Best Business Checking Accounts Of 2024
Selecting the appropriate business banking relationship—online, in a branch, or somewhere in between—is one of the numerous difficulties small business owners face.
Opening a business checking account is often the top priority for entrepreneurs. Fortunately, there are several excellent choices to take into account, such as EverBank Small Business Checking and nbkc Bank Business Checking.
It’s imperative to keep your personal and corporate finances apart, regardless of whether you run a small firm with workers or are self-employed. The investigation has been completed by Forbes Advisor to assist you in locating the finest business checking account for your small business.
Best Business Checking Accounts
- nbkc bank Business Checking Account: Best Online Account
- EverBank Small Business Checking: Best for Earning Interest on All Balances
- LendingClub Tailored Checking Account: Best for Cash Back
- Bluevine Business Checking: Best for High-Yield
- U.S. Bank Silver Business Checking Account Package: Best for Branch Access With No Monthly Fees
- First Internet Bank Do More Business™ Checking: Best for Unlimited Transactions
- Novo Business Checking Account: Best for ATM Fee Refunds
- Bank of America Business Advantage Fundamentals™ Banking: Best for Branch Access
- Chase Business Complete Banking℠: Best for Integrated Payment Processing
- Axos Bank Basic Business Checking: Best for QuickBooks Compatibility
The top business checking accounts have been identified by comparing 50 checking accounts offered by 20 banks and credit unions. Forbes Advisor concentrated on checking accounts that are accessible to small companies across the country for this ranking.
The account information and annual percentage yields (APYs) are current as of December 1, 2023.
Methodology
Forbes Advisor examined 50 business checking accounts at 20 different financial institutions—a combination of Internet and traditional brick-and-mortar banks—to compile this list. Based on information from the categories of costs, minimal requirements, digital experience, customer experience, restrictions, features, APY, and access, we assigned a ranking to each account.
The weights given to each category are as follows:
- Fees: 30%
- Customer and digital experience: 20%
- Minimums: 15%
- Limits: 12.5%
- Features: 10%
- Access: 7.5%
- APY: 5%
Monthly fees, overdraft fees, ATM fees, minimum deposit requirements, minimum balance requirements, integration with payroll and accounting, merchant services, cash deposit, and transaction limits, APY, customer service ratings, mobile and online access, ATM network, and the account’s nationwide availability were among the specific features that were taken into consideration within each category.
Business checking accounts with modest minimum criteria, excellent customer service and digital experience ratings, appropriate transaction and cash deposit restrictions, and no or very low fees all received higher rankings. The company checking account needs to be accessible across the country to be listed.
See our article on How Forbes Advisor Reviews Banks to find out more about our editorial process, rating, and review methodology.
Guide to Business Checking Accounts
- What Is a Business Checking Account?
- How To Choose a Business Checking Account
- How To Open a Business Checking Account
- How To Get a Business Checking Account With Bad Credit
- Why Should You Have a Business Checking Account?
- Is a High-Yield Business Checking Account Worth It?
- Alternatives to High-Yield Business Checking Accounts
- Banks We Monitor
- Frequently Asked Questions (FAQs)
What Is a Business Checking Account?
There are many similarities between a personal and company checking account. You can normally write checks, make deposits and withdrawals, process ACH payments, use debit cards to make purchases, and access ATMs with both kinds of accounts.
Naturally, the primary distinction is that funds from a corporate checking account are allocated for business purposes, whilst funds from a personal checking account are utilized for individual expenses such as utility, automobile, and mortgage payments. Another important distinction is that costs for business bank accounts are typically higher than those for personal checking accounts.
How Does a Business Checking Account Work?
There are business checking accounts for every kind of business. Business checking accounts can be opened by corporations, partnerships, limited liability companies (LLCs), and sole proprietors. A business checking account can be opened by any size of organization, from a 10,000-person software company to a consulting firm with just one employee.
Do I Need a Business Checking Account?
A business checking account allows you to keep your personal and business funds apart if you are a business owner. A business checking account has several benefits, such as enhancing accounting, making tax return filing easier, and giving your company more legitimacy. In addition to protecting against business-related lawsuits and debt collection, business checking accounts can also give you access to a business credit card or credit line.
How To Choose a Business Checking Account
The basis of your business banking connection is a business checking account. Keeping your personal and commercial banking separate is one of its most crucial features.
When selecting the ideal business checking account, keep the following factors in mind:
Fees.
Fees should be kept to a minimum because your business checking account will be used for processing daily transactions. Pay close attention to any volume-based transaction costs, out-of-network ATM fees, and monthly maintenance fees in particular.
Minimums.
A minimum deposit may be required by certain banks and credit unions to create a business checking account. Others might stipulate that to avoid paying a monthly maintenance charge or to be eligible to earn the advertised APY, you must maintain a minimum amount per statement cycle—or complete a specific number or kind of transactions.
Limits.
It’s crucial to consider any potential limits because you most likely will be processing more transactions with your business account each statement cycle. You can impose restrictions on the amount or kind of transactions you can do with certain accounts, and you can’t make cash deposits or withdrawals with others.
APY.
