Business owners want to focus on their business, not on where to go to the bank. That’s why choosing the right business checking account is important. Convenience, not having to pay fees, and easy access to the bank should be the top three goals.
Just as businesses are different, so are the features that each business owner will need in a business checking account.
Kari Harpold, Treasury Management Officer at Capital Bank in Madison, Wisconsin says, “Business owners enjoy what they are selling or what their business is about.” “But they also have to do all the financial ends… It’s not what they enjoy doing. So if they can have a good relationship with a bank where the bank is handling a lot of things for them, you’re making it more efficient for them and saving them some time. It’s a better scenario for them,” she said.
Bankrate’s Picks for Top Business Checking Accounts
Best for Cash-Back Debit Card: LendingClub Bank Best for Free Account with No Transaction Limit: Bethpage Federal Credit Union Best for Domestic Wire Transfers: Capital One Best for Safe-Deposit Box Discount: Regions Bank Best for Business Perks: Security Service Federal Credit Union
Note: The Annual Percentage Yields (APYs) shown are as of September 29, 2023. Bankrate’s editorial team updates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products.
A Closer Look at Top Business Checking Accounts
LendingClub Bank; 1.50% APY (on balances up to $99,999.99) Best for: Cash-Back Debit Card
Overview: LendingClub Bank is an online bank established in 2007. It acquired Radius Bank in 2021.
Features: LendingClub’s Tailored Checking offers 1 percent unlimited cash back and earns 1.50 percent APY. The account does not charge a fee for using another bank’s ATM, and it provides unlimited rebates on ATM fees charged by other banks.
What to watch out for: LendingClub Bank has only one cashless branch in Boston. Businesses that need to order cash and coins on a regular basis will want to avoid online banks. A $10 monthly maintenance fee applies if the Tailored Checking average account balance falls below $500.
Bethpage Federal Credit Union; 0.20% APY Best for: Free Account with No Transaction Limit
Overview: Bethpage Federal Credit Union was established in 1941.
Features: Bethpage Federal Credit Union’s Interest-Bearing Free Business Checking has no transaction limit. It also doesn’t charge you a monthly service fee and it earns some interest. Anyone can join Bethpage Federal Credit Union by depositing $5 into a savings account.
What to watch out for: It only has branches in Long Island, New York.
Capital One; Non-Interest Bearing Account, Does Not Earn Any APY
Best for: Domestic Wire Transfer
Overview
Capital One has approximately 300 branches and about 50 Capital One Cafes. It offers online banking accounts. Savings accounts, business credit cards, the ability to accept credit card payments from customers, and loan options are some of the products and services that Capital One offers to businesses.
Features
Incoming domestic wires are free with the Enhanced Checking account. The first five outgoing domestic wires are free each month, after which a fee of $25 will be charged for each transfer.
If your prior 30- or 90-day average balance is $25,000 or more, the Enhanced Checking account allows you to waive the monthly maintenance fee.
What to Watch Out For
A monthly maintenance fee of $35 is charged for a 30- or 90-day average balance of less than $25,000.
Enhanced Checking customers are not charged a fee for depositing cash. But if you deposit more than $40,000 in cash during the statement cycle, the bank may convert your account to another checking product. This account is for businesses with annual sales of less than $10 million.
Regions Bank; Non-Interest Bearing Account, Does Not Earn Any APY
Best for: Safe-Deposit Box Discount
Overview
Regions Bank has approximately 1,300 branches in the South, Midwest and Texas.
Features
Regions Bank’s LifeGreen Business Simple Checking account offers business owners a discount of up to 40 percent on a safe-deposit box. Account holders can waive the $7 monthly service fee by making at least $500 in purchases with a Regions Business CheckCard. Only $100 is required to open an account in Regions.
What to Watch Out For
Regions Bank’s locations are limited to 16 states: Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, South Carolina, Tennessee, Texas and Virginia.
Security Service Federal Credit Union; 0.05% APY (on balances of $1,500 or more)
Best for: Business Perks
Overview
Security Service Federal Credit Union’s Premium Business Checking account offers an account that does much more than just banking. The account is subject to a $20 monthly maintenance fee for accounts that do not maintain an average daily balance of at least $50,000.
