What are the best business checking account? Top 9 accounts

Intro – What is a Business Checking Account?

A business checking account is a bank account for everyday business expenses. It is used for day-to-day cash deposits and withdrawals to meet the financial needs of businesses. It also separates your personal bank transactions from your business finances. It is similar to how a personal checking account works but they differ in terms of fees, transaction limits, and balance requirements, among other things.

Are you looking for the best business checking account? If you are clueless about what to choose, keep on reading and learn from the valuable insights we’ll share in this article.

What are the Differences Between Business Checking Account and Personal Checking Account

While a business checking account and personal checking out are similar in many ways, there are also key differences, including those that are briefly mentioned below.

  • Fees: A lot of personal checking accounts are available for free or have low transaction fees. Business checking accounts, on the other hand, are known for their high fees, and often cannot be waived unless you meet the minimum daily or monthly balance requirement.
  • Balance Requirements: The balance requirement is often higher in business checking accounts.
  • Transaction Limitations: Business checking accounts have higher transaction limits since business expenses are often higher compared to personal expenses.
  • Interest Rates: It is common for banks to offer lower interest rates in a business checking account compared to a personal checking account.

What Do I Need to Open Business Checking Account

If you are thinking of opening a business checking account, below are some of the requirements:

  • Employer Identification Number or Social Security Number
  • Business license
  • Personal Identification
  • Articles of organization or ownership agreements

List of the Best Business Checking Accounts

Curious about who has the best business checking account? To make things easier, here are some of the best options that should be on your radar.

Chase Total Business Checking

Minimum Opening Deposit: $0

Minimum Daily Balance: $1,500 daily to waive monthly fee

Monthly Fee: $15

This is one of the most reputable options for the best small business checking account. It is from J.P. Morgan Chase, a company with assets of more than $2.6 trillion. You can transact in more than 4,900 branches and over 16,000 ATMs. When you open an account, you will also be qualified for a $300 bonus if you meet the terms and conditions. The monthly fee is $15 but it can be waived if you can maintain a daily minimum balance of $1,500. Plus, when you enroll in paperless billing, the monthly fee is reduced to $12. For every statement cycle, you can make up to $5,000 cash deposits without an additional fee. You can also make up to 100 transactions monthly without charges.

Bank Novo

Minimum Opening Deposit: $50

Minimum Daily Balance: $0

Monthly Fee: $0

Simple business banking – that is what you can expect from Novo. This is an online-only bank account, so this means that there are no branches where you can facilitate bank transactions. It comes with a seamless app where you can transfer funds, deposit checks, pay bills, and mail checks. You can also access integrated tools that are used in running your business. It is backed with FDIC insurance, which can provide peace of mind. The insurance coverage is up to $250,000. Application takes less than ten minutes to accomplish. Most of the transactions are free, allowing your business to save a lot of money. There is a minimum deposit of $50 but after this, the balance can reach zero without incurring a penalty.

Bank of America Business Fundamentals Checking

Minimum Opening Deposit: $100

Minimum Daily Balance: $3,000 to waive monthly fee

Monthly Fee: $16

With this checking account from Bank of America, you will have all the essentials that your business needs in managing finances, including powerful cashflow insights. It comes with a regular monthly fee of $16, but it can be waived when you meet certain requirements, such as maintaining a minimum daily balance of $3,000 or a minimum monthly balance of $5,000. You can also get business and employee debit cards, making it easier to track and manage cashflow.

Capital One

Minimum Opening Deposit: $250

Minimum Daily Balance: $2,000

Monthly Fee: $15

Another business checking account from a trusted bank, this is 100% digital. Nonetheless, you can make transactions in over 39,000 ATMs and 700 branches. There is no sign-up bonus for this checking account. There is a monthly fee of $15, but it can be waived if you meet the minimum requirements set by the bank. You can make unlimited transactions for free, including transfers, deposits, and withdrawals. The checking account will allow you to make cash deposits for free capped at $5,000. After reaching the limit, there is a minimal fee of $1 for every $1,000 cash deposit.

