Top Rated Free Business Checking Accounts [2019]
Opening a checking account is one of the first steps you should take when establishing your small business. Starting out is expensive, though, and the last thing you need is another fee to worry about on top of everything you’re already investing to pursue your entrepreneurial vision. There are a number of free accounts designed just for small business owners like you who prefer to avoid being charged for routine banking.
Typical Fees for Small Business Checking
On average, a checking account without any free options costs $8 to $12 per month in maintenance fees; some banks charge even more. This can add up to quite a bit in fees over the course of the year and seriously impact your bottom line if your business is still in the growth stages.
Banks also set limits on the number of transactions you can have per month before paying a fee, usually around 200. After this, you may pay up to $0.75 per transaction. If your business makes a lot of cash sales, the bank will likely set a cash handling limit and charge $0.20 to $0.30 for every $100 above the maximum.
On top of all this, there are fees for domestic and international wire transfers to consider. You can see why looking for a free checking account for your small business is a smart idea if you want to hold onto more of your profits!
Top Benefits of Free Business Checking
Of course, you could just deposit business assets into your personal account in an attempt to avoid fees altogether, but financial experts advise against this practice.
Why? When you have a business checking account, you:
- Set your company apart as its own entity
- Present a more professional image to customers and lenders
- Can easily separate expenses for more accurate bookkeeping and tax preparation
- Are less likely to make mistakes that get you in trouble with the IRS
- Keep your personal assets safe in the event your business is the target of legal action
- Can improve business credit and eligibility for loans
- Are able to process credit card payments
- Can add other signers to the account to delegate payment and accounting duties
Seeking a free checking option lets you access these benefits without the burden of monthly payments.
What is the Best Small Business Checking Account?
When comparing business checking providers, look at how much you get for free each month and any related qualifications or restrictions. The best account for your company is one where:
- Monthly balance minimums are in line with your income
- Transaction limits are high enough to allow for future increases in sales
- You’re not likely to exceed the limit for cash deposits
- You have easy access to mobile, online and physical banking options
- Banking services can integrate with your preferred business software
- Customer service is helpful and prompt
Here are a few top choices to consider when you’re ready to explore free small business checking account options:
- Axos Bank Basic Business Checking – Formerly the Bank of Internet, this all-online bank is perfect for small businesses dealing strictly in e-commerce or credit card transactions. You have to deposit at least $1,000 to open an account, but there are no maintenance fees, and you get 200 transactions per month, up to 60 remote deposits and nationwide ATM access for free.
- BBVA Compass ClearConnect for Business – You only need $100 to open an account with BBVA Compass, and there are no monthly fees or balance requirements. You get up to $5,000 per month in free cash processing and don’t have to pay for ATM withdrawals. Locations are scattered across states in the southern and southwestern U.S.
- Chase Total Business Checking – Chase waives monthly account fees for businesses with monthly balances of at least $1,500 and awards new signups with a $200 bonus. The first 100 transactions and $5,000 in cash deposits each month are free.
- Citizens Bank Clearly Better Business Checking – For businesses in New York and New Jersey, the fee-free business checking account from Citizens Bank provides an option requiring no minimum monthly balance and allows up to 200 free transactions per month.
- TD Business Convenience Checking Plus – You’ll find locations for TD business banking along the East Coast of the U.S. and in parts of Canada. The monthly fee is waived on balances of $1,500 or more per month, and you’re allowed to “bundle” a TD personal account with your business checking to meet this requirement. Each statement cycle, you get 500 transactions and up to $10,000 in cash deposits for free.
Need Services to Complement Your Free Business Checking Account?
It’s much easier to keep your finances in order when you don’t have banking fees to worry about, but as your business grows, it can be beneficial to outsource your accounting duties. National Business Capital and Services offers automated bookkeeping software and support from a dedicated accounting team to help you maintain accurate records.
With automated bookkeeping, you know at a glance the exact number of transactions you’ve had each month and how much money you have available. Use this information to budget for any fees you might incur for exceeding your checking account’s limitations or to shop around for an account with fewer restrictions so that you can keep growing your business without paying more than is necessary.
With 24/7 support from a staff of expert advisors, National is ready to get you on track so that you can focus on running your business.
Call (877) 482-3008 for a free consultation, or fill out a 1-minute application online to get the funds you need to start financing your growth, and decreasing costs in as little as 24 hours.
Megan Capobianco is the Marketing Manager at National Business Capital & Services. Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.