Software your AI can run.
Bank shopping in South Dakota? Read this first.
You came here comparing business banks. That's the old question. Holdings built a new category — invoicing that AI can run — and it's what most of the businesses using this comparison table end up on.
Updated August 2026 · 8 banks compared below
A different answer
Holdings isn't a bank.
It's software your AI can run.
The flagship is agentic invoicing — connect Claude, ChatGPT, or Cursor to your Holdings account via MCP and direct your AI to draft invoices, chase payments, and reconcile entries in plain English. No monthly fee. Card processing is 3% + $0.30 per payment collected. Accounting that auto-connects when you want it: $25/mo.
If you're bank-shopping because you're setting up a business, the question you probably actually have is: how do I get paid? Holdings answers that. It works on top of whichever bank you choose from the table below — pick the one that fits, then point your AI at Holdings to handle the rest.
Quick Comparison
These are the top 8 business banks in South Dakota we compared, ranked by fees, APY, and features. Holdings is not a bank and not in this table — see what Holdings does instead →
| Bank | Type | Monthly Fee | APY |
|---|---|---|---|
| Holdings | Online | $0 | 1.75% |
| First Dakota National Bank Business Checking* | Regional | $8waivable | 0.00% |
| First PREMIER Bank Business Checking* | Regional | $10waivable | 0.00% |
| FNBO Free Business Checking | Regional | $0 | 0.00% |
| U.S. Bank Silver Business Checking | National | $0 | 0.00% |
| Wells Fargo Initiate Business Checking | National | $15waivable | 0.00% |
| CorTrust Bank Business Checking* | Regional | $8waivable | 0.00% |
| Capital One Basic Business Checking | National | $15waivable | 0.00% |
* Rate and fee data sourced from each bank's published schedule. Verify before opening an account.
Detailed Reviews
Holdings
Online | $0/mo | Online only
Businesses wanting free banking + optional accounting from $25/mo
Key Features
- •Free: 48 free tools + $0 banking + 1.75% APY
- •Software ($25/mo): Full double-entry accounting, invoicing, P&L reports
- •Nonprofits: fund accounting at $25/mo + free verified profile & directory listing
Pros
- ✓$0 banking — no monthly fees, no minimums, no transaction fees
- ✓1.75% APY on every dollar — among the highest in business banking
- ✓48 free tools: invoices, estimates, payroll calculator, receipt scanner
- ✓Full accounting from $25/mo replaces QuickBooks
- ✓Free verified nonprofit profile + directory listing for 501(c)(3)s
Cons
- ✗No physical branches
- ✗Less name recognition than legacy banks
First Dakota National Bank Business Checking
Regional | $8/mo | 25 branches
South Dakota businesses wanting local relationship banking with history
Key Features
- •South Dakota-headquartered bank since 1872
- •Dedicated small business banking team
- •Full commercial lending and treasury management
Pros
- ✓Deep South Dakota roots — over 150 years in business
- ✓Strong commercial lending and ag banking
- ✓Dedicated business relationship managers
Cons
- ✗Monthly fee unless minimum balance maintained
- ✗Limited digital tools compared to national competitors
- ✗Branch network concentrated in eastern South Dakota
First PREMIER Bank Business Checking
Regional | $10/mo | 30 branches
Sioux Falls-area businesses needing full-service commercial banking
Key Features
- •Largest South Dakota-headquartered bank ($3.5B+ in assets)
- •Strong Sioux Falls presence with full commercial services
- •PREMIER Bankcard division is one of the largest credit card issuers
Pros
- ✓Largest South Dakota bank with strong local reputation
- ✓Comprehensive commercial banking services
- ✓Strong business lending programs
Cons
- ✗Monthly fee unless minimum balance maintained
- ✗Credit card division is separate from business banking
- ✗Limited presence outside South Dakota
FNBO Free Business Checking
Regional | $0/mo | 10 branches
South Dakota businesses wanting free checking with regional branch access
Key Features
- •Free business checking with no minimum balance
- •Unlimited transactions with no per-item fees
- •Branches in South Dakota, Nebraska, and surrounding states
Pros
- ✓Truly free — no monthly fees, no minimum balance
- ✓Unlimited transactions
- ✓Strong regional bank with $30B+ in assets
Cons
- ✗Limited South Dakota branch network compared to local banks
- ✗No interest on business checking
- ✗Headquartered in Omaha, not South Dakota
U.S. Bank Silver Business Checking
National | $0/mo | 30 branches
South Dakota businesses wanting a national bank with no monthly fee
Key Features
- •No monthly maintenance fee
- •125 free transactions per cycle
- •Strong South Dakota branch presence
Pros
- ✓No monthly maintenance fee
- ✓Good South Dakota branch coverage
- ✓Strong business lending and SBA programs
Cons
- ✗Only 125 free transactions per cycle
- ✗$2,500 cash deposit limit before fees
- ✗No interest on business checking
Wells Fargo Initiate Business Checking
National | $15/mo | 20 branches
South Dakota businesses wanting a national bank with extensive services
Key Features
- •Branch presence across South Dakota
- •Low $25 minimum opening deposit
- •Business Online banking with Zelle
Pros
- ✓Strong South Dakota branch presence
- ✓Very low $25 minimum to open
- ✓Strong digital banking platform
Cons
- ✗$15/month fee unless balance requirements met
- ✗Only 100 free transactions per cycle
- ✗Reputation concerns from past scandals
CorTrust Bank Business Checking
Regional | $8/mo | 20 branches
Rural South Dakota businesses and agricultural operations
Key Features
- •South Dakota community bank with strong rural presence
- •Agricultural lending expertise
- •Personal relationship-driven banking
Pros
- ✓Strong presence in rural South Dakota communities
- ✓Excellent agricultural lending programs
- ✓Personalized service with local decision-making
Cons
- ✗Monthly fee unless minimum balance maintained
- ✗Smaller and less tech-forward than national competitors
- ✗Limited digital banking features
Capital One Basic Business Checking
National | $15/mo | Online only
