Small businesses are the heartbeat of the United States! If you own a small business, you know how important it is to have a business checking account that works as hard as you do.
There are plenty of business checking account options to choose from, but a few stand out as being the superior choice for small business owners.
How Do Small Business Checking Accounts Work?
Small business accounts work like a traditional checking account. Money can be deposited into this account and spent as the account owner, or business, pleases. You can spend the money via a debit card, wire transfers, or writing a check.
A small business needs a checking account to:
- Fund payroll
- Pay vendors/suppliers
- Pay bills, such as electricity and rent
- Deposit money
What Makes a Good Checking Account for Small Business?
A good checking account for a small business takes the following factors into consideration:
The checking account you choose for your small business should match your needs. For instance, if you deposit or withdraw cash, you may choose to set up the checking account at a bank that’s located near your small business. Therefore you can do your banking with ease.
Every dollar retained in a small business is felt and appreciated by the business owner and community. Be sure to partner with a bank that has a reasonable fee structure in place. Note, take an all in look at the fee structure.
The annual percentage yield, or APY, is an important factor to consider when selecting the right small business checking account. This is essentially free money the bank gives you simply for having an account balance with them.
Best Small Business Checking Accounts
We’ve done our research and compiled a list of our top 5 favorite small business checking accounts.
Bank of America Fundamentals
Bank of America is a well known and respected bank. They offer everything you could imagine, from auto loans, to mortgages, to personal and business checking accounts.
The small business checking account option at Bank of America is known as the Business Advantage Fundamentals Banking. This account is great for those that like a hybrid of online/mobile banking and in person banking.
The Business Advantage Fundamentals Banking has numerous advantages. These advantages include:
- Bank of America is a universal bank. You can take care of your personal and business banking in one location
- The mobile and online banking experience is convenient
- They offer customer service hours on the weekend and later into the evening
- Bank of America has thousands of retail locations scattered across the United States
- Bank of America offers cash flow monitor tools, which are very powerful for a small business owner
Bank of America isn’t the most cost effective banking option. There is a price to pay for convenience, and Bank of America charges above the market average for that.
Pricing or Fees
Following the above bullet point, the fees on the Business Advantage Fundamentals Checking Account can be frustrating. There is a $16 monthly fee just to keep the account open, and wire transfers will cost you between $15 and $16.
All in all, despite the fees, Bank of America is a fantastic option and receives a 4.5 out of 5 star rating. The convenience the bank offers, and the simplicity of their app and online banking experience is top-notch.
Chase Business Complete Banking
Chase Bank is another well known and respected bank that operates in numerous states throughout the United States.
The Business Complete Banking Checking Account Chase Bank offers is great for business owners looking for the basic options. Again, if you want to combine online or mobile banking with in person customer service, Chase Bank may be a great option for you.
Banking with a well established bank has numerous benefits, including:
- Similar to Bank of America, all of your personal and business banking can be completed under one roof
- Chase Bank operates in numerous states throughout the country, which is a added benefit for those who travel for their small business
- Chase Bank offers same day deposits. You can deposit a check and use the cash the same day, without waiting for the check to clear or paying a fee to do so.
- Their customer service is 24 hours a day, 7 days a week
The biggest downside with this checking account is the monthly fees, which we’ll cover in more detail below.
Pricing or Fees
There are two things to look out for:
- The standard fees that we’ve all grown accustomed to, such as wire transfers and minimum account balances, and monthly maintenance fees. By no means is Chase the cheapest option out there
- Chase Bank limits you to 100 transactions per month
All in all, Chase Bank receives a 4 out of 5 star rating.
Novo Bank was founded in 2016 and is headquartered in New York. This is a 100% online/mobile bank with no retail locations.
If you’re comfortable banking online, and do not conduct a lot of cash deposits or withdrawals, this is a very cost effective option worth considering.
Novo’s Online Business Checking Account has the following advantages:
- No account minimums
- No monthly maintenance fees
- Applying for this account is easy, and just takes a few minutes
- You can directly accept debit and credit card payments
Even though not having a retail location allows the bank to not charge a monthly fee, not having a retail location can be problematic. Withdrawing or depositing cash can be an inconvenience if you ever needed to do so.
Pricing or Fees
All in all, Novo Bank is cost friendly. There are no account minimum fees or monthly service fees.
The lack of retail locations makes it difficult to give this option more than 3.5 stars. However, if you aren’t concerned about the lack of retail locations, Novo Bank is an absolutely fantastic choice.
Blue Vine Business Checking
Blue Vine is another 100% online only banking option. The bank was founded in 2013.
If you’re comfortable banking online, and want to save money on fees, the Blue Vine Checking Account may be a great option for you.
Blue Vine has the following benefits:
- No minimum balance required
- Zero ATM fees at 38,000+ ATMS throughout the country
- No monthly service fees
- 1% interest on account balances up to $100,000
Not having any retail location to visit is downside worth considering. Cash transactions become more difficult, and all your customer service would take place online or via a phone call.
Pricing or Fees
The pricing structure is really in the business owners best interest. Small business owners can save hundreds of dollars per year with a Blue Vine checking account.
Even though Blue Vine is online only, we are able to give it a 4 star rating because of the interest rate it provides.
TD Bank Small Business Checking
TD Bank is also known as America’s most convenient bank. With over 4000 retail locations, TD Bank offers a fantastic blend of online and in person banking.
If you’re looking to have a seamless online and in person banking experience, TD may be a fantastic option for you.
Banking with TD has a lot of upside and benefits, including:
- Many locations are open 7 days a week
- It’s a universal bank, similar to Bank of America and Chase. Your business and personal banking can be done through TD
- They offer a three different business checking account tiers you can choose form, with fees as low as $10 per month
All in all, there aren’t a lot of downsides to a TD Bank Business Checking Account. The fees are low, and the convenience is unquestionable.
Pricing or Fees
Fees vary depending on what checking account you choose from. The TD Business Simple Checking has a $10 monthly fee but does not have a monthly minimum balance requirement.
The low monthly fees, and tremendous convenience, gives TD a 5 star rating!
Review Your Small Business Options
A checking account is an essential tool for any small business. Not only does a checking account allow you to pay for everyday business expenses, it helps keep your money organized and secured.
As a small business owner, every bit of profit saved has a great impact on you and your local community. Be sure to choose a business checking account that works as hard as you do, without charging high fees.
You’ll also want to work with a professional financial advisor. Business owners need to stay diversified with their investments, and often struggle to make the time to properly manage their personal finances. A financial advisor can take care of the hard work for you, so you can do what you do best – servicing the customer!