Small business checking account plays a significant role in the success of a business. If you are a business person or planning to start, you need a business checking account away from your personal account. It will help you to manage your taxes. When you have a separate business account from your personal Bank makes tax preparations easy. Bookkeeping, accounting, and tax calculations are easy to make.
Secondly, having a small business bank account simplifies the running of the business. You will be able to know if you are making progress or not. By centralizing your business finances, you can tell what you have made, profits or losses, and make decisions based on that.
It also cushions your personal property in case of a legal suit. Commingling business operations and personal accounts risk your personal assets. In case you file for a company bankruptcy, your assets can easily be used to pay debts as there is no legal ground to show the separation of the two.
Having an checking account for your business also makes your clients trust it more. When customers and suppliers are writing checks to a company account feels more secure than to a personal account. This helps to boost your business growth.
However, before settling on any specific bank for your business, it is prudent to choose wisely. Understand your business needs and its mode of operation. Things like the number of deposits and withdrawals you make per month and your total business capital should be some of the guiding factors. Choosing the wrong small business bank can be detrimental to your business and can even lead to closure.
Top 10 Best Banks Review for Small Business Checking Account
1. Bank of America Checking Account
For over 200 years, Bank of America has supported over 3 million small business entrepreneurs. This has earned it the title of one of the best small business checking accounts. The Bank offers a low-cost checking account with a bonus of up to $450 and two hundred cost-free monthly transactions. The Bank has about 16,000 ATMs and 4,00 plus branches spread across the nation. All these help bolster the ease of transacting your business.
It also boasts of the ability to allow people to make deposits directly at their widespread ATMs. For all subscribers, every $7,500 cash deposit every month is free. For businesses with a significant number of monthly cash deposits and who want to enjoy insane offers, Bank of America is the best bet for them. Below are different categories offers for the customers;
Bank of America Introductory Offer
- A reward of $100 if you deposit $1,000 before the elapse of sixty days after opening your small business checking account.
- Award of $50 if you use an online pay bill option to foot at least two bills within 60 days.
- You receive $300 if you apply for Bank of America Small Business credit card and use it to makes purchases of $3,000. The purchase should be within 90 days after checking account opening.
Bank of America Bank Charges
- Monthly fees: The Bank charges monthly maintenance fees of $14 to $18, depending on the state of your business. However, these monthly charges can be waived if your business meets any of the following criteria;
- Keep a monthly balance of not less than $5,000
- Make purchases of at least $250 with Bank of America Business debit or credit card.
- Maintain a minimum of $15,000 on average per month for all your linked Bank of America accounts.
- Maintain every balance of at least $3,000 throughout the month.
- Transaction fee: The Bank grants 200 free transactions every month. Once you reach the limit, any other transaction is charged 45 cents.
- Cash deposit fee: There’s a free cash deposit of up to $7,500 each month. After this limit, for every $100, you pay 30 cents. The Bank also allows you to deposit a minimum of $100 without a minimum balance requirement to maintain your small business checking accounts.
Bank of America Additional Features
If you consider signing up for a small business checking account with Bank of America, the following are additional features and services enjoy;
- The Bank has developed a mobile application that you can use to deposit checks, monitor your checking accounts, pay your bills, and make transfers.
- It is possible to get payroll and human resources (H.R.) support for your business from ADP.
- The Bank offers five types of small business credit cards that you can benefit from.
2. Chase Bank Checking Account
This Bank has the most significant banking presence in the USA. It has no minimum deposit requirement for you to open an checking account. Also, you can access free checking if you have a monthly deposit of $500 or maintain a daily balance of $1,500.
However, for you to register, you must visit the Bank in person. This Bank is best suited for businesses with low monthly deposits because there are many ways to waive the monthly fees.
Chase Bank Introductory Offers
For first-timers, the Bank offers them an opportunity to earn bonuses of up to $3,000. To qualify for this offer, the business owners will need to do the following;
- Deposit at least $1,000 within 20 days after opening their checking account.
- Maintain a minimum daily average balance of $1,000 for 60 days.
- Carry out a minimum of five successful transactions from their business checking account within 60 days.
Chase Bank Charges
- Monthly fee: The Bank charges a monthly cost of $15. These charges will be waived if you meet any of these;
- Maintain a minimum daily balance of at least $1,500
- Maintain a linked Chase Private Client Checking or Chase Sapphire Checking personal account.
- You can also pay $12 if you settle for paperless bank statements.
- Transaction fees: The Bank does not apply any charges on deposits made electronically. Deposits made via ATMs, ACH (Automated Clearing House), and Chase Quick Deposits are also free. However, a 40 cents fee per transaction is charged once the monthly 100 free transactions are exhausted. This rate applies to all deposits through a teller, incoming wires, and debits.
