One of the first steps of starting a business is finding the best small business bank. The right financial institution can provide support through business checking accounts, loans, merchant services and other tools crucial for growth. 

Whether you prefer a traditional bank with physical branches, a modern digital-first solution or a community-focused credit union, Alabama offers plenty of options. Here’s our analysis of the seven best banks for small businesses in the state.

The Top Alabama Small Business Banks

These banks offer small business owners in Alabama essential tools to manage their finances and grow their companies. With features like low fees, flexible account options, and local expertise, they cater to the unique needs of entrepreneurs.

1. North One

North One is a digital-first fintech company built with small business owners in mind. Whether you’re launching a new venture or managing an established business, their fee-free business interest checking account is an excellent way to streamline your finances—and you won’t have to worry about excessive fees eating into your profits. One of North One’s standout features is its “envelope” budgeting tool, which allows you to easily set aside funds for payroll, taxes and other important expenses. 

North One offers two business banking plans: North One Standard and North One Plus. All members enjoy access to a wide range of software integrations and the Green Dot ATM network for easy access to their cash.

The North One Standard plan allows users to make same-day ACH payments at a 1.5% rate, pay bills digitally for free and access $1 physical checks. Account holders get free incoming domestic wire transfer, up to two free ATM withdrawals and one free cash deposit each month. Additional features include real-time QuickBooks syncing, an intuitive envelope budgeting system and tools for multiple users.

For businesses that require added support, the North One Plus plan is available for just $20 per month. This plan includes all the benefits of the Standard plan, plus free same-day ACH payments, free digital bill payments, free physical checks and free domestic wire receiving. Outgoing domestic wire transfers come with a reduced fee. Plus users can enjoy up to six free ATM withdrawals and three free cash deposits per month. The North One Plus plan also includes priority customer support, a dedicated customer success manager and an onboarding assistant to ensure a smooth setup.

2. Peoples Bank of Alabama

Peoples Bank of Alabama, founded in 1977, has grown from a small community bank in Holly Pond to a trusted financial partner for businesses across North and Central Alabama. Their focus on personalized local service can be a boon for small business owners.

Peoples Bank provides flexible and affordable accounts for small business owners. Their Business Checking account is ideal for businesses processing fewer than 500 transactions per month. It comes with no monthly maintenance fee and a small charge per item processed over 500. They also offer specialized options like IOLTA accounts for lawyers and Business Checking with Interest. The latter allows businesses to earn competitive interest rates on larger balances. Meanwhile, the Non-Profit Checking account is perfect for local nonprofits—there is no minimum balance, and users get unlimited check-writing. 

Peoples Bank of Alabama also provides savings options, including Business Savings and Business Money Market accounts. These accounts allow owners to manage excess capital and grow their funds with competitive interest rates.

If you want a bank with financing options, Peoples Bank of Alabama offers commercial loans, lines of credit and business credit cards. Their flexible terms and understanding of Alabama’s business landscape make them a reliable partner for companies seeking financing. Whether it’s a term loan for long-term investments or a construction loan for building or expanding, the right solution for every business is within reach

Finally, Peoples Bank of Alabama’s commercial cash management services are a great small business tool. These include ACH pre-authorized electronic debits, remote deposit capture and merchant services. Their sophisticated cash management tools help businesses maximize liquidity, minimize risks and accelerate their cash flow. If you want a bank with deep local knowledge and commitment to business success, Peoples Bank of Alabama could be the right choice for you.

3. Regions Bank

Regions Bank serves customers in the South and Midwest, including dozens of locations in Alabama alone. This full-service bank offers both in-person and digital banking options, allowing business owners to manage their finances through branch visits. They also offer 24/7 customer service, which is beneficial for businesses that require constant support or keep odd hours.

Their business checking options include Advantage Business Checking, Business Interest Checking, LifeGreen Business Checking and LifeGreen Not-for-Profit Checking. Each is designed to meet different small business needs. 

The Advantage Business Checking account is suitable for businesses with moderate transaction volumes and provides up to 500 free transactions per month. Business Interest Checking offers fewer transactions but includes interest-earning potential and lower fees for small businesses. LifeGreen Business Checking is perfect for sole proprietors and new businesses, while LifeGreen Not-for-Profit Checking caters to nonprofit organizations. Each account comes with additional benefits like access to Regions’ iTreasury or Online Banking for Business, cash-back rewards with a Business Visa Debit Card, and discounts on safe deposit boxes and check orders.

Regions’ business accounts also provide tools like My GreenInsights for better financial decision-making and iTreasury for complex cash management needs. Should you require financing, their loans and lines of credit are tailored for small companies. However, businesses may face limitations with transaction volumes and monthly fees. Despite this, Regions remains a strong choice for Alabama businesses who prefer in-person services and digital convenience.

4. Bryant Bank

Bryant Bank, founded in 2005, is an Alabama-based institution with a strong focus on small businesses. With 18 branches across Huntsville, Birmingham, Tuscaloosa, Mobile and Baldwin County, this is a smart choice for anyone seeking local, personalized banking solutions. 

