Business owners prioritize their businesses over banking details, making the choice of a business checking account crucial. Convenience, fee-free banking, and easy accessibility are the primary objectives.

Just as businesses vary, so do their needs for a business checking account.

“Business owners are passionate about their products or services,” says Kari Harpold, Treasury Management Officer at Capitol Bank in Madison, Wisconsin. “But managing all the financial aspects isn’t always their focus. If they can establish a strong relationship with their bank, where the bank handles much of that work, it streamlines operations and saves them valuable time.”

Best for: Cash-back debit card

Overview: Established in 2007, LendingClub Bank is an online bank that acquired Radius Bank in 2021.

Perks: LendingClub’s Tailored Checking offers unlimited 1% cash back and earns 1.50% APY on balances under $100,000. The account does not charge fees for using another bank’s ATM and provides unlimited rebates of ATM surcharges from other banks.

What to watch for: LendingClub Bank operates only two cashless branches located in Boston and Utah. Businesses requiring regular cash and coin orders may find limitations with online banks. There is a $10 monthly maintenance fee if the average account balance for Tailored Checking falls below $500.

Best for: Free account with no transaction limits

Overview: Founded in 1941, Bethpage Federal Credit Union serves its members primarily in Long Island, New York.

Perks: Bethpage Federal Credit Union offers Free Business Checking with Interest, which has no transaction limits. There is no monthly service fee, and the account also earns interest. Membership is open to anyone with a $5 deposit into a savings account.

What to watch for: Branches of Bethpage Federal Credit Union are located exclusively on Long Island, New York.

Best for: Free domestic wire transfers

Overview: Capital One operates nearly 300 branches and around 50 Capital One Cafés, offering a range of online banking services, savings accounts, business credit cards, credit card payment acceptance from customers, and various lending options tailored for businesses.

Perks: With the Enhanced Checking account, incoming domestic wire transfers are free of charge. The first five outgoing domestic wires per month are also free; however, there is a $25 fee for each wire transfer thereafter. The monthly maintenance fee for the account can be waived if your average balance over the prior 30 or 90 days is $25,000 or more.

What to watch for: A $35 monthly maintenance fee applies if the average balance over a 30-day or 90-day period falls below $25,000. While cash deposits incur no fee for Enhanced Checking customers, exceeding $40,000 in cash deposits during a statement cycle may result in the account being converted to another checking product. This account is designed for businesses with annual sales of less than $10 million.

Best for: Safe-deposit box discount

Overview: Regions Bank operates over 1,200 branches across the South, Midwest, and Texas regions.

Perks: The Regions Bank LifeGreen Business Simple Checking account provides business owners with a discount on safe-deposit boxes. Account holders can avoid the $7 monthly service fee by making at least $500 in purchases using a Regions Business CheckCard. Additionally, the account requires only a $100 deposit to open.

What to watch for: While cash deposits up to $2,500 per month incur no charge, there is a $0.25 fee for each $100 deposited beyond this limit.

Best for: Business perks

Overview: The Security Service Federal Credit Union Premium Business Checking account goes beyond traditional banking services, offering unique benefits. However, it incurs a $20 monthly maintenance fee if the average daily balance falls below $50,000.

Perks: This account provides access to a network of attorneys who offer free and discounted services exclusively for Premium Business Checking customers. Additionally, the credit union offers mobile phone coverage for accidental damage, mechanical failure, or theft, allowing two claims up to $500 each within a 12-month period. Moreover, account holders benefit from 24/7 access to doctors and licensed mental health professionals for video and phone appointments, covering both the account holder and their employees.

What to watch for: Eligibility for membership is limited to individuals living, working, attending school, worshiping, volunteering, or operating a business in Colorado, Texas, or Utah. Military personnel affiliated with select branches or units, as well as Department of Defense employees at designated bases within the credit union’s service areas, may also join. Additionally, family members or household members of existing members are eligible for membership.

Best for: Earning rewards

Overview: The American Express Business Checking account stands out for its lack of a monthly service fee and offers competitive yields along with American Express rewards.

Perks: Account holders can earn American Express rewards and benefit from competitive yields. Additionally, the account includes 24/7 support, as stated on the bank’s website.

What to watch for: To qualify for the 30,000 American Express rewards points bonus, new customers of the American Express Business Checking account must adhere to specific rules:

  • Deposit a minimum of $5,000 within the first 30 days of opening the account.
  • Maintain a balance of at least $5,000 in the account during the initial 60 days.
  • Conduct at least five qualifying transactions within the first 60 days of opening the account.

Business checking accounts offer various features and considerations to keep in mind:

  • Debit card: Enables purchases directly from your business checking account and often includes ATM access. Employees may also have their own issued cards.
  • Cash-counting limits: Some banks impose limits on cash deposits without fees, which can impact businesses like restaurants or convenience stores more heavily.
  • Positive pay: Helps prevent fraudulent transactions by allowing businesses to submit check information. Any discrepancies can be viewed online, though this service typically incurs a fee and may extend to ACH transactions.
  • Bill pay: Facilitates online bill payments directly from the business checking account.
  • Remote deposit capture: Allows businesses to deposit checks electronically without visiting a bank branch.
  • Items: Some accounts limit the number of transactions per month, including checks, ACH transfers, debit card purchases, and ATM or teller withdrawals.

Before you open a business checking account, take these factors into consideration:

  • Minimum balance requirement
  • Monthly maintenance fee
  • Fees for cash counting
  • Additional fees
  • New account bonuses
  • Availability of free or discounted checks
  • Number of free items or transactions allowed
  • Proximity of bank branches to your business, especially if you frequently need cash or coin orders, or if you regularly deposit cash or coins.

Make sure you’re aware of the minimum balance requirements and associated fees. Look for an account that either doesn’t charge a monthly maintenance fee or offers an easy way to waive it. Some accounts allow you to avoid fees by maintaining a specified balance, while others provide alternative methods to waive fees. For example, Regions Bank waives its monthly service fee for customers who make $500 or more in purchases with their Regions Business CheckCard or business credit card.

As a small business owner, you juggle numerous responsibilities. Utilizing tools like Bankrate’s calculators can provide valuable assistance. Additionally, software solutions such as QuickBooks can streamline business operations and financial management tasks. These tools can help you maintain organized records and make informed decisions to support the growth and efficiency of your business.