Opening a business bank account is a must for small business owners. Even if you understand that it’s important to keep your business and personal finances separate and you’re just starting in your journey as an entrepreneur, you might not know which features to look for in a business checking or savings account.
The following guide can make it easier for you to narrow down the best bank for your business. Keep reading to discover five features that seasoned business owners look for when choosing a financial institution to handle their business banking needs.
A business bank account should make your job as a small business owner easier, not harder. Below are some of the features you might want your business’ bank or credit union to offer.
- Online Banking: The ability to access your business bank account details online 24/7 is important for a busy business owner. The best banks for small businesses provide online banking solutions and user-friendly mobile apps that allow you to review your account history, transfer funds, make mobile deposits and more.
- In-Person Banking: Some business owners might not care about this benefit. But if your company makes frequent cash deposits or you prefer to visit your bank branch in person, you should look for a financial institution that offers this capability.
- Services: Depending on the type of business you run, you may need the ability to write checks, link a savings account, use bill pay services, send or receive wire transfers, use a debit card and more. You might also appreciate the ability to open a business credit card from the same bank (although it’s wise to shop around and see what other card issuers have to offer). Overall, you should make sure the bank you’re considering offers the key features you need to run your business efficiently.
- Accounting Software Integration: If you use accounting software to manage your business finances, finding a bank that can integrate with that software can be a huge time saver.
2. Low Fees
No one likes to pay monthly bank fees. Yet fees are often part of the arrangement when you open a business bank account.
If you’re searching for a new business bank for your company, be sure to pay attention to the monthly fees that different financial institutions charge. You’ll probably want to avoid banks with higher fees. At the same time, if you can find banks that offer no fees, low fees, or an easy way to qualify for fee waivers, you may want to add those names to your shortlist.
In addition to monthly fees, don’t forget the other costs associated with business bank accounts. Some banks offer ATM fee refunds, for example, which could save you money if you need to access cash frequently for your business. Meanwhile, minimum balance and overdraft fees are two types of expenses you should watch out for when you’re comparing your options.
3. Competitive Interest Rates
Some banks are willing to pay interest on the funds you store in your business deposit accounts. The higher the annual percentage yield (APY) a bank offers, the more money your business has the potential to earn.
Standout Account: Axos Bank Business Interest Checking
Secure application on issuer’s website.
Axos Business Interest Checking
APY: Up to 1.01%
Monthly Fees: $10 with options to waive
Minimum Opening Balance: $100
No monthly maintenance fees with an average daily balance of $5,000
Unlimited reimbursements from any domestic ATM
First 50 items free
Other Accounts to Consider
- BlueVine® Business Checking
- First Internet Bank Business Money Market Savings
- Axos Bank Business Savings
- Live Oak Business Savings
4. Transaction Limits
Some banks may impose transaction limits that could hold your company back or make it more expensive to conduct business in a way that’s most convenient for you. A bank might place limits on:
- Mobile Deposits
- Bill Payments
- Electronic Transfers
Take mobile deposits, for example. Depending on the bank, your company might face limits on the number of mobile deposits it can make per month. After reaching the monthly threshold of mobile deposits, your company might not be able to make additional deposits or it might have to pay additional fees to do so.
Additionally, mobile deposits might have a per-transaction limit at your bank. And a bank may impose a cap on the maximum dollar amount of daily mobile deposits it will accept as well (i.e., you can deposit up to $5,000 in mobile deposit funds per day).
If making a large number of mobile deposits (or depositing large amounts of money via mobile deposit) is important to you, you’d want to search for a business bank account with fewer restrictions in this area. The same is true if you plan to write a lot of business checks, use the bill pay feature heavily, or make a lot of electronic funds transfers.
5. Bonus and Promotional Offers
New bank account bonuses and promotions can be a great way to earn a little extra money for opening an account that your business needed anyway. A new account bonus shouldn’t be the only reason you choose a primary business bank account. But if a bank offers financial services that seem like a good fit for your business, earning some extra cash could be a nice added benefit.
Standout Account: Chase Business Complete Checking℠
Secure application on issuer’s website.
Bonus: $300 for New Accounts
Monthly Fees: $15 monthly service fee with options to waive
Minimum Opening Balance: None
Same-day deposits using its QuickAccept service
Unlimited monthly electronic deposits, ACH deposits, and Chase QuickDeposits
Access to 16,000 ATMs and more than 4,700 branches
Process debit card and credit card purchases through the Chase Mobile app
Mobile deposits and account management
If you do sign up for a new business bank account to earn a new account bonus, be sure to read the fine print. Typically, you have to jump through a few hoops to satisfy a bank’s criteria for an introductory bonus offer. And you don’t want to miss out on a bonus opportunity because you forgot to complete a requirement.
Whether you’re in the market for a new business bank account, credit card, loan, or any other type of financial product, it’s always smart to shop around for the best deals. It does take a little extra time to compare offers from multiple financial institutions (or lenders or credit card issuers, depending on the financial product you need). The extra research can pay off in big savings over time.