Are You a Freelancer? Here’s How to Choose the Right Bank Account

Learn about the different account options so that you can choose the one that best fits your lifestyle and business needs.

4 min read

When you’re a freelancer, it’s important to find a bank account that supports your specific needs. Managing your business income and expenses separately can keep you organized, and help you avoid any unpleasant surprises down the road. Working for yourself gives you freedom and flexibility, but it also means that time is money, organization is key, and security is essential.

N26 is here to help you understand the ins-and-outs of banking for freelancers. Discover what’s possible when you take charge of your money and bank your way. Learn about the different account options so that you can choose the one that best fits your lifestyle and business needs.

Do I need a separate bank account for my freelance expenses? 

It’s important for freelancers to keep their personal finances separate from their business finances. People who are self-employed often have an account that’s specifically used for their freelancing services, which has many benefits:

  • Keeps any personal and freelance transactions separate

  • Helps you understand your business expenses

  • Makes it easier to file taxes and conduct audits 

If freelancing isn’t your only source of income, or you’re just getting started, you might not want to open a completely separate account bank account right away.

With N26 Spaces, you can create a “Freelance Work” goal to track freelance income and expenses. Spaces lets you keep track of your personal and business finances from your personal account, and you can easily manage both at any time with the N26 app.

What special considerations do freelancers have when it comes to money management?

Knowledge is power, and that’s even more true for freelancers. Staying on top of your finances gives you the knowledge that you need to make the best decisions for your work, and that includes paying attention to your income, expenses, and taxes on a regular basis.

  • INCOME. Want to understand which projects or clients really paid off? Which ones didn’t? By keeping track of your income (and your time spent working), you’ll have a clear idea about which projects to focus on in the future.

  • EXPENSES. How much is your freelance work costing you? Being your own boss comes with expenses, from new equipment and marketing to office supplies. Knowing how much you are spending isn’t just important for understanding your business, it’s also essential during tax time. That’s because you don’t have to pay taxes on income that you spent on your freelance business. If you don’t submit the full amount of your expenses to the IRS, you might literally be throwing money away. With N26, you can easily track your business spending with customized tags for every transaction: #equipment #promotions #officesupplies

  • TAXES. Speaking of taxes, as a freelancer, you don’t have an employer that withholds taxes for you. You have to do this on your own. The best way to set aside money for Uncle Sam is by putting the funds in a separate digital space, which you can do with N26 Spaces. Having a separate account for your taxes means that the money will be there when tax time rolls around.

How do I choose the right bank account for my freelancing needs?

Freelancers have unique needs when it comes to banking services. Staying on top of your money is even more important when you’re working for yourself, and you need an account that makes it easy to do so. Freelancers may want to look for these helpful features in a bank account:

  • No hidden fees. As a freelancer, you don’t have the time or energy to worry about your bank surprising you with sneaky fees. Avoid them all with N26.

  • Get your money earlier. Why wait for direct deposits longer than you have to? If you do regular freelance work and have direct deposit set up with your client, you can receive your money up to two days earlier¹ with N26.

  • Security benefits. You need an account that you can trust with your hard-earned money. Bank confidently with the N26’s instant account alerts and debit card controls right from the app. Your account’s security is our top priority.

  • Easy money management. Track your business expenses effortlessly with N26’s automatic spending statistics. We organize your spending so that you don’t have to. See a simple visual breakdown of your expenses at any time with just a glance.

Find mobile banking that fits your freelance goals

Using N26 for your freelancing business is easy, convenient, and secure. Our app is loaded with helpful features that simplify your finances, and help you focus on what matters the most. Sign up for an N26 account to experience mobile banking designed specifically with you in mind.

¹ Faster funding claim is based on a comparison of our policy of making funds available upon receipt of payment instruction versus the typical banking practice of posting funds at settlement. Fraud prevention restrictions may delay availability of funds with or without notice. Early availability of funds requires payor’s support of direct deposit and is subject to the timing of payor’s payment instruction.

The N26 account is offered by Axos Bank®, Member FDIC. N26 Inc. is a service provider of Axos Bank. All deposit accounts of the same ownership and/or vesting held at Axos Bank are combined and insured under the same FDIC Certificate 35546. All deposit accounts through Axos Bank brands are not separately insured by the FDIC from other deposit accounts held with the same ownership and/or vesting at Axos Bank. The N26 Visa® Debit Card is issued by Axos Bank pursuant to a license by Visa U.S.A. Inc. The N26 Visa Debit Card may be used everywhere Visa debit cards are accepted.

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