Relay vs Mercury
Relay and Mercury are the two most popular free business bank accounts for freelancers and solopreneurs. Both have no monthly fees, no minimum balance, and solid accounting integrations. The choice comes down to your specific needs: Relay excels at cash flow management; Mercury shines for tech-forward businesses and yield.
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Relay
Best free business bank account with multiple sub-accounts
Starting at
Free
4.2
out of 5
View details →Mercury
Best business banking for LLCs and tech-forward freelancers
Starting at
Free
4.3
out of 5
View details →Feature-by-Feature Comparison
Criteria
Relay
Mercury
Sub-Accounts & Cash Flow
Up to 20 free sub-accounts. Create dedicated tax, savings, and expense buckets.
One main account + Mercury Treasury. Limited sub-account options.
Interest / Yield
Relay Savings earns competitive yield. Regular checking earns nothing.
Mercury Savings earns 4%+ APY. Checking also earns yield on balances.
Tech & API Features
Good integrations (QuickBooks, Xero) but limited API access.
API access, webhooks, programmatic banking — loved by developers.
LLC & Startup Features
Great for freelancers. Less focused on startups with investors.
Trusted by 100k+ startups. Investor-ready with VC-friendly features.
Budgeting & Tax Management
Automatic percentage routing to tax buckets. Built-in budgeting per account.
Manual tax management. Less built-in budgeting structure.
Verdict: It Depends
It's a tie — the winner depends entirely on what matters to you. Relay is the better choice if you want built-in cash flow management, multiple sub-accounts, and automatic tax buckets. Mercury wins if you want higher yield on your balance, API access, or a startup-focused banking experience.
Choose Relay if...
- ✓Freelancers who want to separate tax, savings, and operating funds
- ✓Anyone who struggles with cash flow management or quarterly taxes
- ✓Freelancers who want automatic percentage routing to savings buckets
- ✓Sole proprietors and LLCs who prioritize budgeting tools over yield
Choose Mercury if...
- ✓Freelancers with higher cash balances who want yield on their checking
- ✓Developers or technical freelancers who want API/webhook access
- ✓LLCs that may raise funding in the future
- ✓Freelancers who want the highest interest rate on business savings
Relay vs Mercury: The Full Story
For US freelancers who want a free business bank account with no minimum balance and no monthly fees, Relay and Mercury are the two clear leaders. Both launched specifically to serve small businesses and the self-employed. Both integrate with QuickBooks and Xero. And both have built strong reputations — Relay among freelancers who want more financial control, Mercury among developers and tech-forward business owners.
## What Makes Relay Different
Relay's biggest differentiator is its multiple sub-account system. Every Relay account gets up to 20 free checking accounts under one login. This enables freelancers to practice "profit first" accounting without a spreadsheet. Open a dedicated "Tax Reserve" account and automatically route 25% of every incoming payment there. Add an "Operating Expenses" account. A "Savings" bucket. An "Emergency Fund." All free, all visible in one dashboard, all with their own debit cards.
Relay also has percentage-based automatic routing: set a rule that sends 25% to taxes, 10% to savings, and 65% to operating, and every deposit splits automatically. For freelancers who struggle with quarterly tax bills, this single feature is often the deciding factor.
The trade-off: Relay's main checking account earns no interest. Relay Savings (a separate account type) does earn a competitive APY, but the yield ceiling is lower than Mercury's.
## What Makes Mercury Different
Mercury is the banking choice for freelancers who want their bank account to behave like software. API access, webhooks, programmatic transfers, and deep developer tooling make Mercury the first choice among technical freelancers and anyone who wants to automate their banking entirely. Mercury is also trusted by over 100,000 VC-backed startups — a signal of reliability and growth readiness.
On yield, Mercury wins clearly. Mercury Savings earns 4%+ APY. Mercury's regular checking account also earns yield on balances — unusual for a free business bank account. On a $20,000 average balance, the annual difference in interest earned between Mercury and a 0% checking account is roughly $800.
Mercury lacks built-in sub-accounts and percentage routing, making cash flow management more manual. But for freelancers who maintain healthy cash reserves and want to maximize return on idle cash, Mercury's yield profile is hard to beat.
## Pricing: Both Free, With Optional Upgrades
Relay: Free plan includes 20 sub-accounts, 2 debit cards, and ACH transfers. Relay Pro ($30/month) adds priority support, cashback on debit card purchases, and higher wire limits. Most freelancers do not need Relay Pro.
Mercury: Free with no monthly fee, no minimum balance, and no transaction limits. Mercury Plus ($35/month) adds enhanced Mercury Treasury rate and premium support. Again, most freelancers do not need the paid tier.
## The Smart Move: Use Both
A common setup among experienced freelancers: open a Relay account specifically as a "tax reserve" and set up 25% automatic routing from every client payment. Open Mercury as your primary operating account to earn yield on your working capital. This two-account system takes 20 minutes to set up and saves thousands in quarterly tax scrambles every year.
Frequently Asked Questions
Is Relay or Mercury better for freelancers?
Both are excellent free business bank accounts. Relay is better if you want built-in cash flow management — create up to 20 sub-accounts and automatically route a percentage of every deposit to dedicated buckets (tax reserve, savings, operating). Mercury is better if you want higher yield on your cash balance (4%+ APY) or API access. Many freelancers use both for different purposes.
Is Relay truly free for freelancers?
Yes. Relay's basic plan has no monthly fees, no minimum balance, and no transaction limits. You get up to 20 free checking accounts and 2 debit cards. The optional Relay Pro plan ($30/month) adds debit card cashback and priority support, but most freelancers don't need it.
Does Mercury offer interest on business checking accounts?
Yes — which is unusual for a free business bank account. Mercury's regular checking account earns yield on balances. Mercury Savings earns 4%+ APY. On a $20,000 balance, the annual interest earnings difference between Mercury and a traditional 0% bank could be $800+.
Can I use both Relay and Mercury at the same time?
Yes, and many freelancers do. A common setup: use Relay to receive all client payments and automatically route 25% to a dedicated tax reserve sub-account. Transfer operating funds to Mercury to earn yield on your working capital. Both banks integrate with QuickBooks and Xero, so your accounting stays clean.
What is Relay's automatic routing feature?
Relay lets you create rules that automatically split incoming payments across your sub-accounts by percentage. For example: 25% → Tax Reserve account, 10% → Savings account, 65% → Operating account. Every time a client payment arrives, Relay distributes it automatically. This eliminates the discipline problem of manually moving money to savings — it happens before you even see the full amount.
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Tax Information Notice
This content is for informational and educational purposes only. It does not constitute tax, legal, or financial advice. Tax laws change frequently. Always consult a qualified CPA or Enrolled Agent for your specific situation.