Best Business Checking Account – How Does It Benefit Small Businesses?

A business checking account is a must for small businesses. Among several other challenges that small business owners encounter, one of the most important is choosing the right business banking relationship, whether online, in the branch, or somewhere in between. For many business owners, the first concern is to establish a business checking account.

Whether you are working as a sole proprietor or you already manage a small business that has employees, it is critical to keep a check on your finances. These bank accounts allow you to separate your business and personal expenses, prepare for taxes, and establish your business’s financial presence legitimately. Just as businesses are different, so are the features that each business owner will require in a business checking account.

“Business owners enjoy doing what they are selling or what their business is all about,” says Kari Harpold, a treasury management officer at Capital bank in Madison, Wisconsin. “But to have also to do all of the financial ends of things. It is not what they enjoy doing. So if they can just have a good relationship with the bank, where the bank is handling a lot of that stuff for them, you are just making it more efficient for them and saving some of their time, then that is a better scenario for them.”

Business checking accounts function the same way as personal checking accounts. However, there are some key differences depending on the allocation of finances. Your personal account helps you manage your personal finances, whereas your business account is solely for your business use. Business checking accounts allow you to write and deposit checks, handle a high volume of transactions, request multiple debit cards for employees, and perform other critical business-related functions.

For your knowledge, we have done our research to help you choose the best business checking account and know how these accounts aid in the smooth running of the business. Continue reading to seek information if you are a small business owner.

Free business checking accounts

Finding a free business checking account that meets all of your business banking needs can be a challenge, and most of the genuinely fee-free accounts are hosted by online-only banks. If you want to start a business in 2022, a business checking account can help separate your business and personal finances. A valid checking account should also be convenient for your type of business.

Online banks can be more likely to offer free business checking accounts; these accounts are also available from national and regional brick-and-mortar banks. Do you make numerous transactions every month?

You might want an account with unlimited free monthly withdrawals and deposits. Every dollar is precious when you run a small business. Money spent on banking fees is money you can not reinvest in your business. A free business checking account helps keep your money where it belongs with your company.

As you may know, online institutions, big banks, local banks, and credit unions offer free business checking accounts. These accounts do not charge an annual or monthly fee, but they may charge fees for some services, like wire transfers, over drafting, and excess deposits. We will now break down some of the best free business checking accounts, where we will explain everything these accounts have to offer, share tips you can follow to compare accounts, and find the product that best fits your small business.

Axos basic business checking

It claims that they crafted this business account for the busy business owners with modest checking needs. The clients can access their money anytime and anywhere. They also offer a $200 welcome bonus to new business owners.

A business owner can make up to 200 transactions per month before incurring a $0.30 fee per transaction. Axos has an extensive ATM network, but if you use an out-of-network machine, Axos refunds all fees charged by an ATM provider.

To know more about this free business checking out, let’s walk through the pros and cons:

Pros

• No monthly fees.
• First set of 50 checks free.
• Unlimited domestic ATM fee reimbursements.
• Free mobile and online banking, including online bill pay.
• Dedicated relationship managers for account holders.

Cons

• $1,000 minimum opening deposit required.
• Can’t accept cash deposits.
• A limited number (200) of fee-free transactions per month

Kabbage business checking

The Kabbage Business Checking account has no monthly fees, overdraft fees, or minimum opening deposit and earns an impressive 1.10% APY on balances up to $100,000.

Pros

• Unlimited fee-free electronic transactions
• No monthly fees or overdraft fees
• No minimum opening deposit
• No costs for incoming domestic wire transfers
• Fee-free access to 19,000 ATMs nationwide via the Allpoint network
• Earns 1.10% APY on balances up to $100,000

Cons

• A fee of up to $4.95 per cash deposit
• No reimbursement for fees charged by out-of-network ATM owners/operators

Bluevine business checking

BlueVine does not require an opening deposit, and it does not restrict how many transactions you can make each month. You can earn 1.20% APY on balances up to $100,000. This sets the account apart from the others on our list, which do not pay interest. It is also one of the few online business checking accounts that give you a way to deposit cash.

