Myth Busting: Do you need separate banks for business and personal accounts?

Keeping your business and personal bank accounts at the same bank can bring benefits you may not realize. Let's myth-bust the assumption that more banks are always better.

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As you start and grow your business, you’ll find there is as much advice offered as decisions to make. Sometimes, figuring out the source of the advice, and if it’s even reliable, is an added challenge.

The business banking team at Fremont Bank is often asked about keeping business and personal accounts separate. We tell customers straight up that we think that’s a smart idea. Looking for advice on separating your business and personal bank accounts? Head here for our six reasons why it’s a good idea.

But a similar question – should I use separate banks for these accounts? –  yields a different answer.

A long-standing assumption for many is that keeping accounts at separate banks is essential to minimize risk. This assumption evolved from a fear of a bank failing, widespread fraud, or operational issues. Still, there isn't a financial expert or banking scholar who is given credit for the idea.

Let's break that assumption down and offer some alternatives about why having your business and personal accounts at the same bank can be helpful, especially when that bank has the track record of stability and security of Fremont Bank.

Bank with a team

A local bank means folks know your name when you walk through the door. It also means we know each other’s names. Keeping multiple kinds of accounts at one bank grants you access to the combined experience and connections of a bank’s team. Ask your business banker a question about residential real estate; they may have just been talking about that topic with one of the lending experts. 

As your business thrives, you may realize it's time to talk about estate planning – and we can point you to someone. Relationships are not just nice-to-haves. When it comes to your money, a deep relationship with a bank is a must-have. Ensuring teams are talking to one another, keeping information flowing, and preventing siloes is one more perk of having your business accounts and personal accounts at one bank.

High quality across the board

In the Bay Area, we're top Premier bankers, SBA lenders, residential lenders, and more. Choosing a bank for the quality of its service in one area means you're more likely to have a positive experience in other areas, too.

We pride ourselves on being equally happy to help with the most mundane tasks – paperwork and filing – and the most complex questions, like what kind of loans make the most sense for your business? Having multiple types of accounts at Fremont Bank means you’ve got an advocate and a champion for all your accounts. 

Access incentives and more

Banks want your business. That’s why many banks offer incentives – lower interest rates, waived fees, increased offerings, higher credit balances, and extra perks – if you have multiple kinds of accounts with them. 

You’ll deepen your relationship with a bank if you keep both kinds of accounts with them. Showing your propensity to handle money smartly may also make you more attractive for additional loans and offerings. A bank like Fremont Bank, which has a long reputation for stability, seeks clients with a similar mindset.


If you’re a sole proprietor, FDIC protection covers up to $250,000 for a single owner of multiple accounts – even for business and personal checking accounts. An association, partnership, or incorporated business is considered a separate category from a personal account, and may be eligible for double the coverage. We have an article that helps small business owners think through the status of their business.