U.S. Bank Silver Business Checking

Minimum Opening Deposit: $0

Minimum Daily Balance: $0

Monthly Fee: $0

Simplicity and convenience for small businesses – this is what the U.S. Bank promises with this checking account. You can enjoy a total of 125 free transactions monthly. After this, the cost of every transaction is $.50. There is also no monthly fee and no minimum balance requirements. You have to pay $5 monthly fee only if you opt to sign-up for paper-based billing. Other perks that you can enjoy with this option for the best free business checking account include 25 free cash deposits per statement cycle and 50% discount on your first check order capped at $50.

Wells Fargo Simple Business Checking

Minimum Opening Deposit: $25

Minimum Daily Balance: $500 to waive monthly fee

Monthly Fee: $10

Convenience, flexibility, and value are some of the benefits that you can enjoy when you open this business checking account. While there is a monthly service fee of $10, you can avoid it by meeting the minimum deposit requirement of $500. When you have this checking account, you can access 13,000 ATMs. You can also access mobile and online banking round-the-clock, which will be perfect for completing transactions on the go. You also have the option to customize the design of your business debit card, such as by including a logo or tagline.

Axos Basic Business Checking

Minimum Opening Deposit: $1,000

Minimum Daily Balance: $0

Monthly Fee: $0

This business checking account has a minimum requirement of $1,000 to open, which is one of the highest from the banks that we talked about in this article. The good thing is that there are no monthly charges and no minimum daily balance requirement. New business owners can also get up to $50 bonus, which makes it unique compared to most banks. You can also access more than 200 free items monthly, including debits and credits. After this, there is a minimal fee of $.30 per item.

Radius Bank Tailored Checking

Minimum Opening Deposit: $100

Minimum Monthly Balance: $5,000 to waive monthly fee

Monthly Fee: $10

With this convenient business checking account, it only takes ten minutes to apply online. Like the name implies, this is tailored to the needs of businesses. You have free access to a global network of ATMs and enjoy rebates. You will also be eligible for FDIC insurance for deposits of up to $250,000. Users will also love the 256-bit encryption, which will provide the highest level of security on your account. With Radius Bank, you can complete transactions through your fingertips as it comes with a feature-packed mobile app. This app can be used for paying bills and transferring funds, among other transactions.

Azlo

Minimum Opening Deposit: $0

Minimum Daily Balance: $0

Monthly Fee: $0

If you are looking for a fee-free business checking account, Azlo is another option that should be on your list. With Azlo, you can access your account in a network of more than 55,000 ATMs. With a convenient mobile application, you can complete several transactions without going to the bank, which means that you will have more time managing your business. This 100% online bank does not have minimum balance requirements and maintenance fees. It is also FDIC-insured, which is one thing that can provide you with peace of mind.

What are the Best Small Business Checking Accounts?

If you are looking for the best small business checking account 2020, some of the best options worth taking into account include Chase Total Business Checking, Bank Novo, U.S. Bank Silver Business Checking, and Axos Basic Business Checking. Go back to our discussions above and see why these are some of our recommendations for small businesses.

How Should I Choose a Good Business Checking Account?

To help you decide on what is the best business checking account, below are some of the most important factors to consider.

  • Fees: Consider all the additional fees associated with the checking account, such as monthly maintenance fees and service fees. This can range from $10 to $50 depending on the bank. Fortunately, there are still options for the best free business checking account.
  • Balance Requirements: Most banks will require a minimum maintaining balance on your business checking account. Otherwise, your account can be suspended or you will incur a penalty.
  • Transaction Limits: Many business checking accounts will have restrictions when it comes to deposits, withdrawals, and transfers. When you go above the stated limit, you will be charged an over-limit fee.
  • Interest Rate: It is also common for banks to offer interest rates to encourage businesses to fund their accounts more.
  • Bonuses: To entice businesses, some banks are offering different types of bonuses to reward their clients. A sign-up bonus, for instance, can be awarded once your application has been approved.
  • Online Banking: For your convenience, it will be good to choose a business checking account with a website portal or online app. This will allow you to carry out bank transactions without the need to go to the bank.
  • Branch Location: It is practical to open a business checking account from a bank with a location near your place. This makes it convenient to run to the bank when you need to facilitate any transaction in person.

Final Verdict

The best business checking account is a must for entrepreneurs. This will help to effectively manage the finances of the business. In the same way, it helps to keep personal separate from business finances. Consider our recommendations above to pick the right checking account that can help to get your business finances in order!

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