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Usage of a personal account for a startup business might seem to be easier but opening a business account is a better idea.
Why to open a business account and how to choose a proper one
It is the right decision to separate business and private accounts and financing. One of the first steps to be taken is a business account opening. It guarantees a clear record of the paid bills, incurred expenses as well as received income. Having such records is also a good way to obtain a business loan.
But offers of thousands of banks in the US may confuse you. The choice should depend on your personal needs like an average balance, the quantity of monthly transactions and a desired type of customer service.
Things to consider when searching the appropriate bank account
Finding a bank which provides suitable service for your company is a very important issue. Thus, the following information should be noted.
The necessity to have a savings or checking business account
The presence of a checking account is necessary for most small enterprises as it allows to pay bills, invoices and salaries, withdraw cash, receive instalments including those from credit cards and more. The data below is aimed to help choose a suitable checking account. A savings account opening makes sense provided a client has at least a small amount of cash reserves. This account can increase a business loan, help keep a minimum balance and receive interest.
"Free" checking business accounts are not always free
Although many banks attract customers with "free" banking services, the fine print in the agreement should be always carefully read.
But account holders often have to keep a minimum monthly or daily balance or can only make a limited amount of transactions in order to avoid commissions. There are free of charge or low-cost accounts and an applicant just needs to choose thoroughly.
The number of allowed monthly transactions is important
Transactions can include transfers, deposits, withdrawals as well as electronic payments. The number of transactions a month are limited by the majority of checking accounts for businesses. The number can vary from 50 to 300 so it is better to realize your small business current position as well as the costs if the limit is exceeded. Banks may also apply a maximum number of transactions allowing a client still to be eligible for a free account.
Assess an average balance on your account
A lot of banks offer beneficial rates to small businesses with the balance that exceeds a certain amount, on average per day or per month. In that case an applicant should estimate an average balance and plan accordingly.
The necessity to visit a bank branch
In case the majority of business's transactions are made online or via apps then you may never need to visit a physical office of a bank. Moreover, online banking can even save you some money. But if you are dealing with a lot of cash, prefer socializing with people or want to forge a relationship with a bank employee who understands the conditions of local economy and a specific area, visiting a physical branch for a business account opening is a nice idea.
An initial deposit shouldn't be huge
Banks obviously like and generally encourage higher balance accounts but many allow to set up an account under $100 as well. A number of banks offer a registration bonus that can be a real advantage. It should be kept in mind that an initial deposit may differ a lot form an average monthly or daily balance. If the introductory bonus tilts the scales in favor of a bank with similar features, go for it. But don't be tempted to just bonuses. It is necessary to ensure the bank account is proper for your business in the long run.
Whether used accounting software integrates with bank tools
If you are using QuickBooks, payroll software or other accounting tool then you can partner with a bank allowing to integrate data from the present software. It is an efficient way to keep track of all transactions provided withdrawals are automatically displayed in QuickBooks. Using Square or Paypal may be helpful to have these transactions displayed in a checking account.
Make the comparison of local and small banks with large ones
It may be advantageous to know someone working for a local bank or a national bank. This person may be able to adjust the commission or provide more wiggle room for applying for a business loan.
Consider applying to a bank with which you already cooperate
In case you are already working with a bank that you like in personal finance and it has a business account option that suits your personal needs, it makes sense to keep both accounts in that very bank. The ability to access multiple accounts data at one bank or application is a great bonus.
Consider a credit union
These financial institutions are generally community-oriented companies that have a sense of connection with the area or region and a collaborative mentality. In order to take advantage of their services it is necessary to become a CU member. Many unions offer no minimum or low checking accounts but tend to have reduced features than traditional banks do.
An applicant should know what bank services are needed. Whether it's investment advice, local knowledge, great customer service, online convenience or other features, your goals understanding helps choose a suitable business account.
Top-tier checking business accounts
There are various financial institutions offering checking accounts for businesses such as national banks, regional and local banks as well as online ones.