Pros

• It offers unlimited fee-free transactions, 24/7 online and mobile banking, mobile check deposit, and a free business debit card.
• It has no minimum opening deposit, balance requirements, incoming wire fees, NSF fees, and ACH payment fees.
• It offers the ability to schedule one-time and recurring payments, as well as transfer funds between your accounts.
• It allows access to fee-free ATM withdrawals at over 37,000+ MoneyPass ATMs across the U.S.
• Allows you to deposit cash using your debit card at any green dot location across the country.

Cons

• Each cash deposit requires a $4.95 fee.

Novo business account

Novo is a free online business checking account that’s an excellent option for new business owners, freelancers, e-commerce businesses, or any small business owner that’s looking to manage their finances digitally.

You can apply for a novo bank checking account online in minutes. It allows an unlimited number of free transactions with Novo. There is no ATM network, but novo will refund you if an ATM provider charges you a fee. You will also earn perks with companies like Google, cloud, and booking.com, including cashback, cash savings, and percentage discounts.

Pros

• Make payments, send money, and transfer funds from your smartphone (the app is available for Android and iOS devices).
• If you need to send a physical check, Novo will handle the processing and mail the check on your behalf.
• No fees or minimum balances.
• It has no ATM fees; unlimited reimbursements for fees from ATM providers.
• It offers a Mastercard debit card compatible with google pay and apple pay.

Cons

• Novo can not accept cash deposits.

Brex cash

The most important thing about Brex cash is that it is not a business bank account. Instead, Brex cash is a cash management account offered by Brex Treasury LLC, a registered broker-dealer that is a member of FINRA and SIPC. Unlike a traditional business checking account, Brex gives you more flexibility in managing your funds, which allows you to deposit your funds as cash or invest all or a portion of it into a money market fund to earn yield.

Pros

• It offers a free online cash management account.
• There are unlimited ACH, wire, and check payment options and zero minimum balance requirements.
• Instant payouts for eCommerce companies allow you to receive funds for your sales right away.
• Includes Brex credit card, which is paid daily and earns points on your transactions.

Cons

• Cannot make deposits or withdrawals at an ATM.
• Account not available to unincorporated businesses.

Brex is a competitive alternative to the traditional free business checking account. If you are looking to invest your funds and earn points for your everyday spending, Brex might be an option worth considering.

NBKC business account

It is a digital business checking account that offers cash deposits. The business bank account from NBKC gives you broad-spectrum functionality for essentially no fees. There is no minimum opening deposit or balance requirement for this free online business checking account. It has physical branches in Kansas City, MO.  It also provides 34,000+ free ATMs in the MoneyPass network. There are no out-of-network ATM fees; NBKC reimburses up to $12 per month if an ATM provider charges you. Moreover, it is FDIC insured.

Pros

• No minimum opening deposit
• No monthly service fees
• Unlimited free monthly transactions
• No overdraft or non-sufficient funds fees
• No incoming domestic wire transfer fees
• Refunds up to $12 per month in fees charged by out-of-network ATMs
• Deposit cash at ATMs

Cons

• Only physical branch locations are in Kansas City, MO
• $5 outgoing wire transfer fee
• $45 incoming international wire transfer fee

First citizens bank basic business checking

This bank is a good option for those small business owners who want to take less burden of banking issues upon their shoulders. It has no maintenance fees; however, it has branches and ATMs in 19 US states such as AZ, CA, CO, FL, GA, KS, MD, MO, NM, NC, OK, OR, SC, TN, TX, VA, WA, WI, WV.

Pros

• $100 minimum opening deposit
• No monthly service fees
• 175 transactions per month
• $5,000 in money or coin deposits per month
• No out-of-network ATM fees

Cons

• $0.50 fee for each monthly transaction exceeding the 175 limit
• $0.20 fee per $100 cash deposited exceeding the monthly $5,000 limit
• It does not reimburse any fees charged by out-of-network ATM providers
• No free incoming or outgoing wire transfer fees

Best business bank accounts for LLC

An account that separates your personal and business finance is LLC’s best business bank account. To help you choose the best business accounts for your LLC (Limited Liability Company), we evaluated a few accounts, which avoid high fees and extra charges, keep your business finances organized, and provide access to any sort of financial support if needed by LLC.

Choosing the right business checking account if you run LLC is key to yielding success. So, you must take your time and compare the features of each account presented below to make a sound and informed decision for your business growth.

