Difference Between Personal Banking and Business Banking (With Table)

General when a person has his own businesses, he has two bank accounts. That person will have all his personal income and expenses, which is known as personal banking and second in which he will have all his business income and expenses, which is known as business banking. Even though having two different bank accounts may be challenging, it is undoubtedly a good practice to maintain uniformity.

Personal Banking vs Business Banking

The difference between Personal banking and Business banking is that personal banking accounts are initially only used for self-use or personal use. In contrast, Business banking is used solely for transactions related to business only, whether it is a business’s revenue or a business expenses. These banks are stated as a bank where you deposit your money, so these banks are known as depository banks.

Personal banking is banking designed for the general public, which has its bank branches set up in multiple locations in a city that handles customers holding these personal bank accounts. This account is used for taking out and making transaction for self-use only; that is, person and private use only stated as drawings.

Business banking is banking that is for business solely, which helps them do stuff for the enterprises, which helps raise profits by providing a credit to them or raising funds for them and includes services such as providing professional business advice. This bank is considered a repository bank, and people make transactions in this bank related to business and their corporate needs only.

Comparison Table Between Personal Banking and Business Banking

Parameters of comparisonPersonal BankingBusiness Banking
Nature of services that are offeredstandardized serves are offered.Tailor-made services are offered.
Processing CostThe processing cost is generally low.The processing cost is very high usually.
ProfitGenerally, less profit is earned through this banking.Generally, a lot of profit is earned through this banking.
Value of transactionThe Value of the transaction is low.The value of the transaction is high.
FunctionUsed for private purpose only.Used for business purpose only.

What is Personal Banking?

Personal banking is associated with personal use only. The personal bank provides services to an individual or families to fulfil and help meet their financial needs. Personal banking allows giving loans to an individual, deposit accounts are also offered, and a feature where a person advises how to intake proper personal investment planning. These services are provided to the customers through different branches of the personal banks situated in various city areas. They offer services like brokerage too.

When a person has a personal bank account, they get services like having a debit card and a credit card, mortgages, etc. In short personal banking is not for business use at all. It is so lovely for an individual to manage their own assets and keep track on them. There is an allowance of the only person to deposit or withdraw money from the account in personal banking. This feature provides high-security measures to ensure the funds are transferred to the right person having access to the funds.

As this kind of banking focuses only on individuals, they provide various other services to those holding a personal bank account in that specific bank to which no one has access other than that person.

What is Business Banking?

To compile financial bank statements of a business and track the necessary transactions are essential elements to be carried even when a person is running a small business. This kind of information is needed to track your business’s financial health compared to the ongoing market and make an intelligent decision accordingly, suitable for a person’s respective business. For this purpose, there is the existence of a business account that is solely for businesses use only.

This business banking helps business owners manage the cash flow of their business and profits accordingly. Acquiring businesses banking helps in allowing the owner to write and receive checks through electronic means too. Even if a person has a valid personal banking account, it is very significant and essential to have a separate business account for a consistent practice to be followed. This would benefit the business at large for sure.

In business banking, it comprises dealings of finances of the business by providing services like business to loans, professional advisors for planning strategies for business growth, saving accounts with, credit, etc. This kind of bank or a branch of it, in short, occurs only for business purposes, transactions and sealing only.

Main Differences Between Personal Banking and Business Banking

  1. In business banking, there is a need to pay varieties of fees from time to time after forming an account, whereas in personal banking, there is no need for payment of any such fees.
  2. A business account helps to hold and manage for a limited number of companies, whereas it is totally the opposite in personal banking.
  3. Having a business account and acquiring business banking is a legal requirement when a person has his own business. In contrast, in personal banking, banks may not allow the business to be managing their money.
  4. Business banking is solely used for business purposes, and personal banking is exclusively used to manage their personal finances only.
  5. Business banking would mostly have a high volume of transactions, whereas there would be comparatively a low volume of transactions in personal banking.


In short, when a person owns a business, the pattern of having and understanding both personal banking and business banking is essential for smooth functioning. This also provides maximum profit personally and to the business of the owner. This happens by using the services of all such banking providers, such as facilities of loans and credit for customers.

Both these banking systems have their own features and characteristics, and both of them are used as banking for deposits of private and business transactions. Personal banking is used for private, and business banking is used for business transactions, respectively.


  1. https://www.jstor.org/stable/40604633
  2. https://www.sciencedirect.com/science/article/pii/S026840120700045X