income and expenses. Freelancers with multiple projects and clients could benefit from these features to help them track their earnings, spot errors or missed payments, and simplify their tax filing process come April.
For example, Ally Bank offers a checking account with “spending buckets” that allow you to organize your expenses, as well as a savings account with “savings buckets” to set and track savings goals, and even get suggestions on ways to save more money.
Read more: How a high-yield savings account with ‘savings buckets’ could supercharge your progress
With mobile check deposit, you can deposit a check to your checking or savings account by taking photos of it in your banking app. Not only does this save you a trip to the bank — it also means you can deposit checks immediately and have the money reflected in your balance ASAP.
When your income fluctuates, it can be challenging to spend and save responsibly because you’re working with a different dollar amount each month. This is where having access to budgeting tools can help.
Capital One and Current are examples of financial institutions that offer access to digital budgeting tools to help you track your spending, set savings goals, and view your progress.
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