In the course of running their businesses, freelancers have to perform different financial transactions, and most importantly they have to get paid.

A lot could depend on the channel through which you perform these transactions and how you utilise tools available to you to manage key aspects of your finances.

Digital banking is there to the rescue.

There are a variety of modern banks, some of them fully digital, designed specifically to cater to freelancers or part-time workers. With an endless supply of such options. Freelancers are often faced with the tough task of deciding what platform to bank with.

In this article, we will explore the top banks freelancers use in their day-to-day activities. But before then, let's look at the importance of choosing the right digital bank.

Why choosing a digital bank for freelancers is important

When choosing a digital bank for your freelance business, it's important to consider factors such as fees, features, and customer support. You should also think about the specific needs of your business, such as whether you require multi-currency accounts or invoicing tools, and choose a digital bank that offers the features that are most important to you and your freelance business.

With the right bank, you can save on costs, run your business more productively and keep your finances in check.

Features to Consider When Choosing a Digital Bank for Freelancers

Below are important factors to consider before you select a bank for your freelancing business:

• Low Fees and Minimum Balance Requirements: banks have different platform and service fees, and freelancers want to cut costs so they would prefer low to no fees at all. Also, most banks have a minimum deposit value, this varies across banks. A low minimum balance requirement is ideal.
  

• Online and Mobile Banking Services: convenience is the watchword in today's business, people want to achieve results with minimal effort. A bank that has no online and mobile banking services is a step behind and most freelancers would find them a bad choice.
  

• Easy and Convenient Transactions: the intuitiveness of banking services via digital platforms is a very critical consideration, people want to easily achieve their objectives without distraction and at a decent speed. A bank that achieves those is bound to be admirable.
  

• Free ATM Access: this is also another crucial factor to consider. Does the bank offer free ATM services? How many ATMs are available for easy access? The ability to withdraw money with ease at any location is great.
  

• Merchant Services: what are the special merchant services your bank offers? Some people might find it convenient to bill buyers using their favorite digital bank.

That said, what are the best banking options for self-employed professionals like freelancers?

Online banking for freelancers: Top Digital Banks for Freelancers 2023

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1. Chime

This is one of the most widely used digital banking options by freelancers. Though not an actual bank, Chime enables you to set up accounts to send and receive money with great ease.

Some of the top reasons for using Chime include:

• No monthly fees, no minimum balance requirements, and the bank has free overdraft protection. Chime is therefore a great choice for freelancers who want to avoid unnecessary charges.
• The digital bank has online and mobile banking services that are user-friendly and intuitive, with features like mobile check deposits and instant notifications.
• With access to more than 60,000 fee-free ATMs in the US, Chime makes it easy for freelancers to access their money.
• 24/7 customer support.

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2. N26 banking

For freelancers who work internationally, N26 is a top UK-based digital bank to consider. With a presence in over 25 countries, N26 offers free international ATM withdrawals, no foreign transaction fees, and competitive exchange rates. Their online and mobile banking services are also top-notch, with features like real-time notifications and budget tracking.

Other pros include:

• N26 offers business accounts with invoicing features.
• An insights feature to automatically categorise your expenditure in real-time.
• Crypto trading is also possible on the platform.
• A feature called Spaces lets you put your funds in categories like sub-accounts.
• Links to Apple pay to make payment easy.
• No monthly fee for their premium accounts.
  

You can start with a free basic account or premium accounts with additional features such as travel insurance and higher ATM withdrawal limits.

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3. Revolut

Revolut is a digital banking app that offers a range of services that make banking easy for freelancers. One of the unique features of Revolut is that it allows you to hold and exchange over 30 currencies at the interbank exchange rate. The app is designed to help businesses with easy money management, travel planning and investments.

The main features include:

• Like most of the other options, Revolut also provides budgeting tools.
• The ability to set spending limits and block/unblock cards in the app.
• Multi-currency accounts. And currency exchange.
• Fee-free spending abroad, and free ATM withdrawals up to a certain limit.
• Revolut also offers business accounts and invoicing features.

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4. TransferWise

Wise, formerly known as Transferwise, is an incredibly popular digital banking platform, in use in over 175 countries. With support for over 50 currencies, it specializes in low-cost international transfers, offering multi-currency accounts, low fees, and real exchange rates, this means you'll get a better exchange rate than you would from a traditional bank.

Wise also offers a debit card and business accounts with invoicing features like other banking tools. Making it one of the best bank accounts for freelancers.

The platform which Supports over 300,000 businesses currently is regulated by the bank of Belgium and aims to help people live and work anywhere seamlessly.

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5. Monzo

Monzo is a digital bank that lets you easily create and use a free UK bank account. With millions of users currently, Monzo enables you to make transactions globally with a MasterCard.

Another interesting feature of Monzo is that it allows you to set up "Pots" - separate savings accounts that you can set aside money for specific goals in.

Other features include:

• Offers fee-free spending abroad.
• Budgeting tools.
• Has analytics to help monitor spending.  
• Real-time notifications.
• Monzo also offers business accounts with invoicing features.
• Travel and phone insurance features.

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6. Starling Bank

With Starling bank, you can create a UK bank account in minutes. The bank which is regulated by FSCS is 100% digital with human-powered customer service available 24/7.

Starling bank offers similar features that other banking options have, e.g, fee-free spending abroad, free ATM withdrawals, and a range of business banking services, including invoicing and tax tools.

One of the standout features of Starling bank is its "Goals" feature, which allows you to set savings goals and track your progress toward them.

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7. NorthOne

NorthOne is one option to consider if finance management is of concern to you. The financial technology platform is built specifically for freelancers and small businesses, and it eliminates the ceremonies of financial administration by including features that make banking an easy process.

Some of them include: easy to set up accounts, budgeting tools, ATM access, etc.

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8. Payoneer

To round off our list is one of the most popular cross-border digital banking options out there. Just like Wise, Payoneer has a rich capacity for currency exchange. Payoneer is linked to a lot of freelance platforms, e.g Upwork and Fiverr, as well as popular e-commerce platforms. This makes it a widely accepted solution for freelancers.

Notable features include:

• Billing service for merchants.
• Free invoice generator.
• Easy currency conversion.
• Can integrate with accounting software like Quickbooks.

Conclusion

Freelancers need financial platforms that can help them be more productive and financially prudent. Standing in queues at the bank is definitely not encouraging. And since most freelancers work remotely, payment systems that are digital and fast are more useful.

Additionally, several of the apps that make digital banking for small businesses possible have built-in features such as invoice generators, budgeting tools, etc, that can help you do more on a single platform.