As a rule, certain peculiarities are associated with the accounts of commercial banks in each type of these banks. For instance, online banks offer corporate bank accounts that are generally flexible and have limited commissions while accounts of large national bank are known for access to ATMs and branches.
Therefore, these features should be kept in mind when comparing various bank accounts for businesses as it allows to determine the right account type.
BlueVine Business Checking
A new business account by BlueVine affords to get interest on funds without any monthly charges.
The BlueVine business account brings a sizable 1% interest rate on debts to $100,000, no minimum starting balance, no monthly commissions and unlimited transactions.
Besides, this account enables to obtain commission-free transfers, no NSF and ACH fees. A business account of BlueVine can be set up easily and quickly online and managed 24/7.
This account affords the opportunity to deposit cheques via the mobile app, funds remittance between accounts, schedule onetime and recurring instalments and utilize the BlueVine Business Debit Mastercard.
Additionally, clients have access to free of charge withdrawals at 38,000+ ATMs of MoneyPass across the USA. In addition, cash deposit is available via any of 90,000+ branches of Green Dot which is not always the case with a checking online account.
Radius Business Checking
Radius Tailored Business Checking unlike the majority of bank accounts for businesses allows to receive interest on funds as well as manage billing under the same solution.
Radius Business Checking grants an interest account which is insured by FDIC that earns 0.10% per annum as long as a $5,000 balance is maintained. However, if you can keep that fee, you will not only receive interest on an account but also waive the Radius monthly maintenance commission equal to $10.
Besides, this account allows unlimited charge-free transactions, mobile checks, 24/7 mobile as well as online banking and free invoice instalments. Debit cards for businesses are issued with accounts of Radius and they enable to withdraw funds for free at any ATM in the SUM or MoneyPass network. Particularly, for whatever charging ATM that charges you fees Radius grants unlimited free discounts to cover those costs.
So, keeping a $10,000 account balance or more allows to receive an unlimited cashback return of 1.0% on all purchasing with a Radius Business Debit Card. In addition, access to the Autobooks platform is allowed by a Radius Business Checking account and it affords the possibility to accept online instalments, produce and send invoices and also track your account activity.
Radius is a great option of a technologically advanced and interest-yielding checking account allowing payments and billing.
Azlo Business Checking
Azlo may be the best option provided you are searching a business account that might be open without visiting a bank branch.
As long as you use on-net ATMs, your Azlo account will be completely free and you will have the opportunity to make entirely free transactions with the account.
In addition, Azlo does not imply any requirements for minimum balance along with no minimum initial contribution and it integrates with Square and Stripe and other widespread accounting software like Wave, QuickBooks Online and Xero.
In this regard, Azlo also doesn't have paper checks or checkbooks and, like an online bank, does not offer access to branches.
With all this in mind, if you are searching an appropriate place to open a commercial bank account on the Internet - with a checking account that is affordable, flexible and technologically advanced, Azlo is definitely an option to be considered.
NBKC Business Checking
Like some other options of business accounts, NBKC has an offer of accounts that can be easily set up, fully managed online and have with significantly low fees.
For opening a NBKC account there is no necessity to make a minimum deposit and you are able to open it online within just a couple minutes. Besides, this account applies a minimum balance equal to $0, no transaction charges or restrictions as well as other commissions for:
- Bill payments and mobile deposit
- Returned items, overdrafts, insufficient funds
- Electronic statement and cashier's receipts
- Incoming domestic transfers
What's more, by setting up an NBKC checking account you obtain a free of charge Business Debit MasterCard that can be utilized at 32,000+ MoneyPass ATMs all over the US.
Thus, having this account a client only pays a fee of $5 for sending an domestic transfer or $45 for receiving or sending an international transfer. An account can also be managed from a PC or the mobile app of NBKC allowing to deposit multiple cheques, funds remittance between accounts, charge merchants and bills as well as send transfers.
