How To Open a Free Business Checking Account Online With No Deposit

When you are operating a business, the most important thing is to make profits. Otherwise, your business will go under. That is why as a shrewd business person, you should find every opportunity to save a coin. One of the ways that you can make a saving, and a lot of savings for that matter, is by open a free business checking account online where you do not require any deposit.

Thanks to technological advancement, it is now possible to open and operate a bank account entirely online. No need to visit a brick and motor bank to carry out your financial transactions. To this end, there are many options in the market whereby it is possible to open a free business checking account online with no deposit. Below is a detailed review of the top banks that you can open a business checking account online with no deposit.

The Importance of Opening a Business Checking Account

You might be wondering whether it is really necessary to open a business checking account. Well, the truth of the matter is that if you want to conduct your business professionally, a business checking account is a necessity. Additionally, it is crucial to have a business account specifically for the purposes of filling your tax returns. It would be a nightmare to try and separate your business and personal earnings were you to use the same account for business and personal finances.

Other Top Reasons as To Why You Should Have a Business Checking Account

  • A business account comes in handy when you need to access funding in terms of a loan. Before extending a loan to your business, most financial institutions will ask for your business’s bank account statement to assess how well it is performing. They will also use the bank statement to gauge how much money to loan the business. For this reason, it is, therefore, crucial to have a business checking account.
  • Another reason why a business account is important is that you can get a business debit card to carry out your financial transactions. Using a debit card is much easier than using cash.
  • It is possible to get some very helpful tools to track the performance of your business. When your business has an account, it becomes very easy for accounting purposes. You can see exactly how your business is performing and know if you are making a profit or you are running at a loss.

Factors That You Should Consider When Open a Free Business Checking Account Online With No Deposit

1. Number of Free Monthly Transactions

One of the greatest considerations when looking for a business checking account with no deposit is the number of free transactions the account allows you to make. It is important to check if the account allows you to make free check and cash deposits and withdrawals, and also make free e- payments. Some accounts have a higher limit of free transactions than others. It is needless to say that the higher the limit, the better.

2. Check The Minimum Balance If There Is Any

Financial institutions rely on the money that customers leave in their accounts. That is why most banks encourage their customers to maintain a minimum balance. Therefore, when you are choosing a business account, make sure to find out the minimum balance.

Some banks require you to have a high minimum balance which might not be the best option especially if you are just starting out. Other banks also charge some account operating fees. It is therefore important to put all these factors into consideration before open a free business checking account online.

3. Choose a Bank That Is Tech Savvy

Although most online banks are technology savvy, some are way ahead of others. The business world is very competitive and you should also look for a bank whose technology allows your business to operate more smoothly. For example, it should be possible to integrate the accounting apps to your business account. The integration of the accounting apps is a real time saver when it comes to accounting and also for tax return purposes.

Top 4 Best Place To Open a Free Business Checking Account Online With No Deposit

Now that you have understood the importance of open a business checking account and the factors to consider while opening one, below is a list of the best free online business checking account with no deposit.

1. Azlo

To start off this in-depth review of the best free business checking account online with no deposit is Azlo. The online bank has been in the market for a long time and as such has created a name for itself as one of the best online bank in the market. With Azlo, you do not need to deposit any cash in order to open a checking business account. The checking account is also free of charge. A free account means that there aren’t overdraft fees, monthly account operating fees, and replacement fees. The online bank has a very powerful mobile and web app that integrates all important features to help you operate the account with ease.

The app allows you to make check deposits, make direct deposit payments through ACH, send invoices, and send money from one account to the other through the bank. To make your financial transactions seamless, the bank also has a debit card that you can use for your business financial transactions. Since Azlo is a completely online bank, it is not possible to make cash deposits as you would do in a brick and motor bank. However, there is good news, with the bank’s debit card; it is possible to use more than 55,000 ATMs nationwide which the company supports. And it is all free of charge.

Another great feature with the online bank is that it takes as little as five minutes to complete the account registration. You should note though that you will need to provide other important information about your business such as the tax ID and the business address. Confirmation of this information might take a few days.

2. NBKC Business Account

The other bank which you can open an online business checking account with no deposit is the NBKC bank. As with its counterpart Azlo, at NBKC, you get to enjoy a lot of services at absolutely no cost. With this account, you do not need to deposit any cash while opening your business account. What’s more, you do not need any minimum balance to operate the account. You will also not be charged any fees for online banking, overdrafts, check deposits, stop payments, incoming domestic wire transfers, and other financial transactions. For outgoing wire transfers, you only pay $5. You also pay $45 if you receive or send any international wire transfer.

It is also very easy to access your account through the bank’s mobile app and also online. You also have access to the over 32.000 ATMs which support the bank’s Debit MasterCard. If you use other ATMs to conduct any of your financial transactions, it is possible to receive a refund of up to $12 per month!

3. Capital One Spark Business Account

Another great choice for online banking is Capital One. The online bank offers great services as you do not require any deposit to open a business checking account. With the bank, it is possible to make transactions including wire transfers, withdrawals, and deposits without being charged. Also, with the bank, you do not pay any extra fees if you use another bank’s ATM. It is absolutely free to operate your account and the bank does not require you to have a minimum operating balance.

To ensure that you have great banking experience, Capital One bank has fully optimized web and mobile applications whereby you can conduct all your financial transactions without any issues. Another great characteristic of the bank is that its account opening process is very easy. It will not take you more than 5 minutes to complete the process. However, you must provide all the required documentation.

