Smart business owners don’t mix their business transactions with their personal finances. They choose to have one of the best 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.
Here we’ll answer your most frequent questions on business checking accounts:
- What is a business checking account and what should I look for in my business checking account?
- What is the best bank for small business checking?
Let’s do it!
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.
Frequent Questions on Business Checking Accounts
- What banks offer free business checking accounts? US Bank, Citizens Bank, and BBVA Compass, among others, offer a free business checking account, but keep in mind they may require a minimum first deposit higher than in other banks. Refer to the table below to compare all your options for a free checking account.
- What is the minimum amount to open a business checking account? The minimum required deposit varies among Banks and can range between $0 and $100. Refer to the table below to compare all your options for the minimum deposit required.
- Can I use a personal checking account for my small business? As a small business owner, it’s highly advisable not to mix your personal and your business finances, which applies also to your checking accounts. Keep separate checking and savings accounts for your personal expenses and your business needs, to avoid the risks of commingling.
20 Best Small Checking Accounts at a Glance
- Wells Fargo
- US Bank
- Citizens Bank
- BBVA Compass
- Bank of America
- TD Bank
- PNC Bank
- Navy Federal Credit Union
- M&T Bank
- Capital One
- AXOS Bank
- SunTrust Bank
- Small Business Bank
- Service Credit Union
- Key Bank
- Huntington Bank
- Comerica Bank
- Popular Bank
Below you’ll find a table with details on each bank and its business checking account.
What Features Should You Look For in the Best Business Checking Accounts?
Determining and deciding on one of the best 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 business 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 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 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 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 Deposit Required||Monthly Service Fee||Free Transactions||Free Cash Deposit||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 $1,000)||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|
|KeyBank||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|
|Citi||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 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!