Business owners prioritize their businesses and may not have the time or inclination to research banking options. Therefore, selecting the appropriate business checking account holds significant importance. The top three goals should be convenience, avoiding fees, and having a user-friendly banking experience. Just as businesses vary, the features needed in a business checking account will also differ for each business owner. Read on to learn about the best business checking accounts for small businesses, LLC and the best business checking accounts with no fees.
What Is a Business Checking Account?
A business checking account closely resembles a personal checking account. Both types of accounts typically allow you to make deposits and withdrawals, process ACH payments, write checks, use a debit card for purchases, and access ATMs.
The main distinction lies in the purpose of the accounts. A business checking account holds funds for business-related expenses, while a personal checking account is for personal financial obligations like loans, car payments, and utility expenses. Another significant difference is that business bank accounts generally have higher fees compared to personal checking accounts.
Best Business Checking Accounts
The best business checking accounts include the following:
#1. Relay
Inviting team members, assigning roles and permissions, and setting spending limits are just some of the features that make Relay’s free online business checking account useful for both established businesses and rapidly expanding startups. Relay’s direct connectivity with QuickBooks Online and Xero, as well as its lack of a monthly cost, free transactions, and free inbound wires, are all attractive features.
#2. NBKC Bank
Nbkc Bank was founded in 1999, and its main office is in Kansas. It is an internet bank with only four locations in Kansas and Missouri. NBKC bank offers only one business checking account, which it touts for its low or nonexistent costs.
At our bank, you don’t need to make a minimum deposit and we don’t charge a monthly maintenance cost, unlike several other banks. However, Nbkc waives overdraft and insufficient funds costs, electronic statement fees, payment stop fees, and bill payment service fees. Nbkc Bank offers its customers a free debit Mastercard that they can use at any of the more than 37,000 MoneyPass ATMs in the United States and Puerto Rico without incurring any fees. nbkc will reimburse you up to $12 every statement cycle if you use an ATM that is not part of the nbkc network and that ATM charges a fee. The business solutions provided by nbkc bank consist of cash management, fraudulent activity management, collections, and disbursement services.
#3. Bluevine
There is no minimum initial deposit or monthly maintenance fees associated with the Bluevine Business Checking account. This high-yield account offers a competitive interest rate as well: Your balance up to $250,000 will earn 2.00% interest. Restricted Use. MoneyPass ATMs are free to use, and you can make deposits at any Green Dot location in the United States for a cost of $4.95, up to $7,500 every month.
#4. Chase Business Complete Banking®
With its extensive network of over 4,700 physical branches, fast card and check processing features, and hefty cash bonus, this is a great option for many different types of businesses.
You can use QuickAccept and QuickDeposit with Chase Business Complete Banking. Also, you can use a mobile card reader or the Chase app to take credit card payments with QuickAccept. You can use QuickDeposit’s mobile app to take a picture of your check and deposit it, or you can sign up for a multiple-feed scanner and scan up to 50 checks at once.
#5. Novo
If you’re serious about getting your business off the ground and keeping your cash apart from your personal life, you should open a business checking account. Novo is a free online business checking account that reimburses you for any ATM fees you incur anywhere in the world. There are no minimum deposits or monthly maintenance fees required to start an account.
Not only does Novo provide infinite invoices, but it also works with popular apps like Stripe, Shopify, QuickBooks, and Xero. You will also be able to save money on some business-related services and applications. It’s important to remember that you can’t deposit cash into your Novo Business Checking account, but you can use the company’s mobile app to deposit a money order. This might be very inconvenient if your firm requires you to deposit cash on a regular basis.
Read also: WHAT BANKS HAVE FREE BUSINESS CHECKING ACCOUNTS WITH NO MINIMUM BALANCE
Best Business Checking Accounts for Small Businesses
The best business checking accounts for small businesses include the following:
#1. NorthOne
Because of the account’s streamlined interaction with other business apps and its automated financial tools, we recommend it as the best checking account for small businesses. The budgeting feature in your NorthOne Deposit Account makes it easier to keep track of your money. Daily, weekly, or monthly, you can designate a certain percentage of your income or a fixed cash amount to be placed in virtual savings envelopes.
#2. BlueVine
The high yearly percentage yield makes this one of the greatest business checking accounts for startups. It’s also simple to meet the minimal monthly criteria for interest to accumulate.
