Software your AI can run.
Bank shopping in Tennessee? 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 Tennessee 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% |
| Chase Business Complete Banking | National | $15waivable | 0.00% |
| First Horizon BizEssentials Checking | Regional | $15waivable | 0.00% |
| Bank of America Business Advantage Fundamentals | National | $16waivable | 0.00% |
| Wells Fargo Initiate Business Checking | National | $15waivable | 0.00% |
| Eastman Credit Union Business Checking | Credit Union | $0 | 0.00% |
| Pinnacle Financial Partners* | Regional | $10waivable | 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
Chase Business Complete Banking
National | $15/mo | 75 branches
Established businesses needing full-service branch banking and merchant services
Key Features
- •Built-in payment acceptance via Chase QuickAccept
- •Integrated invoicing and cash flow tools
- •Same-day deposits with QuickAccept
Pros
- ✓Largest branch and ATM network in Tennessee
- ✓Excellent mobile app and digital tools
- ✓Integrated payment acceptance and invoicing
Cons
- ✗$15/month fee unless $2,000 balance maintained
- ✗Only 100 free transactions per cycle
- ✗No interest earned on business checking
First Horizon BizEssentials Checking
Regional | $15/mo | 180 branches
Tennessee businesses wanting a regional bank with strong local presence
Key Features
- •Tennessee-headquartered bank (Memphis) with deep local roots
- •250 free transactions per statement cycle
- •Dedicated small business bankers in every branch
Pros
- ✓Largest Tennessee-headquartered bank ($82B+ in assets)
- ✓More free transactions than national bank competitors
- ✓Strong commercial lending and treasury management
Cons
- ✗Higher minimum balance to waive fee ($10,000 vs $2,000 at Chase)
- ✗Less robust digital tools compared to Chase/BofA
- ✗Branch network mostly in Tennessee and Southeast
Bank of America Business Advantage Fundamentals
National | $16/mo | 55 branches
Businesses that qualify for Preferred Rewards tier benefits
Key Features
- •200 free transactions per statement cycle
- •No monthly fee for first 12 statement cycles
- •Preferred Rewards for Business program for rate discounts
Pros
- ✓200 free transactions (more than Chase)
- ✓First year free (no monthly fee for 12 cycles)
- ✓Strong integration with Zelle and digital payment tools
Cons
- ✗$16/month fee after first year (higher than Chase)
- ✗Fewer branches in Tennessee than Chase or First Horizon
- ✗Higher minimum balance to waive fees permanently
Wells Fargo Initiate Business Checking
National | $15/mo | 25 branches
New businesses wanting a national bank with low opening deposit
Key Features
- •Low $25 minimum opening deposit
- •Contactless debit card and digital wallet support
- •Business Online banking with Zelle
Pros
- ✓Very low $25 minimum to open
- ✓Strong digital banking platform
- ✓Multiple ways to waive monthly fee
Cons
- ✗Monthly fee increased to $15 (from $10) effective March 2026
- ✗Only 100 free transactions per cycle
- ✗Fewer TN branches than Chase or First Horizon
Eastman Credit Union Business Checking
Credit Union | $0/mo | 30 branches
East Tennessee businesses wanting fee-free credit union banking
Key Features
- •Largest credit union in Tennessee ($9.7B+ in assets)
- •Beyond Free Business Checking with no monthly fees
- •Free stock checks every box ordered
Pros
- ✓No monthly service fee ever
- ✓Largest TN credit union with strong East Tennessee presence
- ✓Access to 56,000+ surcharge-free ATMs via Allpoint/Presto networks
Cons
- ✗Branch network concentrated in East Tennessee
- ✗Must qualify for membership (live/work in service area)
- ✗Less advanced digital tools than national banks
Pinnacle Financial Partners
Regional | $10/mo | 50 branches
Growing Nashville-area businesses needing relationship banking
Key Features
- •Second-largest TN-headquartered bank ($56B in assets)
- •Nashville-based with strong middle Tennessee business relationships
- •Named #4 Best Bank to Work For nationally
Pros
- ✓Exceptional customer service reputation
- ✓Strong business lending and advisory services
- ✓Deep Nashville/Middle Tennessee roots
Cons
- ✗Limited branch presence outside Middle Tennessee
- ✗Business checking details less transparent online — verify fees in branch
- ✗Less brand recognition outside Tennessee
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 Tennessee
