One of the first things you’ll have to do when starting a small business is to open a checking account. As you begin to generate revenue and invoice customers, it’ll be important to keep your business income and expenses separate from your personal income and expenses.
Also, if you are taking out a small business loan or receiving a small business grant, you will need to have a business checking account to deposit the funds into. If you haven’t already, it may also be a good idea to speak with a small business accountant on what the best corporate structure will be for your business.
Choosing the right checking account can be a daunting task for a first-time entrepreneur. It can be difficult to navigate through the numerous account options, as they can vary in terms of fees, features, services, and policies. Below we will take a look at some of the major banks and what their accounts have to offer.
Bank of America is the largest bank in the US, and as such, it’s one of the first banks that anyone thinks of when opening a new account. Among other perks, many people choose BOA because they have reasonable fees and many physical locations. There are two options for business checking accounts, each with benefits to your business.
This small business checking account works well for new businesses or those that keep a low balance.
What It Offers:
You can avoid the monthly maintenance fee in the following ways:
Business Fundamentals Checking Pros:
Business Fundamentals Checking Cons:
This Business Advantage checking account will work well for those who spend over $2500 a month on their business cards or keep a higher average monthly balance. This account includes all of the features of the Business Fundamentals Checking, with a few additional premium benefits.
What It Offers:
The monthly maintenance fee can be avoided in the following ways:
All in all, Bank of America offers solid checking account products, and the fees can be avoided by spending or maintaining an appropriate balance.
Business Advantage Checking Pros:
Business Advantage Checking Cons:
Wells Fargo is another well-known bank with many physical locations around the United States. They offer three different small business checking accounts.
This plan is best for home-based or smaller businesses with low cash flow activity. It includes 50 transactions at no cost, and you can deposit up to $3,000 in cash without a charge. The minimum opening deposit is $25, and the monthly service fee is $10. You can avoid the fee by maintaining an average ledger balance of $500.
What It Offers:
Simple Business Checking Pros:
Simple Business Checking Cons:
In spite of the cons, this account is good for businesses that have low cash flow and just need a place to store cash. The monthly fee is easy to avoid, and the account is fairly straightforward.
This plan is Wells Fargo’s most popular choice for new or growing businesses. It allows up to 200 transactions and up to $7,500 in cash deposits at no cost. The minimum opening deposit is $25, and the monthly service fee is $14.
They offer three ways to avoid the service fee:
What It Offers:
Business Choice Checking Pros:
Business Choice Checking Cons:
Wells Fargo’s Platinum plan is great for an established business that is looking for premium relationship benefits. This plan offers up to 500 transactions and up to $20,000 in cash deposits with no fee. It also takes just $25 to open this account, and the monthly service fee is $40.
As with the other plans, you can avoid the monthly service fee in the following ways:
What It Offers:
Platinum Business Checking Pros:
Platinum Business Checking Cons:
Chase is another well-known bank that offers its small business clients a number of perks and physical branch locations. Chase has three different business checking account options, with Chase Total Business Checking being most suited for small businesses.
This account is designed for small and new businesses, and it requires $0 to open a new account. One advantage is that Chase offers $200 to new business checking customers with qualifying activities. This account has a $15 monthly service fee, which can be reduced to $12 if you enroll in paperless statements.
The monthly service fee can be avoided in the following ways:
What It Offers:
Chase Total Business Checking Pros:
Chase Total Business Checking Cons:
This option for a small business checking account includes the features of Chase Total Business and then some. If you are a small business that does a lot of transactions each month or has a high cash flow, this is a good option. This account costs $30 per month, but the service fee can be avoided by maintaining an average daily balance of $35,000 in qualifying business deposit accounts.
What It Offers:
Chase Performance Business Checking Pros:
Chase Performance Business Checking Cons:
This account is really for large businesses or small businesses that have a high enough cash flow to maintain the $100,000 balance needed to waive the $95 monthly fee. However, if you need more complex banking services, this account could be right for you.
What It Offers:
Chase Platinum Business Checking Pros:
Chase Platinum Business Checking Cons:
While Capital One is a very recognizable name in the world of banking, it does not offer physical locations like some of the other banks on our list. However, Capital One distinguishes itself from the others with unlimited free transactions. This bank offers mobile banking and online bill pay as well. Capital One offers two small business checking accounts. Which is right for you will depend on your banking needs.
The Basic Plan has a $15 monthly service fee that can be waived by maintaining a $2,000 minimum 30- or 90-day average balance.
What It Offers:
Spark Business Basic Checking Pros:
Spark Business Basic Checking Cons:
Capital One offers more features with this account. The monthly service fee is $35, but it can be waived with a $25,000 minimum 30- or 90-day average balance. This account is a good option for well-established and high-volume businesses.
What It Offers:
Spark Business Unlimited Checking Pros:
Spark Business Unlimited Checking Cons:
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 American Institute of Certified Public Accountants |  Florida Institute of Certified Public Accountants |