When it comes to savings bank accounts, the interest rate is more important. However, a business’s business checking account could be its main banking relationship for a lot of them. Interest is not always paid on corporate checking accounts. However, it would be ideal if you could earn APY on your company checking account.
Customer service.
Being able to access customer service support when and when you need it is vital, regardless of whether you bank in person or online. Certain banks and credit unions provide specialized experts to handle business issues and requirements.
Digital experience.
Businesses were made aware of the value of the digital banking experience—both online and mobile—by the Covid-19 epidemic. Because so many bank transactions now take place online or on a phone rather than at a physical branch, the functionality and quality of a mobile app might have an impact on your company’s performance.
Safety.
Verify if your account is insured by the Federal Deposit Insurance Corporation (FDIC). In the case of a bank failure, it offers up to $250,000 in insurance per depositor, per bank, for each category of account ownership. Check for comparable National Credit Union Administration (NCUA) coverage at credit unions.
Room for growth.
Examine the other services the bank offers that might be crucial to you as your company expands, such as chances to save and invest, add merchant or treasury services, and obtain loans or credit lines. Your business checking account serves as the starting point of your relationship with the bank.
There isn’t a universal solution in this case. It’s up to you to decide what kind of business checking account will work best for your small business, taking into account both your needs and your personal preferences.
How To Open a Business Checking Account
After determining which business checking account to open, you can set up the account by calling customer care, visiting a local branch, or visiting the financial institution’s website. Remember that banks that are only available online will typically encourage you to open a business checking account on their websites.
In addition to the employment identification number (EIN) that your company has obtained from the IRS, or your Social Security number if you are a sole proprietor, you will likely need to provide the following (requirements vary based on the type of business):
- Business address and phone number
- Names of people to be listed as account holders
- Business formation documents, such as articles of incorporation
- Government-issued photo ID, such as a driver’s license or passport
- Business licenses
- Partnership agreements
- Initial deposit
How To Get a Business Checking Account With Bad Credit
To open a business checking account, the majority of banks don’t demand a credit check. This implies that you ought to be able to get a business checking account despite having poor credit.
Here are the FICO credit score ranges if you’re not sure where you stand on the credit spectrum:
- Exceptional: 800+
- Very good: 740 to 799
- Good: 670 to 739
- Fair: 580 to 669
- Poor: 580 or lower
Banks may obtain your ChexSystems report to see how you have previously handled bank accounts, even if they may not run a credit check as part of the business checking account application process.
Your banking history is documented in a ChexSystems report, which aids financial companies in determining how risky you would be to work with when opening a bank account. ChexSystems gathers the data listed below:
- Checking account applications
- Bank account openings and closures (and reason for closures)
- Check writing history
- Unpaid bank balances
Get a copy of your ChexSystems report and make sure all the information is accurate to prevent any possible delays in the establishment of your account. Before opening a business checking account, you can register a dispute with ChexSystems to correct any errors you find. When submitting a dispute, keep in mind that documentation might be needed. You are entitled to a free copy of your ChexSystems once every 12 months under the Fair Credit Reporting Act.
Why Should You Have a Business Checking Account?
Building a business might be made easier with the help of a business checking account. It can, among other things, simplify accounting and tax reporting obligations, keep your business and personal affairs apart, and safeguard your assets in the event that your company is sued or targeted by debt collectors. Additionally, there is no excuse not to register an account for your company as many of the accounts on our list are free.
Is a High-Yield Business Checking Account Worth It?
If you want to earn money on your balance without creating a separate savings account, you might think about high-yield business checking accounts. You might find high-yield business checking accounts especially beneficial if you typically maintain a large amount in your checking account.
A high-yield business checking account, as its name implies, typically provides a greater annual percentage yield (APY) than a regular business checking account. To get the quoted APY, some high-yield business checking accounts have balance and activity requirements that you must fulfill, so be sure to carefully read the account restrictions.
Alternatives to High-Yield Business Checking Accounts
High-yield business checking accounts might not be the best option for you, depending on the demands and objectives of your company. Here are a few options to think about.
Business Checking vs. Business Savings Accounts
The main uses for business checking accounts are regular business payments, withdrawals, and deposits. Conversely, company savings accounts are usually utilized to save money for designated purposes such as taxes, unexpected expenses, and employee benefits.
You can achieve your financial goals and money management objectives with the aid of a business savings account. company savings accounts often have greater APYs than company checking accounts, so it might also help your money grow more quickly.
Since business savings accounts are intended for savings rather than regular transactions, they typically do not come with debit cards. But occasionally, business savings accounts come with an ATM card that you can use to take out money but not to make purchases.
Business Checking vs. Personal Checking Accounts
Personal checking accounts and corporate checking accounts operate similarly, with the difference being that the former is intended for individuals and the latter for businesses. A personal checking account is used for your income and expenses, but a business checking account assists you in managing your business finances and may include business features.
One major function of business checking accounts is to assist you in keeping your personal and corporate finances separate. Keeping track of your earnings and outlays, filing taxes, and establishing your company’s validity can all be facilitated by opening a business checking account. Segregating your company’s revenue and expenses into a business bank account may also make you more eligible for business loans.