Finally, NBKC allows you to contact its employees by phone, e-mail or in person for free and add additional account options at a low cost including a desktop deposit and an ACH debit and credit.
In general, a commission-free NBKC account is a perfect option for a startup, especially if your aim is to take advantage of online banking convenience.
Bank Novo
One more business account that works online is Bank Novo.
This option allows a rare hybrid of the small business banking community with the high tech. Middlesex Federal public bank is the partner of Bank Novo. With Novo, you can apply to open an account with a smartphone or a laptop within several minutes. If you eventually gain access to a business account of Novo then you can deposit cheques digitally and also synchronize the account with various financial technologies that you use for business.
Within the framework of a special offering for Fundera readers $25 can be received upon an account set up with Novo. The only thing to be done to receive a registration is making a $50 initial deposit to a new account.
Clients can use ATM all over the world and not worry about being charged a commission by Novo. But it should be kept in mind that the ATM owner may collect a commission. The only major fee applied by a Novo business account is the $27 underfund one.
Novo may be a proper option in case you're looking for a mobile- and digital-friendly checking account for your company.
Chase business checking accounts
All abovementioned business accounts are possible to be set up online so one of Chase's current commercial accounts is worth being considered once you're looking for an account at a financial institution of a traditional type.
Chase Business Complete Checking
Chase Business Complete Checking may be the right option in case you are starting or developing business and want to hold a checking account.
An account of this type implies low charges and thresholds convenient for startups.
The accounts of Chase Business Complete Checking have the following features:
- A $15 monthly service instalment with multiple cancellation options
- Unlimited free cashless electronic deposits
- $5,000 free of charge cash deposits every month
- The ability to receive and send both domestic and international transfers with appropriate fees
Chase Performance Business Checking
That is a worthwhile bank account for midsize businesses searching a perfect balance between midsize commissions with higher monthly payments for deposits and transactions.
Chase Performance Checking provide the following features:
- A $30 monthly service instalment that can be waived provided a daily balance equal to $35,000 or more is maintained
- $20,000 free of charge cash deposits every month
- 250 free of charge transactions every month
- Charge-free incoming transfers and 2 chargeless outgoing domestic transfers every month
Chase Platinum Business Checking
In case you are running a well-established business with high traffic then Chase Platinum Business Checking should be considered in the function of you primary business account.
Such an account includes a number of chargeless monthly transactions, transfers and deposits. However, these benefits come with higher maintenance fees as well as a higher threshold for these fees waiving.
Having a Chase Platinum Business Checking account allows the features:
- A $95 monthly maintenance charge that might be waived in case a daily balance equal to $100,000 or more is maintained
- $25,000 free of charge cash deposits every month
- 500 free of charge transactions every month
- Charge-free incoming transfers as well as the 4 most expensive outgoing transfers a month for free
Bank of America Business Checking Accounts
In case you're searching a bank account at a typical institution but hope to access more monthly transactions and cash down payment then you may choose among Bank of America's checking accounts.
Setting up the first BoA Business Advantage Fundamentals account you will obtain $7,500 in cash a month, 200 charge-free transactions a month, access to branches, ATMs as well as other tools for mobile and online banking.
The default service charge for this account is $18 a month but it may vary according to a client's location. However, as it has already been mentioned, you can opt it out when:
- Spend $250 on net purchasing on a company's debit or credit card
- Hold a minimum daily balance equal to $3,000
- Keep an average monthly balance equal to $5,000
- Keep a $15,000 cumulative average monthly balance or more at Bank of America's linked accounts
- Eligible and participate at Preferred Rewards for Business program
Upon that, having an Advantage Checking account a client obtains 500 free of charge monthly transactions along with $20,000 in the form of chargeless cash down payments each month. Advantage Business Checking incurs a $29.95 maintenance charge but 5 ways to opt it out exist.
In general, Bank of America's business accounts are useful for businesses that are aimed for personalized accessibility of a traditional bank serving small businesses but they also require more features included for an affordable or non-cancellable fee.