Best Business Checking of

How we Chose the Best Business Checking Accounts

Often one of the first decisions a small business owner is tasked with is choosing the right business banking relationship—and it’s an important one.

A business checking account is essential for all businesses, including freelancers, limited liability companies (LLC), sole proprietors, partnerships and corporations. Having a separate business checking account draws a clear line between your personal and business finances, streamlines recordkeeping and makes things easier for accounting and filing taxes. A business checking account also helps protect your personal assets if your business is sued or targeted by debt collectors.

Whether you’re starting a new business or looking to level up an existing business, you’ve come to the right place. From the criteria we used to determine the best business checking accounts to frequently asked questions and advice from the pros, we’ll help you cut through the noise and make a well-informed decision.

Our Criteria

After exhaustive research, we’ve rounded up our picks for the best business checking accounts. But how did we get here? Keep reading for a look at the exact criteria we used to rank the companies featured on this page.

Fees & Benefits

First, we look at the various fees that are associated with a business checking account. Since business account fees can be higher than fees for personal accounts, this is an important factor in choosing the right account for your needs. Here’s what we look for:

• Monthly Maintenance Fees: Brick-and-mortar banks often charge this fee for standard business checking accounts, however it can usually be waived by maintaining a minimum account balance or meeting other criteria.
• Cash Processing Fees: Some banks may assess a fee for making cash deposits, breaking larger bills into smaller bills or buying coins. If your business accepts cash payments, this is something to consider.
• Transaction Fees: Banks can limit how many transactions you make on a monthly basis, however this is more typical with brick-and-mortar banks than online banks. To avoid these fees, you’ll want to opt for a bank that offers unlimited monthly transactions.
• ATM Fees: This type of fee would apply if you need to use an ATM that is not in your bank’s network, for instance while traveling.

In addition to fees, we also look for unique benefits associated with the business checking account. Here are some common benefits that banks employ to sweeten the deal for new account holders:

• Introductory Offers: Many banks will offer a cash welcome bonus, statement credits or other incentives for new accounts, but it’s good to know that these are usually dependent on meeting specific qualifying criteria.
• Free or Discounted Checks: If you’ll need access to checks for paying vendors and contractors, look for a bank that not only offers this option, but gives free or discounted checks to new account holders. Brick-and-mortar banks are a go-to for checkbooks, but some online banks offer them as well. 
• Cash Back: Some accounts offer cash back on debit card spending; this is a great way to save money on startup costs and ongoing supplies for your business.
• Interest Rates: As an additional bonus, some banks offer a competitive interest rate for business checking accounts. This incentivizes you to maintain a minimum account balance or meet other criteria in order to earn free money on the cash you keep in your account.

Digital Features

Solid digital features are a must for today’s business bank accounts. From an easy-to-use app and online experience, to automated bill pay features and intuitive account monitoring and reporting tools, up-to-date tech is essential for efficiently managing the financial side of your business. 

Practical Features

This might be the less flashy side of a business checking account, but we promise—it’s just as important as the rest. Here are some of the practical features we look for when ranking the best business checking accounts:

• Accessibility: While many people bank online for a lot of transactions these days, it’s important to know whether a bank’s accessibility will work for you. For instance, if your business accepts cash, be sure there are convenient ATM locations and an easy way to make cash deposits and buy change as needed—preferably with no fee. In the past, this would require a brick-and-mortar bank, however some online banks also allow for fee-free cash deposits as well.
• Overdraft Protection: This feature can save you in a pinch, providing protection if your business checking account becomes overdrawn. Some banks charge a fee of up to $35 or more for this, while others charge a much lower fee, or no fee at all.
• Security: As hackers and scammers become more intelligent, extra security measures become more of a necessity for business checking accounts—specially if you’re leaning more toward an online business checking account over a traditional brick-and-mortar bank account. You’ll want to be sure there are extra measures in place like robust fraud protection and two-factor authentication.

Other Considerations

There are a few final considerations to make when selecting the right checking account for your business:

• FDIC Insured: As a rule, your business checking account should be insured by the Federal Deposit Insurance Corporation (FDIC), or if it’s a credit union, the National Credit Union Administration (NCUA). This ensures that if the bank holding your money fails for any reason, your funds (generally up to $250,000) are protected. Some banks even offer higher FDIC insurance coverage (for amounts in excess of $250,000) through Insured Cash Sweep networks. Do not use a bank that’s not insured by one of these two agencies.

• Customer Service: For online banks, be sure they offer around-the-clock customer service and a variety of contact methods, such as phone, email and/or online chat. Favor banks that are easy to get in touch with and prioritize the satisfaction of their customers. Some banks even offer dedicated specialists or customer service reps to ensure your needs and concerns are always addressed by a knowledgeable staff member.

• Scalability: For those wishing to start out solely with a business checking account, we encourage you to think about your future needs, and whether your bank of choice will be able to meet them. For instance, do they offer business credit cards or lines of credit? Is there an option for taking out a business loan at this bank? Do they offer integration with accounting and payroll software to make your life easier as your business grows?
• Reputation & Trustworthiness: Assessing each bank’s reputation and trustworthiness through a thorough examination of their ratings with the Better Business Bureau (BBB) and customer reviews on third-party platforms is a critical move. This gives peace of mind that the bank’s policies and values align with your own, so you can feel confident in your decision.

Disclaimer

Found
Found is a financial technology company, not a bank. Business banking services are provided by Piermont Bank, Member FDIC.