Mercury and Relay are the two most popular online-only business banks for startups and small businesses. Both offer free checking with no monthly fees and no minimums. But they are built for different users, and the details matter when you are picking where your business revenue lands every month.
The Quick Difference
Mercury is built for funded startups and tech companies. It offers treasury management, venture debt, and a more polished interface designed for companies managing larger balances. Relay is built for small businesses and freelancers who need simple, organized banking with features like profit-first budgeting and multiple checking accounts for free.
Fees and Accounts
Mercury
No monthly fees. No minimum balance. Free domestic wires and ACH. Offers checking and savings accounts. Treasury product for balances over $500K. Requires a US-incorporated business.
Relay
No monthly fees. No minimum balance. Free ACH transfers. Up to 20 checking accounts included free (great for envelope budgeting). No minimum to open. Easier approval process for sole proprietors.
Who Should Pick Mercury
- VC-backed or funded startups managing investor capital
- Companies with large cash balances who want treasury yield
- Tech companies that value a modern, developer-friendly banking experience
- Businesses that need international wire transfers regularly
Who Should Pick Relay
- Freelancers and sole proprietors who want simple, organized banking
- Small businesses using profit-first or envelope budgeting methods
- Anyone who wants multiple checking accounts to separate expenses by category
- Businesses that want straightforward bookkeeping with QuickBooks or Xero integration
The Bottom Line
Neither is objectively better - they target different business stages. Mercury is the better choice for funded startups and companies managing significant balances. Relay is the better choice for small businesses, freelancers, and anyone who values simplicity and built-in budgeting tools. Both are free, so the downside of picking wrong is low.
Compare both in our business banking rankings →