- Cash deposit fees: The Chase Bank has a monthly free deposit offer of up to $5,000. After this limit, you will be charged $2.50 for every $1,000 transaction. Also, the same fee is charged with the ATM for every transaction at a non-Chase ATM plus the operator fees. The Bank does not have any minimum deposit requirement for you to open an checking account. Neither does Chase have a Minimum balance required to maintain your bank account: The monthly fees charged can be waived if you keep your account balance at $1,500 or above.
Chase Additional Feature
- Integrations with valuable accounting software like QuickBooks, which can help you manage your taxes.
- Chase offers a mobile application that allows business owners to make online check deposits, pay bills, check checking account balances, and make transfers.
- The Bank offers several business credit cards.
3. Capital One Checking Account
Capital One offers business checking at a low cost of $15 per month. This is the best choice bank for business owners who carry out several transactions per month because they are all free. This Bank is best for business owners who value low-cost checking account. Online-based businesses and Ecommerce may favor this checking account as cash deposits can be carried out electronically.
Capital One Terms
The Bank has a set minimum deposit of $250 to open an checking account. However, it does not have a minimum balance required to maintain your account. With $2,000, you can keep your account on good standing and avoid the monthly fee.
Capital One Bank Charges
- Monthly fee: The Bank charges $15maintenance fees every month. However, the fees can be waived if you meet two requirements; If you maintain your average balance of at least $2,000 for 30- or 90-days. Or sign up for two more Capital One checking accounts.
- Transaction fee: the bank doesn’t charge any fees on all transactions carried. This is the main strength of this Bank. Cash deposit fee-the Bank allows free deposits up to $5,000 per month. Once you reach this limit, a fee of $1 is charged for every $1,000 deposit. Also, access to all Capital one ATMs is free of charge.
Capital One Additional Features
- You will be integrated with quality accounting software such as Xero, which you can use to manage your business.
- Has a robust online application that business owners can make use of when paying bills, track their accounts, transfer money, and deposit their checks.
- The Bank also has several types of business cards.
4. U.S. Bank Checking Account
This Bank is the best pick if you make fewer transactions per month. You are allowed to carry out 150 free transactions. After reaching the limit, you will be charged a negligible fee of 50 cents per transaction. U.S. bank also offers free access to the Money Pass ATM network.
U.S. Bank Introductory Offer
If you choose U.S. bank, you’ll be offered 50% on your first Check order up to $50. It is a timeless offer that no matter how long you take to order your first check. The other introductory offers for business checking account are;
- You ar50% discount on a U.S. Bank Gold Personal Package checking account
- There is also a non-disclosed bonus rate on a Platinum Business Money Market account.
U.S. Bank Terms
U.S. bank allows you to open a checking business account without any set minimum deposit. It also does not require bankers to maintain a certain minimum standard to remain in good standing.
U.S. Bank Charges
- Monthly fee: The Bank does not charge maintenance fees on its customers.
- Transaction fee: The Bank offers 150 free transactions per month, after which a fee of 50 cents is payable per transaction.
- Cash deposit fee: Every month, there are no charges applied on cash deposits of up to $2,500.
- ATM fee: Customers are offered free access to 3,200 ATMs across the nation and free withdrawals from Money Pass ATMs.
U.S. Bank Additional Features
- You can access ADP Payroll online from your account dashboard.
- The Bank has a robust online system that allows you to generate a digital invoice and make an online payment.
- Has a mobile application that you can use to manage your account remotely. The app allows for inter-accounts cash transfer and online check depositing.
However, U.S. bank has one major drawback. It does not have an online application system. Therefore, people must either go in person to apply or contact a bank specialist for instruction. The Bank does not offer the most fundamental flexibility.
5. Wells Fargo Checking Account
Wells Fargo is considered the best Bank for growing small businesses. The Bank offers numerous additional financial and investment services that are vital for the business to thrive. The Bank has a high level of scalability. It allows you to change your business checking with respect to your business growth. You can, for example, increase your deposits as well as monthly transactions.
The Bank also has a widespread network of physical branches and ATMs. To enjoy the banking services, you are required to pay only a $10 monthly maintenance fee.
Wells Fargo Introductory Offer:
Occasionally, the Bank offers different bonuses for new checking account opened. To access these offers, you can visit the bank branches as their online system currently does not provide this service.
Wells Fargo Terms
To open a small business checking account with Wells Fargo, you must make a minimum deposit of$25. The Bank does not require any minimum balance to maintain your checking account. However, to qualify for a monthly fee waiver, you must have at least a balance of $500.
Wells Fargo Bank Charges
Wells Fargo charges a standing monthly fee of$10- which they waive if you maintain the required daily minimum balance of $500.
- Transaction fee: The first 150 transactions for every month are free. Once you exhaust this limit, a 50 cents fee is charged per transaction.
