Oxygen is an online-only bank (or neobank) that specializes in mobile banking, offering both a personal and business bank account through the Oxygen app. With no monthly fees and unlimited fee-free transactions, the Oxygen business account is well-suited for small-business owners who are looking for an affordable way to separate their personal and business finances and manage them on the go.
In addition, Oxygen stands out in that it offers nationwide LLC creation services through a third party, allowing you to form an LLC from within the app, and then open your business account.
Oxygen business is best for small-business owners who:
Want a free business checking account with no minimum balance requirements.
Prefer to manage most of their finances digitally.
Do not need access for multiple authorized users on their account.
Deposit less than $10,000 in cash on a monthly basis.
Have not yet formed a limited liability company, or LLC, and are considering doing so.
Pros & cons
No monthly fees, no minimum opening deposit, no minimum balance requirements.
Unlimited fee-free transactions.
Fee-free ATM access through the Allpoint network; ability to deposit cash through Green Dot network.
Earn cash back when using the Oxygen business debit card.
Mobile tools, including temporary or reusable virtual cards.
Ability to create an LLC through the Oxygen app before signing up for a business account.
$3 fee per withdrawal for using an out-of-network ATM (plus any fees from ATM owner).
Service fee of up to $4.95 for each cash deposit.
Can’t send domestic or international wires; can’t receive international wires.
Oxygen business at a glance
Minimum opening deposit requirement:
Unlimited fee-free transactions
How Oxygen business works
Oxygen business is a completely mobile bank account. The Oxygen mobile app is available for both iOS and Android devices and is compatible with smartphones and tablets.
As Oxygen is not actually a bank, its banking services are provided by The Bancorp Bank and deposits are insured up to $250,000 by the Federal Deposit Insurance Corp.
To open an Oxygen business account, you will need to download the mobile app and create a login by providing an email address and password. You will complete your application by providing basic information about yourself and your business, including your Social Security number, date of birth and viable U.S. mailing address. You may also be asked to provide a copy of your driver’s license and identifying business documents.
After you’ve submitted your application, it can take up to three to five weeks to be approved. Once approved, you will be able to use the Oxygen app to fund your account, generate virtual cards, view statements, deposit checks and more.
You will also receive a physical Oxygen Visa® Business Debit card in the mail for use with the account. This card must be activated before it can be used.
It’s important to note that if you’re interested in LLC formation services, Oxygen recommends that you first sign up for the personal account instead of the business account. After you’ve applied and been approved for the personal account, you will be able to use the Oxygen app to form an LLC through CorpNet. Fees will vary based on your state and the LLC formation services you choose.
Where Oxygen business stands out
Fee free: The Oxygen business account has no monthly fees, no minimum opening deposit requirement and no minimum balance requirements. In addition, this account offers unlimited fee-free transactions, which includes ACH transfers, direct deposits, incoming domestic wire transfers and mobile check deposits. Although the Oxygen business account does not offer paper checks, it does offer a free bill pay service which gives you the ability to send mailed checks to individuals or businesses as long as they are located in the U.S.
ATM access: You can use the Oxygen business debit card to withdraw cash fee-free at over 55,000 Allpoint ATMs worldwide. Although you cannot deposit cash at these ATMs, you can visit over 90,000 participating Green Dot locations around the U.S. to deposit cash (service fee of up to $4.95 per deposit), with a maximum cash deposit limit of $10,000 per month. In contrast, some online-only business bank accounts cannot accommodate cash deposits at all.
Cash-back rewards program: The Oxygen business account includes a rewards program that gives you the ability to earn cash back for spending with your Visa business debit card. You can select cash-back offers displayed in the cash-back page of the mobile app, make purchases at participating retailers and track earned rewards. Once you’ve reached the $10 earning threshold, you can cash out your rewards and they will be immediately deposited into your Oxygen account.
Although the cash-back rewards are subject to change, as of this writing, rewards include:
5% cash back on rideshare services.
5% cash back on shipping (USPS, FedEx and UPS).
$1 cash back on coffee purchases.
Mobile tools: Within the mobile app, the Oxygen business account includes check deposit, cash flow projections, bill pay, account statements and cash-back rewards. In addition, you have the ability to upload and tag deductible expenses, monitor transactions and integrate the app with your accounting software.
Moreover, you can use the Oxygen app to create temporary or reusable virtual cards. These cards are linked to your account and can be used to make purchases online or over the phone without presenting your physical business debit card.
You can generate up to 10 virtual cards at once, with a $1,000 limit on each card. You can also set monthly spend and authorized merchants as well as freeze or cancel your virtual cards using the mobile app.
Where Oxygen business falls short
Mobile only: Unlike other online-only banks and nonbanks, which typically offer a web-based and an app-based banking experience, the Oxygen business account is exclusive to mobile. And, while nearly 70% of surveyed business owners said they’d prefer to open a deposit account online, a majority still did so in person, according to a 2019 study from BAI, a research and training nonprofit for business owners. Thus, a mobile-only experience may be a barrier to entry for some small-business owners.
Out-of-network ATM fees: If you use an out-of-network ATM to withdraw cash, you’ll face a $3 fee from Oxygen, plus any fees the ATM provider may charge. In addition, these fees increase if you use an international ATM: You’ll pay $5 plus a 1% international transaction fee on top of the fees charged by the ATM provider. You will, however, receive a refund on the first international cash withdrawal fee per calendar month ($5), but the international transaction fee will still apply.
Overall, these types of fees are not uncommon for business checking accounts from brick-and-mortar banks, but you may find online competitors that don’t charge out-of-network fees, as well as those that offer refunds for fees that other ATM providers charge.
No multi-user accounts: The Oxygen business account only accommodates a single authorized user, which may not be sufficient for multi-owner or larger businesses. Although you can use the mobile app to create virtual cards and manage spending on those cards, these are limited account privileges.
Comparatively, other business accounts can offer the ability to add multiple account users, customize access and order business debit cards for additional owners and employees.