Note: Lance Bank is no longer accepting new accounts.
If you’ve ever had a profitable side hustle, you know how alluring full-time freelancing can be. Compared to a salaried job, freelancing typically can offer more flexibility and financial upside.
However, full-time freelancing means becoming a full-time business owner. And that means dealing with hassles including paying quarterly taxes and managing business expenses.
Lance Bank is an account that's trying to ease those pain points for freelancers. It's specifically optimized for freelancers and side hustlers who love the freelancing lifestyle but hate the financial chaos that comes along with it. Here’s what you need to know about this business checking account.
Quick Summary
- Mobile bank account optimized for freelancers
- Saves and pays quarterly taxes for you
- Monthly fee for Lance Pro is high
Lance Bank Details | |
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Product Name | Lance Bank |
Account Types | Business Checking |
Min Deposit | $0 |
Monthly Fees | Lance Basic: $0 |
Promotions | Use the coupon code 3MOS to get 3 free months |
What Is Lance Bank?
Lance Bank is a mobile-only bank account built for the self-employed. Banking services are provided through Blue Ridge Bank. The account is specifically optimized for freelancers and side hustlers who have to pay for business expenses, pay quarterly tax estimates, and somehow take a salary for themselves.
Freelancers often struggle to handle the boom and bust cycle of payments. Fluctuating from a five-figure month to a month when just $600 hits the account is not uncommon for freelancers.
Unfortunately, the bills don’t stop because the money stopped. On top of that, taxes still come due every quarter. Lance provides smart tools that can help self-employed workers smooth out their financial ups and downs.
What Do They Offer?
Lance Bank uses algorithms to help freelancers better handle their finances. In order to offer the most value to its customers, it needs to be able to track their income and expenses.
Lance instructs freelancers to deposit ALL their freelance income into the account so that it can accurately estimate profits. In addition to transferring money from other bank accounts, customers can route their Venmo, PayPal, and Cash App payments to Lance.
Related: Best Apps To Send Money (Domestic And International)
Debit Card
Next, Lance asks its accounts holders to pay for ALL their business expenses (including health insurance) using the debit card provided. This makes Lance Bank the central hub for a freelancer’s income and business expenses.
The Lance debit card can be used anywhere Visa cards are accepted. Any business expenses that are spent with the Lance debit card will be automatically deducted from your income.
Quarterly Tax Payments
Since the account is a central hub for financial activity, it can accurately estimate profits. The account uses its profit estimates to withhold money for taxes. Then it pays quarterly taxes on behalf of the account holder! This alleviates a huge hassle from the many freelancers who struggle to save for taxes.
"Salaries" And Goals
On top of paying taxes for freelancers, Lance Bank allows account owners to set up a bi-weekly or monthly salary which will be transferred to a personal checking account. If you manage to out-earn your salary target (which is ideal), Lance Bank buckets savings based on goals you set.
The account works best for freelancers who recently had a great month, so they have some buffer to start with a savings cushion. Without a cushion, Lance Bank can't keep the desired salary stable.
What Makes Lance Bank Different?
Lance Bank is truly optimized for freelancers and their unique needs. The background algorithms help freelancers enjoy the benefits of stable checks while taking care of hassles like business deductions and quarterly tax estimates. In many ways, it operates like accounting software and a bank account rolled into one.
Because Lance Bank focuses on eliminating hassles and improving financial behavior, account holders can expect to feel more at peace with their finances. Many freelancers find they struggle with money, even though they earn much more than they did at a W-2 job. Lance Bank acts as a mini HR department and takes care of those business hassles for freelancers.
Plus, with the Pro version, Lance pays your taxes on your behalf on a quarterly basis and produces a Schedule C at any time, on demand.
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Rating | |||
Monthly Fees | Lance Basic: $0 Lance Pro: $12 | $0 | $0 |
Min Deposit | $0 | $0 | $0 |
ATM Access | Free Withdrawals At Visa, Interlink, and Accel Network ATMs | Unlimited Nationwide | 32,000+ Free ATMs |
Mobile App | |||
Desktop Access | |||
FDIC Insured | |||
Cell |
Is Lance A Full-Service Bank?