Up to $250,000 in holdings earn a competitive interest rate in the BlueVine Business Checking account. The BlueVine Business Debit Mastercard requires a minimum monthly spend of $500 or monthly deposited payments of at least $2,500 to qualify for the annual percentage yield (APY). Deposits, withdrawals, and ACH transfers are all unlimited on a daily and monthly basis in a BlueVine Business Checking account. Businesses that process a lot of incoming and outgoing payments could benefit greatly from this.
#3. Capital One Business Enhanced Checking
Capital One offers an enhanced checking account for businesses with bigger balances and transaction volumes. If your monthly cash deposits are less than $40,000, you are eligible to open the account and will not incur any fees. Instead of physically going to a Capital One branch to deposit a check, you can use their convenient remote scanner service. In addition, you can make deposits and use your phone as a banking tool. Up to two more Basic Checking accounts are available to you at no additional cost with the Enhanced account.
#4. EverBank
For solo proprietors and single-member LLCs, Bank of America offers a Business Checking account. A 0.50 percent annual percentage yield (APY) is paid on all balances in this interest-bearing checking account. Small Business Checking accounts require a deposit of $1,500 to open, but there is no ongoing service charge.
You can use any Allpoint or MoneyPass ATM in the United States without being charged a fee. This business checking account will pay for any U.S. ATM fees from any other bank if your daily balance is at least $5,000. With a balance of less than $5,000, you can get up to $15 a month back from your U.S. ATM fees.
#5. Bank of Wells Fargo
This business Checking Account for small businesses is ideal for depositing cash because it doesn’t incur any fees for the first $20,000 in cash deposits or 250 transactions per month.14 Wells Fargo, “Business Checking Account: How to Get Started.” The bank’s extensive branch and ATM network, as well as its robust web and mobile app, make for convenient and safe banking, and most business services are provided free of charge.
Best Business Checking Accounts for LLC
A good LLC business checking account should be able to accommodate your company’s future expansion. It should also offer great goods to help businesses run, such as merchant services, financing products, and software integration, and have low or no fees.
You can form an LLC with the help of the resources provided by some of the listed financial institutions, which specialize in providing assistance to LLCs. Some of these banks may not offer a wide variety of services, yet their checking account is good enough for inclusion here. Below is the best business checking account for LLC:
#1. Grasshopper Business Checking Account
Rare among checking accounts is Grasshopper Bank’s free business checking account, which gives up to 2.25% APY and limitless 1% cash back on debit card purchases. Overdraft fees are waived, and all outgoing and incoming wire transfers are free. Autobooks and other useful business features like invoicing and cash management are included at no extra cost to the customer.
#2. Relay
For LLCs with a few more employees, this checking account is a good choice. LLC owners can exercise greater oversight over team members’ spending and transactions by providing them with access to the account and debit cards.
#3. Lili
Next up on our list of recommended LLC company checking accounts isn’t a well-known, household name in banking but rather a rapidly expanding online bank geared toward the unique financial demands of independent contractors and small business owners. Lili is perfect for small businesses that want to streamline their banking processes, take control of their financial future, and cut costs wherever possible.
#4. Bluevine
Bluevine’s online business checking account is a wonderful choice for LLCs who prefer paperless financial management due to its low monthly charge and high transaction limits. Additionally, the APY on this high-yield account is excellent. Keep in mind that the Green Dot store charges a $4.95 fee for each cash deposit and that the daily cap on deposits is $2,000 (in $500 increments).
#5. Wells Fargo Initiate
This business Checking account earns a spot on our list of top LLC business checking accounts. Access to over 13,000 ATMs and a specialized small business customer service center are just some of the benefits of opening an account with this financial institution.
Why Can’t I Open a Business Checking Account Online?
The availability of online business bank accounts is limited. Some financial institutions may insist on a personal visit to their location in order to open an account for a firm that is not privately held or has numerous owners, members, or partners.
Do I Need a Tax ID to Open a Business Checking Account?
An Employer Identification Number (EIN) is a nine-digit number assigned by the IRS to uniquely identify your business for tax reporting purposes. If you are not a sole proprietor or a single-member LLC, you will be required to obtain an Employer Identification Number (EIN) in order to open a business bank account.
What Type of Bank Account Should I Open for My Business?
You need a business checking account as soon as you start making financial transactions on behalf of your company. Accounts including checking, savings, credit card, and merchant services are typical for businesses.
Is It Difficult to Get a Business Checking Account?
Once you’ve decided on a bank, opening a business account is simple. To get started, visit a branch or do it online. When opening a business bank account, the following are some of the most frequently requested paperwork. There are banks that might want more.
References
- bankrate.com
- nerdwallet.com
- forbes.com
- investopedia.com
- fitsmallbusiness.com
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