4. Novo

Another great option when it comes to free online checking account with no deposit is Novo. The application process of the account is quite straightforward and takes only a few minutes. The short time is due to the fact that the application process happens online. Once the account is set up, then you can handle all your business financial transactions through the bank. It is possible to receive payment, make payments and generally transfer funds using your smartphone. The bank’s app is well optimized and works perfectly on both iOS and Android devices.

It is often a challenge with online banks when you want to send a physical check. But with Novo, the case is different as they will handle the process on your behalf through their system.

To make sure that your funds are safe, the bank’s checking accounts are FDIC insured. The bank also issues all business checking account holders a debit card. The good thing with the MasterCard debit card is that it supports both Apple and Google Pay which makes it very convenient.

Although the account does not have a minimum balance requirement, you have to deposit at least $50 when opening the account in order to make it active.

It is also not possible to make cash deposits at the bank. There is a way around it though as all you need to do is buy a money order which you can then deposit into your account. The bank also does not have fee-free ATMs.

Some Brick and Motor Bank Options For Open a Free Business Checking Account

It is possible to open a free business checking account online with no deposit with some banks although they are not completely online since they have brick and motor branches. However, it is possible to carry out your transactions completely online even if you have an account in a brick and motor bank. It is also important to note that with a majority of these banks, in order to qualify for a free business checking account, you have to meet some requirements.

Therefore, without much ado let us look at some of the best options in this category

1. Chase Bank

Chase Bank is one of the largest banks in the US. It is therefore possible that you already have a checking account with the institution. In order to qualify for a checking account without any monthly fee, there are some minimum requirements that you must fulfill. It is important to note that the bank offers some of the best terms for this type of account.

One of the top products of the bank is the Chase Total Business Checking account. In order for the bank to waive the monthly maintenance fee of $1200, you have to maintain a minimum balance of $1,500 daily. You will however incur a cost of $15 if you are not using paperless statements.

Additionally, with the account, you can carry out up to 100 transactions free of charge. You can also make as many electronic deposits as possible. However, electronic deposits do not include wire deposits. The bank has over 5,000 branches and more than 16,000 ATMs across the country. This wide network makes it very efficient to operate your account with the bank. Another great characteristic is that you can visit the brick and motor branch or operate your account online which saves you time.

If your business is a joint partnership, it is possible for each partner to have own bank PIN, personal debit card, and access to the account online. It is possible to graduate to other business accounts that have fewer restrictions once your business starts to make more money.

2. First National Bank

Another great option when it comes to a free business checking account without deposit is the First National bank. The financial institution allows you as a new customer to open a free business account. With the bank, you do not need to pay any deposit to open the account neither do you need any cash to maintain the account. The bank also does not ask for a minimum deposit.

3. Amalgamated Bank

Another great option when it comes to the online free business checking account without deposit is Amalgamated bank’s small business checking account. Similar to First National Bank, you do not need any deposit to open a business checking account. There is no account maintenance fee and neither is there a minimum deposit to operate the account.

FAQ – Frequently Asked Questions

Below are some very common questions that business owners ask themselves about a free business checking account online with no deposit. To get the answers to these most common questions, please read on.

Which banks offer free business checking accounts without a deposit?

There are a number of banks that offer free business checking accounts without deposit. Most of them operate exclusively online which means that they do not have any brick and motor branches. The banks have however optimized these services such that it is very easy to operate your account. They also use advanced technology to ensure that they offer seamless services. Their operations are also optimized and it is possible to conduct all your financial transactions through their mobile or web platforms without any hassle.

Below is a list of the top online banks where you can open a business account

  • Azlo
  • NBKC Business Account
  • Capital One Spark Business Account
  • Novo
  • Amalgamated Bank
  • First National bank
  • Chase Bank

Is it possible to open a free business checking account without a deposit?

Yes, it is very possible to open a free business checking account online without any deposit. The best feature of such accounts is that they are cheaper to operate and offer almost all the services that the traditional banks offer.

The only drawback of banks which operate exclusively online is that they do not accept cash since there is no brick and motor branch where you can deposit the cash. To overcome this limitation though, it is possible with some online banks to buy a money order and deposit it into your account.

Is a tax ID necessary to open a business checking account?

Despite popular belief, it is not necessary to provide a tax ID especially if you are operating a sole proprietorship. A tax ID becomes necessary if you have employed one or more people. However, in order to build the business’s credit history, it is prudent to get the tax ID anyway.

How do you open a free business account?

Thanks to technology, it is now possible to open a bank account in the comfort of your office or house. Opening an account online is especially easy with banks that operate exclusively virtually. The good news is that these banks have very favorable terms especially for small businesses which make them a good choice for small business owners.

Which are some types of business you open a business checking account with no deposit?

The types of businesses include:

  • Sole proprietorship
  • Partnership
  • Limited Liability Company
  • Corporation

Final Recap

Opening a free checking account is a very prudent business decision. The main purpose of starting a business is to make profits. It is therefore important to look for opportunities where you can make a saving. Thankfully, there are online banks that offer open free business checking account without deposit. The best thing is that these banks offer excellent services which will enable you to run your business hassle-free. Additionally, it is very easy to set up an account with these banks as the application process does not take more than a few minutes.

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