Young couple opening a business checking account in a branch with a bank representative. Concept: Best small business checking accounts
Suzanne Llanera
By: suzanne_llanera
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Best Small Business Checking Accounts

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Smart business owners don’t mix their business transactions with their personal finances. They choose to have one of the best small business checking accounts. Why? Not only will their accounting or bookkeeping process be simpler and easier, but they‘ll also be able to build business credit, one of the most crucial factors that come into play when applying for a business loan.

What’s a small business checking account?

Putting it simply, a small business checking account is not unlike personal checking accounts.  The difference lies in that business checking accounts are dedicated to purely business transactions, items that can range from business license fees to acquisition costs of additional tools and equipment, to plane fares and hotel accommodations used in business-related travels.  

In other words, this should neither involve your kids’ school tuition nor the check from that dinner date with your partner.

What features should you look for in the best small business checking accounts?

Determining and deciding on one of the best small business checking accounts will require a little homework from you. After all, not all small businesses are alike and in small business banking, there’s not a one-size-fits-all solution.

You, more than anybody else, know the heart of your business. Will you need a bank with a wide network of branches? Or will an online business banking do the trick for you?

To help you choose one of the best small business checking accounts, here are some of the things you will need to consider and look for:

1. Interest rate. When looking into these various types of checking accounts, try not to regard it too much as an investment tool.

A checking account is a practical and convenient instrument for using and spending money for business, but compared to certificates of deposits or high-yielding savings accounts, they offer generally lower interest rates.

Still, small business checking accounts’ interest rate s vary from bank to bank, so look for one that’ll give you the best number.

2. Network of branches. Does the nature of your business require you to be at various places interacting face to face with people? Do you usually need to wire or use cashiers’ checks in running your business?

If so, you will probably be wanting to choose a bank that’s got plenty of physical sites that’ll be convenient for you to go to for business banking.

On the other hand, if you do a lot of online business, you could consider getting one of the best small business checking accounts with online banking.

3. ATM charges. Banks that do not have a wide range of branches are not likely to have too many ATM machines, so if and when you use another bank’s ATM, you will generally be charged $2 or $3.

Many internet banks, though, have a reimbursement policy that pays you back for charges in using other banks’ ATM’s. And the good thing about this is that they don’t put any ceiling on how much or how often you use it.

4. Overdraft Charges. This one’s a no brainer. You simply and definitely should not overdraw your account unless you enjoy paying a $30 or more overdraft fee or an interest on the amount you overdrew, or sometimes, both.

Play it safe. Before you make your choice for one of the best small business checking accounts, know how much the overdraft fees are and all other charges associated with the banks’ checking accounts.

5. Required minimum account balance. Some accounts require that you maintain a minimum amount of money at all times. Should your balance go below this, you will be facing penalty fees or lose your eligibility for good interest rates.

If you happen to have a big or comfortable enough money cushion, then this shouldn’t be an issue. Otherwise, you will have to look for checking accounts that don’t have this maintaining balance policy.

6. Online services. Depending on how you prefer to manage your business, know that there are small business checking accounts that offer online and mobile access. They come with privileges such as mobile check deposits, online bill payments and online money transfers from one bank to another.  

And here’s the kicker, online banks are able to offer higher interest rates because they don’t carry maintenance costs for branches as the big conglomerates do. So, if you’re a do-it-yourself type of a business owner when handling business-related money matters, you should look for these features.

The Top 20 Best Small Business Checking Accounts

To help guide you further, below is a comparative grid of what we believe are some of the best small business checking accounts, this will give you a good picture of how the checking accounts vary in their features and offerings:

 

Bank Account Name Minimum First Deposit Monthly Service Fee Free Transactions Free Cash Deposits Mobile Banking ATMs
Wells Fargo Business Choice Checking $25 $14 (can be avoided)

 

200 (cost per excess transaction $0.50)

 

$7,500 (cost per excess transaction$0.30 per $100)

 

yes 13,000
US Bank Silver Account $100 $0 150 (cost per excess transaction $0.50)

