Software your AI can run.
Bank shopping in Vermont? 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 Vermont 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% |
| Northfield Savings Bank Business Checking | Community | $10waivable | 0.00% |
| Community National Bank Business Checking | Community | $0 | 0.00% |
| TD Bank Business Convenience Checking* | National | $15waivable | 0.00% |
| Union Bank Business Checking* | Community | $8waivable | 0.00% |
| Vermont Federal Credit Union Business Checking* | Credit Union | $0 | 0.00% |
| Mascoma Savings Bank Business Checking* | Community | $5waivable | 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
Northfield Savings Bank Business Checking
Community | $10/mo | 15 branches
Vermont businesses wanting a community bank with deep local roots
Key Features
- •Vermont's mutual savings bank since 1867
- •First 250 transactions free per statement cycle
- •Deep Vermont roots with statewide branch network
Pros
- ✓Mutual bank — owned by depositors, not shareholders
- ✓Generous 250 free transactions
- ✓Strong Vermont community commitment since 1867
Cons
- ✗Monthly fee unless $2,500+ balance — verify
- ✗$0.40 per item after 250 transactions
- ✗Branch network limited to Vermont
Community National Bank Business Checking
Community | $0/mo | 20 branches
Small businesses wanting free checking from a Vermont community bank
Key Features
- •No monthly service charge on business checking
- •eStatements available
- •Northeast Kingdom roots with Vermont-wide service
Pros
- ✓No monthly service fee
- ✓Good statewide branch coverage for a community bank
- ✓Strong focus on Vermont small businesses and agriculture
Cons
- ✗Transaction limits — verify specifics
- ✗Less advanced digital tools than national banks
- ✗No interest on business checking
TD Bank Business Convenience Checking
National | $15/mo | 20 branches
Vermont businesses wanting a national bank with strong local branch presence
Key Features
- •Strong Northeast US presence including Vermont
- •Extended hours — 'America's Most Convenient Bank'
- •Multiple Vermont branch locations
Pros
- ✓Extended branch hours — open early, close late, open Sundays
- ✓Good Vermont branch coverage
- ✓Strong digital banking platform
Cons
- ✗$15/month unless $2,500 balance maintained — verify
- ✗Only 100 free transactions per cycle — verify
- ✗May have fewer business lending resources than local VT banks
Union Bank Business Checking
Community | $8/mo | 18 branches
Vermont businesses needing relationship banking with local decision-makers
Key Features
- •Vermont community bank with branches across the state
- •Strong agricultural and commercial lending
- •Local decision-making
Pros
- ✓Community-focused with local lending decisions
- ✓Good statewide branch coverage
- ✓Strong ag lending for Vermont's farm economy
Cons
- ✗Monthly fee unless minimum balance maintained — verify
- ✗Less advanced digital tools
- ✗Branch network limited to Vermont
Vermont Federal Credit Union Business Checking
Credit Union | $0/mo | 15 branches
Vermont businesses wanting fee-free credit union banking
Key Features
- •Vermont's largest credit union
- •Free business checking
- •Access to CO-OP shared branching network
Pros
- ✓No monthly service fee — verify
- ✓Vermont's largest credit union
- ✓Access to shared branching and surcharge-free ATM networks
Cons
- ✗Must qualify for membership (live/work in Vermont)
- ✗Transaction limits — verify
- ✗Fewer digital business tools than national banks
Mascoma Savings Bank Business Checking
Community | $5/mo | 8 branches
Mission-driven businesses wanting a B Corp community bank
Key Features
- •Mutual savings bank serving Vermont and New Hampshire
- •Certified B Corporation
- •Strong focus on local community reinvestment
Pros
- ✓Certified B Corporation — aligned with mission-driven businesses
- ✓Mutual bank — owned by depositors
- ✓Low fee with easy waiver threshold
Cons
- ✗Branch network concentrated in Upper Valley area
- ✗Smaller than other VT community banks
- ✗Transaction limits on basic tier — verify
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 Vermont
- ✗$15/month unless $2,000 balance maintained
- ✗Limited in-person support
Vermont Banking Landscape
43
FDIC-Insured Institutions
3+
Major Regional Banks
3+
Major Credit Unions
Top Regional Banks
- Northfield Savings Bank — $1.2B
- Community National Bank — $900M
- Union Bank — $800M
Top Credit Unions
- Vermont Federal Credit Union — 75,000+ members
- New England Federal Credit Union — 120,000+ members
- Vermont State Employees Credit Union — 65,000+ members
State Banking Programs
- •Vermont Small Business Development Center (VtSBDC) — free counseling and training
- •Vermont Economic Development Authority (VEDA) — low-interest loans for VT businesses
- •Community Development Finance Institution (CDFI) network — alternative lending
- •SBA Vermont District Office — government-backed loan programs
Regulator: Vermont Department of Financial Regulation
Starting a Business in Vermont
| Secretary of State | Vermont Secretary of State |
| LLC Fee | $155 (Articles of Organization filing fee) |
| Corp Fee | $125 |
| Income Tax | Personal: 3.35%–8.75% graduated. Corporate: 6%–8.5%. |
| Sales Tax | 6% state (no local sales tax). Use tax also applies. |
| Franchise Tax | None for LLCs. Banks pay a franchise tax in lieu of income tax. |
Business Incentives
- •Vermont Employment Growth Incentive (VEGI) — performance-based cash incentive
- •Vermont Economic Development Authority (VEDA) — direct loans and loan guarantees
- •Vermont Training Program — grants for employee training
- •Vermont Working Lands Enterprise Initiative — support for ag and forest businesses
- •Downtown and Village Center Tax Credits — historic building rehabilitation
Nonprofit Banking in Vermont
Registration
File Articles of Incorporation (nonprofit) with VT Secretary of State ($155 filing fee — verify, may differ from LLC)
Charitable Solicitation
Register with VT Attorney General's office before soliciting. Vermont does not have a separate charitable solicitation registration statute — oversight is through AG consumer protection.
Tax Exemption
Apply to VT Department of Taxes for state tax exemption. Vermont generally follows federal tax-exempt status for qualifying 501(c)(3) organizations.
AG Reporting
Biennial report to VT Secretary of State. Charitable organizations may need to file with AG office.
Resources
- Common Good Vermont (Vermont's nonprofit association) →
- Vermont Community Foundation →
- VT Secretary of State — Corporations Division →
For Vermont 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 Vermont 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 Vermont?
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, Northfield Savings Bank and Community National Bank are strong local options. For national bank tools, TD Bank has a significant Vermont presence.
Can I open a business bank account online in Vermont?
Yes. Holdings allows fully online account opening for Vermont businesses with no branch visit required. National banks like Chase and Capital One also offer online applications. Local banks like Northfield Savings and Community National typically require in-person visits.
What do I need to open a business bank account in Vermont?
You'll typically need your EIN (Employer Identification Number), Articles of Organization filed with the VT Secretary of State, 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 Vermont?
Credit unions often offer lower fees and better rates. Vermont credit unions like Vermont Federal Credit Union and New England Federal Credit Union 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 Vermont?
Holdings offers completely free business checking with no monthly fees, no minimum balance, and no transaction limits. Community National Bank's business checking also has no monthly service charge. Northfield Savings Bank offers business checking with the first 250 items free.
Do Vermont 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.
What taxes do Vermont small businesses pay?
Vermont has a corporate income tax of 6%–8.5% on net income. Personal income tax ranges from 3.35%–8.75%. Vermont also imposes a 6% sales tax (no local sales tax). There is no franchise tax for LLCs.
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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