No, Lance Bank is not a full-service bank. It doesn't have any branch locations and does not promise relationships with business bankers.
By design, you'll need to keep an active personal checking account (where Lance can send your monthly or bi-weekly salary) with a separate bank to get the most out of Lance. It, unfortunately, doesn't offer personal checking accounts itself. Nor does it offer personal or business savings accounts.
Are There Any Fees?
With Lance Basic, the bank will calculate the amount to put in each part of your "Stack" (salary, business expenses and savings). And it will automatically calculate the amount to put in the “tax stack” based on your income and expenses. This is all included in the basic account at no charge.
Account holders who upgrade to Lance Pro can take the automation up a notch. At this membership level, Lance Bank will actually move the money for you (i.e. pay your quarterly taxes and send your personal checking account a salary). It will also offer pre-populate your Schedule C form. Lance Pro costs $12 per month. This makes it far more expensive than all of the other names on our best business bank accounts list -- many of which charge $0 monthly fees.
If you could eliminate another accounting expense by using Lance Pro, it could be worth it. But since Lance can't actually file your taxes for you and doesn't offer invoicing tools, it's unlikely that it could serve as a full replacement for your accounting or tax software.
The good news is that you can test out Lance Pro for free for 3 months to see if you feel like it's worth it before paying any fees. Simply sign up for your account using our link and use the coupon code 3MOS. Even if you opt for the free account, Lance Bank’s algorithms can still help with managing your freelance income and expenses.
How Do I Open An Account?
You can visit the Lance Bank website to start the account opening process. The account has no minimum balances.
After providing your personal information, Lance will ask you a few questions about your business type. Unlike most business bank accounts, Lance Bank doesn’t require an Employer ID Number.
Once you've provided your information, Lance will direct you to download one of its mobile apps. As of writing, it doesn't offer a desktop account access.
Is My Money Safe?
Yes, all Lance accounts are FDIC insured through Blue Ridge Bank. This means you'll receive federal protection for up to $250,000 in deposits. Learn more about FDIC deposit limits.
Is It Worth It?
Lance Bank's algorithms are high-quality and can help freelancers who face boom and bust payment cycles. It can send regular salary payments, withhold for quarterly taxes, and even pay them on its customers' behalf. And, with its debit card, Lance can automatically track and deduct business expenses.
But, remember, a separate personal checking is required to use Lance. And you can't take full advantage of all the automated tools without upgrading to Lance Pro for $12 per month. You'll need to decide if those tools are worth the cost when so many other top business banks charge no fees while also offering extra benefits like interest, rewards, and third-party software integrations.
We recommend taking advantage of a free trial of Lance Pro before going all-in with the automation. Start your free trial by visiting this page and using the coupon code ALPHA100.
Lance Bank Features
Account Types | Business checking |
Minimum Deposit | $0 |
APY | N/A |
Maintenance Fees |
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Branches | None (online-only bank) |
Debit Card | Yes |
ATM Availability | Free withdrawals at Visa, Interlink, and Accel network ATMs |
SSN Required | Yes |
EIN Required | No |
Customer Service Number | None listed |
Customer Service Email | None listed |
Desktop Access | No |
Mobile App Availability | Yes, iOS and Android |
FDIC Certificate | 35274 (through Blue Ridge Bank) |
Promotions | Use the coupon code 3MOS to get 3 free months |
Lance Bank Review
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Summary
Lance Bank is a banking app that provides a combination of bookkeeping, entry-level accounting, and tax tools for freelancers.
Pros
- Calculates and pays quarterly taxes
- Help freelancers set regular salaries
- Automatically tracks deductions
Cons
- High monthly fee for Lance Pro
- Not a full-service bank
- Can’t earn interest or rewards
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared toward anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications, including the New York Times, Wall Street Journal, Washington Post, ABC, NBC, Today, and more. He is also a regular contributor to Forbes.
Editor: Clint Proctor Reviewed by: Chris Muller