The banking category you choose shapes everything from how quickly you access funds to whether your accounting software actually syncs without manual intervention. It determines whether you see your actual cash position or just your bank balance. Yet most owners pick a provider without understanding how that choice affects fees, cash access, or accounting workflows. The wrong fit creates friction that compounds over time.
Matching your banking category to your actual operations eliminates that friction. This comparison breaks down credit unions, traditional banks, and fintech platforms across fees, interest rates, software integrations, and cash handling so you can identify which category fits your business model.
How Each Category Serves Different Business Needs
Each banking category evolved to solve different problems. Understanding these distinctions helps match your operational requirements to the right provider type.
Credit Unions: Member Owned with Relationship Lending
Credit unions operate as member owned cooperatives, delivering lower fees and lending decisions that consider factors beyond credit scores. According to Bankrate's analysis, credit union loan rates are often 0.25% to 1.00% lower than bank equivalents, though rates vary by institution.
Limited access is the main constraint. Membership requirements based on geography, employer, or military affiliation limit who qualifies, and not all credit unions offer business accounts.
Traditional Banks: Physical Infrastructure and Comprehensive Products
Chase (approximately 4,700 branches), Bank of America (approximately 3,600–3,900 financial centers), Wells Fargo (approximately 4,000 branches), and US Bank (2,200+ branches) provide extensive networks and connected lending relationships. For businesses handling daily cash deposits, this physical infrastructure is essential.
Fintech Platforms: Digital First Operations
Fintech platforms like Relay (that’s us 👋), Mercury, Novo, and Bluevine offer team spending controls, direct accounting software connections, and multiple sub-accounts for cash flow management.
Relay is a financial technology company and is not an FDIC-insured bank. Banking services provided by Thread Bank, Member FDIC. FDIC deposit insurance covers the failure of an insured bank. Certain conditions must be satisfied for pass-through deposit insurance coverage to apply.
Fee Structures and Monthly Costs
Fee differences compound over time. The gap between categories can add up to thousands annually when you factor in maintenance fees (ranging from $0 to $50 per month), transaction fees, and wire transfer charges ($0 to $35 per wire). The following breakdown shows how each category approaches pricing.
Fintech Platform Fees
Mercury, Novo, and Relay's Starter plan3 have no monthly maintenance fees and no minimum balance requirements.
Credit Union Fee Structures
Credit unions occupy a middle ground. Navy Federal, for example, offers business checking with no monthly fee and no minimum balance, while PenFed's Access America has a $10/month fee (waivable with $500 daily balance or direct deposit). Fees across credit unions vary, so verify current terms with each institution.
Traditional Bank Account Requirements
Traditional bank accounts typically include a set number of monthly transactions before overage fees of $0.30 to $0.50 per transaction apply. Bank of America requires $5,000 average monthly balance to waive fees, while Wells Fargo offers a $500 threshold.
Interest Rates and Deposit Insurance
Where you hold operating cash affects both earnings and protection. The spread between traditional banks offering 0.01% Annual Percentage Yield (APY) and fintech platforms offering higher rates creates meaningful income differences: a business with $100,000 earning 0.01% APY yields $10 annually, while the same balance at 3.50% APY generates $3,500.
Traditional Bank Interest Rates
Bank of America and Chase savings both offer 0.01% APY. Traditional banks compensate with connected services including merchant services, payroll processing, and integrated lending.
Fintech Platform Interest Rates
Brex advertises up to 3.81% APY on invested money. Relay provides tiered rates2 by subscription plan. Novo does not pay interest.
Credit Union Interest Rates
Navy Federal Business Premium Checking offers tiered interest rates on business checking balances. Alliant Credit Union offers competitive savings rates. APY figures are subject to change.
Deposit Insurance Protection
FDIC and NCUA both provide $250,000 coverage per depositor, per ownership category, per institution. Fintech platforms use partner banks with pass-through FDIC insurance. Mercury offers up to $5 million through sweep networks. If multiple fintechs use the same partner bank, deposits aggregate toward a combined $250,000 limit.
Software Connections and Accounting
Your banking choice directly affects reconciliation time. Businesses without automated bank feeds often spend significant time on manual reconciliation, while direct API connections to QuickBooks Online or Xero can achieve automatic reconciliation for most routine transactions. Implementation quality varies significantly by category.
Fintech Platform Integrations
Mercury, Relay, Novo, and Brex support QuickBooks Online and Xero. Mercury, Brex, and Ramp extend to NetSuite. Direct API connections reduce reconciliation errors common in manual data entry.
Traditional Bank Integrations
Bank of America offers QuickBooks Online connections, though users report connectivity issues requiring frequent re-authentication. Traditional banks provide regulatory stability and comprehensive product ecosystems beyond banking connections.
Credit Union Integration Capabilities
Credit unions vary in technology adoption. America First and Central Willamette offer documented QuickBooks connections. Others require manual CSV imports but compensate with personalized support.
Physical Banking Access and Cash Handling
Cash-intensive businesses face distinct constraints. Mercury and Novo cannot accept cash deposits directly, while Relay can accept cash deposits through Allpoint+ ATMs or Green Dot Network retail locations (deposits subject to caps and fees). Businesses requiring same-day deposits typically find traditional banks and credit unions more practical.
Cash Deposit Limits and Fees
Chase Business Complete includes $5,000 in monthly cash deposits; Performance Business allows $20,000. Bank of America Fundamentals permits $5,000 monthly. Wells Fargo allows $20,000 before charging $0.30 per $100. A restaurant depositing $30,000 monthly would face $30 in overage charges at Wells Fargo's rate.
Credit Union Physical Access
Navy Federal maintains 360+ branches with access to the CO-OP Network's shared ATM system, plus personalized cash handling support.
Match Your Banking to Your Business Model
Cash-intensive businesses need branch access; those prioritizing lending relationships may find credit unions or traditional banks more practical. Digital-first operations benefit from native software integrations.
Fintech platforms differentiate on specific operational features. Mercury targets startups with venture banking tools. Bluevine offers cash deposit workarounds through retail partnerships. Relay focuses on cash flow visibility through multiple checking accounts—up to 20 on the Starter plan—letting businesses separate operating funds from taxes and payroll without spreadsheet tracking.
The right choice depends on which operational friction matters most to your business. Explore Relay if account-level visibility fits your workflow.
Disclosures
1Relay is a financial technology company and is not an FDIC-insured bank. Banking services provided by Thread Bank, Member FDIC. FDIC deposit insurance covers the failure of an insured bank. Certain conditions must be satisfied for pass-through deposit insurance coverage to apply.
2For Relay Subscription Plans with an interest-bearing deposit account, the interest rate and Annual Percentage Yield on your account are accurate as of 12/11/2025 and are variable and subject to change based on the target range of the Federal Funds rate. Fees may reduce earnings:
When you are subscribed to the Starter Plan, the interest rate on your savings accounts is 0.91% with an APY of 0.91%.
When you are subscribed to the Grow Plan, the interest rate on your savings accounts is 1.53% with an APY of 1.55%.
When you are subscribed to the Scale Plan, the interest rate on your savings accounts is 2.65% with an APY of 2.68%.
3Subscription and account fees may apply. See full terms at relayfi.com/pricing.
