As a small business owner, you have to invest in your own growth while keeping a close eye on cash flow. When margins are slim, your choice of business checking account can have long-term consequences, but should you bank with a fintech or a credit union?
The best banking provider for small business owners will help you manage your finances and access capital, which fintechs and credit unions all do. Their differences lie in how they instill confidence: Fintechs like Bluevine emphasize speed, convenience, control, and intuitive digital tools, so you can minimize time spent on finances while maximizing growth on your operating balances. Credit unions establish trust via their member-owned structure, local support, and (in some cases) a more personal banking relationship.
Below, we’ll explore how this main difference can result in a vastly different business banking experience with a fintech vs. a credit union.
Key takeaways
- Bluevine supports small businesses that want fast, convenient digital banking with integrated tools and automated cash management.
- Credit unions provide member-owned banking, local services, and relationship-based lending to businesses.
- Bluevine Business Checking offers up to 3.0% on checking balances,BVSUP-00147 while credit unions offer either low or tiered APY percentages.
- Bluevine accounts are FDIC-insured up to $3M.BVSUP-00108 Credit unions are NCUA-insured up to $250,000.
Fintech vs. credit unions
Traditional banks, credit unions, and financial technology companies are all federally backed and regulated financial services providers, but they’re managed differently and require varying measures of customer involvement.
How credit unions work
Credit unions are financial institutions that offer business checking, savings, and loans. Like traditional banks, they operate out of physical branches and ATMs, and all deposits are insured up to $250,000 by the federal government.
Unlike traditional banks, credit unions are member-owned not-for-profit cooperatives—they’re owned and operated by the people who use them. Elected board members set company policy, and profits are returned to members through lower fees, better interest rates, higher APY, or new services and programs.
Membership rules vary: Some credit unions require your business to be located in a specific area, belong to a particular industry, or be affiliated with particular groups such as veterans.
How fintechs work
Fintechs are digital-first private (or sometimes publicly traded) companies that offer financial services, such as business checking, payments, and lending. Their lack of physical infrastructure gives them lower overhead, which allows fintechs to provide a faster, more efficient banking experience—with more favorable APY, fewer and lower fees, and easier online money management.
Fintechs tend to have more streamlined applications than traditional banks or credit unions, and may approve accounts and loans online within minutes.
| Traditional banks | Bluevine | Credit unions | |
|---|---|---|---|
| Structure | Private for-profit company | Private for-profit company | Member-owned not-for-profit cooperative |
| APY on checking balances | 0.01–0.10% on full balance | up to 3.0% on full balanceBVSUP-00117 | 0.50–1.00% on full balances, up to 5.00% on partial balances |
| Deposit insurance | $250,000 (FDIC) | $3,000,000 (FDIC)BVSUP-00108 | $250,000 (NCUA) |
| Monthly fees | $12–$15 (waivable) | $0–95 (waivable)BVSUP-00166 | $0–10 |
| Minimum balance | $500–5,000 | $0 | $0 or low |
| Outgoing wire fee (domestic) | $25–35 | Up to $15BVSUP-00051 | $15–25 |
| Incoming wire fee domestic) | $15 | $0 | $0 |
Bluevine vs. credit unions: How they differ
Banking with a credit union is similar to banking with a traditional bank, except that you interact as a member, not just a customer. The shared accountability of collective ownership and profit sharing (in the form of adjusted rates) establish trust and confidence. If you want to be more involved with your financial provider, a credit union can be a good option.
If you’re looking to spend less time managing your finances rather than more, then Bluevine may be your best business banking option. With Bluevine, you have access to a full business banking suite—including checking, lending, and accounts payable—without relying on a branch. Use our intuitive cash management tools and automation features to streamline operations and save time.
Did you know?
With Bluevine Business Checking, you can add up to 20 sub-accounts to separate money for taxes, payroll, and other expenses. Plus, set up automatic transfer rules to streamline your budgeting even further.
Fees and rates
The right business checking account can help you save and earn money just by using your account. Bluevine’s Standard business checking plan has no monthly fee, while our Plus and Premier plans come with fees that can be waived by meeting activity goals.
Bluevine Business Checking customers can earn 1.3% with the Standard plan by meeting a monthly activity requirement,BVSUP-00005 or automatically earn 1.75% with the Plus planBVSUP-00134 or 3.0% with Premier.BVSUP-00117
Credit unions vary widely in their fee structures and checking account APY. Business accounts at credit unions tend to offer limited high APY, such as high APY on your first $20,000 and low APY on the rest.
Did you know?