Chase bank

Small business owners, who want to overall control their finances, must reach Chase bank. Chase bank understands how time and resources are valuable to small businesses, hence provides the tools that help steady growth in business. Chase bank’s credibility also piqued interest because of its membership with FDIC.

The Chase business complete checking account is a good choice for LLCs due to its easy-to-waive monthly fee and $300 sign-up bonus. When you are ready to add more products and services, you can meet with a financial relationship manager at Chase who can work with you to set goals and find the best solutions. Chase is one of the most convenient national banks, with thousands of branches and ATMs across the country, making it the fine choice for the best small business checking account.

Pricing

Chase bank’s pricing plan is as follows:

• 6% + 10 cents for tap, dip, swipe transactions
• 5% + 10 cents for manual transactions

Bank of America

Bank of America is a global financial institution that provides business banking, investing, and other financial and risk management products to corporations, institutions, governments, and individuals. Among other prominent services in various industries, they work closely with small business customers to understand what they need to provide the right solution for each individual.

They provide various services of the best small business accounts for LLC. The services include:

• Getting near real-time insights on business performance to make decisions on the go.
• It helps increase productivity by paying employees with a few taps, which helps smoothen out the work.
• Saves your time by making your accounts payable and receivable electronic with instant uploading to the system.
• Translates data into intelligible insights so you can take informed action to drive efficiency.

Pricing

The pricing for business accounts for LLC at Chase bank varies from state to state and the type of product that you choose. However, there is a service for which it charges fees every month, and you will be able to cover more than the few dollars required with the number of benefits you get.

Wells fargo

This bank provides products and services on a broad spectrum for both start-ups and established businesses. It helps small business owners to achieve their goals and grow in the industry.

Suppose your business needs funding or suspects that you will need a business loan at some point. In that case, you may want to consider Wells Fargo bank because it specializes in small business lending, specifically Small Business Administration (SBA) 7(a) loans.

According to our research, Wells Fargo is one of the best banks to do business with if you seek approval for an SBA 7(a) loan. For small businesses, Wells Fargo offers simple business checking, which provides the following services to take care of its customers:

• The first 50 transactions are free.
• Included per fee period at no charge.
• The first $3,000 in cash deposits are processed per fee period at no charge.
• Text and mobile banking.
• It provides access to their national business banking center, i.e., their small business customer service phone center
• A client can perform contactless business debit card purchases or add to your digital wallet for fast, secure payments and Wells Fargo ATM access.

Pricing

• It costs a monthly service fee of ten dollars; however, you can avoid the fee by maintaining a $500 minimum daily balance. Otherwise, you need to have a $1000 average ledger balance through the fee period.
• There are no fees for the first $5000 cash deposits, after which the price becomes $.30 for each $100 deposit.
• The same procedure applies to transaction fees, wherein the first 100 transactions are free, after which each transaction will cost $0.50.

PNC

The PNC bank commits to helping small businesses grow. They understand that there are many challenges an LLC faces when it comes to managing cash flow and growing a business; therefore, they provide the best services with their PNC business checking account, which helps manage finances.

PNC is a bank that offers checking accounts, loans, and other services to help businesses thrive. The PNC business accounts make it easy to manage the company’s money without paying additional fees. Their fee-free online and mobile banking, as well as “PNC business online,” help you stay on top of day-to-day activities. It aims to offer features that help your company grow and prosper. Let’s walk you through the features it contains:

• You will have access to PNC business debit and credit cards, along with their mobile bank app, which gives you 24/7 access to your accounts.
• You can withdraw cash from any PNC bank ATM in the U.S. without paying a fee.
• You can do more with your money due to their professional help, so your saved money works for you, not the other way around.
• Get free unlimited transactions with your online banking (including mobile banking) and PNC business online banking.
• By linking your checking account and business checking accounts, you can quickly transfer money between them if needed and pay fewer fees.

Pricing

You will need at least $100 to get started when it comes to opening an account and then you will have to pay $10 monthly after that no payment is needed for the first three statement cycles. Moreover, PNC does offer 3 different ways to avoid this maintenance charge:

1. Maintain a $500 monthly balance in your account.
2. Use a PNC business credit card and make at least $500 worth of purchases using this card per month.
3. Generate at least $500 in monthly deposits to your account.

