10 Top Free Business Checking Accounts

Once you start a business, it’s immensely crucial to manage your business transactions and keep every record of them. Many entrepreneurs don’t focus on it and thus pay the price later on.

Let us know how.

Imagine it’s the end of the first financial year of your business and you are excited to know whether you have crossed your financial projections or not.

You start estimating but after a while, as it happens you find yourself in bloodsucking chaos. Why?

As you were using your personal account for business purposes and hence now it’s frustrating to separate business and personal transactions.

This happens with many new entrepreneurs and the only solution is – a free business checking account.

As an entrepreneur, your responsibility is not to work for the most number of hours but to make complex processes simpler.

Thus by making things simpler, you save time that you can use to grow your business.

Nonetheless, a Business checking account makes your entrepreneurial journey a little easier in many ways.

How Does a Free Business Checking Account Make Your Journey Easy?

1. A free business checking account makes tax filing easy. Therefore, you can use your business checking account statement and note the expenditure and earnings.
2. It builds trust in your customers or suppliers when they do a transaction with a business account as your business doesn’t seem to be a hobby anymore.
3. When you open a free business checking account and your business is registered as an LLC or corporation then you get personal liability protection.

Keeping your business accounts separate safeguards personal assets.

When money realizes it is in good hands, it wants to stay and multiply in those hands

– Idowu Koyenikan

1. Bank of America

If your business deals with a lot of cash deposits then it would be ideal for you to sign up for a business checking account at Bank of America.

Here, you need to deposit $100 to open a business checking account.

Also, you will also get free access to 16,000+ ATMs across the United States. However, you will have to pay $2.5 per transaction if you use any third-party ATM.

Bank of America provides two kinds of accounts – Business advantage fundamental and Business advantage relationship.

Here are a few points you must consider before opening a Business advantage fundamental checking account –

• It allows you to make 200 free monthly transactions and afterward a small fee of 45 cents is deducted per transaction.
• The free cash deposit limit at Bank of America is $7500. If you exceed the limit, you will have to pay an additional 30 cents for every $100 statement cycle.
• You must maintain an average monthly balance of $5000 or use your debit card for payments of at least $250 to waive the $16 monthly charges.

Now let’s know what the Business advantage relationship

• The account offers at Bank of America –
• It allows you to make unlimited free transactions.
• You can deposit $20,000 in cash without any fees. Afterward, a 30-cent fee is applied for every $100 statement cycle.

A $29.95 monthly fee is charged which gets waived if you maintain an average monthly balance of $15,000.

2. Bluevine

Bluevine is an online business bank account, ideal for entrepreneurs who do not need a physical branch and are looking for a business loan.

Below listed are a few things you must know before opening a business checking account at Bluevine –

• Bluevine has no monthly or transaction fees which means you are free to operate your Business checking account the way you want.
• It is backed by Coastal Community Bank.
• Provides an annual interest of 1.50% only up to a $100k balance.
• To earn an annual interest, you should either make payments of $500 using your Bluevine debit card or receive $2500 every month.
• In order to deposit cheques, you will have to use Bluevine’s mobile app.
• To deposit cash you can go to the Green Dot retail location which charges $4.95 for every deposit.

3. Novo

Novo is an online platform providing banking services to business owners.

The best thing about Novo is that it refunds all the ATM fees including fees deducted by International ATMs.

Thus, if you think your business loses money as ATM fees, then you must read further to know what else Novo offers –

• Novo allows business owners to make unlimited transactions for free with no monthly fees being charged.
• It doesn’t offer interest on your balance.
• You won’t have to pay any cash deposit fees and no minimum deposit is required.
• To deposit cash, you will have to use the United States Postal service.

Balancing your money is the key to having enough

– Elizabeth Warren Amelia Warren Tyagi

4. Chase

Chase is one of the best small business checking accounts with zero opening deposits.

Remember only go for it if you own a small business as it has certain limits which are not healthy for large businesses. Let’s know what all it has –

• Chase offers only 20 free transactions and after that charges 40 cents per transaction.
• It also offers a $300 cash bonus.
• You can deposit up to $5000 per statement cycle for free and thereafter a fee of $2.50 is charged per $1000.
• Customers will also have to pay a fee of $2.50, excluding ATM operator charges, if they use any out-of-the-network ATM.

5. Mercury

Mercury provides everything that strengthens its nomination for being the provider of an online business checking account.

It is a completely online financial platform backed by Evolve Bank and Trust.

Let’s know what mercury offers –

• Mercury charges zero monthly fees and transaction fees. Moreover, no minimum deposit is required to open a Business Checking account.
• It doesn’t accept cash deposits so if you deal with a lot of cash, mercury might not be the ideal bank for you.
• If you spend more than $2000 using a Mercury debit card, you will get $200 as a reward.
• It allows free access to the AllPoint ATM network and no charges are levied for out-of-the-network ATMs except operator fees.

6. Axos Bank

Axos is yet another completely online platform providing one of the best business checking account services.

