Get more than just a checking account — reach your financial goals with Nav. All while connecting you to the best financial tools that make a difference for your business.The only business checking account that connects your banking data to the best financial options for your business. How often you need to use a bank’s various services can impact which bank you choose. For example, some banks put limits on the number of deposits you can make into a business checking account each month. If you have a cash-heavy business and will need to make nightly or even weekly deposits, it’s important to check for these limitations. While every company will have slightly different needs when it comes to their business bank account, here are a few things all the best small business checking accounts have in common.
Limited liability companies (LLCs), sole proprietors, corporations and partnerships can all open business checking accounts. A business as small as a one-person consulting firm or as large as a 10,000-employee software company can set up a business checking account. Axos Business Interest Checking earns up to 1.01% APY on balances below $50,000, 0.20% APY on balances between $50,000 and $249,999.99 and 0.10% APY on all other balances.
On the list of things we don’t like, this account’s $50 monthly fee is at the top. And while it is waivable, the requirements to avoid it may be too high for small businesses. PNC Bank also requires some business owners to visit a branch to finish opening their accounts. It’s best to set aside 30 minutes to an hour to open a business bank account.
Business Payment Apps
Michael Sims, Market Executive at Georgia’s Own Credit Union, says a savings account is part of ensuring the business has surplus operating funds. Minimum deposit requirements, fees, and other terms and conditions are accurate as of November 7, 2024, and are subject to change. Abigail Rueger is a deputy editor on the banking team at Fortune Recommends.
- She previously wrote The Penny Hoarder’s syndicated “Dear Penny” personal finance advice column.
- Having a professional account may also mean securing better deals for your business, not the least of which is being approved for a business loan.
- You’ll also have free access to a massive ATM network and branch locations across the country.
- However, this service comes with a charge of 1.5% of the transaction amount.
But a good relationship with the bank could help you secure financing for your business. Having your business bank account and business loan in the same institution can also make it far easier to make payments and manage your accounts. As the name suggests, a high-yield business checking account usually offers a higher APY than a standard business checking account.
Tax Considerations for Small Businesses
But just like personal credit cards, it’s vital to use business credit cards wisely. Taking on high-interest debt can impact your company’s financial health. There is a $10 monthly maintenance fee for this account, but it’s waived if you keep a $500 average monthly balance. There are very few fees, and LendingClub partners with Autobooks for quick and easy digital invoicing and payments. You can also process unlimited transactions and get ATM fee rebates for out-of-network transactions.
While the business savings account has a very low interest rate, the credit union offers a solid personal savings option that earns up to 4.00% APY. While First Tech FCU offers the lowest interest rate of any business savings account on this list, it can still be a good choice for companies who want the benefits of credit union membership. These include lower loan rates, business insurance products, and other benefits.
How We Picked the Best Business Bank Accounts
Business checking accounts and personal checking accountsfunction similarly, except one is designed for businesses, and the other is meant for individuals. A business checking account helps you organize your business finances and may come with business tools, while a personal checking is used for your personal income and expenses. Whether you’re a sole proprietor or the owner of a business with employees, it’s critical to separate your business and personal finances. We’ve done the research to help you find the best business checking account for your small business. For small businesses with long-term savings goals, the bank’s business CDs earn anywhere from 3.62% to 4.42% APY.
Best for Unlimited Transactions + Large Balances
Every penny counts, and fees such as monthly maintenance fees or transaction fees can quickly eat into your profit margins. That’s why it’s important to understand costs, including the amount required to avoid monthly service fees, transaction fees, and a host of other fees mentioned below. The idea that your business checking account needs to be held at a local bank is fast becoming outdated. Some businesses may need a bank with a bricks and mortar location, but many do not. A checking account with a robust mobile app will fit many business owner’s needs, and will be available 24/7. That means you have more choices than you may what is average daily rate adr how is it used in the hotel industry realize, including many online banks.