Chase small business checking

With abilities such as taking card payments on the phone, having the proper security, and getting money into your account just by opening it, Chase bank is the go-to option for a limited liability company and start-ups as well.

It offers a variety of checking account packages for small businesses. As one of the oldest banks in America, Chase has over 16,000 ATMs and more than 4,700 branches nationwide. Chase’s user-friendly online banking and mobile app played a significant role in standing out.

Chase business checking accounts

There are three small business checking accounts that Chase offers to its customers.

Chase business complete banking

It is known as the best account for small businesses. This is an affordable checking account with a $0 minimum deposit to open, $15 monthly fees, and several other benefits, which include:

• Earn $300 when you open a new Chase Business Complete Checking account. For new Chase business checking customers with qualifying activities.
• It offers various ways to waive fees. Multiple options to waive the monthly service fee, including maintaining a minimum daily balance or purchases on your “Chase Ink Business” credit card.
• It offers built-in card acceptance, which enables acceptance of card payments anytime, anywhere in the U.S., and gets transparent pricing with Chase QuickAccept (SM).
• Same-day deposits with QuickAccept(SM). Free up the cash you need to keep your business moving forward with same-day deposits at no additional cost.
• It sends alerts to help you stay on top of your account activity.
• Easy account management through Chase business online and the Chase mobile app.
• Unlimited electronic deposits, ACH, and Chase quick deposit (SM).
• Convenient access to 16,000 ATMs and more than 4,700 branches.

Chase performance checking

Best account for medium-sized businesses. Monthly fees of $30 or $0 if you maintain an average daily balance of $35,000 across all qualifying accounts. The chase performance checking account includes:

• 250 transactions per month.
• Unlimited electronic deposits and incoming wire transfers.
• Two free outgoing domestic wire transfers per month.
• No additional charge for “Positive Pay” or “Reverse Positive Pay.”

Chase platinum checking account

The best account for large businesses. Monthly fees of $95 or $0 if you maintain an average daily balance of $100,000 across all qualifying accounts. Chase platinum also includes:

• 500 transactions per month
• $25,000 in cash deposits per month
• No fees for incoming wire transfers or four highest outgoing wire transfers each month

How to open a Chase business account?

Following the below-mentioned steps, you can open your small business checking account with Chase bank.

• Gather your business formation documents (LLC banking resolution, employer identification number (EIN), and articles of organization), and government-issued identification.
• Visit a branch or apply online.
• Instructions for online banking will be provided through the website. If you visit a branch a business banker will assist you with opening the account.

Features of Chase business checking accounts

• Free up the cash you need to keep your business moving forward and avoid overdraft fees with real-time access to your accounts.
• Get same-day unlimited electronic deposits at no additional cost so you can get cash into your account faster.
• Get up to $2,000 in deposits at no additional cost, which means you don’t have to worry about any fees.
• With the Chase Mobile app, you can process transactions wherever you are.
• With chase business complete banking and chase business complete checking, you will get a complete solution to your business needs.

We evaluated the pros and cons of creating a small business checking account with Chase to make it easier for you. It may help you better know the choice.

Pros

• No minimum opening deposit.
• Unlimited electronic deposits.
• Opportunity to earn a $300 sign-up bonus.
• Access to 16,000 Chase ATMs and 4,700 branches across the U.S.
• It has integrated credit card processing.

Cons

• $15 monthly fee.
• Fee-free cash deposits are limited to $5,000 per month.
• Fee-free physical transactions are limited to 20 per month.
• High overdraft fees.

Conclusion

Whether you are running a small business account or already have an established business, you must free yourself from the burden of banking shenanigans. Specifically, every small business requires a business checking account, however choosing the best business checking account is a cumbersome task with the availability of various options in the market. As you must be aware that the purpose of business checking accounts is to deal with financial responsibilities such as day-to-day transactions and bill payments.

Hence, choosing a business checking account that fits your business’s needs can help ensure that you protect yourself, your assets, and your business. With our evaluation, there are multiple options available for opening a business checking account, however, Chase bank ranks on top with so many offerings for small business checking accounts. Nevertheless, we would still recommend creating a list of qualifications based upon your business requirements to open an account with the bank that suits your needs.