 

25

 

yes 5,000
Chase Chase Total Business Checking

 

$0 $15 or $12 for paperless statements (can be avoided)

 

100 (cost per excess transaction $0.40)

 

$5,000 yes 16,000
Citizens Bank Clearly Better Business Checking

 

$0 $0 200 (cost per excess transaction $0.50)

 

$5,000 (cost per excess transaction $2.50  per $1000)

 

yes 3,100
BBVA Compass BBVA Compass ClearConnect

 

$100 $0 Five in-branch withdrawals and/or processed checks per month combined, other transactions are unlimited, as are digital transactions

 

2 in-branch deposits per month

 

yes 43,000
Bank of America Business Fundamentals Checking

 

N/A $16 (can be avoided)

 

200 $7,500 yes 16,000
TD Bank TD Business Simple Checking

 

$25 $10 200 $5,000 (cost per excess transaction $0.20 per $100)

 

yes 2,500
PNC Bank Business Checking

 

$100 $10 (can be avoided) (There is no monthly maintenance fee for the first three statement cycles)

 

150 (cost per excess transaction $0.50)

 

$5,000 ($3 per deposit bag for night processing)

 

yes 6,000
Navy Federal Credit Union Business Checking

 

$100 $0 30 (unlimited electronic transactions) (cost per excess transaction $0.25)

 

$5,000 (cost per excess transaction $0.16 per $100)

 

yes 600
M&T Bank

 

M&T Simple Checking for Business

 

$0 $10 (can be avoided)

 

100 (cost per excess transaction $1)

 

$5,000 yes 1,500
Capital One Spark Basic Business Checking

 

N/A $15 (can be avoided)

 

unlimited $5,000 (cost per excess transaction $1 per $1000)

 

yes 39,000
AXOS Bank Basic Business Checking

 

$1,000 $0 200 (cost per excess transaction $0.30)

 

 

60 yes unlimited domestic ATM fee reimbursements

 

SunTrust Bank

 

Simple Business Checking

 

$0 $5 (waived for the first 12 statement cycles, after that, can be avoided)

 

50 (cost per excess transaction $0.50)

 

$2,000 (cost per excess transaction $3 per $1000)

 

yes 2,000
Small Business Bank

 

Checking Account for Micro and Small Businesses

 

$50 $0 unlimited unlimited yes part of the Shazam ATM network, 1,000

 

Service Credit Union

 

Free Business Checking

 

$0 $0 250 (cost per excess transaction $0.50)

 

N/A yes part of the SUM and CO-OP shared branching and ATM networks

 

Key Bank

 

KeyBank Basic Business Checking

 

$25 $5 (can be avoided) 200 $25,000 yes 1,300
Huntington Bank

 

Community Business Checking

 

N/A $0 150 (cost per excess transaction $0.60)

 

$5,000 yes 1,800
Comerica Bank

 

Small Business Checking

 

$50 $0 300 (cost per excess transaction $0.55)

 

$5,000 yes 440
Citibank Streamlined Checking Account

 

$0 $15-22 (varies by state) (can be avoided)

 

250 (cost per excess transaction $0.30)

 

varies by state

 

yes 60,000
Popular Bank Popular Business Checking

 

$50 $0 200 (cost per excess transaction $0.50)

 

$7,000 yes part of the Allpoint ATM network, 55,000

 

The Right Tools for Your Business

At the end of the day, getting one of the best small business checking accounts leads to a much simpler, easier accounting process and healthier business.

The best part is it’ll help you build good business credit, something you’ll surely need as you grow your business and you’re faced with an urgent need for additional funding to support the business growth.

In fact, if your business is clearly showing great promise for profits with the prospect of expansion, and if you’re based in California, Texas, Florida, Arizona or Nevada, why not apply today for a small business loan with Camino Financial?

We have been helping numerous small business owners grow their business with no-hassle loans that range from $10,000 to $400,000. Complete our online application and submit basic financial documents, and you might receive funding in 4-10 business days. Don’t waste any more time and apply today!

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