Features
With the account, you’ll have access to a network of lawyers who provide free and discounted services for Premium Business Checking customers. The credit union also provides mobile phone coverage to business checking customers that covers accidental damage, mechanical failure or theft. Two claims of up to $500 are allowed in a 12-month period. This account comes with 24/7 access to board-certified doctors and licensed mental health professionals for video and phone appointments.
What to Watch Out For
Only those customers who live, work, go to school, worship, volunteer or have a business in Colorado, Texas or Utah are eligible to join the credit union. You can also join by becoming a member of select military branches or units. Some bases within the service areas of Security Service Federal Credit Union may also be eligible for Defense Department employees.
In addition, family members or household members of an existing member can also join.
What to Consider When Choosing a Business Checking Account?
Here are some things to consider before opening a business checking account:
- Minimum balance requirements
- Monthly maintenance fees
- Cash handling fees
- Other fees
- Bonuses for new accounts
- Free or discounted checks
- Free number of items or transactions
- Proximity of your business to the bank branch, especially for those businesses that often need to order cash or coins or those businesses that need to deposit cash or coins
What to Know About Minimums and Fees
Knowing about minimum balance requirements and fees is important. Try to find an account that doesn’t charge a monthly maintenance fee or an account that has a fee that you can easily waive. You may be able to waive some fees by maintaining a certain balance. Or there may be other ways to avoid fees. For example, Regions Bank waives the monthly service fee for those who generate $500 or more in purchases with a Regions Business CheckCard and/or business credit card.
Keeping an Eye on Your Business Finances
As a business owner, especially in a small business, you have a lot to keep an eye on: Bankrate has calculators that can help. You also have the option of using QuickBooks or another software program to help keep an eye on your business.
Frequently Asked Questions About Business Checking Accounts
- Which bank is best for small businesses?
- What do you need to open a business checking account?
- What are the benefits of a business checking account?
- Do I need an LLC to open an account?
- Can I open a business checking account online?
- Can I open a business checking account at a credit union?
- Can I use a personal checking account for business?
- What is the difference between a business checking account and a personal checking account?
Methodology for Bankrate’s Best Business Checking Accounts
Bankrate’s editorial team regularly surveys approximately 70 widely available financial institutions, which consist of the largest banks and credit unions along with several popular online banks. To find the best business checking accounts, our editorial team analyzes various factors such as Annual Percentage Yield (APY), minimum balance requirements, and broad availability. All the accounts listed below are insured by the Federal Deposit Insurance Corporation (FDIC) in banks or the National Credit Union Share Insurance Fund (NCUSIF) in credit unions.
Banks We Monitor
These financial institutions are included in our CD rate research: Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank5 Connect, Bank of America, Barclays, Bask Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO Harris Bank, BrioDirect (formerly CommunityDirect), Capital One Bank, Chase Bank, CIBC USA, CIT Bank, Citibank, Citizens Access, Citizens Bank (Rhode Island), Comerica Bank, Consumers Credit Union, Delta Community Credit Union, Discover Bank, EmigrantDirect, Fifth Third Bank, First Citizens Bank, First Internet Bank of Indiana, First Technology Federal Credit Union, FNBO Direct, Golden 1 Credit Union, Marcus by Goldman Sachs, Morgan Stanley Private Bank National Association, Huntington National Bank, Investors eAccess, KeyBank, Limelight Bank, Live Oak Banking Company M&T Bank MySavingsDirect Navy Federal Credit Union NBKC Bank PenFed Credit Union PNC Bank Popular Direct PurePoint Financial Quontic Bank Randolph-Brooks Federal Credit Union Regions Bank Salem Five Direct Sallie Mae Bank Santander Bank SchoolsFirst Federal Credit Union Security Service Federal Credit Union State Employees’ Credit Union Suncoast Credit Union Synchrony Bank TD Bank TIAA Bank Truist UFB Direct U.S. Bank USAA Federal Savings Bank Vio Bank VyStar Credit Union Wells Fargo Zions Bancorporation.