Business checking accounts can make it easier to separate business spending from personal spending. If you run a small business, are self-employed or earn money as an independent contractor or gig worker, a business checking account is something you may need.
But which one is best for you? Just as with personal checking accounts, choosing a business bank account comes down to finding one that offers the right combination of features, benefits and cost.
What Should I Look for When Choosing a Business Bank Account?
What works for your business may not work for another and it’s important to remember that business checking accounts aren’t all alike. When comparing business bank accounts, including checking and savings accounts, there are several things to consider, including:
- Account features and services
- Interest rates for deposit accounts
- Service fees
- Branch banking and ATM access
- Daily, weekly and monthly transaction limits
- Introductory bonus offers
- Ease of integration
1. Account Features and Services
The first thing to look at when comparing business checking accounts is what’s included at a particular bank. For instance, some of the core features and benefits you may need to run your business include:
- Check-writing services
- Online and mobile banking access
- Bill payment services
- Wire transfer services
- Debit card access
- Safe deposit boxes
Beyond that, however, there may be additional services or features you’re interested in.
For example, if you need help with cash flow management you may want to open a business checking account at a bank that also offers those services. Or you may be interested in opening other business accounts—such as a savings account, money market account or certificate of deposit—and business retirement accounts.
Keeping all of your business accounts in one place could help you simplify the way you manage business finances. Looking at the full range of business banking services on tap can give you a better idea of how good a fit a particular bank may be.
2. Interest Rates for Deposit Accounts
If you’re interested in an interest-bearing business checking account or a business savings account, then it’s helpful to check the rates banks are paying for them.
This is particularly important when APYs are falling. Finding the business bank account with the best rate possible means your money has more opportunity to grow. Of course, it’s important to balance the interest rate you could earn on deposit accounts against the fees you might pay.
3. Service Fees
Business checking accounts can come with a variety of fees, just like personal checking accounts. Some of the most important fees to look for include:
- Monthly maintenance fees
- Minimum balance fees
- Wire transfer fees
- ATM fees and surcharges
- Overdraft fees
Between online banks and brick-and-mortar banks or credit unions, online banks…