- ✗$15/month unless $2,000 balance maintained
- ✗Limited in-person support
Tennessee Banking Landscape
307
FDIC-Insured Institutions
3+
Major Regional Banks
3+
Major Credit Unions
Top Regional Banks
- First Horizon Bank — $82.2B
- Pinnacle Financial Partners — $56.0B
- Wilson Bank Holding — $6.5B
Top Credit Unions
- Eastman Credit Union — 356,000+ members
- Ascend Federal Credit Union — 260,000+ members
- Tennessee Valley Federal Credit Union — 175,000+ members
State Banking Programs
- •Tennessee Small Business Development Center (TSBDC) — free counseling and training
- •Tennessee Department of Economic & Community Development — FastTrack grants and loans
- •TNInvestco program — angel/venture tax credits for qualifying small businesses
- •SBA Tennessee District Office — government-backed loan programs
Starting a Business in Tennessee
| Secretary of State | Tennessee Secretary of State |
| LLC Fee | $300 (minimum, for 1-6 members; $50 per additional member) |
| Corp Fee | $100 |
| Income Tax | No personal income tax. Corporate excise tax: 6.5% of net earnings. |
| Sales Tax | 7% state + up to 2.75% local (9.75% max combined) |
| Franchise Tax | 0.25% of net worth or tangible property (greater of), $100 minimum |
Business Incentives
- •FastTrack Economic Development Fund — grants for job creation
- •FastTrack Job Training Assistance — reimbursement for employee training
- •Tennessee Small Business Development Center network — free consulting
- •No personal income tax — attractive for business owners
- •Launch Tennessee — startup ecosystem support and mentoring
Nonprofit Banking in Tennessee
Registration
File Articles of Incorporation (nonprofit) with TN Secretary of State
Charitable Solicitation
Register with TN Secretary of State, Division of Charitable Solicitations before soliciting. Fee waiver available if annual contributions under $30,000.
Tax Exemption
Apply separately to TN Department of Revenue for sales tax exemption. Tennessee automatically recognizes federal 501(c)(3) status for income tax purposes (no state income tax on nonprofits).
AG Reporting
Annual financial report to Division of Charitable Solicitations (TN Secretary of State). Due 6 months after fiscal year end.
Resources
- Tennessee Nonprofit Alliance →
- Tennessee Center for Nonprofits →
- TN Secretary of State — Charitable Solicitations →
For Tennessee 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 Tennessee 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 Tennessee?
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 Horizon and Chase both have strong Tennessee presence. For the lowest-cost local option, Eastman Credit Union offers free business checking.
Can I open a business bank account online in Tennessee?
Yes. Several banks allow online account opening for Tennessee businesses, including Holdings (fully online, no branch visit required), Chase, Bank of America, and Capital One. Credit unions like Eastman typically require an in-person visit.
What do I need to open a business bank account in Tennessee?
You'll typically need your EIN (Employer Identification Number), Articles of Organization or Certificate of Formation, a government-issued photo ID, and your business license. Some banks also require an initial deposit.
Are credit unions better than banks for small businesses in Tennessee?
Credit unions often offer lower fees and better rates, but may have fewer branches and limited digital banking tools. Tennessee credit unions like Eastman and Ascend Federal are strong options for local businesses, while national banks offer broader ATM networks and more advanced business tools.
What are the cheapest business checking accounts in Tennessee?
Holdings offers completely free business checking with no monthly fees, no minimum balance, and no transaction limits. Eastman Credit Union's Beyond Free Business Checking is also fee-free. Among national banks, Chase and Wells Fargo offer fee waivers with $2,000 minimum balances.
Do Tennessee 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.
Is there a franchise tax for small businesses in Tennessee?
Tennessee imposes a franchise tax (excise tax) on most businesses. The excise tax is 6.5% of net earnings, and the franchise tax is 0.25% of the greater of net worth or real/tangible property in Tennessee, with a $100 minimum.
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.
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