Startup Q&A
What small business bank should we use for a standard checking account for our LA-based startup?
CEO and Founder of Kruze Consulting
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In March 2023, the FDIC assumed control of Silicon Valley Bank (SVB). The FDIC announced that all SVB deposits would be guaranteed. However, early-stage companies are understandably concerned about relying on regional and mid-sized banks, and may prefer to place their funds with larger institutions to protect their liquidity. These banks include:
- JPMorgan Chase. Total assets:$3.20 trillion.
- Bank of America. Total assets: $2.41 trillion.
- Citigroup. Total assets: $1.77 trillion.
- Wells Fargo. Total assets: $1.72 trillion.
If you are changing banks, we’ve provided a checklist for managing that process here. After you’ve picked your bank and set up your accounts, we recommend you review your bank statement regularly to understand your cash position, burn rate, cash out date, and to check for possible fraud.
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