Best Small Business Checking Accounts
When looking for the best small business checking account, beyond no or low fees you should compare: the number of transactions you're allowed, the required balance, the minimum deposit, the size of the institution, and branch locations.
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One often-overlooked aspect of business ownership is the separation between personal and company finances. This is most easily done with the help of separate business bank accounts. Finding the right bank account, however, isn’t always easy.
Business checking accounts have different requirements for opening an account than personal checking accounts do. Businesses must submit documentation relevant to the business structure, the parties involved in making business financial decisions, and, in some cases, other business bank accounts.
The fee structure is one of the biggest differences between personal and business checking accounts. Most personal checking accounts come with little to no fees, and few restrictions on the number of transactions or deposits each month. It can be a challenge to find a business checking account that does not charge significant fees for simply having and using an account.
Fortunately, business owners do have access to several options for free business checking accounts. To find the best free small business checking accounts available today, it is helpful to know what constitutes the best free checking. Some of the factors include transaction restrictions, average account balance minimums, and other features.
Best Free Small Business Checking Accounts
Here’s a look at several of the best free small business checking accounts out there.
- BBVA Compass ClearConnect for Business
- U.S. Bank Silver Business
- Bank of Internet Federal Bank Basic Business
- Capital One Spark Business Basic Checking
- PNC Business
BBVA Compass ClearConnect for Business
The BBVA Compass ClearConnect for Business checking account tops the list of free business checking accounts because it has no monthly service charge and no minimum balance requirements.
There is a $100 minimum initial deposit required. Small business owners receive up to $5,000 in cash processing per month at no cost. There are no restrictions on all other transactions via online banking. Account holders also receive one personalized Visa debit card for free. Business checking account owners with BBVA Compass also receive free digital banking services, no-fee ATM withdrawals at BBVA Compass ATMs, and free mobile check deposits.
BBVA Compass is a large financial institution offering a variety of other small business account services throughout its 43,000 surcharge-free ATMs and more than 670 branch locations throughout Alabama, Arizona, California, Colorado, Florida, New Mexico, and Texas.
U.S. Bank Silver Business
The U.S. Bank Silver Business checking account offers free business checking for small business owners with no monthly maintenance fee. The free business checking account allows for up to 150 free transactions per month, with a $0.50 cost for every transaction over the limit.
Small business owners also receive up to 25 free cash deposits per month, and up to 20 free mobile check deposits monthly. Account holders with the U.S. Bank Silver Business checking account also have access to free online banking services, remote check deposits, and business overdraft protection at no cost. There is also no minimum balance requirement, nor a minimum initial deposit.
U.S. Bank is larger than BBVA Compass, as it operates more than 3,000 branches spanning 28 states, and offers access to more than 4,800 fee-free ATM.
Bank of Internet Federal Bank Basic Business
With a BofI Federal Bank Basic Business checking account, business owners have access to a free small business checking option with several features.
There is a $1,000 minimum initial deposit for all new accounts, but there is no average monthly balance minimum to meet. Business owners have access up to 200 free transactions each month, with a $0.30 charge for every transaction above the limit. Account holders also have up to 60 free checks per month, including mobile and remote check deposits with no fee.
Small business owners have access to digital banking at no cost, as well as image statements and bill-pay for no charge. The account also comes with unlimited ATM fee reimbursements.
B of I Federal Bank operates through ATMs and has no physical branch locations. While this may be a downside for some business owners, the other features of the business checking account may make it a value as one of the best free business checking accounts.
(Note: As of Oct. 1, 2018, BofI Federal Bank will become Axos Bank.)
Capital One Spark Business Basic Checking
The Capital One Spark Business Basic Checking account is offered with the option to waive the monthly maintenance fee when certain requirements are met.
Small business owners with Capital One have unlimited transactions with the checking account, and cash deposits up to $5,000 per month. While there is a monthly service fee charged, business owners may have it waived when the average balance over the last 30 or 90 days is at least $2,000. Account holders receive a free debit card, free overdraft protection with a linked Capital One business deposit account, and free online bill-pay services.
Capital One is a large financial institution, operating more than 600 physical branch locations and a network of more than 2,000 fee-free ATMs.
The PNC Business checking account is one of the best free small business checking options because it allows account holders to offset the monthly maintenance fee when certain requirements are met.
Small business owners must have a PNC account balance of at least $1,500 average per month to have the $12 monthly maintenance fee waived. In addition, business owners receive up to 150 free transactions per month, including deposits, paid items, ACH debits and credits.
Business owners also have up to a $5,000 cash deposit limit at no cost and no charge for online banking or electronic statements. Account holders with a PNC Business checking account have a free Visa business debit card and are not charged a fee for setting up overdraft protection. Bill-pay services are free.
PNC is a large financial institution serving customers nationwide. The bank has more than 2,600 physical branch locations as well as 9,000 fee-free ATMs that small business owners with a checking account may access.
Choosing the Best Checking Account for Your Small Business
A business checking account is not ideal just because it charges zero fees. Instead, the best free small business checking accounts have several positive attributes, including:
- Number of transactions each month. A free business checking account may limit how many deposits, withdrawals, checks, or electronic payments made each month. The higher this number, the better the free checking account.
- Average daily account balance. Many free business checking accounts require small business owners to maintain an average daily account balance. The lower this number, the more value it offers to business owners.
- Minimum initial deposit. Some free business checking accounts require a minimum initial deposit. The best free checking accounts for small businesses have a low or zero minimum deposit requirement.
- Branch locations. Free business checking accounts may have no cost because they have minimal overhead for the financial institution. This typically means few or no physical branch locations. Business checking accounts that are free from a financial institution with branch locations are often more affordable.
- Size of the bank or credit union. The best free checking accounts for small businesses often come from smaller banks and credit unions because they are more community- and relationship-focused. However, compare services from larger institutions as well.
Small business owners can take advantage of one of the best free business checking options listed above to help keep expenses related to financial transactions low.
The best free business checking accounts have different features and drawbacks to consider, including minimum deposits, transaction limits, and added no-cost services.
Know how you spend or transfer money within a business checking account each month to find the best free small business checking account for you.
Author: Melissa Horton