Bluevine’s Standard checking plan already comes with lower transaction fees than most traditional banks and credit unions. But you can save even more on fees with our Plus and Premier plans.
Plus customers get 20% off most Standard payment fees, while Premier customers get 50% off most Standard payment fees. For example, a Standard customer might pay $10 for a same-day ACH transfer, but that flat fee would only cost $5 with the Premier plan.BVSUP-00072
Business lines of credit and term loans
At traditional banks, access to capital can be difficult for newer businesses with limited credit history that need to grow or cover surprise expenses. Credit unions and fintechs make up for this in different ways.
Credit unions may offer relationship-based lending, which can be helpful if you want a lender to deeply understand your personal and business context. Bluevine offers much faster applications and approvals (some times in as fast as five minutes, online). Bluevine’s integrated line of credit also allows for faster access to your funds.
Both fintechs and credit unions tend to offer lower interest rates than traditional banks, though rates fluctuate and may vary based on creditworthiness.
Did you know?
You can easily apply for multiple forms of financing—including the Bluevine Line of Credit and term loans via our partners—through one simple Bluevine application.BVSUP-00126 The best part: We don’t do a hard credit check until you’ve accepted an offer, so applying won’t impact your credit score.BVSUP-00128 Actually, there’s an even better part: You can access funds from approved line of credit draws instantly when you pair your Bluevine Line of Credit with a Bluevine Business Checking account.BVSUP-00127
Accounting and integrations
As a financial technology company, Bluevine has strong software integrations with other digital platforms, including automated reconciliation with Xero and QuickBooks Online.<sup>BVSUP-00056/sup> Syncing your Bluevine checking account to your accounting system saves time and eliminates the risk of human error during manual reconciliation.
The usability and compatibility of credit unions varies significantly, based on whether the credit union prioritizes local in-person use or a mix of local and national members.
Cash deposits and withdrawals
For cash-based small businesses, Bluevine supports cash deposits and withdrawals at 120,000+ ATMs and retail locations nationwide.BVSUP-00110
Credit unions support free cash deposits at their own ATMs, which are usually limited to their local area. Access to a credit union’s branch can help expedite large or same-day deposits.
Did you know?
In addition to easy mobile check deposits and cash deposit options, Bluevine offers built-in accounts receivable tools with its comprehensive banking platform.
Create, send, and track professional invoices to your customers and get paid effortlessly via traditional payment methods—like ACH or wire—as well as credit card or digital wallet via payment links powered by Stripe.BVSUP-00180 You can also accept in-person payments using Tap to Pay through the Bluevine mobile app.BVSUP-00192
FDIC insurance
Bluevine business checking accounts are FDIC insured up to $3 million per depositor through Coastal Community Bank, Member FDIC and our program banks.BVSUP-00108
Credit unions are backed by the National Credit Union Administration (NCUA) up to the standard amount of $250,000. The FDIC and NCUA are both agencies of the federal government of the United States.
Should you use Bluevine or a credit union for your business banking?
Your decision should be based on where you find peace-of-mind in your business finances. If you’re interested in a slower banking experience based on personal or industry relationships, then a credit union can be a great alternative to a traditional bank.
However, if you want to make the most of your time and money while opening yourself up to more growth opportunities, Bluevine is the best business banking platform for speed, efficiency, financial organization, and convenience.
FAQs
Is Bluevine better than a credit union for small business banking?
Depending on your business priorities, Bluevine can be better for small businesses seeking a digital-first experience that prioritizes speed, convenience, and automation. Bluevine also features no monthly fees for its Standard checking plan, the opportunity to earn high-yield APY on checking balances, built-in payment tools, and fast lending applications and approvals.
Credit unions, comparatively, may provide more personalized service, relationship-based lending, physical branch access, and potentially lower loan rates.
Does Bluevine offer business loans?
Yes, Bluevine offers small business lending products, including:
- Bluevine Line of Credit up to $250,000BVSUP-00020
- Term loans up to $500,000, via lending partnersBVSUP-00151
- SBA 7(a) loans up to $350,000, via Bluevine partner Fundera
These products are designed for businesses who need ongoing access to working capital, and have a streamlined online application process compared to traditional banks and credit unions. Applying for a Bluevine Line of Credit does not impact your credit score.BVSUP-00008
Do credit unions and fintechs have FDIC insurance?
Credit unions are not FDIC-insured. They are instead federally backed by the National Credit Union Administration (NCUA) up to $250,000. Financial technology companies do not have direct FDIC insurance, but many—like Bluevine—partner with FDIC-insured banks and sweep network programs to offer FDIC insurance up to $3 million.BVSUP-00108
