As a business owner, you must make sure that you have the best business checking account set. This allows you to separate your business transactions from your personal expenses, making it much easier for you to keep your business finances in order.
That being said, considering the number of business checking accounts out there, it's rather difficult to pick the right one. Each business has different necessities, so you'll want to select the checking accounts that work best for your purpose.
To make things easier for you, we made a list of the best business accounts for you to do your payments with.
Bank Of America
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Business Checking Account vs. Personal Checking Account
Small business owners must keep a good eye on their finances, especially if they are running business entities such as LLCs.
While it might be tempting to use your personal accounts to take away the hassle, you might want to consider getting a separate bank account instead.
There are various reasons why you should turn your eye towards business bank accounts. First, they simplify things. By keeping all of your business transactions in one place, it will be much easier to keep up with them.
You will know exactly how much money you spent, where you spent it, what you spent it on and how much you have left. Since it won't get mixed up with your personal funds, you won't end up spending too much accidentally.
This separation will also help your small business when it comes to your taxes. When you are doing your personal tax return, your personal and business expenses won't be mixed up. This will ensure you don't try to get a return for a personal purchase by mistake.
A business checking account may also offer you liability protection in the event that your business runs through any problems.
Your personal account may be gone through to cover your debt, but if you put a business account down instead, the IRS won't use your personal account.
Things to Consider in a Business Checking Account
When getting the best business checking account, there are several things that you may want to compare and consider. These factors may include:
Minimum Opening Deposit
Certain personal and business accounts have some minimum balance requirements. These amounts may vary, and they can go fr0m $0 to more than $15,000.
Ideally, you should go for an online business checking account that does not have a minimum opening deposit. At the same time, you should not write that off completely, as that minimum deposit can occasionally bring you benefits.
Do you have any limits for cash deposits that you need to respect? Do you have to pay a certain fee if you pass the allotted threshold for that billing time? Consider how much money you are going to deposit each month, and choose your best business checking account based on that information.
Similarly to cash deposits, you may have transaction limits. For instance, while some of the best business checking accounts will offer unlimited transactions, others may place a limit on how many transactions you can make for free. Choose one that can meet your transaction volume.
When looking at how much to open a business account, be sure to ask yourself are there any regular fees that you need to keep in mind? Perhaps you have some monthly maintenance fee to pay for that bank account in particular.
You might want to go for a business checking account that has low monthly fees, or which may be waived if you meet a certain requirement.
Where can you use the debit card for your business bank account? Do you have any ATMs of that bank nearby you? Are there ATM fees associated with withdrawing from another ATM network?
You might want to check if you get ATM access for both withdrawals and cash deposits. If you're dealing with multiple business transactions, you'll need both of them available.
Are there any included tools that might benefit you here? For instance, an online business checking account might allow you to pay bills online or to transfer money online from one account to the other.
You might also want to look for accounts offering mobile transactions, especially if you are commuting a lot. Also, if you work with different currencies than your own, the checking account may offer a currency converter.
Aside from the monthly fees, are there any additional fees that you will be charged? This can include anything from wire fees to overdraft fees and non-sufficient fund fees. Consider comparing those fees before you settle on the best business account.
Do you want a basic business checking account from your local area, or do you want to go for an international online bank? Perhaps you are in need of a credit union instead. Go for the one that fits your needs the most.
Some business checking accounts will offer you interest as well, provided you meet the minimum balance requirements. You might want to make sure the monthly maintenance fees do not cancel out the interest. Also, if your aim is to save in the long term, you might want to go for a business savings account instead.
Bonsai Cash is an online small business checking account that allows you to manage your spending, your funds, and your business savings.
It connects you to a variety of business tools, such as Bonsai Payments, which allows you to use both physical and virtual debit cards.
Bonsai is free to use, making it a good option for small businesses that are only starting and do not have much capital. There are no minimum balance requirements either, which means that you can start at as little as $0.
You can use the debit card at any ATM in your area, and you have a $300 limit for every day.
It also comes with a feature called "Envelopes," which can help you divide your funds. This should help manage your savings, your taxes, equipment funds, and many more.
Easy to manage
Envelopes allow for fund division
Free to use
No minimum balance needed
It provides savings accounts
Only business owners from the U.S. may use it
Note: Open a no fee business checking account with Bonsai Cash today. No hidden charges, virtual credit cards, and simple set-up. Sign up today for a 7-day free trial with our software and manage your finances, taxes and payments easier.
Chase Business Complete Checking
Those looking for an online bank that also offers a brick-and-mortar location might want to try Chase Business Complete Banking. There are around 4,700 U.S. branches that you can go for, along with 16,000 ATMs.
There is no minimum balance required, and you also get unlimited electronic deposits. The free transactions are available with the online app, but you also get 20 physical transactions for free.
Using the mobile Chase app and QuickAccept, you may accept credit card payments. You can choose to open the account online, or you may do so at the actual branch location.
You will need to pay a $15 monthly fee, but it can be waived if you have a $2,000 account balance.
The monthly fee may be waived
No minimum deposit or balance
Deposits may be made through mobile
Offers brick-and-mortar locations
Free ATM withdrawal from Chase networks
Limited to 2 free in-person check deposits
The balance for the monthly fee to be waived is high
BlueVine Business Checking Account
Those of you looking for an account with no fees might take an interest in the BlueVine business checking account.