- Cash deposit fee: The first $3,000 cash deposits are free of charge. Further deposits are charged 30 cents per $100 deposit.
- ATM fee: A charge of $2.50 plus operator fee is charged per withdrawal at out-of-network ATMs. However, no charges applied while using ATMs in the Wells Fargo network.
Wells Fargo Additional Features
- It allows you to add your customized features on your debit card, such as your logo, tagline, etc.
- You can manage your Bank entirely from a mobile app. You can make online check deposits, transfer money online, and check your bank balances.
- Wells Fargo has a zero liability protection plan that enables reimbursement of wrongful transactions if reported promptly.
6. First Internet Bank Checking Account
This Bank is best suited for business owners who want to have multiple online accounts and flexibility with their account-where they won’t have to walk into physical branch locations for services.
The Bank’s small business checking account is free of charge, with 0.70% APY on account balances of at least $10,000. Those who open a savings account ends up earning more than 1% APY depending on your balances.
First Internet Bank Terms
The Minimum starting deposit required to open an business checking account is $100. The Bank also does not require any fixed minimum to maintain your business checking account. However, to earn interest from your bank account, you must have a minimum balance of $10,000.
First Internet Bank Charges
- First Internet Bank does not charge a monthly fee on accounts. The Bank also allows an unlimited number of transactions at no cost. For ATM charges, the Bank reimburses up to $10 per month of ATM fees.
First Internet Additional Features
- The Bank has one of the most efficient savings accounts.
- The Bank offers varied types of business bank accounts such as money markets, savings, and certificates of deposits.
7. TIAA Bank Checking Account
It is an entirely online-based bank. This is one of the best online business checking account. However, you should choose this account if you’re comfortable with a bank that doesn’t have a physical branch location. The Bank enables you to earn interest on your bank balances at 0.50% AYP. You can go for this account if your business does not deal with a lot of cash transactions.
TIAA Bank Introductory Offer
TIAA Bank offers excellent introductory offers. It allows you to receive your introductory APY paid at a 0.50% rate for the first year after. After that, they will pay the interest in different balance blocks at different rates.
TIAA Bank Terms
The Bank has a minimum deposit of $1,500 to open a bank account with them. It does not have a set minimum to maintain your account.
TIAA Bank Bank Charges
- The Bank does not charge any monthly fee. Transaction fees are 25 cents per transaction after exhausting the 200 transactions limit in a month.
- ATM transactions are all free of charge. Also, the Bank provides reimbursements if you keep to their minimum monthly balances for your account.
TIAA Bank Additional Features
- Allows remote deposit capture
- Has Payment processing services for customers
- TIIA also offers online money market accounts such as C.D.s as well as investment services.
8. Azlo Checking Account
Azlo is closing soon and NOT offering accounts to the new customers. So we redirecting Azlo links to its parent company, BBVA. Azlo is best suited for entrepreneurs who want to avert paying account checking charges. The Bank charges no fee for monthly maintenance of ATM processing. However, since the Bank does not have any physical branches, you have to bank exclusively online.
The Bank does not have any cash bonuses or any incentives for new business checking accounts opened.
Azlo Bank Charges
- No monthly fee for maintenance
- No transaction fee charged across all mediums.
- No Minimum deposit is required to open an checking account.
- The Bank does not have set minimum balance expected for your account maintenance.
Azlo Additional Features
- The account holders are given free Azlo Visa debit card that they can use for transactions.
- The Bank has a mobile application from which you can carry out all your bank management operations for free.
9. Huntington Bank Unlimited Business Checking
Huntington Bank is currently offering quite intuitive introductory offers for small business checking accounts. If you join and make a cash deposit of at least $5,000 within 60 days, you are entitled to a $300 cash bonus.
Huntington Bank Fees & Terms
There’s no monthly service fee for this Bank; neither does it have minimum requirements for you to maintain your bank account. The Bank allows up to 100 cash deposits either through the bank branches or ATMs. When you exceed the free deposit limit, Huntington charges you $0.30 for every excess of $100 deposit.
Huntington Bank Additional features
- Cash flow monitoring
- You enjoy financial forecasting and alerts through the business hub.
- The Bank also has a comprehensive manual that guides business owners on business account opening.
- Fraud detection tool.
10. Radius Bank Tailored Checking Account
Radius is now LendingClub. The Bank Tailored checking account is best suited for business owners who are after interest-bearing accounts. The account gives 0.10% APY for account balances over $5,000. Also, the Bank offers its users an unlimited number of free transactions.
Radius Bank Terms and fees
To open this checking business account, you must make an initial deposit of $100. Also, $10 per month is charged for account maintenance. However, these monthly charges are waived if the holder maintains a minimum balance of $5,000 and above.