Business banking options include several checking accounts. Each business checking account comes with flexible terms to suit businesses of different sizes. Enterprise Checking is ideal for low-transaction volumes. This account has no monthly fee when you sign up for electronic statements, and a low per-item fee for transactions over 150. 

The Premier Business Checking account is good for companies with higher account activity. It includes a monthly service charge, but the opportunity to offset fees with an earnings credit allowance. Meanwhile, the Business Advantage Checking offers fee waivers with a minimum balance. Additional services such as mobile banking, merchant card services and wire transfers are also available.

Other offerings include business loans (including SBA loans), lines of credit, real estate loans, merchant services and ACH solutions. Bryant Bank also provides fraud protection tools, helping businesses safeguard their operations.

For anyone looking to effectively manage cash flow, Bryant Bank’s Treasury Management Services offer tools for receivables, payables, fraud prevention and deposit management. Finally, they offer a range of business loans, including working capital, commercial real estate loans and equipment financing. 

Ultimately, Bryant Bank is a good choice for small businesses that need a full range of banking products—plus in-person customer support and services.

5. Alabama Credit Union

If a credit union with simple banking products is more your speed, Alabama Credit Union (ACU) is a great solution. ACU offers membership to individuals, families and businesses in Alabama and certain parts of Florida. Community members who live, work, worship or attend school in specific Alabama counties—ranging from Baldwin to Winston—and Escambia County in Florida are eligible for membership. Businesses within these counties, along with employees, retirees and relatives of current members, can also join. 

ACU operates 37 branches across Alabama and one in Northwest Florida. Their small business offerings are particularly appealing, with a Member Business Account that comes with no monthly fee, 500 free transactions per month and access to online and mobile banking. For businesses requiring more, transactions beyond 500 are charged a modest $0.15 per item. Businesses can also benefit from overdraft protection. 

If you need funding, small business owners can apply for loans to for real estate purchases, equipment, vehicles and more. Lastly, Alabama Credit Union’s commitment to responsive, personalized service sets it apart from traditional banks. While there are no business savings options, credit cards or financial management tools, the no-frills local service is great for anyone just starting out.

6. First Bank of Alabama

First Bank of Alabama, established in 1848, has been a part of the Talladega community for over 170 years. They operate 12 branches across several counties, including Talladega, Clay, Randolph, Calhoun, Chilton and Cleburne.

First Bank of Alabama offers several business checking accounts. The Small Business Checking, Business Analysis Checking and Business Interest Checking accounts are each tailored to different business sizes and activity levels. For example, the Small Business Checking account provides 125 free deposit and debit items per month, with a fee of $0.35 per item over that limit. The Business Analysis Checking is designed for businesses with higher transaction volumes, offering an earnings credit allowance to offset monthly fees.

In addition to checking accounts, First Bank of Alabama offers business savings and investment options to help businesses save for the future. Their Cash Management services streamline financial operations by providing solutions like Merchant Card Services, ACH payments, and remote deposit capture. Businesses can also access payroll solutions, including electronic payroll and payroll cards, which can be issued to employees without bank accounts. For those looking to expand and earn rewards, the bank offers competitive business credit cards with rewards programs and advanced security features.

First Bank of Alabama’s also has wide range of electronic banking tools, such as online banking, mobile apps and even telephone banking—which makes it easy for businesses to manage their finances from anywhere in the world. With low fees, comprehensive financial services and a focus on building long-term relationships, First Bank of Alabama might just be the right solution for your Alabama small business.

7. NobleBank

Last but not least, NobleBank is a community-focused financial institution located in Central Alabama. NobleBank has branches in Anniston, Alexandria, Birmingham, Piedmont, Oxford and Heflin. Their physical presence and full-service business financial products make it a great choice for Alabama businesses.

NobleBank offers a Small Business Checking account with 125 free transactions per month. After that, there’s a minimal fee of $0.25 per transaction. With a $100 minimum opening deposit, the account includes free online banking, overdraft protection and access to a suite of checking solutions. This account is ideal for businesses with lower transaction volumes looking for an affordable way to manage their finances.

NobleBank’s Commercial Analyzed Checking account caters to high-volume businesses, with no minimum balance requirement and no transaction limits. A $20 monthly maintenance fee applies, but transaction fees are low, and earnings credits can offset many of these charges. For nonprofits and sole proprietors, the Non-Profit and Sole Proprietor Checking account offers flexibility and competitive interest rates, with up to 75 free deposits and 50 debits per month. This account has a $100 minimum opening deposit and a $10 monthly fee, which can be waived with an eligible balance.

NobleBank also offers a Business Savings account, which earns interest on daily balances and has a $6 monthly fee that can be waived with a $100 minimum balance. Their Business Money Market account also comes with an $8 monthly fee unless a $2,500 daily balance is maintained. Businesses can invest in Certificates of Deposit (CDs), with a $1,000 minimum deposit, flexible terms and FDIC insurance.

Alabama Banking, Made for Small Businesses

When choosing a bank for your Alabama business, consider your company’s specific needs and priorities. Digital-first solutions like North One offer modern tools and minimal fees, while established institutions like Regions Bank provide extensive branch networks and comprehensive services. Each option has its strengths—so take the time to evaluate factors like transaction volumes, physical location requirements, lending needs and digital banking capabilities before making your decision.