rewrite this title Should You Bank With Square? – NerdWallet

If you already use Square to take payments, opening a Square Checking account makes sense. It lets you spend your revenue right away, instead of waiting a day or two for funds to transfer to another bank.

But make sure you open a free business checking account at a different bank, too. Having two accounts gives you some flexibility if either institution freezes an account — which is a relatively common complaint among users of online banks.

Square is part of Block. It is a financial technology company, not a bank. Checking services are provided by Sutton Bank, Member FDIC. You’ll access your account via Square’s platform, but your funds are actually held by Sutton Bank.

If you’ve heard of Square, it’s probably as a payment processor and point-of-sale system. But in recent years, the company has rolled out Square business loans, credit cards and now bank accounts. This is part of an effort to provide small-business owners with lots of services under one roof.

While Square isn’t a bank, Square Checking works the same way as other checking accounts.

If you already use Square, it makes sense to open a Square Checking account. It’s free and quick. And it doesn’t hurt to have another way to access your money.

However, we don’t recommend that any business owner put all their eggs in one banking basket. If one of your transactions raises red flags, any bank can freeze your account or place a hold on some funds. That can grind business to a halt until it’s resolved. (This complaint is especially common for neobanks, where customer service might be harder to reach.)

For that reason, if you open a Square bank account, open one at another institution too. You can use your Square account for revenue and short-term expenses. But as you start to stockpile cash, move it to another institution where it can be available for things Square lacks, like wire transfers.

NBKC’s online business bank account is straightforward — you’ll get no monthly fee, unlimited transactions, ATM access, checks and wire transfers, but few software features. If all you need is a bank account, this one is a great choice. Read our review.

Bluevine’s business checking account recently added invoicing — users can send invoices or a QR code to clients and take payments via Stripe. You can set your payout schedule in Stripe. Instant payouts are possible, but cost extra. Bluevine also pays 1.5% APY on balances (terms apply). Read our review.

Found’s business checking account is designed for solopreneurs and self-employed business owners. Its built-in software suite includes invoicing, automatic set-asides for taxes, expense categorization and tools for managing 1099 contractors. Read our review.

North One pays an industry-leading 2.5% APY on its business checking account. Standard transfers from Square should take one business day. You can also pay a fee for an instant transfer. North One offers standard banking features like bill pay, checks and wires. Read our review.