You get unlimited free transactions, no minimum deposit, no monthly fees, and you also get to deposit up to $7,500 per month. For the latter, you will need to pay a $4,95 deposit fee.
BlueVine has a number of tools that might prove fairly convenient for your business. For instance, you get a mobile check deposit, along with online bill pay.
This should make it easier for you to keep your business transactions in one place.
You also get to use it for savings purposes, as you may earn 1.20% on your account balance. The interest only applies to balances starting at $0 up to $100,000.
High savings APY (annual percentage yield)
No minimum deposit
No monthly maintenance or overdraft fees
Unlimited online transactions
Can only be used online
Out-of-network transactions require a fee
Relay Checking Account
Small businesses that need access to multiple accounts and debit cards might want to consider Relay. The banking platform is easy to use and free of charge while offering 24/7 customer support.
Relay gives you access to as many as 20 checking accounts, 10 of which may be used for sole proprietorships. You can also receive up to 50 business debit cards that will require no extra fee.
With Relay, you can make unlimited transactions, and can also withdraw money for free at more than 32,000 Allpoint ATMs. The only issue is that you cannot deposit money at the ATM.
No monthly fees or minimum balance required
No limit to transactions
Offers up to 20 business accounts and 50 debit cards
You cannot deposit cash
Electronic deposits take up to a week to go through
Novo Business Checking Account
If you need to withdraw money frequently from the ATM, then the Novo checking account may be exactly what you are looking for. Regardless of the ATM and the network that you use, you will get a refund on the ATM fees.
This business banking account comes with no minimum balance requirement, no monthly fees, and no wire of ACH transfer fees.
Most of the online banking activity is done free of charge, but while you can make electronic transfers, you may not deposit cash.
Novo also offers bill pay and unlimited invoicing for those who wish to keep their business payments organized. It can also be integrated with a variety of other business tools, such as Shopify or QuickBooks.
Easy integration with a variety of business tools
No monthly maintenance fee
No minimum balance
No ATM fee
Can only be used online
No cash deposit
LendingClub Tailored Business Checking Account
If you are a side hustler or own a small business for which you need a separate business bank account, then you may want to try the LendingClub Tailored checking account.
This account offers free ATM withdrawals, along with free online bill pay. You also get to make a mobile check deposit, which is not very common with business checking accounts.
The account comes with a $10 monthly fee. However, if you meet the $5,000 minimum balance, the fee can be waived. You also get 1% cashback for all of your debit card purchases.
No ATM fee
Free bill paying
Low monthly fee
Allows users to earn interest
Can be used at any ATM
The minimum balance to waive the monthly fee is rather high
Only available online
Kabbage Checking Account
Small businesses that wish to earn interest while enjoying unlimited free transactions may consider using the Kabbage checking account.
Featuring an APY of 1.10% for deposits up to $100,000, your checking account may also double as a savings account.
Digital transfers, such as wire transfers, are free of charge. That being said, a cash deposit may charge a fee of up to $4.95. Mainly, it depends on how much money you deposit.
Similar to the average personal bank account, this one charges no monthly fee, needs no minimum deposit and has no minimum daily balance.
High APY on deposits
No monthly maintenance or withdrawal fees
Needs no minimum deposit
Free access to more than 19,000 Allpoint ATMs
The cash deposit is charged
Doesn't offer integration with third-party tools
Mobile check deposits are rather slow
Bank of America Business Advantage Fundamentals
If you are looking for a bank that offers high cash deposit allowances, then Bank of America is certainly the bank account that you will want to go for.
You can choose between the two checking accounts: Business Advantage Fundamentals and Business Advantage Relationship. Fundamentals is the more basic type of account, whereas Relationship gives you higher thresholds.
You can deposit up to $7,500 in cash free of charge with the Advantage Fundamentals account, and even $20,000 with the Advantage Relationship account.
Bank of America does charge a monthly maintenance fee - $16 for Fundamentals and $29,95 for Relationship. That being said, the fee may be waived with a minimum balance of $5,000.
Unlike other banks, this one offers you online and mobile banking features - which means that you won't have to go to the brick-and-mortar bank to open an account.
High cash deposit allowance
Unlimited electronic transactions
Fee can be waived using minimum balance
Can be used exclusively online
The monthly fee can be high
Limit on cash deposits
Mercury Business Bank Account
If you have a startup and need a banking tool to handle your business money, then the Mercury Business Bank Account might be the one for you. In terms of fees, you get plenty of benefits.
With Mercury, you get a free checking business account, as well as a savings account. Plus, you will be asked for no incoming wire fees and no overdraft fees.
You can withdraw money for free from more than 55,000 Allpoint ATMs. You will get reimbursed for the withdrawal fee. Plus, Mercury has a few digital tools that allow you to keep track of your expenses, which can be very efficient for tax purposes.
No monthly maintenance fees
No minimum deposit
No transaction fees
Free ATM withdrawal
Advanced digital tools for expense tracking
Includes both checking and savings accounts
Not a good choice for sole proprietors
You cannot make a cash deposit
The Bottom Line
No matter the type of business that you are running, it is always a good idea to get a business banking account rather than using your old personal one. This way, you can keep your business finances separate from your personal finances.
Each business has its own requirements, so make sure that you know what yours are. Otherwise, you will end up using business checking accounts that do not really match your business model.
Explore Bonsai Banking - the integrated small business banking solution providing financial services for interior designers and other self-employed professionals. Compare your options and discover the Bonsai advantage.