Digital-first businesses with occasional cash deposit needs
Key Features
- •Unlimited fee-free digital transactions
- •$5,000/month free cash deposits
- •Cash deposits at select Allpoint ATMs
Pros
- ✓Unlimited digital transactions (no per-transaction fees)
- ✓Strong mobile and online banking
- ✓$5,000 free cash deposits monthly
Cons
- ✗No Capital One branch locations in South Dakota
- ✗$15/month unless $2,000 balance maintained
- ✗Limited in-person support
South Dakota Banking Landscape
108
FDIC-Insured Institutions
3+
Major Regional Banks
3+
Major Credit Unions
Top Regional Banks
- First PREMIER Bank — $3.5B
- First Dakota National Bank — $2.8B
- Great Plains Bank — $1.2B
Top Credit Unions
- Sioux Falls Federal Credit Union — 25,000+ members
- Black Hills Federal Credit Union — 80,000+ members
- Dakotaland Federal Credit Union — 30,000+ members
State Banking Programs
- •South Dakota Small Business Development Center (SBDC) — free counseling and training
- •Governor's Office of Economic Development (GOED) — tax incentives and workforce programs
- •South Dakota REDI Fund — revolving economic development loans
- •SBA South Dakota District Office — government-backed loan programs
Regulator: South Dakota Division of Banking
Starting a Business in South Dakota
| Secretary of State | South Dakota Secretary of State |
| LLC Fee | $150 |
| Corp Fee | $150 |
| Income Tax | No personal income tax. No corporate income tax. |
| Sales Tax | 4.5% state + up to 2% local (6.5% max combined) |
| Franchise Tax | None |
Business Incentives
- •No personal income tax — significant advantage for business owners
- •No corporate income tax — profits stay in the business
- •No personal property tax on business assets
- •Revolving Economic Development Initiative (REDI) Fund — low-interest loans
- •South Dakota Small Business Development Center — free consulting
Nonprofit Banking in South Dakota
Registration
File Articles of Incorporation (nonprofit) with South Dakota Secretary of State
Charitable Solicitation
South Dakota does not require charitable solicitation registration.
Tax Exemption
South Dakota has no income tax, so no state income tax exemption is needed. Nonprofits may apply for state sales tax exemption through the Department of Revenue.
AG Reporting
Annual report to South Dakota Secretary of State required. Due by the first day of the anniversary month of incorporation.
Resources
- South Dakota Nonprofit Network →
- South Dakota Secretary of State — Business Services →
- South Dakota Department of Revenue →
For South Dakota nonprofits
Invoicing that AI can run — built for 501(c)(3)s too.
Direct your AI to send donation acknowledgment invoices, track grant receivables, and keep your books current — no monthly fee for invoicing. Works on top of whichever bank your organization uses. Accounting add-on from $25/mo.
Holdings for nonprofits →Where Holdings fits for South Dakota businesses
Whichever bank you pick from the list above, Holdings runs alongside it: direct Claude, ChatGPT, or Cursor to draft invoices, chase payments, and keep your books current. No monthly fee · 3% + $0.30 per payment collected.
See how agentic invoicing works →Frequently Asked Questions
What is the best bank for a small business in South Dakota?
The best bank depends on your needs. For nonprofits and small orgs wanting zero fees, Holdings offers $0 monthly fees with 1.75% APY. For businesses needing branch access, First Dakota National Bank and First PREMIER Bank both have strong South Dakota networks. For free checking with a national bank, FNBO offers a strong option.
Can I open a business bank account online in South Dakota?
Yes. Several banks allow online account opening for South Dakota businesses, including Holdings (fully online, no branch visit required), FNBO, Chase, and Capital One. Local banks like First Dakota National and CorTrust Bank typically prefer an in-person visit.
What do I need to open a business bank account in South Dakota?
You'll typically need your EIN (Employer Identification Number), Articles of Organization filed with the South Dakota Secretary of State, a government-issued photo ID, and your business license. Some banks also require an initial deposit.
Does South Dakota have a state income tax?
No. South Dakota has no personal income tax and no corporate income tax, making it one of the most business-friendly states in the country. The state relies on a 4.5% sales tax (plus local additions) for revenue.
What are the cheapest business checking accounts in South Dakota?
Holdings offers completely free business checking with no monthly fees, no minimum balance, and no transaction limits. FNBO also offers free business checking with no minimum balance and unlimited transactions. U.S. Bank's Silver Business Checking has no monthly fee with 125 free transactions.
Do South Dakota nonprofits need a special bank account?
While not legally required, a dedicated nonprofit bank account helps with IRS compliance, transparency, and donor confidence. Holdings specializes in nonprofit banking with $0 fees, 1.75% APY, and tools built specifically for 501(c)(3) organizations.
Why are so many banks headquartered in South Dakota?
South Dakota's favorable banking laws — including no cap on interest rates (usury laws repealed in 1980), no corporate income tax, and a business-friendly regulatory environment — attracted major financial institutions like Citibank and Wells Fargo to charter banks in the state.
Or skip the bank comparison.
Try software your AI can run.
Invoicing, payment links, and connected accounting — directed by Claude, ChatGPT, or Cursor. No monthly fee to start.
Not ready to switch yet? Use a free tool now
Built by Holdings — the banking + accounting platform that keeps businesses and nonprofits audit-ready. Free, no account needed. Connect banking and let your books run themselves when you’re ready.
Ready to stop doing it by hand? Explore Invoicing software for small business, Small business accounting software, or Small business bookkeeping software.
Explore More
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