When you’re looking for a checking account for your business, you’re going to need to opt for a strictly business checking account as opposed to an individual account. Even if you’re operating a small, family business, drawing the line between personal and business expenses is necessary for accurate tax reports and liability. Before you start hunting for the best bank for your checking account, outline what you need to get out of a bank. To make your search easier, we’ve also listed some of the best banks around.
What to Look For
Every business has their own individual needs, but there are two things you should consider while looking for the best business checking account: fees and convenience. Which bank will hit you with the most fees? Between monthly fees, transaction fees, and everything in between, you’ll want to go with the kindest bank (if such a thing exists). For example, banks will give you a limited amount of fee-free transactions and deposits in a month. Find out if a bank tack on a fee for minor additional services, such as card replacement fees or transfer fees.
Convenience is a huge factor. While online banking is available with almost every bank, mobile access may be stunted by an insufferable or nonexistent app—and these days, mobile access is a must-have. Consider the amount of branches and fee-free ATMs in the area. A national bank can offer multiple locations in a city and capable online and mobile access. Alternatively, you might be able to find more financing support from local banks and credit unions. Whether you decide to bank with a big name or go local depends on what you need.
Our Favorite Business Checking Accounts
Online Banks
Does your small business operate online? Consider opening an online business checking account. Online banking is a natural choice for business owners who like the convenience of online banking, or conduct all of their business online. SmallBusinessBank.com is the best exclusively online option, and with a product named “No Bull Checking Account”, you know you’re getting a good deal.
Unlike most other banks, SmallBusinessBank brags about its lack of monthly fees and minimum balances; all you need is a $100 initial deposit to set up an account. In fact, the only fees associated with the No Bull Checking Account are results of optional add-ons, like a $10 monthly fee for paper statements, a $10 wiring fee, and a $25 fee to stop a payment. Like other online banks, SmallBusinessBank doesn’t allow cash deposits. However, the app lets you scan checks with the smartphone app.
Brick and Mortar Banks
If you prefer brick-and-mortar banking, US Bank and Bank of America offer excellent options for small business owners. The US Bank Silver Business Package has no monthly fee (a rarity among local and national banks) and allows for 150 free transactions a month. Each transaction costs $0.50 after the limit, so if you need more than that you may want to opt for a different package.
Bank of America’s Business Fundamentals checking account has a monthly fee that varies by state; if you don’t meet their $5,000 monthly minimum balance, expect to pay somewhere around $14 to $20 a month. This package allows for $10,000 in cash deposits and 200 transactions a month. The Bank of America Business Advantage package is the better choice for bigger businesses; if you need 300 more transactions and a $25,000 monthly deposit limit, then consider this option. As long as you carry a monthly balance of $15,000 or more, your $30 monthly fee will be waived.
