What Is A Business Checking Account?
Basically, a business checking account is a specialized option of a bank account created especially for businesses. Simply put, the best online business banking accounts operate as a central repository of a company's finances.
Besides, such accounts have a wide range of unique features and services for the achievement of business goals. Namely, you, as a company owner, can get payments from clients, pay your suppliers, and manage the funds flow. Of course, you may also follow your transactions' history, controlling spending.
The Importance Of Choosing The Right Business Checking Account For Business
A checking account for business is a key element for carrying out financial transactions. It’s a basic requirement for any business. Opening such a banking account will significantly facilitate your business development. According to the Nav Small Business Banking Survey, 26% of business owners without a checking account often considered stopping their activity.
By choosing the best online business checking account, you will be able to save money and time and significantly facilitate the management of your finances.
Online Business Checking Accounts Vs. In-Person Banks
In fact, online banks and in-person ones are similar concepts. It makes sense since both options offer a debit card, online platforms for checking your balance and transactions history, and an Automated Clearing House (ACH). However, it is worth noting that online banks are available on the web, from any place in the country or even world, while in-person financial institutions may have only a few branches.
Plus, when it comes to the best business checking accounts from online banks, you may count on cheaper solutions. Namely, most online banks offer no monthly maintenance fee, free ATM use, and no transaction commissions. Nonetheless, if you use an online bank, it can be difficult or impossible to deposit cash. Beyond that, you can communicate with customer support online only, while with an in-person bank, you can go to the physical branch to solve any issues.
How To Open An Account
Keep in mind that opening the business checking account is distinguished from personal account creation. Move on to our list to realize several steps you need to go through:
- Opt for the best bank to open a business account. We recommend comparing a few variants to find a suitable one according to your goals and needs.
- Prepare a list of documents. We have indicated this data below.
- Apply. Keep in mind that the bank may ask you to go through a verification process.
- Wait. You need to wait from 1 day to 6 weeks to get the solution from the bank.
- Access and set up your account. If the bank requires a minimum deposit, top up your balance.
- Start using your bank account for your business goals.
If you need to accomplish additional steps, managers of the selected bank will explain the necessary details to you.
Required Info
Obviously, you may indicate some personal and business information to open a company account. We have fused all the necessary personal data into one list, presenting it below:
- Your full name, address, and date of birth;
- Individual Taxpayer Identification Number (ITIN) or Social Security Number;
- Copy of your passport, ID card, or driver's license;
- Employer Identification Number (EIN) if your business is incorporated;
- Your mobile number;
- License for your business activity;
- Partnership agreement;
- Industry (NAICS or SIC code).
Keep in mind that opening business accounts in a specific market might be perplexing. For example, you need to be ready for a much longer process and more required info if your activity is connected with gambling, cannabis, cryptocurrency, or gaming activity.
The Best Business Bank Accounts To Consider
Well, now we are close to picking the best business bank accounts for your goals. We have checked out proposals from a myriad of financial companies and highlighted the cream of the crop options. Let's talk about their offers, fesses, conditions, pros, and cons.
Best For All Business Types
Chase Business Complete Banking
Best for all business types
Minimum deposit to open: None
Minimum balance: None
Business perks: You, as a business owner, may monitor employees' debit cards, controlling their daily limits.
Fees: $34 with ways to waive
Mobile check deposits: Yes, via the Chase Mobile app
Special Offers: Create a new Chase Business Complete Checking account and grab $400
Special Offers: None
ATM fees: None
Chase Business Complete Banking will be a flawless choice for a wide range of businesses, counting on bountiful cash perks and efficient card and check processing. Most clients consider Chase to be the best business bank due to its generous $400 gift after registration. If you maintain a daily balance of $2,000, you can avoid monthly fees. Besides, if you spend $2,000+ per month, the bank may waive commissions for business accounts.
We should also note the QuickDeposit and QuickAccept features that you get with Chase. In particular, QuickAccept enables you to receive card payments via a mobile card reader or by utilizing the Chase app.
Thanks to the QuickDeposit feature, you can benefit from several methods to scan and top-up checks. For example, you can scan up to 50 checks simultaneously, saving your time.
Pros:
- Efficient payments due to the QuickAccept feature
- Same-day money use if your deposit is approved before 8 p.m.
- Deposits up to $5,000 per transaction
- No need to go to the branch to top up your account
- Considerable daily spending limit – up to $10,000 for owners of Chase business debit cards
Cons:
- You need to pay $0.40 for each in-person deposit
Best For Contractors, Sole Proprietors, And LLCs
Novo Business Checking Account
Minimum deposit to open: None
Minimum balance: None
Business perks: You can sync your business account with Shopify, Quickbooks, Slack, and Stripe.
Fees: None
Mobile check deposits: Available
Special Offers:
- Get up to $3,000 in Google Cloud credits after business account registration;
- Receive $150 for Google Ads use;
- Grab up to $20,000 for fee-free credit card transactions after you link your account with Stripe.
ATM fees: up to $7 per month
Novo is the best bank for business types that need an unlimited number of daily transactions. You don't need to make any minimum deposit to open an account. You can also count on the absence of a monthly commission, significantly saving your company's budget.
Furthermore, you can issue an unlimited number of invoices to your customers with the special tools provided by Novo. However, Novo Business Checking does not allow topping up an account with cash. So, you need to make money transfers or use the Novo mobile app. If your business involves frequent replenishment of accounts with cash, this bank may be inconvenient for you.