Here are the things Axos is known for –

• Axos Bank does not deduct the monthly service fee and no minimum deposit is required to open a Business Checking account.
• It offers free unlimited transactions and cash is deposited via Moneypass.
• The fee deducted at out-of-the-network domestic ATMs is refunded.
• For every International wire transfer, a fee of $50 is charged.

7. Brex

Brex offers one of the best Business checking accounts only for incorporated businesses.

It doesn’t provide a debit card but gives you a credit card with a lot of rewards. Also, you cannot deposit cash at Brex.

Let’s know what else Brex offers –

• Brex allows you to make unlimited monthly transactions for free.
• If you use its credit card, you will get cashback for almost every purchase.
• It is an online platform, therefore, no physical branches are available.
• Wire transfer, whether domestic or international, is entirely free.

8. NBKC

NBKC provides services in online mode but also has one physical branch in Kansas City, Missouri.

Let’s know what a business checking account at NBKC looks like –

• NBKC deducts no monthly fees and zero deposit is required for opening a business checking account.
• It allows you to make unlimited transactions for free.
• No fee is levied on the incoming domestic wire transfer.
• For outgoing wire transfers, a fee of $5 is levied whereas, for incoming international wire transfers, a fee of $45 is charged.
• You can deposit cash at any of the 34k+ Moneypass ATMs.
• If you use out-of-the-network ATMs, then you will be refunded up to $12 of the fees charged by ATMs.

9. Truist

SunTrust and BB&T Banks came together to form Truist’s simple Business checking account.

Truist is probably one of the best online business checking accounts for startups and sole proprietors.

In case you own a young startup or working as a sole proprietor, have a look at what it offers –

• There are no monthly charges at Truist thereby making it suitable for low-budget startups.
• You can make up to 50 free transactions for free and afterward an additional $0.50 is charged per transaction.
• Along with high-quality online services, you get access to 2500+ physical branches and 3500+ ATMs.
• Customers can deposit up to $2000 of cash for free and afterward an additional charge of $3 is levied for every $1000.

10. Iberia Bank

Iberia Bank’s free business checking account is ideal for entrepreneurs looking to have only one financial institution for all their banking needs.

If you open a business checking account at Iberia, you might also get 2 personal checking accounts for free. This is what makes Iberia best for new entrepreneurs.

However, an opening deposit of $25 is required to open a business checking account at Iberia.

Here’s more about what Iberia Bank Free Business Account offers –

• It provides up to 500 free transactions per statement cycle and allows free cash deposits of up to $10000 per statement cycle.
• You get free access to in-network ATMs but an additional fee of $2 is charged for using out-of-the-network ATMs.
• Customers also get access to around 200 physical branches in the southeastern U.S.

Things to Consider Before Opting for a Free Business Checking Account

There are a lot of options available to open a free business checking account. However, every business has different banking needs and therefore you must sign up with a bank that can fulfill your needs.

3 Things You Must Consider Before Opting for a Business Checking Account –

1. Limits on cash deposit: In case your business deals with a lot of cash on a daily basis you must look for a bank that allows huge cash deposits without any extra charges.
2. Transactions Limits: Many banks have a free transaction limit of 200 transactions per month which includes ATM deposits, teller deposits, and transactions through debit and credit cards. If you think this won’t meet your needs, you should go with a bank that provides more no. of free transactions.
3. Service charges: A lot of banks deduct monthly maintenance fees in order to let you use their services. You must ensure it before opening the business checking account.

What Do You Need to Open a Free Business Checking Account?

Now that you have decided which bank you would give a chance to serve your business, it’s time to know the things you need to open a free business checking account.

1. You first need a social security number if you are a sole proprietor or an employee identification number if you run a corporation, limited liability company, or partnership company.
2. A driving license, passport, or any government-issued ID is a must – goes without saying.
3. If you have registered your business as an LLC you must have a business license and Articles of Organization whereas, for corporations, an Article of Incorporation would work.
4. You must also have a partnership agreement if your business has other owners too.
5. The last thing you need, if your business is registered under a name different from your legal name, is a Doing Business as (DBA) certificate.

Can I Use a Personal Checking Account for Business?

Well, using a personal checking account for business transactions seems to be simple but in reality, as matter of fact – it causes a lot of headaches.

A business checking account helps you in monitoring the growth of your business.

Moreover, it also leaves a great impression on the people from whom you receive or sends money.

Can You Deposit a Check in a Business Checking Account?

Indeed, you can deposit the check in a business checking account. And as far as depositing is concerned, anyone can deposit a check but not everyone can cash out the cheque.

When Should You Get a Business Checking Account?

Do you need an answer in one word, it would be TODAY. Yes, don’t wait to hit that revenue goal for opening a business checking account.

In addition, a business checking account will make your processes smoother and will eventually help you reach your goals.

Bottom Line

A Business checking account has many use cases including ease in tax filing, getting loans, etc.

If you are still building a business without a business checking account, you are missing out on a lot of perks. Also, the credibility it adds to your business is something you need in the early days of your business.

Opening a business checking account is one of the most underrated and hence, underappreciated moves by an entrepreneur.

After opening a business checking account, you need to work on growing your business.