Factors to Consider Before Opening a Checking Account for Small Business
1. Balance Requirements
A significant factor to consider before choosing your business bank should be the minimum amount of money expected in your Bank to avoid penalties and additional charges. Most of the banks require you to maintain a certain daily amount for your business checking account to remain in good standing. Accounts allocated higher balance requirements have more features or benefits. They could receive monthly charges waivers or free money transfers. Those with low balance requirements are allowed few bank benefits.
Before deciding to open your business checking account with a particular bank, be sure you can maintain their minimum balance requirement for your account to be in good standing. Also, consider choosing a bank that will offer the best features as per your business.
2. Transfer and Deposit Limits
Depending on your business operations, consider the number of money transfers per month you can make. To maintain themselves and offer these free or subsidized charges, most of these bank accounts have a predetermined number of transfers allowed per month. If your business, on the other hand, involves lots of money transfers, make sure to compare the Bank offering the best package. For example, certain waivers and discounted transfers.
Before choosing which Bank to use, you need to compare the terms for different banks. It will help you to avoid finding your business stuck or an unforeseen crisis. If your business is not involved with constant money moves and doesn’t envision it, you can choose a barebones business checking account.
3. Access to Liquid Assets
The Bank you chose should not make it hard to access your company funds. Opening an business checking account with a bank that has a capped number of transactions could be a disadvantage and an advantage. In as much as it helps to keep the maintenance charges at an all-time low, it can be so disastrous.
It can be so frustrating when you have money in the Bank, but you cannot access it. With capping, once you reach your account limits, accessing your money may become very difficult. It may be impossible for some banks to attract heavy penalties and charges, no matter how your business needs them.
If you realize that a bank offers fewer withdrawals and deposits than you foresee for your business, consider going for another bank. It will save you penalties that may occur due to going past your allotment. Also, it can save your business from future headaches.
There are business checking accounts that pay monthly interest on savings made in their banks. This will act as an added advantage to your savings. Also, you should consider the benefits of the savings just in case you start setting up a saving plan for your business. When you can foot all the business bills, service your business bank maintenance fees, and have a reminder to save.
To get the best from interests, make sure to compare rates from several business savings accounts. You can start your search with a high-yield business savings account. These always will have a competitive annual percentage (APR) on your account balance. However, these accounts are usually owned by small, regional, and online-only based banks.
When looking for a bank, consider your business’s future needs such as a loan to expand your business, the possibility to outgrow your current account, and Bank changing.
If you can find a bank offering different services such as savings, different checking methods, debit or credit cards, be sure to consider it. This will help reduce the risk of swapping banks when you outgrow your account limits. The process of switching banks is always rigorous and tedious legal work. According to J.D. Power and Associates researchers, about 7% of small businesses choose to change their banks.
To cushion your business from such future banking strains, go for a bank with better relationships with its customers. Again, if you establish a strong banking relationship with your business, it could be easy to secure loan funding, which is one of the hectic financings to secure.
In recent years, lots of inventions have been done in the banking industry. Banks have developed applications that allow online transactions. Nowadays, people can check their bank balances, make deposits, pay bills, and even transfer money without visiting banks physically. Ideally, these applications have virtually eliminated all paperwork.
In considering your business bank, the flexibility you want with your business bank will help you make a choice. The charges on your transactions, the security of your funds and the processing time should determine also play a key role. Most banks have reduced or no fees charged on some of these online transactions. You need to choose a bank with a secure online presence alongside the other benefits.
If technology is your top priority, it will eliminate the bulk of the banks. From the remaining list of banks that pass your threshold, you then scrutinize their terms.
FAQ – Frequently Ask Questions
Can I use a personal checking account for my small business? -Yes, it is possible though not encouraged. Commingling your account and the business account has so many demerits. For example, it risks your personal assets, and also, taxation becomes very hectic.
Why do I need to keep my personal and business checking account separately?
It makes your taxes easy to file. It also acts as a security to your personal assets in case of a lawsuit. Also, a separate business checking account enables you to monitor the progress of your business.
How do business checking account vary?
Business checking accounts differ significantly in terms of minimum balance requirements to open and maintain your account. Also, the technology’s vastness, the charges applied to different transactions, etc.
Should I open a business account at my personal Bank?
There is a likelihood of creating a strong financial relationship with a bank with many existing accounts. This can be exceedingly helpful when you are running your small business.
How much are bank charges for small businesses?
The bank charges vary from one bank to another. Also some banks offer free business checking account without any opening deposit .
Can I set up a business checking account online?
Yes, it is possible. Some banks offer full online business checking account like First Internet Bank.
If you intend to open your small business checking account, I recommend you go for a bank that does not have high charges on transactions you carry out.
Also, make sure that the Bank you open your business checking account will not strain your business’s running. Read all the terms and conditions of several small business banks before making a choice based on your business needs and operation modes.