Why search for the best banks to open a business account with when our top list showcases those with no monthly fees and low deposit minimums. Most low or no-fee checking account offers are from an online bank, so if you need branch services in person, you should consider carrying a balance so they’ll waive some transaction fees.
When reviewing different business bank accounts you’ll always want to read the fine print to what your monthly maintenance fee is, and if you’re freely able to make cash deposits at a local bank.
Below are three business checking account options where each one possesses at least one characteristic worthy of making them the best business bank. You could also opt for an online business checking account, which could be cheaper for you.
Bank Of America
With two different business checking accounts available, the Business Advantage Relationship Banking and Business Advance Fundamentals TM Banking at Bank of America are both worth a look.
Business Advantage Fundamentals
This is one of the best bank accounts for sole proprietors where you take advantage of a business checking account that can also be merged with your personal checking account.
As a BOA client, you’ll get access to the Zelle and Cash Flow Monitor systems, along with their artificial intelligence system nicknamed ERICA.
Both checking accounts have zero fees on cash deposits, and QuickBooks integration so you can easily track your incoming and outgoing bill payments.
This is one of the best banks to consider for a small business checking account. It is based in Florida, also offers business checking accounts with a minimal interest rate which starts from 1.21%. It will be hard for you to find a better checking account with a lower interest rate than TIAA Bank.
Capital One is best known for offering unlimited checking account transactions and business credit cards at a low monthly maintenance fee. Also, it offers two business checking account options with extensive cost-free transactions, which is uncommon with most banks.
In addition, it also offers six business credit cards with the ability to earn limitless rewards, free access cards, and no foreign transaction fees. Most suppliers accept credit card payments from this company.
Online vs Brick And Mortar
In the past, almost all personal and business accounts were operated in a brick-and-mortar bank setting. Nowadays, the landscape has changed and you can equally receive all the services found in regular banks when applying for a business bank account online.
These are designed to function like a full bank accepting cash deposits, cash withdrawals, and bank transfers. These accounts also charge monthly fees but will provide a business debit card for the business owner.
However, before opening any basic business checking account, or a business advantage savings account, evaluate your business management system. Most businesses today use digital management systems. Digital means, all payments, invoicing, and accounting services are executed electronically, which means that online banking would be ideal for you.
Nonetheless, some businesses are not digitized. Such businesses usually accept cash that needs to be deposited into a bank daily, and for such, a brick and mortar bank account is ideal. Online and mobile banking is extremely convenient. They offer invoicing features that include credit card payments and mobile checking deposits.
They also have lower and minimum balance requirements for a small business bank account. Brick and Mortar business checking accounts provide the ability to either withdraw or deposit large quantities of physical cash.
With that in mind, remember to consider the system that you use to run your business before opening a checking account.
Here are 9 features to consider before opening a business checking account.
Federal Deposit Insurance Corporation (FDIC) is a company that insures all cash deposits and accounts of bank customers. Most traditional banks are FDIC Insured. If you’re considering opening a business checking account with an online bank, ensure it’s insured.
Otherwise, you risk losing a lot of money if the bank collapses. The Federal Deposit Insurance Corporation will cover money up to $ 250,000.
Minimum Opening Deposit
This is the amount of money that is paid before opening any business checking account. The amount to be paid varies depending on your bank of choice. Also, not all accounts have a minimum opening deposit.
The monthly service fee helps in maintaining your business checking account. When scouting for banks, choose one that has free business accounts or low account fees and unlimited electronic deposits. If you have to pay account fees, ensure you do it regularly to avoid incurring fees.
Does your bank have additional fees that can add up over time? Aside from account fees and minimum opening deposit banks charge extra fees for:
- Wire transfers
- Stop payments
- Overdraft protection
- Returned items
- Non-sufficient funds
Cash Deposit Limit
An amount of money that is deposited into your account for free during your billing period. However after you surpass the required threshold, you’ll be charged for every cash deposit you make.
Choose a bank that can sustain your total transaction volume by providing unlimited transactions. Banks have limits that regulate the number of transactions on your check business account.
Checks and electronic transactions are also limited. If you exceed this limit, your transactions will be charged.
As you get your ATM access card there are a couple of questions to ask. Where can you use the card? Can you be charged for using the card outside the banks’ ATM network? Does your card access include both cash and deposit withdrawals?
Different business checking accounts have tools like online bill pay, free online mobile banking, and mobile check deposit. Other banks offer to customize business banking options like online payments and invoicing.
There are business accounts that offer interest. Most checking business accounts don’t offer interest. Saving accounts are known as interest-bearing accounts. For you to access the interest services you’ll be required to have a savings checking business account.
Below you’ll find answers to our most frequently asked questions about how to open a business checking account online or in person, and how they differ from a personal checking account.
A business account helps separate your finances from your business finances. You will be able to track the income earned by your business easily. If you’re not the sole proprietor of the business, setting the company’s name using a business account is a good idea.
Business accounts have to be registered under a legal entity like a Limited Liability Company (LLC) also adds legal separation between your money and your business debt.
Most start-up businesses will get banks that provide lean financial services. Go for institutions that are ready to quickly upgrade and reward you as your business account grows. Also, look for banks that offer good loan terms, provide lines of credit and give credit cards rewards. Loans will help to support the cash flow needed for your business growth.
Personal accounts are used for paying personal bills. It usually acts as a deposit and savings account. With a personal account, you are allowed to write checks, you can purchase things using debit cards and you have access to interest rates. Bank accounts are used for making payments for business expenses. They have to be registered under the name of a legal business entity. This entity can either be a corporation or a registered LLC.
Yes, you can, but it’s best not to mix business and personal transaction, as it makes managing your finances difficult. Should you end up using business money on personal expenses, it can also lead to taxation issues.
High-yield business bank accounts allow you to earn interest for any money you keep in your account. If you want to open this account you’ll be required to pay a higher minimum deposit and there are tighter restrictions around monthly transactions.