Pros:
- No limits for monthly online transactions
- Absence of minimum deposit requirements
- No fees per month
- Effortless integration with Apple Pay and Google Pay
Cons:
- No way to top up the account with cash
Best For Startups And Small Businesses
Bluevine Business Checking
Minimum deposit to open: None
Minimum balance: None
Business perks: Two free checkbooks
Fees: No
Mobile check deposits: Available
Special Offers: None
ATM fees: No
If you have a startup and are looking for the best banks for business accounts, pay attention to Bluevine's offers. This company has no transaction limits, no monthly or daily commissions, and no overdraft or ACH fees. You can also earn interest with Bluevine, including up to 4.25% APY, with no minimum requirements.
You'll also like the other business-oriented features Bluevine provides. For example, you can easily and conveniently deposit checks from your smartphone and enjoy all the advantages of digital payments without having to visit a bank branch. You will also have access to the MoneyPass ATM network. Namely, across the USA, you can find more than 38,000 options.
Pros:
- The absence of monthly fees and daily balance commissions
- Robust debit card security due to an opportunity to lock and unlock your Bluevine Business Debit card
- Connection with business tools like Expensify, PayPal, and Stripe
- Limitless daily and monthly transactions
Cons:
- No ATM refunds for out-of-network payments
Best For Small Businesses Interested In Growing
EverBank Small Business Checking
Minimum deposit to open: $1,500
Minimum balance: None
Business perks: Free debit card
Fees: None
Mobile check deposits: Available
Special Offers: No
ATM fees: None
If you are seeking the best business account, you may also pay attention to EverBank. The primary service of this company is a Business Checking account. You can also count on a profitable system of receiving interest. In particular, the Annual Percentage Yield (APY) is 0.50%. Each EverBank's business client gets a free debit card, mobile check deposits and ATM fee refunds.
You will be able to easily work with your business accounts on your smartphone via a convenient application. Beyond that, EverBank emphasizes advanced security and provides reliable tools for fraud detection and overdraft protection. Additionally, customers from the USA appreciate the large number of ATMs (over 100,000) in the country.
Pros:
- No monthly fees for business accounts
- All business accounts earn profitable interest
- Unrestricted ATM commission reimbursement for accounts with a daily balance of around $5,000
Cons:
- The need to deposit at least $1,500 to open an account
- No special proposals for business owners
What To Keep In Mind When Choosing The Best Bank To Open A Business Account
Before selecting the best business checking account, you need to consider several crucial insights. Namely, look at such key elements as bank location, potential fesses, transaction limits, etc. We have covered all the aspects below.
Type Of Banking You Deal With
You should check the proposals of numerous online and in-person banks to opt for the best business accounts. We recommend comparing the pros and cons of both financial institutions to realize what solution will be more advantageous for you. Keep in mind that the financial company must have solutions according to your business size and be available across the countries where you work.
Bank Location
You need to look at the bank branches' locations before picking the best business bank accounts. Why? Suppose your business requires frequent cash deposits, bank-issued certificated checks, the necessity of money withdrawal or settlement of some technical difficulties. In that case, it will be much more convenient to go to a bank located near your home or office.
Associated Costs And Fees
When choosing the best business bank account, you need to compare fees from a few financial institutions. It's not a secret that different banks provide various prices based on their policy. For example, each bank has a monthly service fee and a transaction commission. You may also compare ATM fees and overdraft taxes. We advise preferring banks with $0 service fees or reduced commissions for certain transactions. Carefully study the prices and opt for the most lucrative proposal for your business.
Sign Up Process
As we live in the digital world, it would be great if you could open your bank checking account online. So, before picking the best bank for a business account, ensure the registration and authorization process does not take much time. Furthermore, read information about the terms of acceptance of the application. You should not wait long to use the necessary bank services.
ATM Network
When picking the best business bank accounts, do not overlook the ATM network offered by the selected financial institution. It should be straightforward for you to withdraw cash without additional fees. On top of that, check the distance of ATMs from your office. If your job involves a lot of travel, ensure the ATM network is available across your country for convenient cash usage without extra charges.
Benefits For Businesses
In most cases, the best business bank accounts open additional features and perks for their customers. For instance, some financial institutions may provide an opportunity to sync your business account with PayPal and other top-rated services for your convenient payment solutions. Besides, you may receive the Annual Percentage Yield (APY) offered by the selected bank, the absence of monthly fees, and other benefits.
Transaction Limitations
You may also review the daily and monthly transaction limits. In particular, look at the set withdrawal amounts, checks written, and wire transfers. These limits must meet the needs of your business. After all, if you exceed the number of transactions, it may lead to additional fees. Therefore, you may evaluate the potential volumes of your business and compare them with the possibilities provided by the selected best bank for a business account.
Mobile Banking And Deposits
We also recommend checking the availability of a mobile banking application for more convenient payments. Thus, you can pay bills and follow statements and transaction history without going to the physical bank branch. You may test an application to ensure it has a user-friendly interface and provides real-time account information.
Fraud Protection
When you are looking for a bank to create a business account, do not forget to check out methods implemented by the financial institution for security and fraud prevention. You need to consider multi-factor authentication, as it adds a robust safety layer by requiring several identification forms for account access.
Of course, the chosen bank must provide reliable encryption systems for account protection against fraud activity and unauthorized access. Namely, some banks provide real-time transaction monitoring or send alerts in the case of suspicious actions with your business account.
Final Thoughts
Consequently, the best business bank accounts become a crucial foundation for your physical or eCommerce company's activity. They make your business legitimate, increasing the confidence of customers and counterparties. You can streamline tax-filing responsibilities and protect your personal savings.
By checking a wide range of business bank accounts available and following the recommendations indicated, you can make the right choice that aligns with your financial needs.
