Best Business Bank Account for Nannies, Babysitters, & Daycares
Running a childcare business means managing payments from parents for services like babysitting, nannying, or home daycare. It’s easy to accidentally mix these payments with your personal money. This is the fastest way to put your personal savings at risk if your business ever faces a lawsuit – especially critical in a child-focused service. A separate business bank account costs nothing to open and fixes this problem right away, protecting you. Here's which one is right for your childcare operation.
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The quick answer
For childcare businesses handling payments mostly through apps or direct deposit, Mercury is the top pick – it has no fees and a great online experience for tracking income from parents and paying for online supplies. If you want to automatically set aside money for taxes, craft supplies, or a new playground, Relay is better with its built-in budgeting tools. Chase Business Complete Banking is the clear winner for nannies and home daycares that get cash payments for services or need to visit a bank branch often to deposit funds. All three let you open an account quickly online.
Side-by-side breakdown
Mercury: No monthly fees or minimum balance, FDIC insured. Handles ACH and wire transfers – perfect for parents paying via direct deposit or for paying your monthly daycare rent. Includes a debit card and virtual cards, useful for online subscriptions like educational apps (e.g., Starfall, ABCmouse), online background checks, or scheduling software. Only for US-based childcare businesses and does not accept cash deposits. Best for nannies who get paid electronically, or daycares with an entirely online payment system.
Relay: No monthly fees. Offers up to 20 checking accounts and 50 virtual debit cards. This is great for setting aside money for specific childcare needs like 'Tax Savings,' 'Craft & Supply Budget,' 'Field Trip Fund,' or 'Assistant Payroll.' It also allows you to give cards with spending limits to trusted staff members for buying snacks or supplies. Integrates well with accounting tools like QuickBooks and Xero, which is helpful as your daycare grows. Best for childcare providers who want to strictly manage where every dollar goes.
Chase Business Complete Banking: $15/month fee, which is waived if you keep at least $2,000 in the account – achievable for most consistent nannies or home daycares – or have qualifying activity. You get 100+ free transactions per month, more than enough for regular payments from parents and paying for supplies. Crucially, Chase accepts cash deposits at its branches, which is common for smaller babysitting gigs or home daycares. It also has a huge network of ATMs and integrates with Zelle, making it easy for parents to pay. Best for childcare businesses that receive cash payments frequently or need to visit a bank in person.
When to choose Mercury
Choose Mercury if your childcare business handles payments primarily through digital means, like direct deposits from families, online payment platforms (e.g., Brightwheel for tuition), or payment apps (like PayPal, Stripe for booking). It's ideal if you pay for online services like background check subscriptions, digital lesson plans, or website hosting for your daycare. The easy-to-use interface and virtual cards are great for keeping track of your online spending for educational apps or cleaning supplies. Mercury is a strong fit if you don't typically handle cash from parents.
When to choose Relay
Choose Relay when you want to use the 'profit-first' method to manage your childcare business money. This means automatically setting aside percentages of every payment you receive from parents into separate accounts for 'Taxes' (plan for 25-30%), 'Operating Expenses' (like food and supplies), or 'New Equipment Savings' (for a new play structure or safety gear). Relay's multiple checking accounts make this system simple. It’s also a good choice if you have assistant nannies or daycare staff who need their own debit cards for approved purchases (e.g., groceries for snacks) with specific spending limits.
When to choose Chase
Choose Chase when your childcare business receives a lot of cash payments. This is very common for casual babysitting gigs, smaller home daycares, or nannies who are paid partly in cash. Chase has the largest network of branches and ATMs, making it easy to deposit physical cash safely. It's also great if many of your client families pay you using Zelle, as Chase integrates directly with it. The monthly fee is usually waived by keeping a moderate balance, which is straightforward for most consistent childcare providers. It’s the best choice if you value being able to walk into a bank for support or to make deposits.
The verdict
For nannies and daycares getting paid online or via direct deposit: Mercury. For childcare businesses that want easy budgeting for supplies and taxes, or managing staff spending: Relay. For babysitters and home daycares that handle cash payments from parents: Chase. Open your account today – before your next client payment. Every day you deposit childcare income into your personal account is a day your protection (and peace of mind) is at risk.
How to get started
1. Choose your bank based on how you get paid and how you want to manage your money (cash, online, or budgeting). 2. Apply online with your Employer Identification Number (EIN) if you have one, any LLC documents, and your personal ID. 3. Fund the account with a small initial deposit from your personal account. 4. Update all client invoices and payment instructions to show your new business account details – tell parents where to send tuition or babysitting fees. 5. Set up separate accounts or envelopes for taxes (aim for 25-30% of your revenue) from day one to avoid stress later.
RECOMMENDED TOOLS
Mercury
Best online business bank — no fees, strong integrations
Relay
Built for profit-first budgeting with multiple accounts
Chase
Best for businesses needing branch access and cash deposits
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FREQUENTLY ASKED QUESTIONS
Do I need a business bank account if I am a sole proprietor?
Legally no, but practically yes. Even as a sole proprietor with no liability protection, a separate business account makes bookkeeping, tax preparation, and expense tracking dramatically simpler. When you form an LLC, a separate account becomes essential for maintaining your liability protection.
Can I open a business bank account without an LLC?
Yes. Most banks will open a business bank account for a sole proprietor using your Social Security Number and a DBA (Doing Business As) registration. However, forming an LLC first and using your EIN is cleaner and protects you better.
How much should I keep in my business account?
At minimum: enough to cover two months of operating expenses. Additionally, set aside 25-30% of gross revenue in a separate tax savings account from day one. Many business owners are blindsided by their first quarterly estimated tax payment — this prevents that.
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